Record-Shattering Flows Into Stock ETFs Leave Bond Funds in Dust


Article content continued

About 95% of stock funds posted gains last month, with around two-thirds of them beating the S&P 500.

The clear winner from the renewed appetite has been Vanguard Group thanks to its line-up of low-cost products. The $189 billion Vanguard Total Stock Market ETF (VTI) has seen the most inflows this year at $27.2 billion, followed by the $177 billion Vanguard S&P 500 ETF (VOO), which has absorbed $26.7 billion.

They may have been overtaken for flows, but it remains a banner year for fixed-income ETFs.

After a violent selloff created a liquidity crunch across bond markets, the Federal Reserve announced in March that it would buy ETFs for the first time. Billions poured into credit funds in the aftermath, curing deep discounts and putting them on track for a record 12 months.

The Fed has only purchased about $8.7 billion worth of corporate bond ETFs in total, but the central bank’s presence has been enough to give the products a stamp of approval. BlackRock Inc.’s $58.6 billion iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) has attracted $18.3 billion so far this year, putting it in third place behind VTI and VOO.

Total assets in U.S. bond ETFs stand at roughly $1.1 trillion, while their stock counterparts hold $4 trillion. If the equity rally gains further steam, that gap could grow even bigger.

“Flows follow performance,” said Dan Suzuki, deputy chief investment officer at Richard Bernstein Advisors. “Investor confidence over the past couple months has also benefited greatly from positive vaccine news.”

©2020 Bloomberg L.P.

Bloomberg.com



Source link

Dow Jones Futures Signal Stock Market Rally; Tesla, Nio, Xpeng, Moderna, Zoom Are Notable Movers


Dow Jones futures jumped Tuesday morning, along with S&P 500 futures and Nasdaq futures, on continued coronavirus vaccine optimism and strong China manufacturing data. Apple (AAPL), Tesla (TSLA), Nio, Xpeng Motors and Moderna stock were rallying before the open, while Zoom Video Communications (ZM) retreated.




X



The stock market rally lost ground Monday but came off lows, especially the Nasdaq, fueled by gains in Apple (AAPL), Moderna (MRNA) and AMD stock. In Monday’s session, Apple stock flashed an early buy signal, while Advanced Micro Devices (AMD) broke out. Apple chipmaker Qorvo (QRVO) also cleared a buy point.

Tesla, Nio Early Movers

The S&P 500 index will add Tesla stock in one fell swoop before Dec. 21, S&P Dow Jones Indices announced late Monday. Meanwhile, China rivals Nio (NIO) and Xpeng Motors (XPEV) reported November deliveries early Tuesday. Moderna just kept soaring.

On the downside, Zoom Video, the ultimate coronavirus play, reported better-than-expected results and upside guidance. But Zoom Video stock fell solidly before the open

Tesla and Zoom Video stock are two of the biggest 2020 winners, up 578% and 603%, respectively as of Monday’s close. But MRNA stock is 681% year to to date. Nio stock is up a 1,157% so far in 2020. Recent IPO Xpeng stock is up just 291%, though it tripled in November alone.

Apple stock, the ultimate megacap, rose before the open after closing right at an aggressive entry.

On Monday, Chinese stocks struggled on a variety of factors, including a looming House vote on legislation that could lead to delistings from U.S. markets. Fraud allegations vs. EV maker Kandi Technologies (KNDI) didn’t help. E-commerce giants JD.com (JD), Pinduoduo (PDD) and Alibaba (BABA) suffered significant losses. Tesla electric car rivals Nio, Xpeng and Li Auto (LI) also retreated.

JD.com stock, Pinduoduo, AMD and Tesla are on IBD Leaderboard. Apple stock is on the Leaderboard watchlist. AMD and Tesla stock are on SwingTrader. AMD stock is on the IBD 50.

Dow Jones Futures Today

Dow Jones futures rose 1.15% vs. fair value. S&P 500 futures climbed 1.1%. Nasdaq 100 futures advanced 1%. Apple stock gave a lift to the Dow Jones, S&P 500 and Nasdaq.

Caixin’s China manufacturing index rose 1.3 points in November to 54.9, the highest in 10 years. That comes a day after the official China manufacturing gauge hit a three-year high.

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.


Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live.


Coronavirus News

Coronavirus cases worldwide reached 63.70 million. Covid-19 deaths topped 1.47 million.

Coronavirus cases in the U.S. have hit 13.92 million, with deaths above 274,000.

The Moderna coronavirus vaccine is 94.1% effective, the biotech said early Monday. Notably, it’s 100% effective in preventing serious Covid-19 cases. Moderna (MRNA) filed for FDA approval, a few days after Pfizer (PFE)] and BioNTech (BNTX) filed with the FDA for their 95%-effective coronavirus vaccine.

Moderna stock spiked 20% Monday, capping a 126% explosion in November. MRNA stock kept soaring, tacking on 10% early Tuesday.

Stock Market Rally

U.S. Stock Market Today Overview

IndexSymbolPriceGain/Loss% Change
Dow Jones(0DJIA)29643.97-266.40-0.89
S&P 500(0S&P5)3621.82-16.53-0.45
Nasdaq(0NDQC )12198.74-7.11-0.06
Russell 2000 (IWM)181.30-3.07-1.67
IBD 50 (FFTY)39.50+0.18+0.46
Last Update: 4:22 PM ET 11/30/2020

The stock market rally had a down day, but the Nasdaq was resilient while leading stocks did well overall.

The Dow Jones Industrial Average lost 0.9% in Monday’s stock market trading. The S&P 500 index sank 0.5%. The Nasdaq composite lost just a fraction, after falling more than 1% intraday.

For the month, the Dow Jones soared 11.9%, the S&P 500 10.8% and the Nasdaq 11.8%.

Some highflying IPOs came under pressure Monday, though they generally closed with modest losses or even reversed higher.

Growth stocks overall fared well. Among the best ETFs, the Innovator IBD 50 ETF (FFTY) rose 0.5%. The iShares Expanded Tech-Software Sector ETF (IGV) climbed 0.45%. The VanEck Vectors Semiconductor ETF (SMH) popped 1.1%, with AMD stock a notable contributor.

Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.

