Dow Jones futures dived more than 500 points early Tuesday before paring losses, as Moderna chief Stephane Bancel predicted existing vaccines will be less effective for the Omicron variant. The stock market bounced after Friday’s omicron Covid-19 sell-off, as President Joe Biden ruled out new lockdowns. Electric-vehicle stocks Li Auto, Lucid Motors, Rivian and Tesla raced higher Monday.
On Monday, the Dow Jones Industrial Average moved up 0.7%. The S&P 500 rose 1.3%, while the Nasdaq led the way, rising 1.9%. Crude oil prices rose over 2%. Bitcoin surged 7%. And the 10-year Treasury yield climbed to 1.53%.
Electric-vehicle leader Tesla (TSLA) rallied 5.1% Monday. EV peer Rivian (RIVN) surged nearly 7%, while Lucid Motors (LCID) gained 6.5%. Chinese EV leader Li Auto (LI) bolted higher after delivering earnings, while Xpeng Motors (XPEV) edged higher.
Dow Jones Futures Today: Omicron Variant; Powell, Yellen On Deck
Ahead of the stock market open Tuesday, Dow Jones futures dropped 0.9% vs. fair value, while S&P 500 futures lost 0.75%. Nasdaq 100 futures moved down 0.4% vs. fair value. Remember that trading in Dow Jones futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
U.S. Stock Market Today Overview
Last Update: 4:38 PM ET 11/29/2021
“There is no world, I think, where [the effectiveness] is the same level . . . we had with Delta,” Bancel said.
Early Tuesday, Treasury Secretary Janet Yellen and Federal Reserve chief Jerome Powell will testify before a Senate Committee in a hearing titled, “CARES Act Oversight of Treasury and the Federal Reserve: Building a Resilient Economy.”
Stock Market Rally
The stock market snapped back from Friday’s sell-off, as the major stock indexes closed with sharp gains Monday.
On Monday, The Big Picture commented: “Judging by how the major indexes did, regular readers of this column could easily see that fund managers showed more optimism for large and megacap names. They favored technology, some cyclical, and a smidgen of dividend-paying utility sectors. But they also showed a salty view toward other areas of the market.”
For daily stock market commentary, be sure to check out IBD’s The Big Picture.
Dow Jones Stocks To Buy And Watch: Apple, Nike
Apple rebounded from Friday’s 3.2% loss, rallying 2.2% Monday. Shares are at the top of the buy range above a 153.27 buy point out of a cup-with-handle base, according to IBD MarketSmith chart analysis. The 5% buy zone tops out at 160.93.
Retail leader Nike is about 2% below its cup base’s 174.48 buy point after Monday’s 1.1% gain.
Dow Jones Earnings: Salesforce
Dow Jones software leader Salesforce (CRM) bullishly regained its 50-day benchmark during Monday’s 4.4% climb. Shares remain extended past a 275.32 buy point in a cup with handle despite their recent pullback.
Late Tuesday, Salesforce earnings per share are expected to fall 89% to 92 cents from a year ago. Salesforce revenue is expected to climb 25% to $6.8 billion
Stock Market Earnings: Ambarella, NetApp, Zscaler
Chip designer Ambarella is expected to earn 49 cents per share on sales of $90.3, representing year-over-year increases of 444% and 61%, respectively. The stock found much-needed support at its 50-day line Monday.
NetApp’s earnings are expected to grow 15% to $1.21 per share year over year on revenue of $1.55 billion. NTAP shares are tracing a flat base with a 94.79 buy point. Shares are trading back above their key 50-day moving average after Monday’s 3.6% rise.
Cybersecurity leader Zscaler is expected to earn 12 cents per share on sales of $212 million. Shares closed Monday just 5% off their 52-week high following Monday’s 5.65% advance.
Stocks To Buy And Watch: Nucor, Pioneer, Pfizer, Zim
IBD Leaderboard stock Nucor has been trying to break out past a 119.42 buy point out of a cup-with-handle base, but is sharply below the entry after Monday’s 1.7% decline. Shares are about 6% below the latest entry.
Drug giant Pfizer is on the cusp of being extended past a 51.96 buy point in a cup base following a strong breakout on Friday in the wake of the newly discovered omicron variant. Shares reversed 3% lower Monday but are still above the buy point. The 5% buy zone tops out at 54.56.
Tuesday’s IBD Stock Of The Day, Pioneer Natural Resources, continues to build a flat base with a 196.74 buy point amid Monday’s 2.6% gain.
EV Stocks: Li Auto, Xpeng, Lucid Motors, Rivian
Li Auto is trying to break out past a cup-with-handle base’s 34.93 buy point. The stock surged as much as 11.1% Monday before paring gains to 6.4% after the company reported quarterly earnings results ahead of the market open. Shares closed just below the entry.
The Tesla rival said it lost 6 cents a share adjusted, missing analyst targets. But revenue shot up 210% in local currency to $1.21 billion, beating the Street’s estimates. Li Auto delivered 25,116 vehicles in the third quarter. The company said fourth-quarter revenue should jump 113%-127% in local currency to $1.37 billion-$1.46 billion.
Xpeng Motors is extended past its 48.08 buy point in a choppy cup base following last week’s sharp gains. XPEV shares rose 0.5% Monday.
Hot initial public offering Rivian rose 6.8% Monday, snapping a two-day losing streak and rebounding from Friday’s 2.4% loss.
RIVN shares closed Monday about 33% off their post-IPO highs. The decline is a potential positive for investors remaining disciplined and waiting for an IPO base to form before considering a purchase. The recent weakness is the start of Rivian’s first base formation, but the last two weeks of price action weren’t very constructive given the sharp losses.
Tesla stock rallied over 5% Monday, recovering from Friday’s 3.05% skid. Shares traded as high as 1,243.49 on Nov. 4, but the stock ended Monday about 9% off its 52-week high.
TSLA shares remain sharply above a 764.55 buy point in a cup with handle, as well as earlier entries at 700.10 and 730. The chart also showed an alternate entry at 900.50.
Dow Jones Leaders: Apple, Microsoft
Among the top Dow Jones stocks, software giant Microsoft moved up 2.1% Monday, nearly erasing the entirety of Friday’s 2.4% decline.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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