The Dow Jones futures rose slightly late Tuesday, along with the S&P 500 and Nasdaq futures, as the House neared a Trump impeachment vote and US military commanders saw last week’s “turmoil” condemned. The major indices had a quiet session Tuesday, but small caps, financials and growth names did well, with IPOs and several new stock breakouts, including Uber and GM stocks.
Tesla (TSLA) recovered on Tuesday after an eleven-day winning streak on Monday. However, Tesla stock is still showing signs that it is nearing a peak. Fuel cell stocks Plug in the power supply (PLUG), Ballard Power (BLDP) and FuelCell Energy (FCEL), which continued to rise overnight, also go vertically.
Meanwhile, many IPOs have been big winners recently, including DoorDash (LINE), Airbnb (ABNB) and Corsair Gaming (CRSR), all flash different buy signals. FuboTV (FUBO) and China EV Startups Xpeng (XPEV) and Li car (LI) recovered powerfully from their 50-day lines.
Tech titans keep fighting. Apple (AAPL) edged lower and tries to keep the support steps under control. Microsoft (MSFT) and Google Parents alphabet (TogetL) closed below the key levels. Facebook (FB) and Netflix (NFLX) have fallen below their 50-day limits and are moving towards their 200-day averages. Amazon.com (AMZN) did not fall, but still lags behind.
But these megacap issues keep the stock market rally from overheating as many leading stocks get scorching hot.
Military leaders condemn “riot”; Trump denies wrongdoing
In a highly unusual measure, the chiefs of staff published a letter on Tuesday blowing up the January 6th “uprising”. Commanders, while not naming President Donald Trump, who continues to claim widespread electoral fraud, recognized Joe Biden’s victory as president and made it clear that the military would follow the constitutional transfer of power.
On the previous Tuesday, Trump denied any wrongdoing in his January 6 speech and urged supporters to take action. Many of them soon stormed the Capitol, leaving five dead and forcing lawmakers to flee. Meanwhile, Trump said a new impeachment measure was causing “enormous trouble”.
House Impeachment Vote Wednesday
The House can hold a Trump impeachment vote on Wednesday. On Tuesday evening, House lawmakers will vote on a measure calling on Vice President Mike Pence and the cabinet to invoke the 25th amendment to remove Trump immediately from office. Pence is very unlikely to do this. However, Tuesday’s resolution could give an indication of how many Republicans could vote for a Trump impeachment vote.
If Trump is indicted, a trial against the Senate would follow, but likely not for weeks after Trump stepped down on Jan. 20. If Trump is convicted, he can no longer apply for federal office.
Dow Jones Futures today
Dow Jones futures were up 0.2% from fair value. S&P 500 futures and Nasdaq 100 futures were 0.3% above fair value.
Coronavirus cases reached 91.97 million worldwide. Covid-19 deaths topped 1.96 million.
Coronavirus cases in the US have hit 23.35 million people, with deaths over 389,000.
The Trump administration recommended opening up vaccinations to people 65 years of age or older or with a serious risk factor, while involving community centers and not waiting any longer to ensure adequate supplies for the second dose. All of this is meant to speed up the vaccinations, which got off to a rocky start but are gaining momentum.
The US government will purchase 1.25 million additional cans of COVID-19 antibody cocktail from Regeneron Pharmaceuticals (REGN) for up to $ 2.6 billion. The REGN share recovered late.
Stock market rally Tuesday
Overview of today’s US stock market
|index||symbol||price||Gain loss||% Change|
|S&P 500||(0S & P5)||3801.19||+1.58||+0.04|
Last update: 16:28 ET 12.01.2021
The stock market rally was constructive as the tech giants held major indices in check while many growth names performed well.
The Dow Jones Industrial Average rose 0.2% on Wednesday Stock exchange trading. The S&P 500 index rose. The Nasdaq network rose 1.3%. The Russell 2000 jumped 1.8%.
