Tag: rally

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Stocks rally to end the first day of the second half, Dow jumps 300 points

Stocks rally to end the first day of the second half, Dow jumps 300 points

Stocks rose on Friday to start off the quarter immediately after the S&P 500 shut out its worst 1st-fifty percent effectiveness in decades.

The Dow Jones Industrial Average rose 321.83 factors, or 1.1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, to 31,097.26. The S&P 500 rose 1.1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} to 3,825.33. The Nasdaq Composite was also up by .9{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} to 11,127.85.

Homebuilder stocks contributed to the current market going better, with PulteGroup umping 6.5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, although Lennar and D.R. Horton rose more than 5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} every. Etsy shares popped 9{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} to lead the S&P 500 increased.

McDonald’s led the Dow larger with a 2.5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} attain. Coca-Cola and Boeing also rose extra than 2{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}.

Even with the gains, all of the important averages posted their fourth down week in 5. The Dow fell 1.3{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} for the 7 days. The S&P 500 shed 2.2{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, and the Nasdaq completed reduced by 4.1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}.

Traders remained focused on warning indicators from various companies that decreased their earnings direction, adding to trader issues that persistent inflation at many years extensive highs could carry on to place pressure on share selling prices.

Normal Motors edged larger by 1.4{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, even after the firm warned about producing difficulties in the second quarter that could bring its net profits for the quarter to between $1.6 billion and $1.9 billion. Analysts predicted GM’s web income to be about $2.5 billion all through the second quarter, according to FactSet.

In the meantime, Micron Technological know-how fell about 3{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} on the again of disappointing fiscal fourth-quarter steering. Many other chipmakers fell with it. Nvidia missing 4{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. Qualcomm, Western Electronic and State-of-the-art Micro Equipment pulled back by about 3{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} every.

Shares of Kohl’s fell 19.6{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} following the retailer reduce its outlook for the fiscal 2nd quarter, citing softer purchaser paying out, and terminated talks to provide its organization, indicating the retail ecosystem has deteriorated considering that the commencing of its bidding system.

Michael Burry of “The Big Short” warned that the rout in money marketplaces is only midway by and that companies will see an earnings drop next.

Baird investment system analyst Ross Mayfield echoed Burry’s sentiment, noting that S&P 500 earnings estimates of 10{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} calendar year-about-year advancement are “most likely as well higher” even in a gentle financial slowdown. He also emphasized the need to have to see a peak in inflation, the middle position of the myriad variables that generated the stock market’s brutal worst very first-50 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}.

“Weak spot to day has been almost entirely numerous contraction, earnings are the up coming shoe to fall,” he advised CNBC. “Direction in the course of Q2 and Q3 earnings season will in the end dictate the depth of this selloff, but the market place very likely are unable to sustain a new bull market right up until inflation and inflation expectations are well under command and the Fed can, at a minimum amount, back off the hawkish rhetoric.”

Production action weakens

The Institute for Provide Administration stated production activity in June was weaker than expected. Its index of countrywide manufacturing facility action dropped to 53 for the thirty day period, the least expensive reading through since June 2020. ISM’s new orders index also fell to 49.2 from 55.1 — exhibiting contraction for the first time due to the fact Might 2020.

This all came a day after the S&P 500 posted a far more than 16{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} quarterly loss – its most important just one-quarter slide considering the fact that March 2020. For the very first 50 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, the broader industry index dropped 20.6{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} for its greatest initial-50 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} decrease since 1970. It also tumbled into bear current market territory, down more than 21{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} from a report high set early January.

The Dow and Nasdaq have been not spared from the onslaught. The 30-inventory Dow dropped 11.3{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} in the next quarter, placing it down a lot more than 15{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} for 2022. The Nasdaq, meanwhile, experienced its largest quarterly fall considering the fact that 2008, shedding 22.4{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. These losses pushed the tech-major composite deep into bear market territory, down just about 32{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} from an all-time higher established in November. It truly is also down 29.5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} 12 months to day.

While some on Wall Street are optimistic the market place will get well throughout the remainder of 2022 – record has demonstrated that when the sector is down extra than 15{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} in the to start with fifty percent of the yr, it tends to rally in the back again 50 percent – some others are getting ready for lingering inflation and even additional monetary tightening by the Federal Reserve that could established a likely rally again.

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West Virginia business leaders rally behind Manchin for opposing Biden’s Build Back Better

Rep. Debbie Dingell, D-Mich., weighs in on Sen. Joe Manchin indicating ‘no’ to Biden’s Make Again Much better monthly bill.

