Dow Jones futures rose slightly late Wednesday, along with S&P 500 futures and Nasdaq futures. The rally in the equity markets was mixed with the leading Dow and the lower Nasdaq while Apple (AAPL) flirted with a buy point.
Micron technology (MU) exceeded post-trading profits, although MU shares fell slightly overnight. Micron’s earnings report has an impact on manufacturers of memory-exposed chip devices such as: Applied materials (AMAT) and Lam research (LRCX). AMAT share just above a. closed Buy point.
In the meantime, investors will keep their eyes on electric vehicle manufacturers Tesla (TSLA), Nio (NOK), Xpeng (XPEV) and Li car (LI). Tesla is expected to release its production and delivery figures for the second quarter by the end of the week. Nio should also release June sales this week, with recent history suggesting an early Thursday. Xpeng and Li Auto are also likely to release June delivery dates in the next few days.
Apple stock rose 0.5% to 136.96 after hitting 137.41 during the day. That cleared up a 137.17 briefly Cup base Purchase point, after MarketSmith analysis. That’s not exactly breaking resistance, despite the fact that stocks are up 2.9% so far this week. But the anemic volume of AAPL stock has increased every day.
The relative strength line Apple shares have been trending up in the past few weeks, almost to consolidation highs. But it’s well below its all-time highs as AAPL stock has lagged the S&P 500 index for the past 10 months.
Several IPOs debuted Wednesday, including the Chinese ride-hailing giant Didi Global (I HAVE) and cybersecurity play SentinelOne (S.). Didi stock rose 1% to 14.10 from its 14th IPO, but that was after hitting 18.01 in one day. SentinelOne stock rose 21% to 42.50 after trading above the range at a price of 35.
Meanwhile, OPEC + meets Thursday with crude oil prices at three-year highs. The group is expected to discuss a modest quota increase for August.
Dow Jones Futures today
Dow Jones futures rose 0.25% from fair value. S&P 500 futures rose 0.2%. Nasdaq 100 futures rose 0.1%.
Coronavirus cases worldwide reached 182.90 million. Covid-19 deaths topped 3.96 million.
Coronavirus cases in the US have reached 34.54 million, with deaths exceeding 620,000.
Stock market rally Wednesday
The stock market rally was generally positive, with the Nasdaq pausing at record highs.
The Dow Jones Industrial Average rose 0.6% on Wednesday Stock exchange trading. The S&P 500 index rose 0.1% to hit another record high. The Nasdaq Composite lost 0.2%. The Russell 2000 was little changed.
While some hot tech and growth stocks paused – albeit nowhere near all – much of the market had a solid session.
Under the best ETFs, the innovator IBD 50 ETF (FFTY) lost 0.5%, while the innovator IBD Breakout Opportunities ETF (STRUGGLE) lost 0.7%. The iShares Expanded Tech-Software Sector ETF (IGV) decreased by 1.3%. The VanEck Vectors Semiconductor ETF (SMH) increased by 0.1%. Micron, LRCX, and AMAT inventory are all SMH components.
SPDR S&P Metals & Mining ETF (XME) rose 1.75% and the Global X U.S. Infrastructure Development ETF (PAVING) brought forward by 0.7%. US Global Jets ETF (JETS) increased by 0.5%. SPDR S&P Homebuilders ETF (XHB) closed just above breakeven point. The Energy Select SPDR ETF (XLE) rose 1.2% and the Financial Select SPDR ETF (XLF) 0.4%.
The ARK Innovation ETF (ARKK) down 0.1% and ARK Genomics ETF (ARKG) slipped by 0.6%. Tesla is number 1 among ARK Invest’s ETFs. Both ARKK and ARKG are above their short-term highs in April, while TSLA stock remains well below that range.
Micron income Revenue rose 129% to $ 1.88 per share for the third quarter and revenue rose 36% to $ 7.42 billion. Analysts had expected Micron to earn $ 1.72 per share on sales of $ 7.24 billion.
