Nio clears an 8% dive on earnings; Tesla leaps near point of purchase | Daily Investor Business


Dow Jones futures, along with Nasdaq 100 and S&P 500 futures, traded lower on Tuesday night, as the stock rally hit record highs. Tesla surged near a new point of purchase, while Chinese rival Nio plunged as much as 8.9% on its lagging profits before erasing the losses.


The Dow Jones Industrial Average led the main stock indexes down on Tuesday with a drop of 0.6%, or 167 points. The S&P 500 fell 0.5%, while the high-tech Nasdaq composite fell 0.2%. The three major stock indexes are on the verge of reaching record highs.Among the leaders of the Dow Jones, Apple (AAPL) fell 0.8%, while Microsoft (MSFT) slipped 1.3%. Meanwhile, (CRM) is once again approaching a new point of purchase amid Tuesday’s 2.5% advance.

IBD stock of the day, Tesla (TSLA), jumped 8.2% following its inclusion in the S&P 500 index. Chinese rival Nio (NIO) briefly plunged over 8% on late earnings before erasing the losses.

Stocks in or near buy zones in the stock rally are Mexican Grill Chipotle (CMC) and Facebook (FB).

Chipotle, Microsoft and Tesla are all stocks in the IBD rankings. Meanwhile, Apple is on the IBD Leaderboard Watchlist.

Dow Jones Futures today

Late Tuesday, Dow Jones futures fell 0.1% from fair value, while S&P 500 futures fell 0.2%. Nasdaq 100 futures contracts lost 0.2% from fair value. Remember that trading Dow Jones futures and elsewhere does not necessarily translate into actual trading during the next regular trading session.

Among exchange-traded funds, the Innovator IBD 50 (FFTY) fell less than 0.1% on Tuesday. The Invesco QQQ Trust ETF (QQQ) linked to the Nasdaq 100 traded down 0.3%. Meanwhile, the SPDR S&P 500 ETF (SPY) lost 0.5%.

Amid the coronavirus stock rally, the high-tech Nasdaq rose 32.6% for the year through Tuesday’s close. Meanwhile, the S&P 500 is up 11.7%, while the Dow Jones is up 4.3% year-to-date, through to the close on November 17.

Snapshot of the US Stock Market Today

Index symbol Price Loss of profit % Change
Dow Jones (0DJIA) 29783,75 -166,69 -0,56
S&P 500 (0S and P5) 3609,60 -17,31 -0,48
Nasdaq (0NDQC) 11899,34 -24,79 -0,21
Russell 2000 (Etc.) 178,50 +0,87 +0,49
IBD 50 (FFTY) 37,95 -0,02 -0,05
Last updated: 4:36 PM ET 11/17/2020

Coronavirus Updates

According to Worldometer’s data tracking, the cumulative number of confirmed coronavirus cases in the United States exceeded 11.5 million on Tuesday. The total number of deaths linked to the virus has exceeded 252,000.

The cumulative total of Covid-19 cases worldwide confirmed since the start of the epidemic surpassed 55.5 million on Tuesday, with more than 1.33 million deaths linked to the virus.

Coronavirus stock rally

According to IBD’s The Big Picture, the stock market is back in a new uptrend after a day of bullish tracking on November 4.

Monday’s Big Picture commented, “IBD’s enterprise software industry group illustrates how quickly the stock market has cooled on coronavirus games. The group ranked in the top 15 for much of October, but is now No. 87 for six-month relative performance among 197 industries tracked by IBD. “

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Dow Jones Stocks: Salesforce’s New Point of Purchase

Last week, Dow Jones leader briefly broke a 270.26 buy point in a double bottom pattern, according to MarketSmith chart analysis, but the stock quickly fell below it. of its 50-day line.

Amid recent strength, the stock is back above its 50 day line and is approaching a buy point of 271.02 in a double bottom with grip. Stocks rose 2.5% on Tuesday. is No. 2 on the Dow Jones Industrial Average with a 57.5% lead year-to-date through Tuesday’s close.