The yield distribution between two- and ten-year government bonds is the largest since March. This is good news for banks and other lenders who benefit from short and long loans.
The weak action in the major indices after Monday’s pullback is constructive, allowing the 50-day moving average to catch up somewhat after the Nasdaq was extended late last week. The Nasdaq closed 6.3% over the 50 days for a second straight session after rising 8% on Friday.
Tech Titans Lag
Tech titans are a primary reason major indices stay cool. Apple stock held up well, falling 0.1% to 128.80 21-day exponential moving average. AAPL share has a buy point of 138.89 on a Cup with handle base. Apple plans to make an announcement on the CBS morning show on Wednesday, but apparently not about a new product.
Microsoft stocks, a Dow Jones, S&P 500, and Nasdaq component like Apple, were down 1.2%, falling below their 50-day mark. The Google share lost 1.1% and thus also undercut its 50-day share. Facebook stock dropped 2.2% and Netflix 1%, both moving towards their 200-day line. Amazon stock gained 0.2% but is still below its 50-day mark.
On Monday, Tesla stock fell 7.8%, weighing on the S&P 500 and the Nasdaq. But stocks rebounded 4.7% on Tuesday. TSLA stock is far from its buy point of 466 and still appears to be at a high.
Plug Power’s stock rose 22% after a new alliance with French automaker Renault. This followed an investment by the SK Group in Plug Power as part of an alliance to promote hydrogen in the Asian markets. FuelCell stock rose 21% and Ballard Power 19% on Tuesday. The PLUG share already rose 95% in 2021, with FCEL and BLDP also skyrocketing.
Overnight, PLUG, FCEL and BLDP rose solidly in heavy trade.
Under the best ETFs, the innovator IBD 50 ETF (FFTY) rose 2.2%, while the innovator IBD Breakout Opportunities ETF (STRUGGLE) rose 1%, both at fresh highs. The iShares Expanded Tech-Software Sector ETF (IGV) rose 0.1%, with MSFT stocks and other software giants weighing on IGV. The VanEck Vectors Semiconductor ETF (SMH) rose by 0.5%.
GM Stock, Ford Stock Outbreak
GM stock rose 6.2% to 47.82 and broke above 46.81 Buy point and reach a record high. The auto giant broke out of a flat surface Cup bottom, according to MarketSmith analysisBut it could also be seen as a handle in a consolidation lasting several years. GM stock had bullishly rebounded from its 21-day exponential moving average on a daily chart and its 10-week line on a weekly chart and was an early entry.
Mary Barra, CEO of GM, introduced a new company called BrightDrop, which makes electric and commercial vehicles, in a CES keynote address. The BrightDrop electric vehicles will hit the market around the same time as an electric Ford Transit in late 2021. Ford dominates the van market, but Rivian, backed by Amazon, Workhorse (WKHS) and others are jumping into the EV delivery vehicle market.
Ford stock fell 5.2% to 78, down 9.60 flat base Buy point. Like GM stock, Ford recently rebounded from its 21-day and 10-week lines and offered an early entry.
Via Stock Races Past Buy Point
Uber stock rose 7.2% to 58.54 and moved decisively above a entry of 56.12 after a brief consolidation. It’s still within the 5% buy zone, which is 58.93. The relative strength line is almost at its peak in June 2019, shortly after Uber stock went public. The RS line shows the performance of a share against the S&P 500 index. Ride Hagel is still very weak, but Uber Eats’ delivery business is doing well due to the coronavirus pandemic. Lyft (LYFT), a pure hail-fighting firm, jumped, also moved past a brief consolidation and bounced back from its 10-week line.
Williams-Sonoma stock rose 6.4% to 118.25 and broke past a buy point of 114.75. WSM stock has rallied from its 50-day and 10-week lines in the past few days, offering an early entry. RH (RH), a competing establishment chain, rose 4.2% to achieve a brief consolidation.
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