Dow Jones futures were slightly higher on Thursday evening, along with S&P 500 futures and Nasdaq futures, after US markets were closed for the Thanksgiving holiday. Apple, Microsoft and Tesla are in the news.
The stock market was positive for the second session on Wednesday. Fed officials see a slower rate hike coming “soon,” according to Fed minutes from the November meeting released Wednesday afternoon.
The Nasdaq rallied, buoyed by the rebound Tesla (TSLA). Major indexes have so far risen sharply this holiday-shortened week. But a longer break could be constructive for a market rally.
Investors should be cautious about increasing exposure due to key technical resistance and important economic reports ahead.
however, Dexcom (DXCM), UnitedHealth (UNH), Neurocrine Biosciences (NBIX), Medpace Holdings (MEDP) and Shockwave Medical ( SWAV ) are five healthcare stocks that have shown interesting activity.
DXCM stock and Neurocrine Biosciences are on the IBD Leaderboard, with MEDP stock on the Leaderboard watch list. Stocks NBIX and Medpace are on the IBD 50.
Tesla FSD Beta Release
Tesla CEO Elon Musk tweeted Thursday that the Full Self-Driving Beta is now available to all FSD owners in North America to request it.
That could allow Tesla to recognize more deferred revenue from FSD.
Despite its name, Full Self-Driving does not offer full self-driving, but a Level 2 driver assistance system. The National Highway Traffic Safety Administration is investigating the safety of Autopilot and FSD. The Justice Department has announced a criminal investigation into Tesla’s self-driving claims.
Tesla stock jumped 7.8% to 183.20 on Wednesday, rebounding from Tuesday’s market lows as Citigroup renewed the EV giant’s sell-off. TSLA stock is still down 19.5% this month and has almost halved in 2022.
Dow Stock Deal News
In Dow Jones stock news, Apple ( AAPL ) is reportedly interested in buying the U.K. soccer giant Manchester United (MANU). The Federal Trade Commission can try to block it Microsoft (MSFT) purchase agreement Activision Blizzard (ATVI) about 69 billion dollars.
Dow Jones Futures Today
Dow Jones futures rose 0.1% against fair value. S&P 500 futures advanced 0.2% and Nasdaq 100 futures rose 0.4%.
The 10-year Treasury yield fell 3 basis points to 3.68%.
Mainland China has reported more than 31,000 Covid cases, including those without symptoms, surpassing mid-April levels during Shanghai’s lockdown. Covid infections with symptoms are still below the April peaks.
US stock markets were closed on Thursday for the Thanksgiving holiday. On Friday, US trading will close early at 1:00 PM ET. But other exchanges around the world are usually open on Thursdays and Fridays.
Remember that overnight activity in Dow futures and elsewhere does not necessarily translate into actual trading in the next regular market session.
Join IBD experts as they analyze active stocks in the market rally on IBD Live
Stock Market Rally
Stocks had some wobbles on Wednesday, but extended gains, led by technology.
Initial jobless claims hit a three-month high while ongoing claims hit an eight-month high. S&P Global purchasing managers are signaling a deal for both U.S. manufacturing and services.
Fed minutes at its December 14 meeting bolstered expectations of a 50 basis point rate hike. Markets still favor another half-point move in February, but there is a reasonable chance of a quarter-point rise.
The Dow Jones Industrial Average rose 0.3% in Wednesday’s trading. The S&P 500 index climbed 0.6%, led by TSLA stocks. The Nasdaq composite rose 1%. The small-cap Russell 2000 rose 0.1%.
The price of American crude oil dropped by 3.7 percent and reached 77.94 dollars. Natural gas futures increased by 7.2 percent.
The 10-year Treasury yield fell 5 basis points to 3.71%. The two-year Treasury yield, which is more closely tied to the prospect of a Fed rate hike, fell below 4.5%.
The US dollar fell significantly for the second straight session, returning near recent lows.
Why This IBD Tool Makes Finding Top Stocks Easy
The iShares Expanded Technology Sector ETF ( IGV ) climbed 1.5%. VanEck Vectors Semiconductor ETF (SMH) gained 0.9%.
The SPDR S&P Metals & Mining ETF ( XME ) rose 0.3%. The US Global Jets ETF (JETS) rose 0.1%. The SPDR S&P Homebuilders ETF ( XHB ) climbed 0.5%. The Energy Select SPDR ETF (XLE) fell 1.1%. The SPDR Health Care Select Sector Fund ( XLV ) rose 0.4%. Dow Jones major UNH has the highest holding in XLV.