Zoom Video Earnings

Zoom Video earnings shot up 1,000% to 99 cents a share, with revenue up 366.5% to $777.19 million. Analysts expected Zoom Video earnings of 76 cents on revenue of $693.4 million.

The videoconferencing leader guided higher for Q4 and for 2021.

However, Zoom Video stock fell 7% in premarket action. Shares rose 1.4% to 478.36 on Monday, reclaiming the 50-day line.

AMD Stock

AMD stock jumped 6.3% to 92.66 in heavy volume Monday, blasting above an 88.82 buy point from a double-bottom base. CEO Lisa Su said during a Credit Suisse conference on Monday that AMD sees Q1 sales trending “a little bit better” than normal seasonality, suggesting some upside.

Qorvo Stock

Qorvo stock rose 4.4% to 156.68, clearing the 154.53 buy point from a three-weeks-tight pattern. The chipmaker is benefiting from momentum in 5G wireless, including the new Apple iPhone. Qorvo was an IBD Stock Of The Day last week.

Qualcomm (QCOM), another 5G and Apple chipmaker, rose 2.3% to 147.17, working on a four-weeks-tight entry with an official buy point of 153.43, according to MarketSmith analysis. Qualcomm stock was Monday’s Stock Of The Day.

Apple Stock

Giving a boost to Qualcomm and Qorvo stock, Apple stock rose 2.1% to 119.05, though it backed off an intraday high of 120.97.

Loop Capital upgraded Apple to a buy with a 131 price target, expecting upside to iPhone sales and other products and services. Morgan Stanley tapped the iPhone maker as a strong 5G play.

Shares are rebounding from their 50-day moving average. The official buy point is 138.08, with early entries of 125.49 and 122.09. Apple stock did cross a trend line starting from the Oct. 13 high, essentially closing right on that line.

An aggressive investor could start an AAPL stock position here, then perhaps add more shares as it clears the 122.09 and 125.49 levels and finally the 138.08 buy point.

Apple stock has slightly lagged the broader market for the past few months. If the tech giant can wake up, it would add real momentum to the major indexes.

Apple stock rose 2% before the open.

Tesla Stock Jumps On S&P 500 Update

Tesla stock rose 5% overnight on the S&P Dow Jones Indices’ decision to add the EV maker to the S&P 500 index in one go. Because of Tesla’s huge market cap, the committee had mulled splitting the stock’s entry into two tranches.

Tesla stock has skyrocketed since the announcement that Tesla will join the S&P 500 before the open on Dec. 21.

Meanwhile, Tesla got China’s official green light on Monday to sell the Model Y from its Shanghai plant, as expected.

Tesla stock briefly rose to a new high of 607.80 soon after Monday’s open before reversing for a 3.1% decline to 567.30.

Nio, Xpeng Deliveries

Nio delivered 5,291 electric vehicles in November, up 109% vs. a year earlier. That includes 2,386 ES6s, 1,387 ES8s and 1,518 EC6s. The recently launched EC6 crossover will compete with the Tesla Model Y when that launches.

Xpeng delivered 4,224 electric vehicles, up 342% vs. a year earlier. That includes 2,732 P7 sedans, which competes with the Tesla Model 3. Xpeng also sold 1,492 G3s, its small SUV.

Li Auto will likely release November delivery figures in the next few days.

Goldman Sachs raised its price targets on Nio and Li Auto stock for good measure.

Overall China EV production and sales, including Tesla figures will probably come next week.

Nio stock rose 3% early Tuesday. Xpeng rallied 7% and Li Auto stock 10%.

On Monday, Nio sank 6.4% while Li Auto and Xpeng stock lost nearly 9% on a bad day for U.S.-listed Chinese stocks.

Kandi Technologies tumbled 28% after short-seller Hindenburg Research accused the Chinese EV maker of fraudulent sales.

Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.

YOU MAY ALSO LIKE:

Why This IBD Tool Simplifies The Search For Top Stocks

Best Growth Stocks To Buy And Watch

IBD Digital: Unlock IBD’s Premium Stock Lists, Tools And Analysis Today





Source link

Asian manufacturing boom offers hope for swifter global recovery from Covid | Stock markets


Hopes that the world will bounce back from the ravages of coronavirus in the new year have been buoyed by strong growth in output from Asia’s huge manufacturing centres, led by an accelerating post-pandemic boom in China.

China’s factory activity expanded at the fastest pace in a decade in November, a closely watched survey showed on Tuesday, in the latest sign that the world’s second-largest economy is recovering to pre-pandemic levels.

China’s Caixin/Markit manufacturing purchasing managers’ Index (PMI) rose to 54.9 from October’s 53.6, marking the highest level since November 2010. The gauge stayed well above the 50-level – which separates growth from contraction – for the seventh consecutive month.

A steady recovery in global demand also helped Japan’s factory activity move a notch closer to stabilisation in November, while in South Korea the same metric grew at the fastest pace in nearly a decade.

The final au Jibun Bank Japan Manufacturing PMI hit 49.0 in November, up from the previous month’s 48.7, and South Korea’s IHS Markit PMI rose to 52.9 in November.
Factory activity also grew in Taiwan and Indonesia, a sign the pick-up in Chinese demand was underpinning the region’s economy.

The strong showing of the region’s factories, allied to widespread optimism about the potential positive impact of Covid-19 vaccination programs in developed countries, also helped to boost stock markets fresh from the best November for 19 years.

MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.26% on Tuesday after closing the month 9% higher. Japan’s Nikkei was 0.9% higher on Tuesday while the Kospi index was up 1.4% in Seoul. China’s blue-chip CSI300 index was 0.72% higher on Tuesday,

In Australia, the central bank held rates at near-zero amid signs the country’s easy monetary and fiscal policies have helped it weather the pandemic.

Figures released on Tuesday showed that house prices, one of Australia’s favourite economic indicators, have begun to rise again, bringing the promise of greater consumer confidence and more building work. The benchmark ASX200 index was up more than 1%.

“We’ve seen clearly a huge wave of liquidity coming to equities in response to the vaccine news and in response to US election news,” said Hamish Tadgell, a portfolio manager at SG Hiscock & Company.

