Rallies Archives - First Washington News

July 28, 2022

Dow rallies 400 points as Powell hints Fed could slow pace of rate hikes, Nasdaq jumps 4{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

Shares rallied Wednesday following the Federal Reserve declared its substantially predicted .75 share issue rate improve to combat inflation, but hinted that it could sluggish the tempo of its mountaineering campaign at some place.

The Dow Jones Industrial Average jumped 436.05 factors, or practically 1.4{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, to 32,197.59. The S&P 500 obtained 2.62{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} to close at 4,023.61. The Nasdaq Composite climbed 4.06{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} to 12,032.42. Tech shares led gains a day after quarterly outcomes from Alphabet and Microsoft.

Shares strike their highs of the session in the afternoon as Fed Chairman Jerome Powell left the doorway open up about the sizing of the central bank’s fee move at its subsequent assembly in September and pointed out it would eventually sluggish the magnitude of amount hikes. Powell claimed in a press conference that the Fed could hike by .75 percentage stage yet again in September, but that it would be dependent on the information.

“As the stance of financial policy tightens more, it probably will become suitable to gradual the pace of improves though we evaluate how our cumulative plan adjustments are impacting the economic climate and inflation,” he mentioned.

Investors were being also inspired just after Powell mentioned that he isn’t going to believe that the economy is at the moment in a recession. The 2nd-quarter GDP looking at is thanks on Thursday.

Investors have ongoing to be concerned that the central bank’s ongoing initiatives to reduce inflation will press the financial system into a economic downturn, or that we might previously be in a person. These fears eased Wednesday following Powell said he does not think the U.S. is now in a recession, incorporating that “there are much too many locations of the overall economy that are carrying out way too properly.”

“The purpose this is furnishing some reduction to the equity market place is the Fed is acknowledging that there can be an impression on growth to the economic system based on their plan,” claimed Gargi Chaudhuri, head of BlackRock’s iShares expenditure technique for the Americas. “They are recognizing there are two sides of this: you can find a progress tradeoff to struggle inflation. That recognition is one thing we experienced nowadays that we did not hear ahead of.”

Quite a few regard two consecutive quarters of negative GDP readings as a recession, but the Nationwide Bureau of Financial Research, the official arbiter of recessions, works by using various other things to ascertain 1. The GDP looking through Thursday is envisioned to present hardly an growth just after initial-quarter GDP declined by 1.6{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}.

Shares started the working day on a substantial be aware following finding a improve from tech earnings. Tech stocks extra to people gains as the all round marketplace rallied.

Alphabet shares rose about 7.7{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} right after the tech giant’s quarterly report showed strong earnings from Google’s search business. Microsoft received close to 6.7{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} after reporting a 40{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} bounce in earnings progress for Azure and cloud providers. The gains came even soon after both of those companies posted earnings and revenue that fell beneath analyst estimates.

Meta Platforms shares rose almost 6.6{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, ahead of its earnings scheduled for right after the bell. Amazon innovative extra than 5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} following getting hit by the retail carnage Tuesday. Apple included 3.4{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}.

Stores rallied also as inflation fears softened Wednesday afternoon. Walmart, which led retail declines in the former session, climbed about 3.8{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. Kohl’s, Ross Suppliers and Costco extra much more than 2{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} every single. The SPDR S&P Retail ETF superior approximately 2.6{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}.

Enphase Power also popped on the back of its most recent effects, ending the day about 17.9{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} increased. Chipotle extra 14.7{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} next its combined 2nd-quarter earnings launch.

Lea la cobertura del mercado de hoy en español aquí.

January 3, 2022

Dow Jones Rallies As Tesla Surges 10{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} On Deliveries; Chinese EV Stocks Mixed

The Dow Jones Industrial Average briefly rallied 125 points Monday, as the stock market rally looked to kick off 2022 on a positive note. Tesla stock surged 10{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} on blowout deliveries. Chinese EV leaders Li Auto, Nio and Xpeng Motors also reported strong deliveries over the weekend.

Among the Dow Jones leaders, Apple (AAPL) rose 1.7{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Monday, while Microsoft (MSFT) moved down 0.4{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} in today’s stock market. Also among the Dow 30, Home Depot (HD) continues to rebound from support, while Nike (NKE) aimed to retake a key level.