According to IBD Inventory Control, the stock has a rating of 95 out of 99 Perfect Composite IBD. Composite rating – an easy way to identify top growth stocks – is a mix of key fundamental and technical metrics to help investors assess a stock’s strengths.

Actions in or near shopping areas: Chipotle, Facebook

Facebook, the leader in FANG stocks, plots a cup with a handle with a buy point of 297.48, according to MarketSmith chart analysis. Shares are about 7% off the new entry amid Tuesday’s 1.4% decline.

According to the IBD Stock Checkup, the Facebook stock has a 98 out of a perfect IBD composite rating of 99. The composite rating – an easy way to identify major growth stocks – is a mix of key fundamental and technical metrics to help investors assess the strengths of a stock.

Burrito maker Chipotle is approaching a buy point of 1,366.76 in a double bottom. Stocks are around 8% of new entry as they struggle to move back above their key 50 day line.

Both stocks are featured in the Stocks Near A Buy Zone column for this week.

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Gains Nio

Chinese electric car maker Nio topped third-quarter estimates and gave a strong forecast on Tuesday evening. The company reported a loss of 12 cents per share on revenue of $ 666.6 million. The vehicle margin increased to 14.5% compared to -6.8% a year ago and 9.7% in Q2. Free cash flow more than doubled from Q2 to $ 3.3 billion in Q3.

Wall Street expected the electric SUV maker to lose 15 cents a share on revenue of $ 628 million.

Nio Stock

On November 13, Nio was up 248% above a buy point of 15.55 in a handle mug and could be in the middle of a climactic run. On that day, Nio hit a high of 54.20, gaining up to 77% from the close of 30.58 for the week ended October 30. . The parabolic rise of the past few weeks mirrors what was seen during a climactic race.

Meanwhile, Nio stock rose 355% above its 200-day long-term moving average, another potential signal that the stock is overheating.

Stock de Tesla

Tesla stock jumped more than 8% on Tuesday on news that it would be added to the S&P 500 Index on December 21. IBD Leaderboard stock is quickly approaching a buy point of 466 in an awkward mug with handle.

According to the IBD ranking commentary, “The midpoint of the handle of 422.50 is slightly higher than the midpoint of the cup (416.19) itself. It’s good. A risk that should not be ignored: the new base is behind schedule, following the progress of the cup with grip bases and a high and tight flag that also counted as a base. So the latest model has a higher risk. ”

Tesla was the IBD title of the day Tuesday.

Dow Jones Executives: Apple, Microsoft

Among the major stocks in the Dow Jones, Apple fell 0.8% on Tuesday as stocks continue to rebound from their 50-day line. Apple stock is setting a new base with a buy point of 138.08. An early entry exists at 125.49.

The blue chip giant is the No.1 Dow Jones stock for 2020, with a 62.6% lead through Tuesday.

Software giant Microsoft fell 1.3% on Tuesday, marking a two-day winning streak. Stocks are above their 50 day limit as they are trading at around 8% of their all-time high.

Since the start of the year, Microsoft has been one of the main stocks in the Dow Jones, rising 36% until the close on November 17.

Stock market rally: what to do next

During the recent market correction, investors should have built watchlists of potential leaders. Now is the time to put those watchlists to work.

Investors should use the current strength in the stock market to buy further breakouts. Start slowly with new purchases and see how they work. After raising liquidity during the recent correction, don’t rush to get fully invested all at once. Try new purchases. If they work, you can add to them; otherwise, you can go back.

In particular, focus on actions with strong relative strength. Find them using the line of relative force. The RS line measures the price performance of a stock relative to the S&P 500. If the stock is outperforming the broad market, the RS line is oriented upward. If a stock is performing worse than the overall market, the line will point lower.

Stocks to watch include the long-term leaders of IBD, companies with stable earnings growth and price performance.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen to learn more about growth stocks and Dow Jones futures.


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