“But there are still risks, and as a result we could see the market pull back, I think, particularly as we come into sort of the Christmas period.”

Capital Economics said that the boom in China could fade a little in the coming months, but it was expected that the government in Beijing would continue to offer plenty of policy stimulus while strong global demand for Chinese-made consumer goods also provided a good impetus.

“In the near term, we think supportive fiscal policy and strong foreign demand should keep industrial growth robust,” said China economist Julian Evans-Pritchard in a note on Tuesday. “The economy is likely to remain above-trend in the coming months.

Although Wall Street closed weaker on Monday as investors cashed in their November gains, the S&P500 looks set to start Tuesday up by 0.8%. In London the FTSE100 is expected to open up 0.56% at the bell after its best month since 1989.

“There was profit taking around the world so we ended a record month with a whimper not a bang, and you know, taking a little bit of a breather,” said Interactive Brokers chief strategist Steve Sosnick.

“I think that markets are pricing in, if not fully pricing a recovery, they are pricing in the vast majority of it [and] it’s very hard to meet these elevated expectations.”

The US dollar was under pressure on Tuesday, after closing out its worst month since July with a little bounce and as investors anticipated that the US Federal Reserve would have to produce yet more monetary easing.

Oil prices were slightly lower on uncertainty about whether the world’s major oil producers would agree to extend deep output cuts at talks this week. Brent crude futures were largely unchanged at $47.86.



Source link

Dow Jones Slides Amid Moderna Coronavirus Vaccine News; Tesla Stock Jumps To New High


The Dow Jones Industrial Average briefly tumbled more than 400 points amid Moderna coronavirus vaccine news early Monday, as Tesla stock raced to another all-time high before reversing sharply lower. Nikola plunged as much as 27% after announcing a new, more limited deal with General Motors.




X



Among the Dow Jones leaders, Apple (AAPL) rose 1.2%, while Microsoft (MSFT) moved down 1.5% in today’s stock market. Meanwhile, Visa (V) is holding just above a new buy point.

Tesla (TSLA) advanced 3.5% to hit another all-time high before reversing sharply lower Monday morning. Nikola (NKLA) plunged 27% on a more limited deal with General Motors (GM).

Moderna (MRNA) surged 17% after final-phase testing confirmed its coronavirus vaccine is 94.1% effective at blocking Covid-19.

Stocks in or near buy zones in the stock market rally are Advanced Micro Devices (AMD) and Chipotle Mexican Grill (CMG).

Chipotle, Microsoft and Tesla are IBD Leaderboard stocks, while Apple is on the Leaderboard Watchlist. AMD was Friday’s IBD Stock Of The Day.

Dow Jones Today: Moderna Coronavirus Vaccine

On Monday, the Dow Jones Industrial Average fell 1.3%, while the S&P 500 lost 0.9%. The tech-heavy Nasdaq composite slid 0.75% in midday trade.

The Moderna coronavirus vaccine is 94.1% effective, according to a final analysis of late-stage testing. Notably, the vaccine was 100% effective at preventing severe Covid cases. Moderna will file for emergency FDA approval on Monday, the biotech said.

Moderna stock surged 17% in morning trade.

U.S. Stock Market Today Overview

IndexSymbolPriceGain/Loss% Change
Dow Jones(0DJIA)29593.57-316.80-1.06
S&P 500(0S&P5)3611.82-26.53-0.73
Nasdaq(0NDQC )12113.72-92.13-0.75
Russell 2000 (IWM)181.99-2.38-1.29
IBD 50 (FFTY)39.03-0.29-0.74
Last Update: 11:12 AM ET 11/30/2020

Among exchange traded funds, Innovator IBD 50 (FFTY) descended 0.75% Monday. The Nasdaq 100-linked Invesco QQQ Trust ETF (QQQ) was down 0.75%. Meanwhile, the SPDR S&P 500 ETF (SPY) dropped 0.75%.

Amid the coronavirus stock market rally, the tech-heavy Nasdaq is up 36.0% for the year through Friday’s close. Meanwhile, the S&P 500 is up 12.6%, while the DJIA is up 4.8% year to date, through the Nov. 27 close.

Coronavirus Updates

According to the Worldometer data tracker, the cumulative number of confirmed coronavirus cases in the U.S. topped 13.7 million on Monday. Total virus-related deaths rose past 273,000.

The cumulative total of worldwide Covid-19 cases confirmed since the start of the outbreak topped 63.1 million Monday, with more than 1.46 million virus-related deaths.

Coronavirus Stock Market Rally

November became a key month for the stock market, after IBD’s The Big Picture noted the market had returned to a new uptrend following a bullish follow-through day on Nov. 4.

Friday’s Big Picture commented, “With the Nasdaq back at record highs, investors should have more confidence in the current stock market rally. However, many stock leaders are getting sharply extended from their correct buy points.”

Investors should continue to use the stock market’s strength to buy breakouts. Start slowly with new purchases and see how they perform. If they work, then add more exposure. But if breakouts start to fail, then you can back away.

In particular, focus on stocks with strong relative strength. Find them by using the relative strength line. The RS line measures a stock’s price performance vs. the S&P 500. If the stock is outperforming the broader market, then the RS line angles upward. If a stock is performing worse than the broad market, then the line will point lower.

Stocks to watch include IBD Long-Term Leaders, companies with stable earnings growth and price performance. Fair Isaac (FICO) is the most recent addition to the list, added on Nov. 13. Shares are extended after they cleared resistance around 450.


Stock Market ETF Strategy And How To Invest


Dow Jones Stocks: Visa’s New Buy Point

Dow Jones stock Visa is trading just above a 208.07 buy point in a double-bottom base, according to MarketSmith chart analysis. Shares fell 1.5% Monday morning and are just below the entry.

The top payment processor retailer is the No. 10-performing stock on the Dow Jones Industrial Average, advancing 12.3% year to date.

Stocks In Or Near Buy Zones: AMD, Chipotle

Friday’s IBD Stock Of The Day, Advanced Micro Devices, briefly broke out above an 88.82 buy point in a double bottom, according to MarketSmith chart analysis. Shares rallied nearly 3% Monday morning before slashing gains to 1%. A potential handle entry offered a slightly lower buy point, at 87.15.