Electric-vehicle leader Tesla (TSLA) traded up 10{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Monday. Its rival, Rivian (RIVN), was down over 2{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. Lucid Group (LCID) climbed around 2{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. And Chinese EV leaders Li Auto (LI), Nio (NIO) and Xpeng Motors (XPEV) were sharply mixed Monday morning after their December sales reports over the weekend.

Among Monday’s top stocks to buy and watch, Applied Materials (AMAT), Datadog (DDOG), Fortinet (FTNT), Huntsman (HUN) and Icon (ICLR) are in or near new buy zones.

Icon, Microsoft and Tesla are IBD Leaderboard stocks. Datadog is an IPO Leader. Fortinet was featured in last week’s Stocks Near A Buy Zone column. Applied Materials is an IBD SwingTrader stocks. Huntsman was Wednesday’s IBD Stock Of The Day.

Dow Jones Today

After the stock market open Monday, the Dow Jones Industrial Average rose 0.15{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, while S&P 500 moved up 0.2{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. The Nasdaq rose 0.4{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} in morning trade.

Among exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) gained 0.1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Monday, while the SPDR S&P 500 ETF (SPY) traded up 0.1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. Chip stocks were strong performers Monday morning, and the iShares Semiconductor ETF (SOXX) rose 1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. Chip giant Taiwan Semiconductor (TSM) rose about 4{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Monday.

Elsewhere, the 10-year Treasury yield ticked up to near 1.59{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Monday morning, following a fall to near 1.51{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Friday.

Benchmarks in Frankfurt and Paris rose more than 1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} near midday in light, post-holiday trade. Markets in London, Tokyo and Shanghai remained closed on holiday.

Stock Market ETF Strategy And How To Invest

Stock Market Rally

The stock market closed out 2021 with mild, weak action on Friday. That extended the tech-heavy Nasdaq composite’s losing streak to four sessions. The Dow Jones Industrial Average and S&P 500 fell for a second straight day.

Despite the weakness, the market outlook remains in a “confirmed uptrend.” This gives investors a green light to buy top-rated growth stocks breaking out past correct buy points.

Friday’s The Big Picture commented: “Investors should show prudence going into the new year, but there is reason for optimism. History shows that when the S&P 500 gains 20{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} or more in a calendar year it averages a gain of 7.7{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} the next, according to Dow Jones market data. In addition, the median return in the following year is a gain of 10.2{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}.”

For daily stock market commentary, check out IBD’s The Big Picture.

IBD’s 2022 Stock Market Forecast

Dow Jones Stocks To Watch: Home Depot, Nike

Home Depot stock advanced 1.2{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Friday, nearing a record high. Home Depot was the No.1 Dow Jones performer in 2021, up 56.2{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} for the year. (The No. 2 Dow Jones stock was Microsoft with a 51.2{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} advance.) HD shares were up 0.1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Monday.

Dow Jones retail leader Nike is tracing a new flat base that has a buy point at 179.20, according to IBD MarketSmith chart analysis. Shares fell further below their 50-day line during Friday’s 0.5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} decline, as they fight to decisively move above that resistance. Nike shares gained 0.4{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Monday.

Four Top Growth Stocks To Watch In The Current Stock Market Rally

Stocks To Buy And Watch: Applied Materials, Datadog, Fortinet

IBD SwingTrader stock Applied Materials retreated back below a 159.10 buy point in a flat base during Friday’s 0.4{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} loss. The initial breakout occurred in weak volume, but remains in play. Look for a volume increase of at least 40{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} if and when the stock retakes its buy point. The 5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} buy area runs up to 167.06. Applied shares were up 1.1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Monday.

IPO Leader Datadog is approaching a cup base’s 199.78 buy point. Meanwhile, resistance around the 186 price level could provide an early entry for aggressive investors. Shares lost 0.5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Friday, as they pull back to their key 50-day moving average. DDOG shares gained 1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Monday.

Cybersecurity leader Fortinet remains in the 5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} buy area above a 355.45 buy point in a consolidation despite Friday’s 0.1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} loss. The buy area tops out at 373.22. Bullishly, the stock’s relative strength line hit a new high on the breakout day, confirming the stock as a market leader. The RS line measures a stock’s price performance vs. the S&P 500. Fortinet shares were up 0.3{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Monday.

