Dow Jones futures were slightly higher on Thursday afternoon, along with S&P 500 futures and Nasdaq futures, with US markets closed for the Thanksgiving holiday. Apple, Microsoft and Tesla are in the news.
Wednesday’s stock market rally was positive for the second consecutive session. Fed officials see slower rate hikes coming “soon,” according to minutes from the November meeting released Wednesday afternoon.
The Nasdaq led the way, gaining momentum from the turnaround Tesla (TSLA). The major indexes were all up solidly during this holiday-shortened week. But a longer break for the market rally could be constructive.
Investors should be cautious given key technical resistance and noteworthy economic reports.
Nevertheless, Dexcom (DXCM), UnitedHealth (UNH), Neurocrine Biology (NBIX), Medpace Holdings (MEDP) and: Shockwave Medical ( SWAV ) are five healthcare stocks showing interesting action.
DXCM stock and Neurocrine Biosciences are on the IBD Leaderboard, and MEDP stock is on the Leaderboard Watchlist. NBIX stock and Medpace are in the IBD 50.
Tesla FSD beta release
Tesla CEO Elon Musk tweeted Thursday that the Full Self-Driving Beta is now available to any FSD owners in North America who 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 is a Level 2 driver assistance system. The National Highway Traffic Safety Administration is investigating the safety of Autopilot and FSD. The Justice Department is reportedly conducting a criminal investigation into Tesla’s self-driving allegations.
Shares of Tesla jumped 7.8% to 183.20 on Wednesday, rebounding from Tuesday’s bear market lows, as Citigroup upgraded the EV giant from sell to hold. TSLA shares are still down 19.5% this month and roughly halve in 2022.
Dow Stock Deal News
In Dow Jones stock news, Apple (AAPL) interested in buying British soccer giant Manchester United (MANU). The Federal Trade Commission may try to block it Microsoft (MSFT) buy deal Activision Blizzard ( ATVI ) for about $69 billion.
Dow Jones futures today
Dow Jones futures rose 0.1% against the real value. S&P 500 futures rose 0.2% and Nasdaq 100 futures rose 0.4%.
Mainland China has reported more than 31,000 Covid cases, including asymptomatic ones, surpassing mid-April levels during Shanghai’s lockdown. Symptomatic Covid infections are still below the April peak.
US stock markets will be closed on Thursday for the Thanksgiving holiday. US markets will close early on Friday at 1pm ET. But other stock exchanges around the world are usually open on Thursdays and Fridays.
Keep in mind that overnight action in Dow futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.
Join IBD experts as they analyze stocks in action on IBD Live’s Stock Market Rally
Stock market rally
Wednesday’s stock market rally saw some volatility but extended gains led by technology.
Initial jobless claims rose to a three-month high, while ongoing claims hit an eight-month high. The S&P Global purchasing managers’ index for US manufacturing and services both signaled contraction.
Fed minutes reinforced expectations of a 50-basis-point rate hike at the December 14 meeting. Markets still favor another half-point move in February, but there’s a decent chance of a quarter-point hike.
The Dow Jones Industrial Average rose 0.3% on Wednesday. The S&P 500 rose 0.6%, led by TSLA. The Nasdaq composite rose 1%. The small-cap Russell 2000 rose 0.1%.
American crude oil prices decreased by 3.7%, reaching 77.94 dollars per barrel. Natural gas futures rose by 7.2%.
The 10-year Treasury yield decreased by 5 basis points to 3.71%. The two-year Treasury yield, which is more closely tied to the Fed’s rate hike outlook, fell below 4.5%.
The US dollar fell significantly for the second session in a row, returning to recent lows.
Why this IBD tool makes it easy to find the best stocks
The iShares Expanded Tech-Software Sector ETF ( IGV ) rose 1.5%. The VanEck Vectors Semiconductor ETF ( SMH ) rose 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 ) rose 0.5%. The Energy Select SPDR ETF ( XLE ) fell 1.1%. The Health Care Select Sector SPDR Fund ( XLV ) rose 0.4%. Dow Jones giant UNH shares lead at XLV.
