Dow Jones futures rose early Thursday, along with S&P 500 futures and Nasdaq futures. Tesla (TSLA) its production and sales are increasing while Nio has provided some disappointing guidance, while Chinese regulators have dismissed reports of an IPO revival for Ant Group.
X
Major indexes fell on Wednesday due to economic concerns. The Organization for Economic Co-operation and Development lowered its forecast for US and global economic growth, following on Tuesday targeting (TGT) Warning. Intel Corporation (INTC) and Altria (MO) declined as analysts became increasingly concerned about the current environment.
sea freight stock like ZIM Integrated Shipping (ZIM) and Star Bulk Carriers (SBLK) dropped to lines 50 days and beyond, erasing a few weeks of gains. It is not clear if the sector is facing a long slip or just a short pause, but Wednesday’s action was ugly. Railroad, truck and other freight stocks also fell.
Travel and mining, especially steel stocks, were among the main losers amid widespread selling.
while, Eli Lilly (LLY), Synopsys (SNPS), Equinor (EQNR), West Lake (WLK) and gallon petroleum (CPE) are all close to points of purchase. LLY stocks are among the many big drug companies that hold up well. Synopsys is a rare growth stock that shows some strength. Norwegian state-owned oil and gas company Equinor and operator Callon shale are playing in the energy field. WLK stock is among many solid chemical names.
Eli Lilly’s stock is on the IBD Leaderboard. SNPS stock is in IBD for the long term. ZIM, Westlake, Synopsys, and CPE stock are available in 50 IBD. Westlake was Wednesday’s stock IBD.
Focus on Chinese stocks
US-listed Chinese stocks fell ahead of the opening. China has denied a Bloomberg report that it will revive the IPO of Ant Group, a closely related digital financial giant. Ali Baba (Baba) and its founder Jack Ma. China’s last-minute halt to Ant’s initial public offering in late 2020 marked the beginning of China’s crackdown on the technology.
while, Bilibili (BILI) posted a larger-than-expected loss before the opening, while Nio’s guidance disappointed.
Alibaba and many other Chinese companies and other US-listed stocks fell, while BILI fell.
Dow jones futures contracts today
Dow Jones futures are up 0.4% against fair value, reversing minor losses overnight. S&P 500 futures rose 0.5% and Nasdaq 100 futures rose 0.6%.
The 10-year Treasury yield fell one basis point to 3.02%.
Crude oil prices were little changed early Thursday. Natural gas prices fell strongly on Thursday, extending losses incurred on Wednesday due to the LNG export terminal fire.
The European Central Bank is likely to end asset purchases at Thursday’s policy meeting, with an announcement ahead of the opening bell. This would pave the way for a rate hike in July.
The Labor Department will release weekly jobless claims data at 8:30 AM ET, followed by the Consumer Price Index on Friday morning. It comes ahead of the Fed’s policy meeting next week, with another rate hike by half a point.
Remember that overnight action in Dow Jones futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.
Tesla news
Tesla sold 32,165 cars made in China last month, which is significantly less than usual, but up from 1,512 in April alone. Shanghai’s Tesla produced 33,544 cars, up from 10,757 in April, when the Shanghai plant was closed for most of the month. The May numbers are part of the industry-wide data from the China Passenger Car Association. State media said Tesla had just returned to full daily production.
Of the cars sold in May, 22,340 were exported and 9,825 were sold domestically. Shanghai, Tesla’s biggest market in China, ended the Covid lockdown only on June 1.
Tesla stock is up 3% before the opening, indicating a return to the 21-day moving average. Shares rose 1.25% to 725.60 on Wednesday but from morning highs. TSLA stock is well below the 50-day and 200-day streaks.
On Wednesday, China’s giant EV BYD (BYDDF) said it would supply batteries to Tesla. BYD, which surpassed Tesla in auto sales for the first time this quarter, rose 1.8% to 38.80. On track for a fifth consecutive weekly gain, BYD stock is still far from record highs.
Tesla CEO Elon Musk Twitter The takeover saga (TWTR) has affected TSLA shares, amid fears that Musk will be forced to sell more shares. On Wednesday, it was reported that Twitter’s board of directors would give Musk access to all of his internal data. Musk, after signing a $44 billion deal on Twitter and waiving due diligence, has threatened to try to walk away unless he gets more data about fake users. TWTR stock rose 0.8% Wednesday at 40.44, hitting its highest intraday level since May 13. But Twitter is still well below Musk’s acquisition price of $54.20.
Tesla vs. BYD: Meet the new king of EV
New أرباح Profits
New (NIO) posted a first-quarter loss of 13 cents a share versus a loss of 4 cents a year earlier. Revenue increased 24% to $1.56 billion. Analysts expected the Chinese EV startup to report a loss of 13 cents with sales of $1.512 billion, according to FactSet.
For the second quarter, Nio expects to deliver 23,000-25,000, up 5%-14% over the prior year. Nio already reported electric vehicle deliveries of 5,074 in April and 7,024 in May, so expectations are for June deliveries of roughly 10,900-12,900.
Nio also forecasts Q2 revenue of 9.34 billion yuan ($1.47 billion) and 10.088 billion yuan ($1.59 billion). That would be a 10.6% -19.4% annual gain in local currency, but below expectations.
Nio’s stock is down 6% before Thursday’s opening. But stocks have risen in nine of the past 10 sessions. On Wednesday, Nio stock rose 3.7% to 20.38, continuing to rise from its long sliding 50-day streak.
