Dow Jones futures rose slightly on Thursday night, along with S&P 500 futures and Nasdaq futures, after US markets closed for the Thanksgiving Day holiday. Apple, Microsoft and Tesla are in the news.
The stock market rally was positive for the second consecutive session on Wednesday. Fed officials see a gradual rate hike coming “soon,” according to Fed minutes from the November meeting released Wednesday afternoon.
The Nasdaq led the way, buoyed by a rebound Tesla (TSLA). The major indexes have been very strong so far this shortened holiday week. But a longer holiday for the market rally could be beneficial.
Investors should be cautious about increasing exposure given significant technical resistance and notable economic reports ahead.
However, Dexcom (DXCM), UnitedHealth (UNH), Neurocrine Biosciences (NBIX), Medpace Holdings (MEDP) and Medical Shockwave (SWAV) are five healthcare stocks showing interesting action.
DXCM stock and Neurocrine Biosciences are on the IBD Leaderboard, with MEDP stock on the Leaderboard watchlist. NBIX and Medpace stocks are in the IBD 50.
Tesla FSD Beta Release
Tesla CEO Elon Musk tweeted on Thursday that the Full Self-Driving Beta is now available to any FSD owner in North America who requests it.
That could allow Tesla to recognize additional deferred revenue from FSD.
Despite its name, Full Self-Driving does not offer full self-driving, but a Level 2 driver assist system. The National Highway Traffic Safety Administration is investigating Autopilot and FSD safety. The Department of Justice 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 stock is down 19.5% so far this month and will almost halve in 2022.
Dow Stock Deal News
In Dow Jones stock news, Apple (AAPL) is reportedly interested in buying the 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% compared to the fair value. S&P 500 futures advanced 0.2% and Nasdaq 100 futures rose 0.4%.
The 10-year Treasury yield fell 3 basis points to 3.68%.
Mainland China has reported more than 31,000 Covid cases, including those without symptoms, topping mid-April levels during Shanghai’s lockdown. Covid infections with symptoms are still below April peaks.
US stock exchanges are 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 open as normal on Thursday and Friday.
Remember that overnight action in the Dow futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.
Join IBD’s experts as they analyze stock market rally action on IBD Live
Stock Market Rally
The stock market rally had some wobbles on Wednesday, but extended gains, led by tech.
Initial jobless claims rose to a three-month high while ongoing claims hit an eight-month best. The S&P Global purchasing managers’ index for US manufacturing and services both signaled a decline.
The Fed’s minutes bolstered expectations of a 50-basis point rate hike at its December 14 meeting. Markets still favor another half-point move in February, but there is a decent chance of a hike. at the quarter-point.
The Dow Jones Industrial Average rose 0.3% in stock market trading on Wednesday. The S&P 500 index rose 0.6%, led by TSLA stock. The Nasdaq composite popped 1%. The small-cap Russell 2000 rose 0.1%.
US crude oil prices 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, which is closer to the Fed rate hike outlook, fell below 4.5%.
The US dollar fell significantly for a second consecutive session, back near recent lows.
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The iShares Expanded Tech-Software Sector ETF (IGV) rose 1.5%. VanEck Vectors Semiconductor ETF (SMH) gained 0.9%.
The SPDR S&P Metals & Mining ETF (XME) rose 0.3%. The US Global Jets ETF (JETS) slipped 0.1% higher. The SPDR S&P Homebuilders ETF (XHB) rose 0.5%. The Energy Select SPDR ETF (XLE) fell 1.1%. The Health Care Select Sector SPDR Fund (XLV) rose 0.4%. Dow Jones stock giant UNH is the top holder of XLV.
Reflecting the more speculative stocks in the story, the ARK Innovation ETF (ARKK) popped 2.9% and the ARK Genomics ETF (ARKG) 0.9%. TSLA stock is a major holding in Ark Invest’s ETFs.
Five Best Chinese Stocks To Watch Right Now
Stocks To Watch
Dexcom stock advanced 1.7% to 112.92, finding support at its 21-day moving average. DXCM stock stalled this month after the earnings gap on October 28. Dexcom stock may have a long hold with a 123.46 buy point from a seven-month consolidation. Investors can buy DXCM stock from an early entry into the 21-day line, perhaps using Tuesday’s high at 113.88 as a specific buy point.
Medpace stock fell 1.3% to 218.81 on Wednesday. Shares have been consolidating near record highs since surging 38% on Oct. 25 after earnings. Since then, MEDP’s stock has made a chaotic hold in a deep, one-year cup base. While the shares had some big intraday swings, MEDP stock is currently on track to form a three-week tight pattern by Friday’s close. Investors can use the Nov. 15 closing at 226.57 as an early entry, higher than most of the recent trading.
NBIX stock fell 1.5% to 118.97. Shares are consolidating near multiyear highs, extending from an October breakout. Despite a dip in the 50-day line last week, Neurocrine stock has a three-week tight pattern that is on track going into the fourth week. Technically, that has a 126.09 buy point, although investors may be waiting for some quieter action.
Shockwave stock popped 4.7% to 264.06 on Wednesday, back above its 21-day line but hitting resistance at the 50-day line. After a failed breakout in late October and sharp selling that continued through earnings, SWAV stock bounced back last 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 rose 1.3% to 529.71, returning above its 50-day and 21-day lines after briefly cutting its 200-day line last week. UnitedHealth stock was once an IBD Long-Term Leader and still shares many of those characteristics. Investors can use a bounce from the 50-day line as an early entry or a Long-Term Leader entry. UNH stock needs to make a new base after a breakout from a cup-with-handle base quickly failed last month.
Tesla vs. BYD: Which EV Giant is the Better Buy?
Market Rally Analysis
The stock market rally added to Tuesday’s gains. The S&P 500 just topped its Nov. 15 intraday high and closed within 1% of its 200-day line.
The Russell 2000 reached its 200-day line.
The Nasdaq added to Tuesday’s rebound from its 21-day moving average, though it was still below its Nov. 15 short-term high 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 coincides with the one-year declining top trendline – is a big test for the market’s rally.
A slew of economic data can change Fed rate expectations and thus the stock market. On Wednesday, November 30, the October JOLTS report will show job openings, with Fed chairman Jerome Powell speaking later in the day. On Thursday, the PCE price index, the Fed’s favorite measure of inflation, will be released, along with jobless claims and the ISM manufacturing index. The November job report is due Friday, Nov. 2.
In fact, the market will move sideways for a few days, allowing at least a 21-day line to reach, leading up to economic reports.
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What To Do Now
The market rally has shown some nice gains this week, with many stocks flashing buy signals over the past few days. Investors can add a little more exposure as a result.
But they may want to be cautious about making significant new purchases as the S&P 500 hovers below its 200-day line and is more critical of the Fed’s economy next week.
Also consider taking some partial profits in volatile stocks. Stocks made short-lived gains amid a boom and bust in the sector.
However, investors should work hard on their investment shopping lists, looking for set up and action names in different sectors.
Read the Big Picture every day to stay in tune 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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