Dow Jones futures rose slightly on Thursday afternoon, along with S&P 500 futures and Nasdaq futures, with U.S. markets closed for the Thanksgiving Day holiday. Apple, Microsoft and Tesla are in the news.
The stock market rally was positive for a second session on Wednesday. Fed officials see slower rate hikes “soon,” according to Fed minutes from the November meeting released Wednesday afternoon.
The Nasdaq led, driven by a rebound Tesla (TSLA). The major indexes are all up solidly so far this holiday-shortened week. But a longer holiday for the market rally can be constructive.
Investors should be cautious about adding exposure given key technical resistance and notable economic reports ahead.
However, Dexcom (DXCM), UnitedHealth (UNH), Neurocrine Biosciences (NBIX), The trading volume of Medpace Holdings (MEDP) and Shockwave Medical (SWAV) are five healthcare stocks showing interesting action.
DXCM stock and Neurocrine Biosciences are on IBD Leaderboard, with MEDP stock on the Leaderboard watchlist. NBIX shares and Medpace are on the IBD 50.
Tesla FSD Beta Release
Tesla CEO Elon Musk tweeted Thursday that Full Self-Driving Beta is now available to all FSD owners in North America who request it.
That could allow Tesla to recognize more deferred revenue from FSD.
Despite its name, Full Self-Driving does not offer full self-driving, but is a level 2 driver assistance system. The National Highway Traffic Safety Administration is investigating Autopilot and FSD safety. The Justice Department is reportedly conducting a criminal investigation into Tesla’s self-driving claims.
Tesla stock jumped 7.8% to 183.20 on Wednesday, rebounding from Tuesday’s bear market lows as Citigroup upgraded the EV giant from a sell to a hold. TSLA shares are down 19.5% so far this month and will roughly halve in 2022.
Dow Stock Deal News
In Dow Jones stocks, Apple ( AAPL ) was reportedly interested in buying UK soccer giant Manchester United (MANU). The Federal Trade Commission may try to block the Microsoft (MSFT) deal to buy Activision Blizzard (ATVI) for nearly $69 billion.
Dow Jones Futures Today
Dow Jones Futures rose 0.1% vs fair value. S&P 500 futures advanced 0.2% and Nasdaq 100 futures climbed 0.4%.
Mainland China reported more than 31,000 Covid cases, including those without symptoms, above mid-April levels during Shanghai’s lockdown. Covid infections with symptoms are still below the April peaks.
U.S. stock markets will be closed Thursday for the Thanksgiving Day holiday. On Friday, US exchanges will close early at 1 pm ET. But other exchanges around the world are usually open on Thursday and Friday.
Remember that overnight action in Dow futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.
Join IBD experts as they analyze actionable stocks in the stock market’s rally on IBD Live
Stock Market Rally
The stock market rally had some wobbles on Wednesday, but extended gains, led by techs.
Initial jobless claims rose to a three-month high, while ongoing claims hit an eight-month best. S&P Global’s purchasing managers’ indexes for U.S. manufacturing and services both indicated a contraction.
The Fed minutes reinforced expectations of a 50 basis point hike at the December 14 meeting. Markets still favor another half-point move in February, but there is a decent chance of a quarter-point increase.
The Dow Jones Industrial Average rose 0.3% in Wednesday’s trading on the stock market. The S&P 500 index climbed 0.6%, led by TSLA shares. The Nasdaq composite fell 1%. The small-cap Russell 2000 rose 0.1%.
The price of US crude oil fell 3.7% to $77.94 per barrel. Natural gas futures jumped 7.2%.
The 10-year Treasury yield fell 5 basis points to 3.71%. The two-year Treasury yield, more closely tied to the prospect of a Fed rate hike, fell below 4.5%.
The US dollar fell significantly for a second straight session, returning near recent lows.
Why this IBD tool simplifies the search for top stocks
The quotations of the shares of iShares Expanded Tech-Software Sector ETF on 2019 changed up to +1.5%. The quotations of the shares of VanEck Vectors Semiconductor ETF on 2019 changed up to +0.91%.