According to IBD Stock Checkup, AMD stock boasts a perfect 99 IBD Composite Rating. The Composite Rating — an easy way to identify top growth stocks — is a blend of key fundamental and technical metrics to help investors gauge a stock’s strengths.

Chipotle Mexican Grill is approaching a 1,346.10 buy point in a double bottom with handle Monday. Shares lost over 1.5% in morning trade.

According to IBD Leaderboard analysis, “Chipotle’s current buy point coincides with a three-weeks-tight pattern that flopped a while back. The new base is second stage. The RS line had made new highs before the stock did, but now is trending downward.”


IBD Live: A New Tool For Daily Stock Market Analysis


Tesla Stock Hits All-Time High

IBD Leaderboard stock Tesla set more all-time highs Monday morning with a 3.5% advance. But shares reversing lower to fall over 1% in morning trade. Tesla stock jumped 19.6% last week, after the company received approval to begin selling Shanghai-made Model Y vehicles in China.

On Nov. 18, shares broke out above a 466 buy point in an awkward cup with handle and are already nearly 30% from the buy point. On Monday, Tesla stock set a record high at 607.80 Monday morning.

Nikola’s New Deal With GM

On Monday, Nikola signed a nonbinding Memorandum of Understanding with General Motors for a global supply agreement related to the integration of GM’s Hydrotec fuel-cell system into Nikola’s commercial semi-trucks.

The new deal replaces the transaction announced on Sept. 8, 2020 and does not include a GM equity stake in Nikola.

Nikola stock plunged 27% in morning trade, adding to Friday’s 7.6% decline. Shares are more than 75% off their 52-week high.

Dow Jones Leaders: Apple, Microsoft

Among the top Dow Jones stocks, Apple gained 1.2% Monday, on pace to add extend a win streak to four sessions. Shares are moving further above their 50-day line.

Apple stock continues to trace a new base with a 138.08 buy point. An early entry exists at 125.49. But the top Dow Jones stock is starting to show signs of significant weakness with a lagging relative strength line.

The blue-chip giant is the No. 1-performing Dow Jones stock for 2020, with a 58.8% advance through Friday.

Software giant Microsoft moved down 1.5% Monday. Shares are testing the 50-day support level.

Year to date, Microsoft is one of the top Dow Jones stocks, advancing 36.5% through the Nov. 27 close.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.

YOU MAY ALSO LIKE:

Top Growth Stocks To Buy And Watch

IBD’s ETF Stock Market Strategy

IBD’s Long-Term Leaders

Get Full Access To IBD Stock Lists And Ratings

Looking For The Next Big Stock Market Winners? Start With These 3 Steps





Source link

Stock Market Rally Flashes Mixed Signals; Why Apple Stock, Nio, Zoom Video Are Important| Investor’s Business Daily


Dow Jones futures will not begin trading until Sunday evening, along with S&P 500 futures and Nasdaq futures. The stock market rally had a strong week, with the Dow Jones and Nasdaq composite both hitting record highs. But there is a disconnect between the robust, secure action in the major indexes vs. some more speculative names and high bullish sentiment.




X



Apple (AAPL), CrowdStrike (CRWD), Nio (NIO) and Zoom Video Communications (ZM) are four stocks to watch this week.

CrowdStrike and Zoom Video stock report earnings this week, while Tesla (TSLA) rival Nio will likely report monthly deliveries. Apple stock is simply the ultimate megacap, with a valuation of $1.98 trillion.

Broader Stock Market Impact

All four are important in their own right, but they also have a broader stock market impact.

Zoom Video earnings and guidance on Monday night, and ZM stock reaction, will be key as looming coronavirus vaccines loom over stay-at-home stocks.

CrowdStrike stock is perhaps the top cybersecurity play right now. But it’ll share the spotlight Wednesday night with two other leading security software names: Zscaler (ZS) and Okta (OKTA). All have cleared early entries. Their results and guidance will be important for the cybersecurity group and cloud software broadly.

Nio stock is the biggest of the Chinese electric car startups. Can Nio can continue to show strong month-to-month growth, satisfying lofty investor expectations? Is there room for all the hot EV stocks to keep growing fast in China? Xpeng Motors and Li Auto (LI), both 2020 IPOs, also may release monthly deliveries next week, along with the more-established BYD Co. (BYDDF). Industrywide data, including Tesla production and deliveries, will likely be released the following week.

Apple stock could move markets, especially if other slumbering megacaps like Microsoft (MSFT) and Amazon.com (AMZN) follow suit. A revived Apple also could buoy leading iPhone chipmakers Qorvo (QRVO) and Qualcomm (QCOM), both of which are near buy points.

Tesla stock is on IBD Leaderboard. Apple stock is on the Leaderboard watchlist. CrowdStrike stock is on SwingTrader.

Dow Jones Futures Today

Dow Jones futures will reopen at 6 p.m. ET on Sunday. So will S&P 500 futures and Nasdaq 100 futures.

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.


Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live.


Coronavirus News

Coronavirus cases worldwide reached 62.54 million. Covid-19 deaths topped 1.45 million.

Confirmed coronavirus cases in the U.S. have hit 13.60 million, with deaths above 272,000.

However, actual U.S. Covid-19 infections reached 52.9 million at the end of September and could be nearly 100 million now, according to a model developed by the Centers for Disease Control and Prevention. The model assumes most coronavirus cases are mild or asymptomatic and are never tested.

Los Angeles County announced a new stay-at-home order Friday as coronavirus cases soar in the nation’s most populous county. The three-week order, starting Monday, bans most gatherings and limits capacity in retail stores and other non-essential businesses to 20% occupancy.

Meanwhile, the U.K. reportedly will OK the Pfizer (PFE) and BioNTech (BNTX) coronavirus vaccine in a few days, with the first vaccinations by Dec. 7. The FDA is expected to approve the Pfizer-BioNTech vaccine by mid-December, with the Moderna (MRNA) coronavirus vaccine also winning approval around that time. The European Union expects to OK vaccines by year-end.

The U.K. and EU may OK the AstraZeneca (AZN) coronavirus vaccine before year-end, but the U.S. may be weeks later.

