Dow Jones futures and S&P 500 futures fell slightly late Monday, while Nasdaq futures edged higher. Tesla (TSLA) jumped overnight on news that it’ll join the S&P 500 index next month. Tesla stock is tripping multiple buy points.
Moderna (MRNA) coronavirus vaccine news buoyed the stock market rally Monday with the Dow Jones Industrial Average hitting a record high while the S&P 500 and Nasdaq composite also had solid gains.
Dow Jones Stocks Walmart, Home Depot Earnings Due
Dow Jones stocks Walmart (WMT) and Home Depot (HD) report earnings early Tuesday. Walmart stock rose 1.3% to 152.44 on Monday, hitting a new high, after the discount giant sold most of its take in its Japan unit Seiyu. WMT stock cleared an official buy point of 151.43, but the 146.70 might have been the better entry.
Home Depot stock finished Monday up 0.9% to 279.57. The home improvement giant will buy industrial supplies distributor HD Supply (HDS), its former unit. Shares are close to a 293.05 buy point.
Tesla stock is on IBD Leaderboard.
Dow Jones Futures Today
Dow Jones futures fell 0.2% vs. fair value, while S&P 500 futures lost 0.25%. Nasdaq 100 futures rose 0.15%. Tesla stock is giving a boost to Nasdaq 100 futures, but not yet S&P 500 futures.
Coronavirus cases worldwide reached 55.34 million. Covid-19 deaths topped 1.33 million.
Coronavirus cases in the U.S. have hit 11.53 million, with deaths above 252,000.
New U.S. Covid cases are above 162,000 so far on Monday. Coronavirus cases in the U.S. have topped 100,000 every day since Election Day, Nov. 3. California is stepping up restrictions in more parts of the state, with Los Angeles County already there. Several states and cities are are tightening up restrictions, as cases and hospitalizations soar.
Moderna (MRNA) said early Monday that its coronavirus vaccine was 94.5% effective. That came after Pfizer (PFE) and BioNTech (BNTX) jointly said on Nov. 9 that their Covid vaccine is more than 90% effective. However, Moderna’s coronavirus vaccine can be stored at normal refrigeration temperatures. The Pfizer/BioNTech vaccine must be kept at ultralow temperatures.
Pfizer and BioNTech will report on safety data for their Covid vaccine in a few days, quickly followed by Moderna. After that, both coronavirus vaccines may go to the FDA for emergency approval. In a best-case scenario, both vaccines are approved with millions of Americans vaccinated by year-end.
Moderna stock leapt nearly 10% to 97.95 on Monday. Shares spiked 23% last week on expectations that the Moderna vaccine would be as effective as Pfizer’s.
BioNTech stock plunged 14%, wiping out virtually all of last week’s 15% jump.
Pfizer stock slid 3.3%. Shares rose 6% last week, but never closed above a buy point after briefly breaking out.
Stock Market Rally Monday
U.S. Stock Market Today Overview
Last Update: 4:04 PM ET 11/16/2020
The Dow Jones led Monday’s stock market rally, with real economy stocks benefiting from a coronavirus vaccine.
The Dow Jones Industrial Average climbed 1.6% in Monday’s stock market trading. The S&P 500 index rose 1.2%. The Nasdaq composite was up 0.8%.
Growth stocks fared well. Among the best ETFs, the Innovator IBD 50 ETF (FFTY) rallied nearly 1%. The iShares Expanded Tech-Software Sector ETF (IGV) dipped 0.1%, weighed down by work-from-home names. The VanEck Vectors Semiconductor ETF (SMH) jumped 2.8%.
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In a long-awaited move, Tesla stock will join the S&P 500 before the open on Monday, Dec. 21, according to S&P Dow Jones Indices. Shares could be added all at once or in two tranches ending on the rebalance date, due to Tesla’s big market cap. Tesla stock will replace an S&P 500 company yet to be named.
Tesla stock shot up 13% to 461.92 in overnight trading in massive volume. That signals a strong move above the 50-day moving average and last week’s intraday high of 452.50. That could spur aggressive investors to buy TSLA stock. The official buy point for Tesla is 466.
In Monday’s session, Tesla stock was extraordinarily quiet, dipping 0.1% to 408.09 in modest action.
It’s often a good idea to wait a few minutes after the open to see if the early action will be sustained. Given the tremendous volume overnight, Tesla stock trading will be huge to start Tuesday’s session.
Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.
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