SPDR S&P Metals & Mining ETF’s share price in 2019 changed to +0.33%. The quotations of the shares of US Global Jets ETF on 2019 changed up to +0.1%. SPDR S&P Homebuilders ETF’s share price for 2019 changed to +0.5%. The change in the Energy Select SPDR ETF (XLE) changed to +1.1%. The Health Care Select Sector SPDR Fund (XLV) rose 0.4%. Dow Jones giant UNH stock is the top holding in XLV.
Reflecting more speculative story stocks, ARK Innovation ETF ( ARKK ) rose 2.9% and ARK Genomics ETF ( ARKG ) 0.9%. The trading volume of ‘TSLA’ shares is the total amount of all transactions with ETFs.
Five Best Chinese Stocks to Watch Now
Stocks to watch
Dexcom shares added 1.7% to 112.92, finding support at the 21-day moving average. DXCM stock has been pausing this month after gaps on earnings on October 28. Dexcom stock probably has a long handle with a 123.46 buy point of a seven-month consolidation. Investors could buy DXCM shares from an early entry of the 21-day line, perhaps using Tuesday’s high of 113.88 as a specific buy point.
Medpace stock fell 1.3% to 218.81 on Wednesday. Shares have consolidated near record highs since skyrocketing 38% on October 25 following earnings. Since then, MEDP stock has made a messy handle on a deep, year-long cup base. While shares have had some big intraday swings, MEDP stock is currently on track to form a three-week-tight pattern at Friday’s close. Investors can use the November 15 close of 226.57 as an early entry, above most of recent trading.
NBIX shares fell 1.5% to 118.97. Stocks are consolidating near multi-year highs, extending from an October breakout. Despite a dive to the 50-day line last week, Neurocrine stock has a three-week tight pattern that is on track to enter a fourth week. Technically, that has a buy point of 126.09, although investors may want to wait for some quieter action.
Shockwave stock fell 4.7% to 264.06 on Wednesday, back above its 21-day line, but hit resistance at the 50-day line. After a failed breakout in late October and sharp selling that continued through earnings, SWAV stock has bounced back over the past week. A new base will take more time, but aggressive investors can use a strong move above the 50-day as an early entry.
UNH stock climbed 1.3% to 529.71, returning above its 50-day and 21-day lines after briefly testing its 200-day line last week. UnitedHealth stock was once an IBD Long-Term Leader and still shares many characteristics. Investors could use a jump from the 50-day line as either an early entry or a Long-Term Leader entry. UNH stock needs to forge a new base after a breakout from a cup-with-handle base quickly failed last month.
Tesla vs. BYD: Which EV Giant is better to buy?
Market Rally Analysis
The stock market rally added to Tuesday’s gains. The S&P 500 just hit its November 15 intraday high and closed within 1% of its 200-day line.
The Russell 2000 came right up to its 200-day line.
The Nasdaq added to Tuesday’s rebound from its 21-day moving average, though it is still below its short-term low of Nov. 15 and well below its 200-day.
The Dow Jones came within 20 points of its August 16 intraday high.
The S&P 500 moving decisively above its 200-day line — which roughly matches a year-long trendline of declining tops — is a huge test for the market rally.
A lot of economic data can swing the expectations of the Fed rate and thus the stock market. On Wednesday, November 30, the October JOLTS report will show job openings, with Fed chief Jerome Powell speaking later in the day. On Thursday, the PCE price index, the Fed’s favorite inflation gauge, will be released, along with unemployment and the ISM manufacturing index. The work report for November is due on Friday, November 2.
Ideally, the market would move sideways for a few days, and at least let the 21-day line catch up, in those economic reports.
Time the market with IBD’s ETF Market Strategy
What to do now
The market rally has shown some nice gains this week, with more stocks flashing buy signals over the past few days. Investors could therefore add a little more exposure.
But they may want to be cautious about making any significant new purchases with the S&P 500 hovering below its 200-day line and so much Fed-critical economics to come next week.
Also try to take some partial profits in stocks that are rising fast. Stocks have made short-lived gains amid a sharp uptrend and sector rotation.
Still, investors should work hard on their investment shopping lists, looking for setups and actionable names in a variety of sectors.
Read The Big Picture every day to stay in sync with market direction and leading stocks and sectors.
Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.
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