AMD Analyst Day
Advanced Micro Devices (AMD) held Thursday Analyst Day. On Wednesday, AMD stock fell 3.2% to 101.90, heading towards its descending 50-day line. Several analysts lowered earnings estimates for arch-rival Intel on Wednesday, following cautious comments from management. INTC stock fell 5.3 percent to its lowest closing level since late 2017.
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stock market rise
The stock market rally was mixed most of the morning, but the major indexes closed with solid losses.
The Dow Jones Industrial Average was down 0.8% in stock market trading on Wednesday. The S&P 500 fell 1.1%. The Nasdaq Composite lost 0.7%. Small cap Russell 2000 fell 1.55%.
US crude oil prices rose 2.5 percent to $ 122.11 a barrel, the highest level in three months. Gasoline futures are just below record levels. Natural gas is down 6.4%, still near a 14-year high. The drop on Wednesday came due to a fire at a Texas LNG export terminal, which will be closed for a few weeks. LNG-related stocks fell on Wednesday.
The 10-year Treasury yield rose 6 basis points to 3.03%.
Among the top ETFs, the Innovator IBD 50 ETF (FFTY) lost 2.3%, while the Innovator IBD Breakout Opportunities ETF (BOUT) lost 1.7%. The iShares Expanded Tech-Software ETF (IGV) index was down 0.7%. The VanEck Vectors Semiconductor Index (SMH) was down 2.1%. AMD and Intel stocks are notable SMH components.
The SPDR S&P Metals & Mining Index (XME) tumbled 3.8% and the US Global X Infrastructure Development Fund (PAVE) (PAVE) tumbled 2.5%. The US Global Jets ETF (JETS) fell 2.6%. The SPDR S&P Homebuilders ETF (XHB) is down 2%. The Energy Select SPDR ETF (XLE) is up 0.2% and the Financial Select SPDR ETF (XLF) is down 1.8%. SPDR Healthcare Sector Choice Fund (XLV) down 0.8%
Reflecting speculative stories stocks, the ARK Innovation ETF (ARKK) is up 2.7% and the ARK Genomics ETF (ARKG) is up 2.4%. Tesla stock remains Ark Invest’s No. 1 holding. Ark, which has sold a significant amount of TSLA stock over several months, has been buying a lot of stock since late May, including on Tuesday. The Cathy Wood fund also owns some shares of BYD and Nio.
Top 5 Chinese stocks to watch right now
Stocks near the points of purchase
Eli Lilly’s stock rose 0.4% to 313.47 Wednesday, hitting resistance around its old buy point at 314.10. LLY stock rebounded this week from its 21-day and 10-week streaks, after pulling back last week amid an uproar over price control. Lilly stock’s relative strength line is just below record highs. The RS line, the blue line in the provided charts, tracks the stock’s performance against the S&P 500 Index.
SNPS stock fell 2% to 322.89. Investors can treat the current consolidation as a double bottom base with 342.69 buy points. It is possible that Synopsys stock will start working on a handle, which would lower the official entry. While SNPS stock is off highs, RS line is at record highs.
EQNR stock fell 0.3% to 37.75, with a working entry of 38.80 cups with a handle, according to MarketSmith analysis. Equinor’s RS line is at an all-time high.
WLK stock fell 1.5% to 131.92, consolidating near the 10-week streak. Westlake Chemical stock is on track to have a flat base at 141.29 buying points at the end of the week. Investors may make an early entry above the short-term highs at 136-137. The RS line is at altitudes.
CPE stock rose 0.1% to 62.50. On the day, Callon stock hit 63.96, making a buy point of 63.44 cups with a handle. On Wednesday, major indexes fell, weighing on the shale oil producer. But CPE stock has a recent history of big intraday gains that fade or turn into losses at the close. CPE stock RS line is at high levels.
Market Rise Analysis
The stock market rally fell sharply on Wednesday. Volume on the Nasdaq rose against the previous session, ushering in a new distributing day.
In general, the major indicators continue to show sideways movement, finding support at the 21-day moving averages. With that, the S&P 500 and Dow Jones hit resistance at the 10-week lines, while the Russell 2000 fell back below the 50-day, 10-week lines.
Additional side actions may be constructive to the rise of the market, allowing for the formation of more bases and handles. But with the single 21-day line trending higher, and the 50-day and 10-week lines steadily declining, the major indicators could come under pressure to break higher or lower.
Energy stocks remain a standout, although individual names can certainly have some big daily or weekly swings. Meanwhile, other sectors are struggling to show leadership for any length of time. The relative shortage of stocks that can be bought – and the high failure rate among new buying opportunities – has been a worrisome aspect of the current market rally.
ZIM and Star Bulk gave up a few weeks of gains on Wednesday, while Timken Steel (TMST) and amvastar pharmaceuticals AMPH slipped back below buying points after Tuesday’s impressive breakout.
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What are you doing now
If you’ve built a mediocre view over the past two weeks, there’s no good reason to add jobs at the moment. The market rally is limited in scope, with the May CPI report due on Friday and the Federal Reserve meeting next week. Investors should quickly cut losses and consider taking at least partial profits relatively early.
A market rally could deteriorate, pushing investors to the sidelines. Or it could improve quickly, resulting in a flurry of buying opportunities. Investors must be alert to market changes and be prepared to act.
Read the big picture every day to stay in sync with market trend, stocks and leading sectors.
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