West Virginian company house owners and stakeholders are talking out in guidance of Sen. Joe Manchin’s opposition to Make Back again Far better and voicing their frustration around what they see as the media’s misrepresentation of their state’s greatest pursuits.

Media outlets all above the nation have posted content and op-eds blasting Sen. Manchin’s determination to split from his party and vote “no” on President Biden’s Develop Again Far better agenda and rejecting his assert that his determination was informed by what is greatest for the people today he represents in West Virginia.

An report in the New Yorker quoting a West Virginia Democratic operative positioned the legislator as a member of the “political class” out of contact with the identity of his constituents. The author wrote “The senator’s blockade in opposition to plans that have served his constituents escape poverty helps make some problem ‘who issues to Joe.’” The author went on to accuse Manchin of “getting rid of the believability of his link to the quite area at the heart of his identity.”

Some others in the neighborhood beg to differ and see Manchin’s opposition to the legislation as evidence he’s listening to them above his celebration leaders.

Steve Roberts, President of the West Virginia Chamber of Commerce, explained to Fox News Electronic he “absolutely supports” Sen. Manchin’s place dependent on the economic impression it will have on nearby businesses and suggests the notion broached in the media that the senator’s situation is a “betrayal” of his constituents is “ludicrous.”

MANCHIN States HE ‘CANNOT VOTE’ FOR Develop Again Far better: ‘I’VE Carried out Every little thing HUMANLY POSSIBLE’

Roberts, whose nonpartisan firm encompasses local chapters from over 50 counties, states the bulk of West Virginians aspect with him on the difficulty. Subsequent Manchin’s announcement of his opposition to Create Again Greater, Roberts acquired dozens of e-mails and cell phone phone calls from neighborhood business house owners supporting the Democrat’s go – some even likely so considerably as to say the senator “really should operate for president,” he reported amusingly.

Not all the feedback was positive, while, Roberts recalled soberly. His office acquired a handful of angry e-mails from people, none of whom essentially lived in West Virginia, but all of whom ended up outraged at Manchin’s declaration and prepared to just take it out on the total point out.  

“One guy referred to as us all ‘knuckle-dragging hillbillies’ and claimed he’d in no way generate by our condition all over again,” Roberts explained. A lot of of the vitriolic assaults towards West Virginians went even further.

WASHINGTON, DC – Oct 06: Sen. Joe Manchin (D-WV) spoke at a press meeting outside the house his business office on Capitol Hill on Oct 06, 2021 in Washington, DC. (Picture by Anna Moneymaker/Getty Images) (Anna Moneymaker/Getty Pictures / Getty Photographs)

Roberts, who has held his placement at the Chamber of Commerce for more than 30 years, was clearly disturbed by the detest mail. He appeared fewer afflicted by the fact that some would disagree with his belief on Develop Back Improved, a monthly bill he admits has “some things in it that we can all agree on,” and a lot more distressed by the disparagement of his beloved condition.

“My place of perspective is, do you identify-phone and belittle when you have info on your side?” Roberts claimed.

“We have points on our facet and the details are that Construct Back Greater would tax our West Virginia energy sector. It would be inflationary.” 

CNBC painted a grim image for West Virginia mom and dad adhering to the senator’s announcement, quoting an activist who was “upset” that her hopes for paid household leave – a benefit that Manchin essentially does support outdoors the several layers of Build Again Better’s paying – experienced been dashed.

Roberts thinks killing the monthly bill is great information for parents. Develop Back Greater “would impede our ability to present little one treatment simply because it impedes the potential of churches to present boy or girl care. And in West Virginia, there are church buildings on virtually each and every corner.”

PSAKI SLAMS MANCHIN’S ‘SUDDEN AND INEXPLICABLE REVERSAL’ ON Build Back again Improved

Everyday living-prolonged Mountain State resident Rebecca McPhail, who operates with dozens of regional corporations day-to-day as President of the West Virginia Manufacturer’s Association, advised Fox Information Electronic “Senator Manchin is carrying out the suitable issue for West Virginia and the United States.”

Like Roberts, McPhail felt that the couple nuggets woven into Establish Back again Better have been not ample to make up for the truth that in the end “the price tag is much too wonderful” and would exacerbate some of the dire difficulties plaguing West Virginia’s overall economy now.

