Dow Jones endorses Pfizer vaccine news; Tesla stock rises after sales in China – .

Dow Jones endorses Pfizer vaccine news; Tesla stock rises after sales in China – .

The Dow Jones Industrial Average gained 100 points on Wednesday morning, as Pfizer provided an update on the effectiveness of its vaccine against the omicron variant Covid-19. Apple hit new highs, while Tesla shares fell after reports of strong sales of electric vehicles in China.


Among the leaders of the Dow Jones, Apple (AAPL) gained 0.5% on Wednesday, while Microsoft (MSFT) fell 0.3% in today’s stock market. Nike (NKE) was also down 0.3%, still below a buy point despite Tuesday’s strong gain.

VE leader Tesla (TSLA) lost its first gains and fell 1% on Wednesday. Pair EV Rivien (RIVN) fell 1%, while Lucid group (LCID) fell about 4%. Chinese leaders in electric vehicles Li Auto (LI) et Xpeng Engines (XPEV) were mixed after opening Wednesday.

Among the best stocks to buy and watch, Endeavor Group (EDR), Louisiana-Pacific (LPX), NXP Semiconductors (NXPI) and Zim Integrated Shipping (ZIM) are located in or near new shopping areas. Despite the recent strength in the stock markets, investors should continue to develop watchlists and avoid making new purchases until the current market rally attempt kicks into a monitoring day.

Microsoft and Tesla are stocks in the IBD rankings. Louisiana-Pacific was the IBD’s 50 stocks to watch on Tuesday. NXP was highlighted in this week’s Stocks Near A Buy Zone article. Endeavor was featured in last week’s IPO Leaders story. Zim is an IBD SwingTrader share.

Dow Jones Today: Pfizer vaccine news

After the market opened on Wednesday, the Dow Jones Industrial Average slashed its gains to 0.1%, as Honeywell International (HON) trailed on the index following a downgrade from Bank of America. The S&P 500 rose 0.1%, while the highly technical Nasdaq composite reversed higher after the initial losses.

Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.1% on Wednesday, while the SPDR S&P 500 ETF (SPY) gained 0.2%.

Elsewhere, the 10-year Treasury yield traded at around 1.46% on Wednesday morning, after closing at 1.48% on Tuesday after two consecutive days of strong gains. Crude oil prices were down, with West Texas Intermediate down about 0.5% and on track to post a two-day lead.

Early Wednesday, Pfizer (PFE) and vaccine partner BioNTech (BNTX) said a third dose of their Covid-19 vaccine neutralized the omicron variant in lab tests. They also reported that the two-dose regimen was significantly less effective compared to the new variant than earlier strains of the virus. Pfizer and BNTX shares both traded higher after the open.

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Attempted stock market rally

The stock market posted strong gains on Tuesday, as major stock indexes continued to rebound from last week’s weakness. Tuesday marked the second day of a new rally attempt on the Nasdaq. This is a positive sign, but it means that the market correction is not over yet – a day or two is not trending. From day 4, you are looking for a sharp increase in the index in a higher volume than the previous day. This would indicate a follow-up day and signal the start of a potential uptrend.

Now, while the market is still correcting, now is a good time to look for stocks that could be the leaders of the next uptrend. A useful tool in such research is the line of relative strength. The RS line measures the price performance of a stock relative to the S&P 500. If the stock outperforms the broad market, the RS line tilts upward. If a stock is performing worse than the broader market, the line will point lower.

After Tuesday’s session, The Big Picture commented, “With two solid gains this week, much of the stock market damage from the previous two weeks is being repaired. The Nasdaq has fallen almost 8% from its peak on November 22 and is now 3.2% to new highs. “

The stock outlook was revised down on Friday, so it’s an important time to read The Big Picture from IBD.

Five Best Dow Jones Stocks To Watch Right Now

Dow Jones stocks to watch: Apple, Nike

Apple shares hit new highs on Tuesday, rising more than 3.5%. The action further extends beyond a buy point of 153.27 on a handle-cup basis, according to IBD MarketSmith’s chart analysis. The 5% buy area peaked at 160.93. Apple shares rose 0.5% on Wednesday, setting a new all-time high.

Retail leader Nike remains around 2% below the 174.48 point buy point after Tuesday’s 1.4% gain. Shares fell 0.3% on Wednesday.

