Tesla stock: Dow Jones futures, along with S&P 500 futures and Nasdaq futures, tumbled early Thursday amid growing concerns over a new wave of coronavirus cases. Wednesday’s coronavirus stock market rally had a mixed session, as no interest rate hikes were reported by the Federal Reserve until 2023.
Advanced Micro Devices (AMD), Nvidia (NVDA), ServiceNow (NOW) and Alibaba (BABA) cleared buy points on Wednesday, while Tesla (TSLA) climbed above another threshold, with Brazilian IPO XP (XP) racing to record high.
With futures sharply down early Thursday, however, AMD, Nvidia and Alibaba stock seemed poised to fall below entry points while Tesla stock dropped to about 1,000. ServiceNow and XP had not traded yet.
For much of the rally on the coronavirus stock market, the big winners were Covid-19 plays such as Zoom Video Communications (ZM), Chegg (CHGG) and Teladoc Health (TDOC), or companies that could do well during the crisis, like Microsoft (MSFT), ServiceNow stock or Nvidia stock, at least.
But now hard-hit growth stocks in the market crash are rebounding on hopes for recovery, including Tesla stock, XP stock and RH (RH).
Tesla stock skyrocketed on a variety of headlines Wednesday beyond 1,000, while upstart rival Nikola (NKLA) sold off. XP stock was continuing to run to its all-time high.
ServiceNow stock has moved beyond a short consolidation to offer a new entry.
AMD stock cleared two intraday buy-points, closing above one. But it is lagging rivals, including stock Nvidia, which offered a new buy area for add-ons. Alibaba stock also broke out, but several peers have also lagged behind.
Along with Microsoft stock, Tesla stock, Nvidia stock and ServiceNow stock are all on IBD Leaderboard. MSFT stock is on SwingTrader and NVDA stock is on. IBD Long Term Leaders are stock Microsoft, stock Nvidia and stock NOW. NVDA stock, AMD stock, and NOW stock are all available on IBD 50, along with Zoom stock and Chegg stock. Dow Jones Futures Today
Futures in Dow Jones fell 2.2% vs. fair value. S&P 500 futures have dropped by 2.1%. Nasdaq 100 futures have removed 1.5%. Dow Jones futures have not whipsawed as much during the coronavirus stock market recovery as they did during the market crash, but can still make major overnight moves.
Along with concerns about coronavirus, the market can re-evaluate the early economic recovery and how much to price in. At 8:30 hrs. ET, the Department of Labor releases data on jobless claims. Economists expect to see another big week of new jobless benefits filings.
Before the open, Dow Jones component Boeing (BA) and airline stocks were amongst the notable losers.
They have already pulled back the past few sessions following huge gains last week. Delta Air Lines (DAL) said late Wednesday that revenue from Q2 is expected to drop 90 percent from a year earlier. Delta’s hoping to avoid cash loss by December.
After such a good streak, a pause in the stock market rally would of course be a surprise.
Remember that overnight action in Dow futures and elsewhere in the next regular stock market session does not necessarily translate into actual trading.
Coronavirus Stock Market Rally
There was a mixed session on the coronavirus stock market rally, with development again in favor while beaten-down sectors such as airlines cool off. Growth recovery names like Tesla stock are joining forces with plays on coronavirus growth.
The Federal Reserve has indicated it will not increase interest rates until at least 2022. Policymakers expect a substantial decline in the unemployment rate in the next few years. The major indexes improved on the announcement of the Fed meeting but turned again mixed after Fed chief Jerome Powell spoke. Fed chief Powell said the central bank is doing all it can to support the economy, but it can do just that much. If coronavirus cases ramp up again in the U.S., from Boeing to Tesla stock, that would likely hit non-virus plays.
The Industrial Average of Dow Jones dropped by 1 percent, near to session lows. The S&P 500 index dropped by 0.5%. The composite of Nasdaq rose by 0.7 percent, off session highs but above 10,000. The Russell 2000 small-cap fell 2.6 percent, back below its 200-day base.
Apple stock and Microsoft stock, Dow Jones, S&P 500 index and Nasdaq megacaps, rallied 2.6 percent and 3.7 percent, both to new highs, respectively.
Growth stocks had a good day now with even-broader participation in the rally on the coronavirus market.
The Innovator IBD 50 ETF (FFTY) climbed 5.6 percent among the best ETFs. The ETF (IGV) Sector of iShares Expanded Tech Software rallied 1.8 percent. MSFT stock and ServiceNow stock comprise two major IGV holdings. The ETF (SMH) VanEck Vectors Semiconductor rose by 0.6%. Notable members are stock AMD and stock Nvidia.
Tesla stock has skyrocketed to 1,025.05 percent, reaching yet another record high. The emphasis was on CEO Elon Musk who says it is “time” to bring the Tesla Semi into “volume production,” although he did not set a date. The latest clues about the often delayed Tesla Semi come as Nikola’s newly public stock has soared in recent days as it pushes ahead with its electric pickup and big-rig trucks. The Semi headlines also come in the Tesla Fremont plant amid negative news about demand for Model Y and coronavirus cases.
But Tesla stock also got a boost as Volkswagen (VWAGY) signaled problems with its ID.3 electric vehicles which were soon to be launched. On June 17, VW will begin finalizing ID.3 orders but deliveries will not start until early September. Worse, some updates to the ID.3 software do not arrive until early 2021.
VW stock on Wednesday crept up 0.2 percent. After spiking to 93.99 intraday Tuesday, Nikola stock dropped 18.5 percent to 65.01.
Tesla stock dropped to 997 early Thursday three percent. But it extends well from a buy-point of 869.92. NKLA stock fell by more than 10%.
XP stock rallied to 42.24 from 3.8 percent. That is just below its record high of 43.52. XP stock rose after the market downturn after plunging 64 percent to 15.50. Hopes for economic recovery, and a weaker dollar helped XP and other Brazilian stocks listed in the U.S.
XP stock dropped 3 percent prior to opening.
Before speeding to new heights, it would be good to see the Brazilian brokerage IPO take a break and set some form of handle. But the relative strength line has already hit a new high, a bullish sign for XP stock. The RS line, the blue line provided in the charts, tracks performance of a stock versus the S&P 500 index.
In Wednesday’s stock market trading, the chipmaker’s shares rose 1.9 percent to 57.44, hitting 59 intraday. According to MarketSmith ‘s review, AMD stock briefly reached a conventional cup-with-handle buy point of 58.73 but could not close above it. AMD stock finished early on above a 57.08 entry. The rebound from the 50-day line on Tuesday and above a trend line in the handle gave an earlier entry, I guess.
AMD stock dropped 3 percent early Thursday, however. AMD was an IBD Stock Of The Day for Wednesday.
The explanation that AMD stock is concerned is that other data center chip stocks like Nvidia, Inphi (IPHI) and Monolithic Power Systems (MPWR) have been lagging behind.
Nvidia stock rose to 374.67 at 3.55 percent , reaching a fresh all-time high. In the past day, or so, NVDA investors may have added a few more shares. In the premarket, however, shares dropped 2 percent.
Alibaba stock rose from 1.3 percent to 223.68, moving above a buy point of 221.26 after a fizzled breakout in late May. During the coronavirus stock market rally the RS line for BABA stock dropped. Like AMD stock, Alibaba stock has lagged several other Chinese e-commerce stocks, as well as many other Chinese companies that are listed in the United States.
Early Thursday, BABA stock retreated 2 percent.
NOW stock has climbed to 401.66 by 3.3 percent, clearing up a short consolidation just over a cup foundation. ServiceNow stock’s new buy point was 396.25, though investors could presumably have started a little earlier.
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