Dow Jones Futures Stumbles as Coronovirus Market Rally New Kovid-19 Fear; Tesla, AMD, Nvidia Fall of Big Day
The Dow Jones futures broke up early Thursday with S&P 500 futures and Nasdaq futures, amid growing concerns of a new wave of coronavirus cases. The coronavirus stock market had a mixed session on Wednesday, as the Federal Reserve indicated interest rate hikes by 2023.
On Wednesday, Advanced Micro Devices (AMD), Nvidia (NVDA), ServiceNow (now), and Alibaba (BABA) cleared the points of purchase, while Tesla (TSLA) surpassed another milestone and Brazilian IPO XP (XP) moved towards record height.
However, with futures prices declining at the beginning of Thursday, AMD, Nvidia and Alibaba appeared to fall below stock entry points, while Tesla stock sank to around 1,000. ServiceNow and XP were not yet traded.
For most of the Coronavirus stock market rally, the big winners were Zoom Video Communications (ZM), Chegg (CHGG) and TellDoc Health (TDOC), or companies that could fare well at least during the crisis. Microsoft (MSFT), as ServiceNow stock or Nvidia stock.
But now the recovery in stocks with growth in the market crash is overshadowing expectations, including Tesla stock, XP stock and RH (RH).
Tesla shares hit more than 1,000 headlines on Wednesday, while rival Nikola (NKLA) sold out. XP stock continued to run towards its all-time high.
ServiceNow stock went above a small consolidation, offering a new entry. AMD stock cleaned up two buy points, one close above the other. But it remains among the rival rivals, including Nvidia Stock, which introduced a new add-on buying zone. Alibaba stock also broke, but many peers have also suffered losses.
Tesla stock, Nvidia stock and ServiceNow stock are all on the IBD leaderboard, along with Microsoft stock. MSFT stock and NVDA stock are on SwingTrader. Microsoft Stock, Nvidia Stock and now Stock IBD are long-term leaders.
NVDA stock, AMD stock and now stock with Zoom stock and chig stock are all at IBD50.
Dow Jones futures today
The Dow Jones futures fell at 3% vs. fair value. S&P 500 futures were down 2.45%. Nasdaq 100 futures retreated 1.6%. During the coronavirus stock market rally, the Dow Jones was not as much during the crash of the futures market, but can still make big strides overnight.
With coronavirus fears, the market may be confident of the initial economic recovery and how much it is worth. At 8:30 pm ET, the Labor Department releases figures for unemployed claims. Economists expect another big week of new filing for unemployment benefits.
The Dow Jones components were among the notable losers before Boeing (BA) and the airline stock open. He has already pulled back the last few seasons after a huge gain last week. Delta Air Lines (DAL) said late Wednesday that Q2 revenue would decline by 90% compared to a year earlier. Delta hopes to stop losing cash by December.
Certainly, a standstill in the stock market boom would be a surprise after such a strong race.
Remember that overnight action on Dow Futures and elsewhere is not necessary in actual trading in the next regular stock market session.
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Coronovirus cases have reached 7.48 million worldwide, as new cases are breaking records daily. Kovid-19 has at least 419,000 deaths.
Coronovirus cases rank 2.06 million in the US, with deaths exceeding 115,000.
There is some concern that the US may launch a short-wave of new coronavirus cases, at least in some states such as Texas, Florida and California. A combination of states easing the lockdown and two weeks of mass protests across the country may begin to have an impact on new cases.
Brazil reported more than 33,000 cases on Wednesday, a new record, over 775,000. Many other Latin American nations are hot spots along with the Middle East and India. There are now over 500,000 cases in Russia.
The coronovirus stock market rally had a mixed session, which grew again while the beat-down sector such as airlines calmed down. Growth recovery names like Tesla Stock are joining forces with the coronovirus growth play.
The Federal Reserve indicated that it would not raise interest rates at least through 2022. Policy regulators have seen a substantial decline in the unemployment rate over the next few years. The major indexes improved upon the announcement of the Fed meeting, but mixed again after Fed chief Jerome Powell spoke. Fed chief Powell said the central bank is doing everything to support the economy, but it can only do so much. He said that until the fear of coronavirus is completely eradicated, the economy will not fully recover.