The memory chip giant headed higher for the current Q4. It also sells a chip factory Texas Instruments (TXN) for $ 1.5 billion, including $ 900 million in cash and some tools.
Micron stock fell 2% in extended trading. MU stock rose 2.5% to 84.98 on Wednesday and continued to move above its 50-day line. Micron has an official buy point of 97.06, although investors could use 85.85 as an early entry.
Micron’s revenues and goals are important to chip equipment manufacturers with strong involvement in the memory industry. But AMAT shares and LRCX were relatively quiet overnight.
On Wednesday, Applied Materials stock rose 0.3% to 142.40, exceeding a buy point of 142.22. LRCX stock fell 0.2% on Wednesday to 650.70, with an entry at 669.10 or 673.90.
Tesla reports quarterly delivery and production numbers within three business days of the end of the quarter. Technically, Tesla could release second quarter numbers over the weekend or even Monday and meet that standard, but Thursday or Friday is very likely.
Analysts expect Tesla deliveries of 196,700 vehicles. That would be a quarterly profit of 6.4%. That would be more than double the prior-year figure of 90,900 when the Fremont, California plant was closed for much of the quarter. FactSet estimates Tesla will ship 193,500 Model 3 / Y cars and 3,200 Model S / X vehicles.
Demand from China towards the end of the quarter is wild with complaints about alleged Tesla security and customer service issues. However, it is unclear whether these PR headaches will have a huge impact on Tesla sales, or if such an impact would show up with deliveries in June.
Tesla stock fell 0.2% to 679.70 on Wednesday, reversing from modest intraday gains. Stocks have emerged from a downtrend Trend line Late last week, shortly after the 50-day line was withdrawn. That provided an aggressive entry point for Tesla stock. Investors could also use 780.89, just above the short-term April 14th high, as another early entry.
Nio EV delivery figures were recently released on the first day of the following month, so June sales are likely on Thursday.
Nio had to temporarily stop production due to a shortage of chips, which limited the delivery potential. Nio targeted 21,000-22,000 electric vehicle deliveries in the second quarter. It will have to ship 8,187 electric SUVs in June to hit the upper end of that target.
The Nio share rose 5.7% on Wednesday to 53.20 and is already up 18% this week. On Monday, Nio cleared a short break that offered an extremely aggressive start. But it is clearly expanded from this level.
On July 9th, Nio is hosting a Nio Power Day event. The event, which will focus on EV batteries and charging, was announced on Monday.
Xpeng, Li car supplies
Xpeng and Li Auto will also report deliveries in the next few days.
On Wednesday, the US-listed company Xpeng announced that it had raised $ 1.8 billion in an IPO in Hong Kong, making it a double-listed stock. Trading begins in Hong Kong on July 7th.
The Xpeng share rose 0.2% to 44.42. Aggressive investors might think of 45.85 as an entry from a brief hiatus, much like Nio stock recently did.
Li Auto shares rose 2% to 34.94. Shares have more than doubled since their May 11 low, but there’s no plausible buy point in sight.
Nio, Li Auto, and XPEV stocks have rallied faster than Tesla in the past few weeks, but they were also sold much stronger in the months before that.
When it comes to Nio, Li, XPEV, and even Tesla stocks, make sure you start or add positions at the right buy points. While they posted huge gains over the past year, there have also been huge losses along the way.
Analysis of the market rally
The stock market rally had another quiet session. But that can be constructive. This can prevent the Nasdaq from being extended from the 50-day line. Some hot stocks can make handles, including several software names that have risen from early entries to or near record highs. And it makes the RS lines of rising stocks improve quickly.
As long as the Nasdaq and S&P 500 hold above their recent consolidations, the stock market rally should be okay. Ideally, the Russell 2000 and Dow Jones will also hit new highs, but there is no rush.
Continue to observe a variety of groups. While the technology and energy sectors have paved the way in the past few weeks, mining, metals, and materials companies are starting up, as well as some financial stocks. Fertilizer stocks could rally if the corn futures burst. A large number of recruitment agencies show strong measures.
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