Stock futures fought to keep gains narrow on Tuesday, after President Donald Trump declared a state of emergency in Washington, DC on Monday, and the Pentagon called in 10,000 troops for a deployment to the capital. . Electric vehicle makers Tesla and Xpeng were ready for the first rebounds. Rent-A-Center, Shopify, and Datadog hovered near points of purchase. And Walmart led the Dow Jones today, after announcing plans to launch a fintech startup.
Dow Jones futures edged up 0.2%. Futures on S&P 500 slipped just 0.1% above fair value. The Nasdaq 100 futures contracts erased most of their early lead to trade flat in the stock market today. Baidu (START), Tesla (TSLA) and Nvidia (NVDA) held all of the top Nasdaq 100 locations.
Small caps slightly outperform early action, Russell 2000 futures up 0.6% WW International (WW), former Weight Watchers, gained 6.7%. Luminex (LMNX) jumped 5.9% after guiding fourth quarter and 2021 revenue above analysts targets.
The Nasdaq led the market pullback on Monday, pausing for at least a brief consolidation after showing some slight signs of overheating after its rally of 15.4% in the fourth quarter. As investors appeared to move away from growth stocks, many executives still had a good day, sending the Innovator IBD 50 ETF (FFTY) up 1% in its third straight lead.
On Tuesday, the S&P 500 top showed a good mix of stocks. Insurer Aflac (AFL) jumped 4.7% after Morgan Stanley raised the stock to overweight. Aflac stock closed on Monday less than 5% below a 46.53 buy point on a flat basis.
Dow Jones Today: Walmart se lance dans la FinTech
Walmart (WMT) climbed higher on the Dow Jones today, up 1.3%, after announcing the launch of a fintech start-up in partnership with Ribbit Capital. Ribbit is one of the venture capital firms supporting the Robinhood online trading platform. CNBC said the company’s board of directors would include Walmart US chief executive John Furner, chief financial officer Brett Biggs and Ribbit Capital managing partner Meyer Malka. The company has planned its growth through acquisitions and partnerships.
Walmart shares rose 22% in 2020. They are up 2.2% so far in January.
Goldman Sachs (GS) also jumped higher on the Dow Jones, up 1.2%, after JPM Securities raised the stock price target to 320 from 285 ahead of Goldman’s fourth quarter report on the 19th. January. Goldman is working on 11 consecutive weekly advances, and is up more than 30% following a breakout in November.
S&P 500: Tesla, Enphase
Tesla traded high on the S&P 500. Enphase Energy (ENPH), up 2.6% after Truist initiated hedging with a buy rating and price target of 254. Oil issues also supported early action, with Occidental Petroleum (OXY) and Marathon oil (MRO) trades among the top 10 advances of the S&P 500.
Emerging BioSolutions (EBS) climbed 3.8%, after updating its forecast for full year 2020 earnings and revenue above expectations.
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Stocks to watch for Tuesday include Rent-A-Center (RCII) on Monday finished in a buy range above a buy point of 41.52 in an ascending bullish base pattern. Shopify (SHOP) topped and passed a buy point at 1,147.01. Datadog (DDOG) sits just below a buy point of 111.59 in a cup base with handle.
Central garden animal (CENTA) is trading below several potential buying points. Standard entry would be a 41.20, but stock also forms a possible grip, which could provide a lower entry point.
Chinese stocks on the move: Baidu, Futu
China-based stocks, once higher, showed the first signs of strength. Baidu led the Nasdaq 100, up 3%. But Baidu’s positive pre-market trade Monday turned into an 8.6% drop in the regular session.
On the IBD 50 list, Futu Holdings (FUTU) rallied 7%. The online trading platform climbed more than 31% above a buy point of 51.20 after a breakout last week, then fell almost 5% on Monday. The stock technically triggered the eight week hold rule for the second time in two months, a rarity. But the nature of the Chinese initial public offering gives this withholding rule certain specific qualifications that investors should be aware of.
Bitcoin is approaching $ 36,000; Marathon, MicroStrategy jump
Bitcoin rebounded more than 6%, trading above $ 35,600 early Tuesday, according to CoinDesk. This was up from an initial low of around $ 30,525, but still below Friday’s high of $ 41,529. Despite the pullback, Bitcoin remains up nearly 22% since early January, after rising more than 50% in December.