Stock Market Rally Last Week

U.S. Stock Market Today Overview

IndexSymbolPriceGain/Loss% Change
Dow Jones(0DJIA)29910.37+37.90+0.13
S&P 500(0S&P5)3638.35+8.70+0.24
Nasdaq(0NDQC )12205.85+111.45+0.92
Russell 2000 (IWM)184.42+0.83+0.45
IBD 50 (FFTY)39.32+0.59+1.52
Last Update: 1:24 PM ET 11/27/2020

The stock market rally had a strong week, with the Dow Jones and Nasdaq composite both hitting record highs and the S&P 500 index on the cusp of all-time levels.

The Dow Jones Industrial Average rose 2.2% in last week’s stock market trading. The S&P 500 index climbed 2.3%. The Nasdaq composite gained nearly 3%.

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) boasted a 2.6% advance last week. The iShares Expanded Tech-Software Sector ETF (IGV) rose 2.85%. The VanEck Vectors Semiconductor ETF (SMH) climbed 3.2%. The Renaissance IPO ETF (IPO) surged 10.1%.

Zoom Video Stock

Zoom Video stock jumped 7.3% last week after an 8.9% rally in the prior week. On Friday, shares broke a rather-steep downtrend, but closing just below its 50-day line. A move above the 50-day would offer a buying opportunity, but not until after Zoom Video earnings Monday night.

Guidance, and any comments about a post-coronavirus world, will be key. It’ll also may move other pure stay-at-home plays such as Peloton (PTON) as well as cloud software names generally.

CrowdStrike Stock

CrowdStrike stock climbed 3.5% last week to 150.83. It’s close to an official 154 buy point. It already triggered an early entry on Nov. 19, when CRWD stock rebounded from its 50-day line and broke above its 50-day line. It cleared another entry at 144.39. CrowdStrike earnings are due Wednesday night, along with Zscaler and Okta, which are also above early entries.

Nio Stock

Nio is likely to report monthly delivery figures late next week. For the past few months, Nio has released monthly figures on the second or third day of the following month. Production and deliveries have been rising dramatically. That’s also true for Xpeng Motors and Li Auto, thought starting from a lower base. BYD is among the very largest EV makers in China.

Investors are betting the Nio growth will remain strong. Nio stock has surged 247% since its late October breakout and a whopping 1,551% since May 22. Xpeng and Li Auto stock are up 327% and 243%, respectively, from their late summer IPO prices.

In early 2021, Tesla will begin deliveries of the made-in-China Model Y, with the VW ID.4 coming out at about the same time. EV production in China is set to skyrocket.

Nio stock is 8.9% above its 10-day line. So while a pullback, even to the 50-day line, wouldn’t be a surprise, Nio isn’t flashing extreme risks of a near-term retreat that new IPOs Corsair Gaming (CRSR) and Palantir (PLTR) did last week. Xpeng stock is up 18% from its 10-day line and Li Auto just 3.9%.

Tesla stock is up 17.8% from its 10-day line. That’s not extreme. Also, it comes shortly after a powerful breakout, when hot stocks often can be bolt from moving averages without raising concerns for a while.

Apple Stock

Apple stock actually fell 0.6% last week, though it pared losses and moved back above its 50-day line after tumbling 3% on Monday. The relative strength line for Apple stock has been drifting lower for a few months, much like Amazon and Microsoft. These megacaps are entitled to take a rest after a long run of outperformance. That could continue for some time.

Apple stock rising would provide a further lift to the market rally. It would be a good sign for Apple iPhone chipmakers such as Qorvo and Qualcomm stock. Both offer tight entries.

Stock Market Outlook

Judging by the major indexes and many leading stocks, the expectation would be for the stock market rally to continue higher. After a few weeks of sector rotation, the gains were broad-based, with stay-at-home stocks like Zoom Video rebounding while real economy names such as Boeing (BA), Caterpillar (CAT) and JPMorgan Chase (JPM) kept advancing. Yet the major indexes are just clearing consolidations going back to early September.

But by some measures, the market is getting excessively bullish. The bulls vs. bears reading, measuring investment newsletter writers’ sentiment, shot up to 64.6%, the highest since January 2018. Readings over 60% often signal at least a short-term top is underway. Meanwhile, the action in some new IPOs, as well as electric car stocks (some overlap with Li Auto and Xpeng stock), also suggest a bit of speculative mania. That can continue for a lengthy period, but it does add to the risks.

If Apple stock and other megacaps gained momentum, that would fuel further market gains and bullish sentiment, perhaps hastening a pullback. So in the current climate, perhaps the stock market rally needs lukewarm action from tech giants to keep from overheating.

What You Should Do Now

As always, you should analyze your stocks, with a special emphasis on your winners. How extended are they from moving averages. You may want to consider partial profits on stocks that have been going nearly vertical for some time.

There aren’t a lot of good-looking setups right now, with some of the promising-looking stocks ready to report earnings, like CrowdStrike stock. So cast a wide net for your watchlists.

Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.

Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.

YOU MAY ALSO LIKE:

Why This IBD Tool Simplifies The Search For Top Stocks

Catch The Next Big Winning Stock With MarketSmith

Best Growth Stocks To Buy And Watch

IBD Digital: Unlock IBD’s Premium Stock Lists, Tools And Analysis Today

Two Apple Chipmakers Lead 5 Stocks Near Buy Points





Source link

Is the Stock Market Open Today? Here Are the Hours for Thanksgiving and Black Friday.


Text size



Source link

Dow Jones Falls, As Tesla Stock Slides On Recall; Nio Dives On China Investigation


The Dow Jones Industrial Average dropped 150 points, as Tesla stock fell from record highs on a vehicle recall. Chinese electric vehicle stocks Li Auto, Nio and Xpeng Motors tumbled on a Chinese government investigation. Nikola plunged as much as 17% in morning trade.




X



Among the Dow Jones leaders, Apple (AAPL) rose 1%, while Microsoft (MSFT) moved up 0.3% in today’s stock market. Meanwhile, Salesforce.com (CRM) moved closer to a new buy point.

Tesla (TSLA) slid from all-time highs Wednesday morning after the company recalled over 9,000 Model X SUVs. Meanwhile, Nikola (NKLA) plunged as much as 17%.