“From source chain and workforce shortages, to the rising charge of items and solutions, West Virginia businesses are struggling. These are the pretty enterprises that rushed to action in response to COVID. Adding on further taxes to tiny company to pay out for the myriad of applications in the prepare would crush their potential to recover and compete in a world wide economic climate.”

President Joe Biden at White House in event on cars and trucks

WASHINGTON, DC – AUGUST 05: U.S. President Joe Biden sent remarks all through an function on the South Garden of the White Residence August 5, 2021 in Washington, DC.  (Get McNamee/Getty Images / Getty Images)

McPhail blames the media for failing to report precisely about the bill.

“These enormous payments appear to be designed to confuse the American individuals – a number of troubles come to be the rallying cry in the hopes that all people will dismiss the concealed elements that propel a particular agenda.”

Team BIDEN WILL Pay out A Significant Rate FOR THEIR Assaults ON MANCHIN

Ironically, McPhail also insisted some of the “self-significant” general public figures slamming Manchin in the push are actually performing him a service.

“Trump’s assistance in West Virginia is driven in massive component by condescension from East and West Coast elites.  Such reaction just confirmed every thing West Virginians thought about their vanity in standard and the Build Back Greater Act in distinct.”

Joe Manchin

Senator Joe Manchin, a Democrat from West Virginia, spoke on the cellular phone in the Senate subway at the U.S. Capitol in Washington, D.C., U.S., on Thursday, Nov. 4, 2021. Photographer: Al Drago/Bloomberg via Getty Photos (Al Drago/Bloomberg via Getty Illustrations or photos / Getty Visuals)

McPhail is not by itself in her view that West Virginians have little fascination in staying dictated by beliefs well-liked in big metropolitan parts that are usually at odds with their hometown’s values.  

Days prior to Manchin’s announcement, Republican Congresswoman Carol Miller, who represents the southernmost towns of West Virginia, held an function with the America Initially Plan Institute exterior the state’s funds that highlighted the detrimental influence Develop Again Superior would have on her district.  

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After listening to of the senator’s determination, Rep. Miller, who has been a vocal opponent to the social paying bill, told Fox News Digital, “Joe Manchin listened to us loud and obvious due to the fact it was West Virginians speaking, not liberal activists in New York City and California.”

Roberts stated he has arrived at out to all of the nationwide outlets covering the problem, hoping to provide a properly-informed and decidedly area point of view on the difficulty, but has gained no response.

“We are informed that media stores have sent people today in this article and will only interview folks who they believe are pleasant to their point of look at. We have performed substantial polling throughout the condition and I can convey to you that when West Virginians voter come across out what is truly in Build Back Much better, they are overwhelmingly opposed to it.” 

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Dow Jones Futures Loom As Market Rally Awaits Omicron Covid Variant News; What To Do Now

Dow Jones futures will open Sunday evening, along with S&P 500 futures and Nasdaq futures, with all eyes on the newly discovered omicron Covid variant following Friday’s sell-off.




X



The stock market rally was hit from all directions last week, with the major indexes tumbling below key levels Friday on the new omicron Covid variant, with crude oil prices and Treasury yields plunging. Coronavirus vaccine makers such as Moderna (MRNA), BioNTech (BNTX) and Pfizer (PFE) were big winners.

Is this the start of a significant market slide, the continuation of recent whipsaw action or will stocks quickly rebound? The current uncertainty makes it difficult to navigate the stock market rally. Investors should be playing more defense than offense until conditions clearly improve. More clarity on the new omicron variant is needed.

Li Auto earnings are due before Monday’s open. Later this coming week, Li Auto (LI) and Chinese EV startups Nio (NIO) and Xpeng (XPEV) are likely to release November delivery figures. China EV giant BYD Co. (BYDDF) may come slightly later, with Tesla (TSLA) China sales figures eventually following.

Tesla stock is on IBD Leaderboard and the IBD 50. Pfizer stock was Friday’s IBD Stock Of The Day.

The video embedded in this article analyzed a pivotal market week and discussed PFE stock, Ovintiv (OVV) and Li Auto.

Dow Jones Futures Today

Dow Jones futures will open at 6 p.m. ET, along with S&P 500 futures and Nasdaq 100 futures.

Dow futures could be volatile Sunday night, with investors making best on the market rally’s direction without a clear picture of just how serious, or not, the omicron variant is.

Bitcoin rose modestly, trading above $56,500 and at weekend highs, suggesting a vague “risk on” sentiment after Friday’s sharp sell-off in cryptocurrencies.