IBD Leaderboard stock Icon is still in buy range past a 301.82 buy point in a consolidation, according to IBD MarketSmith chart analysis, in the wake of the Dec. 22 breakout move. The 5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} buy area runs to 316.91. Per Leaderboard commentary, Icon also cleared resistance around 290, which served as an early entry. The stock was up 0.3{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} early Monday.

Wednesday’s IBD Stock Of The Day, Huntsman, remains in buy range past a 34.57 flat-base entry following Friday’s 0.35{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} gain. The 5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} buy range goes up to 36.30. HUN stock shows an 89 out of a perfect 99 IBD Composite Rating, according to the IBD Stock Checkup. Huntsman stock rose 1.4{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Monday.

Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live

EV Stocks: Li Auto, Nio, Xpeng, Lucid Motors, Rivian

Over the weekend, Chinese EV leaders Li Auto, Nio and Xpeng Motors reported their December deliveries.

Li Auto delivered 14,087 Li One hybrid SUVs in December, up 130{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} year over year. Q4 deliveries reached 35,221, above its 30,000-32,000 target and Q3’s 25,116. The stock dropped nearly 1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Monday.

LI stock continues to work on a new base, after triggering the 7{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}-8{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} loss-cutting sell rule below a cup-with-handle base’s 34.93 buy point in early December. Shares surged above their 50-day moving average last week, which is bullish price action as the stock looks to build the right side of a new base.

Nio delivered 10,489 vehicles, up 49.7{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} year over year, but down slightly from November’s 10,878. NIO stock rose about 2{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Monday. Shares closed Friday about 53{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} off their 52-week high and sharply below their 50- and 200-day moving averages.

Xpeng deliveries surged 181{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} to 16,000 vehicles last month, a new record after November’s 15,613. Shares moved down over 2{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Monday.

XPEV stock activated a round-trip sell signal from a 48.08 buy point during early December’s sharp sell-off. Xpeng shares surpassed resistance around the key 50-day moving average Thursday, jumping 10{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. There is no valid buy point yet, but Thursday’s action was a step in the right direction.

Among U.S.-based EV stocks, Lucid Motors shares climbed around 2{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Monday, looking to recover from Friday’s 1.8{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} decline. LCID stock remains extended past a 28.49 buy point in a cup-with-handle base, but huge gains have faded. Shares are setting up for another try to retake the 50-day line, which would be a positive for the stock’s consolidation.

Recent initial public offering Rivian was down over 2{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Monday, on pace to add to Friday’s 0.3{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} gain. RIVN shares closed Friday about 42{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} off their post-IPO highs. Continue to wait for an IPO base to form before considering a purchase. Recent sharp losses are a significant setback in the stock’s basing process and there is no new buy point in sight.

Five Best Dow Jones Stocks To Watch Now

Tesla Stock

Tesla stock surged 10{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Monday, looking to snap a four-day losing streak. On Sunday, Tesla deliveries totaled 308,600 deliveries in Q4. That included 296,850 Model 3 and Y vehicles and 11,750 Model S and X luxury EVs. For the full year, Tesla said annual vehicle deliveries surged 97{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} in 2021, delivering 936,172 vehicles.

Early Monday, Tesla shares rose above 1,119.10 buy point. The buy point is based on a combination of factors — the stock is rebounding from 50-day support and cutting back above a downward sloping trendline. The 10{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} buy area will top out at 1,162.46.

There is also an alternative buy point, based on a short handle, at 1,119.10. That buy zone extends to 1,175,06.

Shares traded as high as 1,243.49 on Nov. 4, but the stock ended Friday about 15{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} off its 52-week high.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple stock ended Friday down 0.35{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, but remains about 16{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} above a 153.27 buy point out of a cup-with-handle base, according to IBD MarketSmith chart analysis, and close to the 20{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}-25{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} profit-taking level. AAPL shares rose 1.7{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Monday.

Software leader Microsoft decisively regained its 50-day line in recent weeks, as the top Dow Jones stock approaches a flat base’s 349.77 buy point with an early entry at 343.89. Shares moved down 0.4{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Monday, adding to Friday’s 0.6{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} decline.