Chinese EV stocks tumbled after Reuters reported that China’s state planner was investigating new energy vehicle projects related to two property developers. Li Auto (LI) skidded 9%. Nio (NIO) faltered 3.7%, while Xpeng Motors (XPEV) sold off 9.6% in morning trade.

Stocks in or near buy zones in the stock market rally are Advanced Micro Devices (AMD), FedEx (FDX) and Zumiez (ZUMZ).

Microsoft and Tesla are IBD Leaderboard stocks, while Apple is on the Leaderboard Watchlist. AMD and Zumiez were featured in this week’s Stocks Near A Buy Zone column. FedEx was Tuesday’s IBD Stock Of The Day.

Dow Jones Today

On Wednesday, the Dow Jones Industrial Average fell 0.5%, while the S&P 500 lost 0.3%. The tech-heavy Nasdaq composite outperformed with a 0.1% rise in morning trade.

Among exchange traded funds, Innovator IBD 50 (FFTY) climbed 0.35% Wednesday. The Nasdaq 100-linked Invesco QQQ Trust ETF (QQQ) moved up 0.2%. Meanwhile, the SPDR S&P 500 ETF (SPY) dropped 0.3%.

Amid the coronavirus stock market rally, the tech-heavy Nasdaq is up 34.1% for the year through Tuesday’s close. Meanwhile, the S&P 500 is up 12.5%, while the Dow is up 5.3% year to date, through the Nov. 24 close.

Coronavirus Updates

According to the Worldometer data tracker, the cumulative number of confirmed coronavirus cases in the U.S. topped 12.9 million on Wednesday. Total virus-related deaths rose past 265,000.

The cumulative total of worldwide Covid-19 cases confirmed since the start of the outbreak topped 60.2 million Wednesday, with more than 1.4 million virus-related deaths.

Coronavirus Stock Market Rally

According to IBD’s The Big Picture, the stock market returned to a new uptrend following a bullish follow-through day on Nov. 4.

Tuesday’s Big Picture commented, “The Dow Jones Industrial Average’s 1.5% gain to 30,046 didn’t simply make history as the first close above a key psychological price level. The action affirms that the Dow’s follow-through day on Nov. 4 was no head-fake of a rally. Since that noteworthy session, the Dow industrials have climbed nearly 7.9%.”

Investors should continue to use the stock market’s strength to buy breakouts. Start slowly with new purchases and see how they perform. If they work, then add more exposure. But if breakouts start to fail, then you can back away.

In particular, focus on stocks with strong relative strength. Find them by using the relative strength line. The RS line measures a stock’s price performance vs. the S&P 500. If the stock is outperforming the broader market, then the RS line angles upward. If a stock is performing worse than the broad market, then the line will point lower.

Stocks to watch include IBD Long-Term Leaders, companies with stable earnings growth and price performance. Fair Isaac (FICO) is the most recent addition to the list, added on Nov. 13. Shares are extended after they cleared resistance around 450.


Stock Market ETF Strategy And How To Invest


Dow Jones Stocks: Salesforce Approaches Buy Point

Dow Jones stock Salesforce.com is approaching a 271.02 buy point in a double bottom with handle, according to MarketSmith chart analysis. Shares rallied 1% Wednesday morning and are about 3% away from the new entry.

The cloud software company is the No. 1-performing stock on the Dow Jones Industrial Average, advancing 60.4% year to date.

Stocks In Or Near Buy Zones: AMD, FedEx, Zumiez

Chip giant Advanced Micro Devices moved up 2.5%, advancing closer to an 88.82 buy point in a double bottom, according to MarketSmith chart analysis. Shares are about 2% away from the entry Wednesday.

A potential handle entry offers a slightly lower buy point, at 87.15. The stock was again trying to move past this early entry in morning trade.

According to IBD Stock Checkup, AMD stock boasts a perfect 99 IBD Composite Rating. The Composite Rating — an easy way to identify top growth stocks — is a blend of key fundamental and technical metrics to help investors gauge a stock’s strengths.

Tuesday’s IBD Stock Of The Day, FedEx, broke out above a 293.40 buy point in a flat base Tuesday, but shares closed below the new buy point after paring gains. Shares fell over 1%, falling further below the buy point Wednesday morning.

Top stock to watch Zumiez is in the 5% buy zone after Monday’s breakout above a rare buy point in an ascending base at 35.64. The 5% buy range tops out at 37.42. Shares fell 1.5% Wednesday, but are still holding above the buy point.

The retail leader was featured in Friday’s Stock Spotlight column.


IBD Live: A New Tool For Daily Stock Market Analysis


Chinese EV Stocks: Li Auto, Nio, Xpeng Motors

Chinese EV stocks sold off sharply Wednesday after Reuters reported that China’s state planner told local governments to investigate new energy vehicle projects linked to property developers Evergrande Group and Shenzhen Baoneng.

Li Auto skidded 9% in morning trade, while Nio stock tumbled 3.7%. Xpeng Motors sold off 9.6%.

Tesla Stock

IBD Leaderboard stock Tesla slid from all-time highs Wednesday with an over-1% fall after the National Highway Traffic Safety Administration said Tesla filed to recall 9,136 Model X electric SUVs due to an adhesive failure.

On Nov. 18, shares broke out above a 466 buy point in an awkward cup with handle. The 5% buy zone tops out at 489.30, so the stock is well extended. On Tuesday, Tesla stock set a record high at 559.99.

Nikola Plunges

Nikola plunged as much as 17% before cutting losses after CEO Mark Russell, in a CNBC interview, disappointed investors seeking assurance that the company’s $2 billion deal with General Motors (GM) would still go through. If the deal isn’t finalized by Dec. 3, then either side can pull out.

Nikola stock is nearly 70% off its 52-week high.

Dow Jones Leaders: Apple, Microsoft

Among the top Dow Jones stocks, Apple gained 1% Wednesday, on pace to add to Tuesday’s 1.2% rally. Shares are trying to retake their 50-day line after closing below that key level on Monday.

Apple stock continues to trace a new base with a 138.08 buy point. An early entry exists at 125.49. But the top Dow Jones stock is starting to show signs of significant weakness.