In terms of more speculative stocks, the ARK Innovation ETF (ARKK) gained 2.9% and the ARK Genomics ETF (ARKG) gained 0.9%. TSLA stock has significant exposure across Ark Invest’s ETFs.
The Five Best Chinese Stocks to Watch Now
Stocks To Watch
Dexcom stock advanced 1.7% to 112.92, finding support at its 21-day moving average. The DXCM stock has stalled this month after rising on earnings on October 28. Dexcom stock certainly has long support with a 123.46 buy point from a seven-month consolidation. Investors can buy DXCM stock from an early break above the 21-day line, possibly using Tuesday’s high of 113.88 as a specific buy point.
Medpace stock fell 1.3% to 218.81 on Wednesday. Shares have rallied near record highs since Oct. 25, 2019, after rising 38 percent in earnings. Since then, MEDP stock has made a mixed hand on the basis of a deep and long one-year cup. While shares had some big intraday swings, MEDP stock is currently on track to form a tight three-week pattern through Friday’s close. Investors may use the November 15 high of 226.57 as an early entry, above most of recent trading.
The NBIX stock fell by 1.5 percent to 118.97. Shares are consolidating near multi-year highs, extended since the October crash. Despite falling below the 50-day line last week, Neurocrine stock has a tight three-week pattern that is on track to move into a fourth week. Technically, it has a buy point at 126.09, although investors may want to wait for some quiet activity.
Stockwave fell 4.7% to 264.06 on Wednesday, rebounding above its 21-day line but hitting resistance at the 50-day line. After a breakout in late October and strong selling that continued amid earnings, SWAV stock bounced back last week. A new base will take more time, but aggressive investors can use a strong move above the 50-day as a quick entry.
UNH stock climbed 1.3 percent to 529.71, after briefly crossing its 200-day line below its 50-day and 21-day lines last week. UnitedHealth Corporation was previously a long-time IBD Leader and still shares many of its characteristics. Investors can use a pullback from the 50-day line as an early entry or a long-term Leader entry. UNH stock should make a new base after the breakout from a cup-to-glove base broke early last month.
Tesla Vs. BYD: Which Giant EV is Better to Buy?
Market Rally Analysis
The stock market added on Tuesday’s gains. The S&P 500 just surpassed its daily high on Nov. 15 and is within 1% of its 200-day line.
The Russell 2000 came right up to its 200-day line.
The Nasdaq added to Tuesday’s pullback from its 21-day moving average, though it is still below its Nov. 15 short-term high and well below its 200-day high.
The Dow Jones came within 20 points of its August 16 high during the day.
The S&P 500 is moving firmly above its 200-day line — which corresponds to a one-year high downtrend — a big test for a market rally.
A slew of economic data can sway Fed rate expectations and thus the stock market. On Wednesday, November 30, the October JOLTS report will show the opening of jobs, with Fed Chairman Jerome Powell speaking later in the day. On Thursday, the PCE price index, the Fed’s preferred inflation gauge, will be released along with jobless claims and the ISM manufacturing index. The November jobs report is due on Friday, November 2.
Ideally, the market will move sideways for a few days, allowing it to close at least the 21-day line, heading into those economic reports.
Market Timing With IBD’s ETF Market Strategy
What to do now
The market rally has shown some nice gains this week, with more stocks flashing buy signals over the past few days. The investor could have added a bit more exposure as a result.
But they may want to be cautious about making significant new purchases with the S&P 500 below its 200-day line and the Fed’s economy-critical outlook due next week.
Also consider some partial profits in short-term stocks. Stocks make short-term gains within a dominant trend and sector rotation.
Still, investors should work hard on their investment portfolios, looking for active names and institutions in a variety of sectors.
Read The Big Picture every day to stay in sync with market direction and leading companies and sectors.
Please follow Ed Carson on Twitter @IBD_ECarson for stock updates and more.
YOU MAY ALSO:
Get Your Next Big Winning Stock with MarketSmith
Want To Get Quick Profits And Avoid Big Drawbacks? Try SwingTrader
The Best Growth Companies To Buy And Watch
IBD Digital: Access IBD’s Premium Stock Lists, Tools and Analysis Today