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

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December 8, 2021

Dow Jones Rallies On Pfizer Vaccine News; Tesla Stock Rises After China Sales

The Dow Jones Industrial Average rallied 100 points early Wednesday, as Pfizer provided an update on the effectiveness of its vaccine vs. the omicron Covid-19 variant. Apple hit new highs, while Tesla stock dropped after reports of strong electric-vehicle sales in China.

Among the Dow Jones leaders, Apple (AAPL) gained 0.5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Wednesday, while Microsoft (MSFT) fell 0.3{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} in today’s stock market. Nike (NKE) also ticked 0.3{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} lower, still below a buy point despite Tuesday’s strong gain.

EV leader Tesla (TSLA) shed early gains and dropped 1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Wednesday. EV peer Rivian (RIVN) was down 1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, while Lucid Group (LCID) moved down around 4{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. Chinese EV leaders Li Auto (LI) and Xpeng Motors (XPEV) were mixed after Wednesday’s open.

Among the top stocks to buy and watch, Endeavor Group (EDR), Louisiana-Pacific (LPX), NXP Semiconductors (NXPI) and Zim Integrated Shipping (ZIM) are in or near new buy zones. Despite the recent stock market strength, investors should still be developing watchlists, and avoid making new purchases until the market’s current rally attempt stages a follow-through day.

Microsoft and Tesla are IBD Leaderboard stocks. Louisiana-Pacific was Tuesday’s IBD 50 Stocks To Watch pick. NXP was spotlighted in this week’s Stocks Near A Buy Zone story. Endeavor was featured in last week’s IPO Leaders story. Zim is an IBD SwingTrader stock.

Dow Jones Today: Pfizer Vaccine News

After the stock market open Wednesday, the Dow Jones Industrial Average pared gains to 0.1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, as Honeywell International (HON) dragged on the index following a Bank of America downgrade. The S&P 500 rose 0.1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, while the tech-heavy Nasdaq composite reversed higher after early losses.

Among exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Wednesday, while the SPDR S&P 500 ETF (SPY) gained 0.2{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}.

Elsewhere, the 10-year Treasury yield traded down to around 1.46{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Wednesday morning, following its close at 1.48{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Tuesday after two straight days of strong gains. Crude oil prices were lower, with West Texas Intermediate down about 0.5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} and on pace to snap a two-day advance.

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 vs. the new variant than prior strains of the virus. Pfizer shares and BNTX shares both traded higher after the open.

Stock Market ETF Strategy And How To Invest

Stock Market Rally Attempt

The stock market posted strong gains Tuesday, as the major stock indexes continued their rebounds from last week’s weakness. Tuesday marked Day 2 of a new rally attempt on the Nasdaq. That is a positive sign, but means the market correction isn’t over yet — one or two days doesn’t make a trend. Starting at Day 4, you are looking for the index to rise sharply in higher volume than the prior day. That would indicate a follow-through day, and signal the start of a potential uptrend.

Now, while the market is still correcting, is a good time to search for stocks that could become the next uptrend’s leaders. One tool helpful in such a search is the relative strength line. The RS line measures a stock’s price performance vs. the S&P 500. If the stock is outperforming the broader market, then the RS line angles upward. If a stock is performing worse than the broad market, then the line will point lower.

After Tuesday’s session, The Big Picture commented: “With two solid gains this week, much of the stock market’s damage from the previous couple of weeks is patched up. The Nasdaq sank almost 8{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} from its Nov. 22 peak and is now 3.2{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} from new highs.”

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

Five Best Dow Jones Stocks To Watch Now

Dow Jones Stocks To Watch: Apple, Nike

Apple shares hit new highs Tuesday, rallying more than 3.5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. The stock is getting further extended past a 153.27 buy point out of a cup-with-handle base, according to IBD MarketSmith chart analysis. The 5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} buy zone topped out at 160.93. Apple shares moved up 0.5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Wednesday, setting another all-time high.

Retail leader Nike remains about 2{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} below a cup base’s 174.48 buy point after Tuesday’s 1.4{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} gain. Shares fell 0.3{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Wednesday.