If coronavirus cases occur in the U.S. Will re-emerge, possibly killing non-virus plays from Boeing to Tesla stock.
The Dow Jones Industrial Average fell 1%, near the session’s lows. The S&P 500 index retreated 0.5%. The Nasdaq Composite climbed 0.7%, off-session high but above 10,000. Small-cap Russell sank 2000%, below its 200-day line.
Apple stock and Microsoft stock, the Dow Jones, S&P 500 index and Nasdaq megacap, both 2.6% and 3.7%, respectively, reached new heights.
Grown stocks, now with even wider participation in the coronovirus market rally, had a strong day.
Among the best ETFs, the Innovator IBD50 ETF (FFTY) climbed 1.5%. IShares expanded tech-software sector ETF (IGV) was down 1.8%. MSFT stock and ServiceNow stock are two large IGV holdings. VanEck Vectors Semiconductor ETF (SMH) increased 0.6%. Notable members are AMD Stock and Nvidia Stock.
Tesla stock rose 9% to 1,025.05, which is yet another record. Chief Executive Officer Elon Musk says it is “time” to get Tesla Semi into “volume production”, although he did not set a time. The latest hints about the often-delayed Tesla Semi come in the form of new public Nicola stock that has increased in recent times as it moves on to electric pickups and big-rig trucks. Semi-headlines came amid negative news about Model Y demand and coronovirus cases at the Tesla Fremont plant.
But Tesla stock also received a boost as Volkswagen (VWAGY) indicated problems with its soon-to-launch ID electric vehicles. VW will begin finalizing ID.3 orders on June 17, but deliveries will not begin until early September. Worse, some ID.3 software improvements will not come until early 2021.
VW stock rose 0.2% on Wednesday. Nikola stock fell 18.5% to 65.01 after selling at 93.99 intraday on Tuesday.
Tesla’s stock fell nearly 4% to 988 in early Thursday. But it has increased well from the buy point of 869.92. NKLA stock sank more than 10%
XP stock rose 3.8% to 42.24. Which is just below its record height of 43.52. XP stock has gained momentum after falling 64% to 15.50 during a market crash. Expectations of economic recovery and a weaker dollar have helped XP and other US-listed Brazilian stocks.
XP stock fell 3% before the open.
It would be cool to see that the Brazilian brokerage IPO would have to set some kind of handle before taking a break and racing to new heights. But the relative strength line for XP stock has already hit a new high, a rapid signal. The RS line, the blue line in the chart provided, tracks the stock’s performance vs. the S&P 500 index.
Chipmacher shares rose 1.9% to 57.44 in Wednesday’s stock market trading, which is 59 intraday. According to MarketSmith’s analysis, AMD stock briefly approved the traditional cup-of-handle purchase point of 58.73, but could not be closed on the same. AMD stock was above its initial penetration of 57.08. A rebound from above the 50-day line and a trend line at Handel on Tuesday certainly added one more.
However, AMD stock fell 3% at the beginning of Thursday.
AMD was Wednesday’s IBD stock.
A cause for concern for AMD stock is that it is lagging behind other data-center chip stocks such as Nvidia, Infi (IPHI) and Monolithic Power Systems (MPWR).
Nvidia stock rose 3.55% to 374.67, a fresh all-time high. NVDA investors may add a few more shares in the last few days. Yet shares in the premarket fell 2%.
Alibaba stock rose 1.3% to 223.68, moving above the buy level of 221.26 after the May breakout. The RS line for BABA stock has fallen during the Coronavirus stock market rally. Like AMD stock, Alibaba stock has outpaced many other Chinese e-commerce stocks, as well as many other U.S.-listed Chinese firms.
BABA stock retreated 2.5% in early Thursday.
The stock now climbed 3.3% to 401.66, clearing a small consolidation just above the cup base. The new buy point for ServiceNow stock was 396.25, although investors could probably start a little earlier.
The stock fell nearly 3% before it opened.