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Among the actions related to Bitcoin, Marathon Patent Group (MARA) rebounded 8% higher. MicroStrategy (MSTR) rebounded 4.1%. IBD Ranking Stock PayPal funds (PYPL) rose 0.8%. PayPal stock is extended, up just over 10% since clearing a base cup buy point at 215.93.
State of emergency, troops called in
President Donald Trump declared a state of emergency in Washington, DC on Monday. The order allows the Federal Emergency Management Agency and the Department of Homeland Security to mobilize federal resources, “to save lives and protect property and public health and safety, and to reduce or avoid the threat. disaster in the District of Columbia. ”
The city itself had been under a state of emergency ordered by Mayor Muriel Bowser, since pro-Trump supporters ransacked the Capitol building on Wednesday. The Secret Service and the Department of Homeland Security have expanded their status as a special national security event due to security concerns ahead of Joe Biden and Kamala Harris’ inauguration on January 20.
The Military Times reported on Monday that the Defense Department had called 10,000 National Guard troops to the city and authorized more. “Currently, we have 10,000 entrants and we are authorized to surrender [15,000]National Guard Bureau chief Gen. Daniel Hokanson told The Times. Hokanson declined to say whether the troops would be armed, but said the plans were to “work closely with the federal agency, the FBI, and law enforcement as needed,” the Times reported.
25th Amendment, indictment, FBI warning
The House will vote today on a resolution calling on Vice President Mike Pence to “summon and mobilize Cabinet to activate the 25th Amendment to declare the President unable to perform the duties of his office, after which the Vice President would immediately exercise credentials as interim president. A blog by historian Heather Cox Richardson notes that the resolution does not address the president’s physical or mental health, but rather focuses on “his failure to fulfill his duty to respect the legitimate results of the presidential election” and to accept the peaceful transfer. power.
If Pence does not act on the resolution by Wednesday, House Leader Nancy Pelosi has said the House will begin impeachment proceedings. The House could impeach as early as this week. The Senate does not fully meet until Jan. 19, suggesting that a trial would not take place to possibly follow up on the impeachment of a conviction before Biden took over the presidency.
Acting Homeland Security Secretary Chad Wolf resigned Monday night, handing over control of one of the key security departments for the inauguration to Federal Emergency Management Agency chief Pete Gaynor. Gaynor has officially been in FEMA since January 2020. Wolf is the third member of the Trump cabinet to resign since the events of last Wednesday on Capitol Hill. The White House, the Department of Justice, the FBI and the Department of Homeland Security have not provided any briefings in the meantime.
ABC News reported that an FBI memo warned government agencies against “far-right groups” that were planning protests in all 50 state capitals over the weekend of Jan. 16-17, before the inauguration of January 20. According to reports, groups could storm government offices. A statement issued by the FBI said: “We are not focusing on peaceful protesters, but on those who threaten their safety and that of other citizens through violence and destruction of their property.
VE Creators: Tesla, Xpeng Climb
Luxury electric automaker Tesla rebounded 3% at the start of trading, after a 7.8% retreat on Monday that broke an 11-day winning streak. Monday’s Big Picture noted: The electric vehicle maker’s surge since mid-November has given it a market cap close to $ 770 billion, making it the sixth-largest company on the Nasdaq. So Tesla’s 7.8% drop on Monday had a big influence on the index, and will continue to be.
Tesla currently accounts for 5.5% of the Nasdaq 100 weighting, just behind Amazon.com (AMZN), Microsoft (MSFT) et Apple (AAPL). Tesla’s shares flashed some signals of a possible high.
Among other EV manufacturers, based in China Xpeng (XPEV) climbed 3.5% after securing a $ 1.98 billion credit deal, with plans to use discoveries to support and expand its operations. Xpeng stock has hugged its 50-day rising line, attempting to descend from the floor of a deep seven-week correction to 50%. The shares are up about 196% from their initial August offering.
Dow Jones Today: Chevron tracks rising oil prices
Chevron rose 1%, trading today at a high level on the Dow Jones, as West Texas Intermediate oil prices climbed to their highest level since late February. The WTO rose 0.6% to $ 52.84 a barrel, after International Energy Agency executive director Fatih Birol told Bloomberg U.S. shale oil was needed in the short term to close the global gap between supply and demand.
But Birol warned that shale producers should not underestimate the electrification of the transport sector, and should be aware of the declining share of crude in the future global energy mix.
Find Alan R. Elliott on Twitter @IBD_Aelliott
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