Stock Market Earnings: Toll Brothers

Photronics (PLAB), Thor Industries (THO) and Lovesac (LOVE) were all making strong morning moves after reporting earnings early Wednesday.

Toll Brothers (TOL) reported better-than-expected fiscal fourth-quarter earnings and sales late Tuesday. Shares dropped more than 2{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Wednesday. TOL stock closed Tuesday in buy range past a 68.98 buy point, but is already extended above a 67.43 handle entry. That 5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} buy area topped out at 70.80.

Elsewhere, Stitch Fix (SFIX) dived 27{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Wednesday after cutting its revenue outlook for the fiscal year due to ongoing supply chain pressures. Shares closed Tuesday about 78{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} off their 52-week high.

Stocks To Buy And Watch: Endeavor, Louisiana-Pacific, NXP, Zim

IPO Leader and Ultimate Fighting Championship owner Endeavor Group is trying to break out past a cup-with-handle base with a 31.80 buy point, according to IBD MarketSmith chart analysis. Shares are about 3{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} below the new entry after Tuesday’s breakout attempt. The stock was down about 4{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Wednesday.

The stock’s relative strength line is making strong upward progress and is at its highest level since early October. The RS line measures a stock’s price performance vs. the broad market. A strengthening RS line during periods of market weakness indicates leadership potential.

Louisiana-Pacific — Tuesday’s IBD Stocks To Watch pick — is breaking out past a 73.76 buy point in a cup with handle amid Tuesday’s 3.9{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} rise. Shares are in the 5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} buy range that tops out at 77.45. LPX stock moved up 1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Wednesday.

Chip leader NXP Semiconductors is testing a 227.60 buy point in a cup-with-handle base following Tuesday’s 6.5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} advance. The buy area goes up to 238.98. Shares were down over 6{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Wednesday after UBS started coverage with a sell rating and a 170 price target.

IBD SwingTrader stock Zim Integrated Shipping is rapidly approaching a cup with handle’s 60.19 buy point following Tuesday’s 4.9{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} climb. Shares rallied 2{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Wednesday.

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EV Stocks: Li Auto, Xpeng, Lucid Motors, Rivian

Li Auto triggered the 7{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}-8{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} loss-cutting sell rule below a cup-with-handle base’s 34.93 buy point after Friday’s sharp loss. Shares are fighting to regain their 50-day line after finding support around the long-term 200-day moving average. Shares tacked on 0.7{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Wednesday.

Xpeng Motors triggered the round-trip sell signal from a 48.08 buy point during last week’s decline. Investors should sell the growth stock if it falls back near the buy point after it has made a gain of more than 10{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. Try to sell before all gains are wiped away. XPEV shares ended Tuesday above their 50-day support level. Wait for the stock to form a new base, which would offer a new entry. The stock moved up 0.7{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Wednesday.

Lucid Motors shares threatened to extend a five-day losing streak Wednesday, falling 4{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. LCID stock remains extended past a 28.49 buy point in a cup-with-handle base, but huge gains have dwindled.

Hot initial public offering Rivian extended Tuesday’s 0.5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} fall, dropping nearly 1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} early Wednesday.

RIVN shares closed Tuesday about 35{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} off their post-IPO highs. The decline is a potential positive for investors remaining disciplined and waiting for an IPO base to form before considering a purchase. The recent weakness is the start of Rivian’s first base formation, and Monday’s strong gain was a step in the right direction.

Tesla Stock

Tesla stock turned down 1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Wednesday, after Tuesday’s 4.2{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} gain as it rebounds from a key support level. Early Wednesday, the China Passenger Car Association reported that Tesla Shanghai sold 52,859 made-in-China Model 3 sedans and Model Y crossover SUVs in November, including 21,127 that were exported.

Shares traded as high as 1,243.49 on Nov. 4, but the stock ended Tuesday about 15{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} off its 52-week high.

TSLA shares remain sharply above a 764.55 buy point in a cup with handle, 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 buy point yet.

Dow Jones Leaders: Microsoft

Among Dow Jones stocks, software giant Microsoft moved down 0.3{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Wednesday, as it fights to continue its rebound from the 50-day line.

On Oct. 18, Microsoft stock broke out past a flat base’s 305.94 buy point. The 5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} buy zone topped out at 321.24, so the stock is extended.