After U.S. crude oil prices plunged 13{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} on Friday, OPEC+ is delaying some technical meetings set for Monday-Tuesday to Wednesday-Thursday so the market can digest the impact of the new Covid variant.

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

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

Omicron Coronavirus: Covid Variant Of Concern

A new coronavirus variant with a large number of mutations, first detected in South Africa, is raising concerns. It’s unclear if the B.1.1529 Covid variant, dubbed the omicron variant on Friday, is more deadly or infectious than prior strains, or whether vaccinations or prior Covid infection provide substantial protection.

The World Health Organization noted that the omicron variant appears to have a higher risk of reinfection for people who have already had Covid-19. The WHO declared it a “variant of concern,” the first such designation since the delta variant a year ago.

However, a coronavirus adviser to the South Africa government as well as the Pretoria doctor who sounded the alarm about the Omicron variant said that cases generally seem to be “mild.”

There are reasons to believe that anti-viral pills, such as those made by Pfizer and Merck (MRK), would retain effectiveness vs. the latest Covid strain.

The U.S., U.K., European Union, Australia, Israel and Singapore have suspended flights or entry from southern Africa.

Dutch officials on Sunday reported 13 omicron Covid cases among travelers from South Africa to the Netherlands.

The U.K., Belgium, Australia, Italy, Hong Kong and Israel are among countries that have identified a handful of omicron Covid cases.

Coronavirus Vaccine Stocks

Pfizer partner BioNTech said it will take two weeks to see how effective its vaccine is vs. the omicron Covid variant. Moderna said it could have a Covid vaccine designed for the omicron variant by early 2022. MRNA technology speeds up vaccine development, though FDA approval could take several months.

On Nov. 19, the FDA approved Moderna or Pfizer booster shots for all adults. That came soon after the FDA approved the Pfizer/BioNTech vaccine for children aged 5-11, after already approving the Covid vaccine for adolescents aged 12-15.

Pfizer and partner BioNTech, along with rival mRNA coronavirus vaccine maker Moderna, jumped Friday on the omicron Covid variant, also called Nu Covid. Pfizer also is benefitting from Merck reporting even-lower efficacy from its antiviral Covid pill. A Pfizer Covid oral drug is much more effective.

PFE stock jumped 6.1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} on Friday to 54, gapping above a 51.96 buy point, according to MarketSmith analysis. However, Pfizer stock has surged for six straight weeks off the bottom of its cup base. A pullback wouldn’t be a surprise.

MRNA stock gapped above its 50-day line, breaking a trend line with a 21{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} gain. BNTX stock, which cleared its 50-day line earlier in the week, soared 14{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. Both Moderna stock and BioNTech could be deemed early entries. But investors might want to see more strength from Moderna and a post-gap up consolidation from BNTX stock.

Meanwhile, other coronavirus medical plays such as Quest Diagnostics (DGX) and PerkinElmer (PKI) showed positive action as well.

Covid Cases Rising

Coronavirus cases had already been ramping up worldwide for the past several weeks, notably in Europe. Austria began a lockdown in the past week.

Coronavirus cases worldwide reached 261.72 million. Covid-19 deaths topped 5.21 million.

Coronavirus cases in the U.S. have hit 49.09 million, with deaths above 799,000. U.S. cases, after picking up for a couple of weeks, appeared to be leveling off shortly before Thanksgiving. Will the holiday travel spur another upsurge in cases next week? Coronavirus deaths in the U.S. have continued to fall.

These Sectors Lead Sell-Off As New Covid Variant Emerges

Stock Market Rally

The stock market rally had a rough holiday-shortened week, with broad-based losses.

The Dow Jones Industrial Average gave up 2{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} in last week’s stock market trading, all driven by Friday’s 2.5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} decline. The S&P 500 index shed 2.2{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. The Nasdaq composite skidded 3.5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. The small-cap Russell 2000 tumbled 4.6{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}.

Crude oil futures plunged 13{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} on Friday. The 10-year Treasury yield lost 4 basis points to 1.49{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} for the week. But the benchmark yield dived 15 basis points Friday after nearly hitting a six-month high Wednesday intraday.

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) plunged 5.9{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, while the Innovator IBD Breakout Opportunities ETF (BOUT) gave up 3.5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. The iShares Expanded Tech-Software Sector ETF (IGV) slumped 5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. The VanEck Vectors Semiconductor ETF (SMH) retreated 4.1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}.

Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) dived 5.3{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} and ARK Genomics ETF (ARKG) 5.7{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. Tesla stock remains the No. 1 holding across ARK Invest’s ETFs.

SPDR S&P Metals & Mining ETF (XME) fell 3.2{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} and Global X U.S. Infrastructure Development ETF (PAVE) declined 2.1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. U.S. Global Jets ETF (JETS) tumbled 7{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. SPDR S&P Homebuilders ETF (XHB) slid 2{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. The Energy Select SPDR ETF (XLE) rose 1.3{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, but tumbled 4.3{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} on Friday with many shale plays faring far worse. The Financial Select SPDR ETF (XLF) lost 1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, skidding 3.7{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} on Friday.

Five Best Chinese Stocks To Watch Now

Li Auto Stock

Li Auto is expected to narrow its per-share loss with Q3 revenue tripling. Last week Li Auto stock rose 5.9{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} to 32.40. That’s near possible entries, including an official 34.93 handle buy point.

Xpeng stock is holding above a 48.08 buy point and 50.50 alternative entry after surging on earnings in the past week. Tesla and BYD stock could be working on new consolidations, both closing Friday near their 21-day lines. Nio stock has fallen back below its 200-day line.

Tesla CEO Elon Musk, in a “leaked” email to employees, suggested the EV giant may push some Q4 deliveries from the typical end-of-quarter crush into early 2022, in a bid to lower shipping costs. “Leaked” Musk emails often spur analysts to lower quarterly delivery targets. The upcoming Austin and Berlin plants should eventually ease some of the Tesla delivery crush in the U.S., Europe and China.

Tesla Berlin will begin production in December, Automobilwoche reported Sunday. Regulators are expected to give final approval to the plant with days. Production is seen picking up in January, but it at a relatively slow ramp in early 2022.

Market Rally Analysis

In the past week, the stock market rally started a major sell-off in highly valued growth stocks, especially software, while energy stocks and banks rebounded. The new Covid variant sent stocks sharply lower on Friday, especially oil and financials, as crude prices and Treasury yields tumbled. Travel stocks also were hard hit, while retailers extended a recent retreat. Coronavirus plays bounced, while software names held up relatively well.

The Nasdaq composite and S&P 500 gapped below their 21-day lines after both found support at that key level earlier in the week. The Dow Jones, which was up modestly through Wednesday, gapped below its 50-day line on Friday.

The Russell 2000 tumbled below its 50-day and 200-day moving averages. The small-cap index is a decent proxy for market breadth, which has weakened considerably. Losers trounced winners 4-to-1 on the Nasdaq Friday, and by 5-to-1 on the NYSE. The advance/decline lines have deteriorated in the past few weeks.

The CBOE Volatility Index, or VIX, spiked 54{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} to 28.62, hitting a 10-month high. Extreme moves in the so-called market fear gauge could raise the odds of at least a short-term market bottom. But it doesn’t have to happen right away and it doesn’t have to last.

There’s a lot of uncertainty right now regarding the market rally and which sectors will lead and lag. Market action is likely to be headline driven. How dangerous is the omicron Covid variant?. That will inform governments’ decisions on travel bans and restrictions and whether or not people adjust their behavior once again. A major outbreak could trigger new government and business shutdowns, roiling supply chains once again and sending commodity prices on a longer slide.

Perhaps all these fears are overdone. Goldman Sachs, in a Friday night note, said “this mutation is unlikely to be more malicious and that the existing vaccines will most likely continue to be effective in preventing hospitalizations and deaths.” Goldman added, “we do not think that the new variant is sufficient reason to make major portfolio changes.”

Time The Market With IBD’s ETF Market Strategy

What To Do Now

The whipsaw, downside action in the major indexes, various sectors and leading stocks is not conducive to new buys. Sure, if the overall stock market rally or specific sectors rebound, buying now will likely turn out well. But with so much uncertainty regarding the new omicron Covid variant, inflation, supply chains and more, the odds are not especially favorable.

It’s quite possible the oil, bank or travel stocks will try to rebound early next week, much as software stocks did on Wednesday. But that doesn’t mean the bounce will continue.

Investors should review their holdings and ditch losers. If you got caught out in Friday’s gap-down losses and didn’t act, don’t continue to freeze.

Take more of a defensive posture with all of your holdings and portfolio. Don’t necessarily be in a rush to sell everything, unless all your stocks are triggering losses.