Stock market profits: Toll Brothers

Phototronic (PLAB), Thor Industries (THO) et Lovesac (LOVE) all made strong morning moves after reporting their results early Wednesday.

Toll brothers (TOL) reported better-than-expected earnings and sales for the fourth quarter on Tuesday evening. Shares fell more than 2% on Wednesday. TOL action closed on Tuesday in a buy range above a 68.98 buy point, but is already stretched above a 67.43 handle entry. This 5% buy area peaked at 70.80.

Somewhere else, Point correction (SFIX) plunged 27% on Wednesday after slashing its earnings outlook for the year due to lingering pressures on the supply chain. Shares closed on Tuesday around 78% of their 52-week high.

Stocks to buy and watch: Endeavor, Louisiana-Pacific, NXP, Zim

IPO leader and owner of the Ultimate Fighting Championship, Endeavor Group, is trying to get past a base cup with handle with a buy point of 31.80, according to IBD MarketSmith’s chart analysis. Shares are about 3% below the new entry after Tuesday’s breakout attempt. The stock was down about 4% on Wednesday.

The share’s relative strength line is rising sharply to the upside and is at its highest level since early October. The RS line measures the price performance of a stock relative to the overall market. A strengthening of the RS line during times of market weakness indicates leadership potential.

Louisiana-Pacific – Tuesday’s IBD Stocks To Watch pick – surpasses a 73.76 buy point in a handle cup amid Tuesday’s 3.9% rise. The shares are in the 5% buy range which peaks at 77.45. LPX stock rose 1% on Wednesday.

Chip leader NXP Semiconductors is testing a 227.60 buy point in a handle-cup base after Tuesday’s 6.5% advance. The buy area rises to 238.98. Shares fell more than 6% on Wednesday after UBS began its hedging with a sell rating and a price target of 170.

IBD SwingTrader Zim Integrated Shipping action is quickly approaching a cup with the handle’s 60.19 buy point after Tuesday’s 4.9% rise. Shares rose 2% on Wednesday.

Join the IBD experts as they analyze the major stocks in the current market correction on IBD Live

Electric Vehicle Inventories: Li Auto, Xpeng, Lucid Motors, Rivian

Li Auto triggered the sell rule to cut losses 7% to 8% below the buy point of 34.93 from a cup base with a handle after Friday’s steep loss. Stocks are struggling to regain their 50 day line after finding support around the 200 day long term moving average. Shares edged down 0.7% on Wednesday.

Xpeng Motors triggered the round trip sell signal from a buy point of 48.08 during last week’s decline. Investors should sell the growth stock if it falls back near the buy point after making a gain of more than 10%. Try to sell before all winnings are wiped out. XPEV shares closed above their 50-day support level on Tuesday. Wait for the stock to form a new base, which would offer a new entry. The title rose 0.7% on Wednesday.

Lucid Motors shares threatened to extend a five-day losing streak on Wednesday, falling 4%. LCID stock remains stretched beyond a buy point of 28.49 in a cup base with handle, but the huge gains have diminished.

The Rivian hot initial public offering extended Tuesday’s 0.5% decline, falling nearly 1% early Wednesday.

RIVN shares closed on Tuesday at around 35% of their post-IPO highs. The downside is positive potential for investors who remain disciplined and wait for an IPO foundation to form before considering a buy. The recent weakness is the start of Rivian’s first base formation, and Monday’s strong gain was a step in the right direction.

Actions Tesla

Tesla stock fell 1% on Wednesday, following Tuesday’s 4.2% gain as it rebounded from a key support level. Early Wednesday, the China Passenger Car Association announced that Tesla Shanghai had sold 52,859 Chinese-made Model 3 sedans and Y crossover SUVs in November, of which 21,127 were exported.

The shares traded as high as 1,243.49 on November 4, but the stock closed on Tuesday around 15% of its 52 week high.

TSLA stocks remain well above a buy point of 764.55 in a handle cup, as well as earlier entries at 700.10 and 730. The chart also showed an alternate entry at 900.50. Tesla shares are likely forming a new base, but there is no new point of purchase yet.

Dow Jones Executives: Microsoft

Among Dow Jones stocks, software giant Microsoft fell 0.3% on Wednesday as it struggles to continue its rebound from the 50-day line.

On October 18, Microsoft stock broke a flat base buy point of 305.94. The 5% buy area peaked at 321.24, so the title is expanded.

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


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