The Dow Jones futures rose slightly on Wednesday night, as did the S&P 500 futures and the Nasdaq futures. The House indicted President Donald Trump shortly after the market closed. On Wednesday, the stock market rally posted modest gains, as did Apple shares and Intel ((INTC) led big-cap technicians. Taiwan Semiconductor ((TSM), Delta Airlines ((DAL) Report the result early Thursday.
Apple ((AAPL) flashed early buy signals on Wednesday as the tech giants showed some signs of life, although this isn’t entirely good news for the stock market rally. Apple iPhone and 5G chip manufacturers Qualcomm ((QCOM) also offers an early entry a little below the official Buy point.
The House voted to indict President Trump and 10 Republicans joined the Democrats. The Trump impeachment vote referred to the president’s alleged “incitement to rebellion” and referred to the pro-Trump mob that stormed the Capitol building on Jan. 6. The Trump impeachment process, the second of his four-year term, is now official. But Senate Majority Leader Mitch McConnell said he will not recall the Senate for rushing impeachment against Trump. That means an impeachment trial against the Senate would have to wait until Joe Biden becomes president.
Dow Jones Futures today
Dow Jones futures were up 0.25% from fair value. The S&P 500 futures were up 0.25%. Positive news about Johnson & Johnson coronavirus vaccines gave the S&P 500 and Dow Jones futures a slight boost.
Nasdaq 100 futures were up 0.2%.
In other news, Virgo Galactic ((SPCE) jumped overnight when Cathie Wood was planning a space ETF for ARK Funds.
Tesla ((TSLA) fell slightly after safety regulators asked the electric vehicle maker to recall 158,000 Model S and X vehicles for media control unit failures that caused touchscreen displays to malfunction, creating several safety risks.
Intel CEO Bob Swan Out
Intel shares rose 7% on Wednesday CEO Bob Swan is leaving February 15th, replaced by Pat Gelsinger, CEO of the manufacturer of virtualization software VMware ((VMW) and once Intel’s chief technology officer. Dow tech giant said fourth quarter earnings and sales will exceed its forecast, adding that it has made progress on its 7-nanometer chips.
Coronavirus cases reached 92.71 million worldwide. Covid-19 deaths topped 1.98 million.
Coronavirus cases in the US have hit 23.59 million people, with deaths over 393,000.
The Johnson & Johnson coronavirus vaccine is safe and produces a strong immune response in young and older recipients. This is evident from early / mid-phase data published in the New England Journal of Medicine.
Earlier, Johnson & Johnson ((JNJ) said it expected full efficacy results from the late-stage study of its short-term coronavirus vaccine by the end of January or the first week of February. A vaccine will be introduced in March. Reports followed that JNJ’s Covid vaccine launch could be delayed.
JNJ stock fell 1% in late trade after falling 0.1% on Wednesday and still closing in a buy zone.
Stock market rally
The stock market rally has generally moved on, with great tech taking the lead.
The Dow Jones Industrial Average closed a fraction lower on Wednesday Stock exchange trading. The S&P 500 Index rose 0.2% and the Nasdaq Composite rose 0.4%. The QQQ ETF, which tracks the Big Cap Nasdaq 100, gained 0.7%.
Apple stock rose 1.6% to 130.89. The Dow Jones, S&P 500 and Nasdaq components operate at a buy point of 138.89 cup-with-handle. But on Wednesday stocks rose slightly from their 21-day exponential moving average. It also crossed or touched a downward sloping trendline in its grip. These are reasons to start or add a few more stocks of Apple before a possible future breakout.
Another big-cap tech, Qualcomm stock rose 1.9% to 157.42. The shares are on a flat basis with an official buy point of 161.17 MarketSmith analysis. QCOM stock bounced back from its 21-day and 10-week lines and is still within reach of those lines. In the meantime it is trying to hit last week’s high, another small piece of resistance.
On Wednesday Qualcomm agreed to buy Nuvia, a computer startup founded by former Apple chip engineers, for $ 1.4 billion.
Growth stocks lagged overall.
Under the best ETFs, the innovator IBD 50 ETF (FFTY) fell 0.8%, while the innovator IBD Breakout Opportunities ETF (STRUGGLE) increased by 0.3%. The iShares Expanded Tech-Software Sector ETF (IGV) decreased by 0.3%. The VanEck Vectors Semiconductor ETF (SMH) fell by 0.5%. TSM stocks, Intel, AMD and Qualcomm are top SMH positions.
IPOs flash buy signals
Airbnb stock rose 5.7% to 169.99. The shares hit 178.62 in the course of the day and briefly deleted 175.07 IPO basis Buy point. But investors could have bought ABNB stock Tuesday as it crossed the January 8 high of 155.54 or caught some resistance on Wednesday above Tuesday’s intraday high.
The DoorDash share rose to 215.50 before settling for a plus of 3.2% to 198.17. The IPO base buy point is 195.60. But after huge gains in the last few days, DASH stock looks a bit longer from the start. Investors could have taken a position just above the December 21st high of 173.46.
Duck Creek stock rose 5.5% to 47.39 and broke above 46.54 Cup with handle Buy point. Investors could also have bought DCT shares earlier in the week, having broken a downtrend in their deep grip.
ContextLogic stock rose 14% to 23.92. That was just below the official buy point of 24.85. Investors could have bought WISH shares when they hit their Jan. 21 high of 21.58. Ideally, WISH stock would consolidate here and form some sort of handle before it really breaks out.
Taiwan Semiconductor Earnings
Wall Street expects Taiwan Semiconductor’s earnings to grow 25% to 94 cents per share and sales to grow 21% to $ 12.85 billion. This would be the third quarter in a row that growth has slowed.
Taiwan Semiconductor is the world’s largest chip foundry, making chips for Apple and many more. TSM stock is benefiting from multiple tailwinds: an uptrend in the chip cycle, a large Apple iPhone cycle, and Taiwan Semi’s technological lead Intel ((INTC) and other.
Taiwan Semiconductor’s profits could signal demand from customers like Apple and AMD. Investment forecasts could be a catalyst for Applied materials ((AMAT), ASML ((ASML), Lam Research ((LRCX) and other manufacturers of chip devices.
TSM stock fell 3.1% to 119.23 on Wednesday, likely on Intel CEO news.
Delta stock is near a buy point and is finding support on its 21-day, 50-day, and 10-week moving averages. A bullish rebound would be a buying opportunity. The DAL share is also in a flat base with a buy point of 43.86. Shares rose 0.35% to 40.44 on Wednesday.
Analysts are forecasting a loss of $ 2.41 per share for Delta, with sales falling 67% to $ 3.83 billion. Airlines have a long way to go to recover.
Analysis of the stock market rally
The Nasdaq composite is now 6.5% above its 50-day line, slightly higher than in the previous two days, but below the 8% from last Friday. If the Nasdaq is not renewed, it is at least almost extended. While Apple stocks, and to a lesser extent other tech giants, are trying to warm up, the downside is that it could overheat the broader market in a hurry.
Many IPOs, fuel cell names, and other speculative or “story” holdings are already on fire.
The bullish sentiment is high. The Bulls versus bears Mood meter the authors of investment newsletters showed that the proportion of bulls reached 63.7% last week, just below the multi-year highs set in late December. The bear value of 16.6% hit its recent lows. Readings above 60% are often associated with short-term setbacks, but not necessarily immediately.
However, as long as the stock market rally continues to show strength, investors should benefit. But keep an eye on the exits.
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