Dow Jones Futures: Tesla Rallies On S&P 500 Update; Zoom Video Falls On Earnings; Apple, AMD Lead Stock Market Rally
Dow Jones futures rose solidly late Monday, along with S&P 500 futures and Nasdaq futures. The stock market rally retreated Monday but came off lows, especially the Nasdaq, fueled by gains in Apple (AAPL), Moderna (MRNA) and AMD stock.
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After the close, Zoom Video Communications (ZM) reported better-than-expected results and upside guidance. But Zoom Video stock fell solidly overnight. Meanwhile, Tesla stock rebounded overnight. The S&P 500 index will add Tesla (TSLA) in one fell swoop before Dec. 21, S&P Dow Jones Indices announced late Monday. Tesla stock reversed lower from a record high during the regular session. Moderna stock kept soaring.
Tesla and Zoom Video stock are two of the biggest 2020 winners, up 578% and 603%, respectively as of Monday’s close. MRNA stock is 681% year to to date.
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.
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 (NIO), Xpeng Motors (XPEV) 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 0.9% vs. fair value. S&P 500 futures climbed 1%. Nasdaq 100 futures advanced 0.95%.
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 63.58 million. Covid-19 deaths topped 1.47 million.
Coronavirus cases in the U.S. have hit 13.91 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 overnight, tacking on 7%.
BioNTech leapt 13%, also to a new high. Pfizer rose 2.9%.
Stock Market Rally
U.S. Stock Market Today Overview |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/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% in morning action.
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 5% overnight. Shares of the huge 2020 winner 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, breaking out powerfully from an 88.82 buy point from a double-bottom base.
Shares had already flashed some buy signals, closing above an 87.15 early entry on Friday.
CEO Lisa Su said during a Credit Suisse conference 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. Investors could have started buying QRVO stock as it moved above 152.70, topping last week’s high.
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. Investors probably could start to nibble on QCOM stock here as it peeks above a short trend line. 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 sales forecasts for the iPhone 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, though the official buy point is 138.08. Early entries of 125.49 and 122.09 are closer in sight. 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, once again above a $2 trillion market cap, can wake up, it would add real momentum to the major indexes.
China Stocks
The U.S. House will take up legislation this week to require foreign companies listed on U.S. markets to face U.S. audits, or face delisting after a few years. It’s directed at Chinese stocks, with Beijing barring U.S. audits of China-based companies.
Regulators are signaling that an Ant Group IPO may not happen until 2022, following the last-minute suspension of the blockbuster IPO from the Alibaba-tied payments giant.
Alibaba stock fell 4.75% on Monday, continuing to struggle as the e-commerce and payments giant seems to be the focus of Beijing’s ire. But JD.com stock fell 4.5%, with Pinduoduo stock down 3.6%.
Kandi Technologies tumbled 28% after short-seller Hindenburg Research accused the Chinese EV maker of fraudulent sales. The resurgence of China accounting fraud claims and admissions has added to calls for closer oversight of Chinese companies.
Nio stock sank 6.4%. Li Auto and Xpeng stock lost nearly 9%.
Nio, Li Auto and Xpeng Motors will likely release November sales figures over the next week or so. Overall China EV production and sales, including trade group figures for Tesla, will probably come next week.
Tesla Stock Jumps On Latest S&P 500 News
Tesla stock rose 4% overnight after 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.
Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.
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