The blue-chip giant is the No. 2-performing Dow Jones stock for 2020, with a 56.9% advance through Tuesday.

Software giant Microsoft moved up 0.3% Wednesday, moving further above the 50-day moving average line. Shares regained that critical level on Tuesday.

Year to date, Microsoft is one of the top Dow Jones stocks, advancing 35.6% through the Nov. 24 close.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.

YOU MAY ALSO LIKE:

Top Growth Stocks To Buy And Watch

IBD’s ETF Stock Market Strategy

IBD’s Long-Term Leaders

Get Full Access To IBD Stock Lists And Ratings

Looking For The Next Big Stock Market Winners? Start With These 3 Steps





Source link

LVB stock market suspension: Trading in Lakshmi Vilas Bank shares to be suspended from Thursday: NSE


Shares of Lakshmi Vilas Bank will be suspended from trading from November 26, the National Stock Exchange (NSE) said in a statement.

“Members of the Exchange are hereby informed that the trading in equity shares of Lakshmi Vilas Bank Limited shall be suspended w.e.f November 26, 2020 (i.e. closing hours of trading on November 25, 2020) on account of gazette notification dated November 25, 2020 issued by Department of Financial Services, Ministry of Finance,” NSE said.

Earlier in the day, the Reserve Bank of India said the amalgamation of the bank with DBS Bank India will come into force from November 27 and the moratorium imposed on the crisis-ridden lender will be removed on that day.

The RBI issued the statement within hours of the Cabinet clearing the Scheme of Amalgamation of Lakshmi Vilas Bank Limited (LVB) with DBS Bank India Limited (DBIL).

“The amalgamation will come into force on the appointed date, i.e., November 27, 2020. All the branches of the Lakshmi Vilas Bank will function as branches of DBS Bank India with effect from this date,” the RBI said.

Depositors of LVB will be able to operate their accounts as customers of DBS Bank India with effect from Friday.

“Consequently, the moratorium on the Lakshmi Vilas Bank will cease to be operative from that date,” it said.

The RBI had superseded the board of LVB on November 17 following the imposition of a moratorium on the private sector lender.

DBS Bank India is making necessary arrangements to ensure that services, as usual, are provided to the customers of Lakshmi Vilas Bank, the RBI added.

As of end of September, a total of 12 foreign institutional investors (FIIs) held 8.65 per cent stake in the bank. They have consistently reduced their holding in the bank since at least 5 quarters from 16.45 per cent at the end of June quarter. Mutual funds on the other hand, hiked their stake in the lender to 6.40 per cent in the September quarter, from 4.78 per cent in the quarter before.

Retail investors have been consistently raising their stake in the lender so far this year, and own nearly 23.98 per cent stake, compared with 21.14 per cent at the end of December 2019.

Earlier this month, LVB said its net loss widened to Rs 397 crore in the quarter ended September, compared with a net loss of Rs 357 crore in the year-ago period. Its net interest income dropped 28 per cent to Rs 79.5 crore. The gross NPA stood at 24.45 per cent as at end September, compared with 21.25 per cent a year ago.





Source link

US stock exchange rockets as Biden transition looks set to begin; Aussie retailers under scrutiny; Travel interest surges after Queensland reopens border


President-Elect Joe Biden is introducing his Cabinet nominees and appointees to key national security and foreign policy posts, including the first woman to lead the US intelligence community and first Latino to helm the Department of Homeland Security.

The six foreign policy and national security nominees and appointees, which were unveiled yesterday, are on stage with him in Wilmington, Delaware.

“Today I’m pleased to announce nomination for positions in my administration. It is a team that will keep our country and our people safe and secure. And it is a team that reflects the fact that America is back. Ready to lead the world, not retreat from it,” Mr Biden said.

“The team meets this moment, this team behind me. They embody my core believes that America is strongest when it works with its allies,” Biden continued. “Collectively this team has secured some of the most defining national security and diplomatic achievements in recent memory.”

Earlier, President Trump, joined by Vice President Mike Pence, abruptly came into the White House briefing room Tuesday for remarks scheduled minutes before on the stock market that clocked in just over one minute.

The Dow hit 30,000 for the first time earlier Tuesday as uncertainty about the outcome of the presidential election lifted and new hopes that a COVID-19 vaccine could soon be available.

Mr Trump made brief remarks and did not take any questions.

“I just want to congratulate everybody. The stock market, Dow Jones Industrial Average, just hit 30,000, which is the highest in history. We’ve never broken 30,000, and that’s just, despite everything that’s taken place with the pandemic.

“I’m very thrilled with what’s happened on the vaccine front, that’s been absolutely incredible. Nothing like that has ever happened, medically, and I think people are acknowledging that, and it’s having a big effect.”



Source link

Dow Jones Futures: Bitcoin Play PayPal In Buy Zone As Tesla, Nio, Xpeng Fly; Apple Stock Breaks Support


Dow Jones futures rose modestly late Monday, along with S&P 500 futures and Nasdaq futures, as President Donald Trump agreed to cooperate in the transition to Joe Biden.




X



The stock market rally rose modestly Monday, amid fresh coronavirus vaccine news. Tesla stock, Nio (NIO), Xpeng Motors (XPEV), Li Auto (LI) and many other EV plays raced higher.

PayPal (PYPL) flashed early buy signals, as the digital payments stock has become the latest Bitcoin play — and player. CrowdStrike (CRWD), Twilio (TWLO) and Novocure (NVCR), which flashed similar buy signals late last week, continued to rally Monday after testing additional buy points.

Finally, Apple stock had a bad session, falling through its 50-day line, continuing to lose ground vs. the overall stock market rally. Apple (AAPL), which boasts a $1.936 trillion market cap, is a member of the Dow Jones, S&P 500 index and Nasdaq composite.

Early Tuesday, Best Buy (BBY), Anaplan (PLAN), Analog Devices (ADI), Dick’s Sporting Goods (DKS) and Burlington Stores (BURL) report earnings.

Tesla (TSLA), PayPal and Novocure stock are on IBD Leaderboard. Novocure, Tesla and CrowdStrike stock are on SwingTrader. PayPal stock is on IBD Long-Term Leaders.