Reflecting the more speculative historical stocks, the ARK Innovation ETF ( ARKK ) rose 2.9% and the ARK Genomics ETF ( ARKG ) rose 0.9%. TSLA stock is a large holding in Ark Invest’s ETFs.
Five Best Chinese Stocks to Watch Now
Stocks to watch
Shares of Dexcom rose 1.7% to 112.92, finding support at its 21-day moving average. Shares of DXCM have stalled this month after extending earnings on Oct. 28. Dexcom stock is certainly a long hold, with a 123.46 buy point after a seven-month rally. Investors can buy DXCM shares from early entry above the 21-day line, perhaps using Tuesday’s high of 113.88 as a specific buy point.
Medpace shares fell 1.3% to 218.81 on Wednesday. Shares are consolidating near record highs after a 38% gain on Oct. 25 following earnings. Since then, MEDP’s stock has been building a messy handle on the base of a deep, one-year cup. While the stock has seen some big intraday swings, MEDP shares are currently on track to form a three-week pattern before Friday’s close. Investors can use the Nov. 15 close of 226.57 as an early entry that outperforms most of the recent trade.
NBIX shares fell 1.5% to 118.97. The stock is consolidating near multi-year highs that have been extended since early October. Despite falling below the 50-day line last week, Neurocrine stock has a three-week pattern that is poised to extend into a fourth week. Technically, this has a buy point at 126.09, although investors may want to wait for calmer action.
Shares of Shockwave fell 4.7% to 264.06 on Wednesday, bouncing back from its 21-day line but hitting resistance at the 50-day line. After a failed breakout in late October and continued sharp selling through earnings, SWAV stock has bounced back over the past week. The new base will take more time, but aggressive investors can use a strong move above the 50-day timeframe as an early entry.
Shares of UNH rose 1.3% to 529.71, bouncing back above its 50-day and 21-day lines after briefly crossing its 200-day line last week. UnitedHealth stock used to be a long-term IBD leader and still has many characteristics. Investors can use a bounce above the 50-day line as an early entry or a long-term leader entry. UNH’s stock needs to form a new base after last month’s bowl exit with the handle quickly failed.
Tesla vs. BYD. Which EV Giant is the better buy?
Market rally analysis
Adding to Tuesday’s gains was a stock market rally. The S&P 500 just surpassed the intraday high of Nov. 15 and closed within 1% of its 200-day line.
The Russell 2000 reached its 200-day line.
The Nasdaq extended Tuesday’s pullback from its 21-day moving average, though it’s still below the short-term high of Nov. 15 and well below its 200-day low.
The Dow Jones fell 20 points from its August 16 intraday high.
The S&P 500 moving decisively from its 200-day line, which roughly coincides with the one-year downtrend line, is a huge test for a market rally.
A series of economic data can change Fed interest rate expectations and thus the stock market. On Wednesday, November 30, the October JOLTS report will show job openings, and Fed Chair Jerome Powell will speak later in the day. The PCE price index, the Fed’s favorite inflation gauge, will be released on Thursday, along with jobless claims and ISM manufacturing indexes. The November jobs report is due Friday, November 2.
Ideally, the market would have moved sideways for a few days, allowing at least the 21-day line to reach those indicators heading into those economic reports.
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What to do now?
The market rally saw some nice gains this week as more stocks flashed buy signals over the past few days. Investors could have a little more exposure as a result.
But they may want to be wary of making significant new purchases with the S&P 500 hovering below its 200-day line and a crucial economic Fed meeting next week.
Also consider taking some partial profits in fast-growing stocks. Stocks are making short-term gains amid a volatile uptrend and sector rotation.
Still, investors should work hard on their investment shopping lists, looking for established and established names in a variety of industries.
Read The Big Picture daily to stay in sync with market direction and leading stocks and sectors.
Please follow Ed Carson on Twitter @IBD_ECarson for stock market updates and more.
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