Trump Cooperates With Biden Transition

The General Services Administration Monday night acknowledged that Joe Biden is the apparent winner of the 2020 presidential election. That step triggers a formal presidential transition. Biden and his aides will have access to agency officials, briefings and more, a well as some $6 million in funds.

President Trump said on Twitter that he believes that he’ll “prevail” in legal challenges to the 2020 election, but gave his blessing to GSA chief Emily Murphy to move ahead with the delayed transition.

“In the best interest of our Country, I am recommending that Emily and her team do what needs to be done with regard to initial protocols, and have told my team to do the same.”

The moves came as several GOP senators called for the presidential transition to begin. It also came after Michigan certified its election results, a key blow to Trump’s thin hopes of overturning the election outcome.

With a formal transition and Trump administration cooperation, President-elect Biden can hit the ground running after his term begins on Jan. 20. That includes continuing the likely rollout of coronavirus vaccines.


Why This IBD Tool Simplifies The Search For Top Stocks


Dow Jones Futures Today

Dow Jones futures were 0.6% above fair value. S&P 500 futures climbed 0.5%. Nasdaq 100 futures rose 0.4%.

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.


Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live.


Coronavirus News

Coronavirus cases worldwide reached 59.50 million since the pandemic’s start. Covid-19 deaths topped 1.4 million.

Coronavirus cases in the U.S. have hit 12.77 million, with deaths above 263,000.

Early Monday, AstraZeneca (AZN) reported that its coronavirus vaccine was 62% or 90% effective, depending on the dosage. The AstraZeneca Covid vaccine, developed with Oxford, is far cheaper that the Pfizer (PFE) or Moderna (MRNA) vaccines, but those are roughly 95% effective.

In any cases, there is a strong chance that the Pfizer coronavirus vaccine will win FDA approval by mid-December, with the Moderna and AstraZeneca vaccines perhaps getting authorization before year-end.


Stock Of The Day Offers Multiple Entries As Pot Sector Shapes Up


Stock Market Rally Monday

The stock market rally had a broad but uneven rally, weighted toward real economy plays. President-elect Joe Biden named former Federal Reserve chief Janet Yellen to be his Treasury Secretary. That news appeared to push stocks higher as well.

The Dow Jones Industrial Average rose 1.1% in Monday’s stock market trading, as Boeing (BA), Chevron (CVX), Disney (DIS), JPMorgan Chase (JPM) and more offset weakness in Apple stock. The S&P 500 index climbed 0.6%. The Nasdaq composite edged up 0.2%. All the major indexes are near record highs. The small-cap Russell 2000 stepped up with a 1.85% gain to an all-time level.

The Russell 2000 and Dow Jones led as real economy sectors such as airlines, financials, energy and industrials rallied on the coronavirus vaccine news. Some pure-play stay-at-home stocks such as Zoom Video (ZM) retreated, while software was mixed.

But growth stocks overall did well.

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) climbed 0.8%. The iShares Expanded Tech-Software Sector ETF (IGV) dipped 0.1%. The VanEck Vectors Semiconductor ETF (SMH) rose 1.5%, hitting a new high.

Tesla Stock, Nio, EV Sector On Fire

Tesla stock shot up 6.5% to 521.49, hitting a record high Monday after soaring 20% last week on news that it’ll join the S&P 500 index on Dec. 21. Shares are far extended from a 466 buy point.

Wedbush analyst Dan Ives raised his TSLA price target to $650 with a $1,000 bull case target. The Tesla price target hike largely came from Ives’ forecast for a booming electric-car market in 2021.

Nio Stock, EV Sector

The broader EV stock sector had a huge day.

Nio stock jumped more than 12% to a record high. Xpeng stock skyrocketed 34% and Li Auto 14.5%. Xpeng and Li Auto stock, both 2020 IPOs, hit record highs.

Electric-van startup Workhorse Group (WKHS) vaulted 12%. Electric-truck startup Lordstown Motors (RIDE), with Workhorse and General Motors (GM) as investors, leapt 8%. EV charging station maker Blink Charging (BLNK) spiked 48%, or 333% so far this month.

The electric-car market is expected to expand in 2021, though largely due to government policies pressuring traditional automakers to expand their EV offerings. EV supply is rapidly coming on line, especially in Europe, but will EV demand follow suit? The coming years could be a boom market for EV sales, but with cutthroat competition.

But, for now, electric-car stocks are racing at breakneck speed. Even if you think they should stop, or go into reverse, you don’t want to step in front of them.

Tesla, Nio and several EV stocks extended gains overnight.

PayPal Stock

PayPal stock rose 4.2% to 200.82, rebounding from its 50-day line and breaking a downward-sloping trend line. Both are buy signals. PYPL stock has another early entry at 205.02. At the end of this week, PayPal stock is likely to have a new base with an official buy point of 215.93.

Note that the relative strength line for PYPL stock has fallen significantly since its Oct. 21 peak, though that follows a long run. The RS line, the blue line in the charts provided, tracks a stock’s performance vs. the S&P 500 index.

PayPal is rallying as the digital payments leader has moved into Bitcoin transactions. Bitcoin prices have been soaring in the past several weeks. PayPal reportedly is accounting for a huge share of Bitcoin buys in the past few weeks, after rival Square (SQ) had dominated the cryptocurrency’s purchases.

Meanwhile, CrowdStrike rose 1.25%, Twilio stock 1.5% and Novocure 1.55%. Those all followed big gains last week, surging from 50-day/10-week lines and breaking downtrends. They also moved above a further resistance point, offering yet another buy point. On Monday, all three stocks initially fell, but all found support at that latest buy point in a bullish rebound.

Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.

Apple Stock

Apple stock fell 3% to 113.83, falling through its 50-day line and closing near session lows. The RS line has fallen since Sept. 1 to its lowest level since the end of July. After a strong run after the coronavirus crash, Apple stock may need to some time off.

The weakness in Apple stock and another megacap techs is masking the underlying strength in growth stocks. But it’s still unclear which sectors will lead the next leg of the stock market rally.

Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.

YOU MAY ALSO LIKE:

Catch The Next Big Winning Stock With MarketSmith

Best Growth Stocks To Buy And Watch

IBD Digital: Unlock IBD’s Premium Stock Lists, Tools And Analysis Today





Source link