When market conditions do shore up, whether it’s next week or next year, you want to be ready financially and mentally to take advantage.

Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.

Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.

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World Series score: Astros rally vs. Braves in Game 5, stay alive after allowing first-inning grand slam

The Houston Astros fended off elimination on Sunday night and denied the Atlanta Braves the chance to win the 2021 World Series at their home ballpark. The Astros defeated the Atlanta Braves in Game 5 of the World Series by a 9-5 final (box score) to force Game 6 and a return trip to Houston. The Astros still trail in the best-of-seven series by a 3-2 margin, and Atlanta remains one win away from its first championship since 1995.

The Astros fell behind early on Sunday, with Atlanta center fielder Adam Duvall hitting the ninth first-inning grand slam in postseason history. Nevertheless, the Astros were able to rally and tie the game at 4-4 in the third inning. Freddie Freeman then put the Braves back up with a solo home run. The Astros weren’t done, though, as Houston received contributions from unlikely sources against Atlanta’s usually reliable bullpen.

Catcher Martin Maldonado drove in three runs on the night, and Marwin Gonzalez plated a pair with a pinch-hit single. (We’d be remiss if we didn’t mention that Zack Greinke — yes, the pitcher — also recorded an historic pinch-hit single.)

Historically, MLB teams who lead a series by a 3-2 margin have gone on to win said series 69 percent of the time. That bodes well for the Braves, who will now have two more chances to win another contest — and, thereby, the championship. 

Now for takeaways from Game 5.

Duvall powered up early

Adam Duvall has been yet another post-Ronald Acuña Jr. revelation for the Braves this season, in terms of both his power and his stabilizing glove in center. Early in Game 5, it was the bat that made the difference, as Duvall authored just the third first-inning grand slam in World Series history: 

And here’s this: 

That’s not only elevating for power against one of the most extreme ground-ballers in the game today, it’s also doing so with two outs. For Duvall, that upped the “clutch factor” of the moment. When Duvall stepped to the plate in the first, the Braves had a 57.1 percent chance of winning Game 5. After he touched the plate to give the Braves a 4-0 lead, the Braves had an 84.3 percent chance of prevailing. That’s a huge jump, to say the least. Unfortunately for Atlanta, the club couldn’t capitalize. 

Houston was relentless at the plate all night

That 4-0 lead the Braves barged to in the first didn’t cause the Astros to give up. In the second, the theretofore struggling Alex Bregman cracked an RBI double, and then Martin Maldonado cut the Atlanta lead with a sac fly. In the third, Carlos Correa made it 4-3 when his double plated Jose Altuve, who had earlier reached on a Dansby Swanson error. Then Michael Brantley hustled home on a Yuli Gurriel ground out to tie the score. 

The Braves retook the lead in the bottom of the third on a massive, 460-foot solo home run from Freddie Freeman, and that held until the fifth. At that point, the Astros pieced together their biggest inning of the night. Braves manager Brian Snitker opted to intentionally walk Alex Bregman and load the bases for Maldonado with two outs. Maldonado, crowding the plate and showing almost no willingness to swing, drew a five-pitch walk to tie the game again. Then pinch-hitter Marwin Gonzalez dumped a single to left that drove in two more and gave Houston a 7-5 lead. 

In the seventh, the Astros added an insurance run — again with two outs — as Maldonado drove in his third run of the night with a line drive single that brought Kyle Tucker home. Carlos Correa tacked on another, yes, two-out run in the eighth with a single that brought Altuve in to score. That was all more than enough to send the series back to Houston. 

Zack Greinke achieved a rare feat

Game 4 starting pitcher Zack Greinke, thanks in part to the Astros’ diminished bench, garnered a pinch-hitting appearance in Game 5, and he made the most of it: 

That sharp, line drive single to the opposite field left the bat at 105.9 mph, which made it Houston’s hardest-hit ball of Game 5. So that was no cheapie. As for rare feat noted above, here we go: 

However, the Astros weren’t able to cash in on Greinke’s plate-work, as Jose Altuve flew out and Michael Brantley struck out to end the frame. 

The Houston bullpen dominated

All five of the Braves’ runs were charged to Astros starter Framber Valdez, who lasted just 2 2/3 innings. After Valdez was lifted, five Astros relievers combined for 6 1/3 shutout innings. Along the way, they gave up just four hits and struck out six with no walks. Particularly key were Phil Maton and Kendall Graveman, who each worked two innings. For the series, the Houston bullpen now boasts an ERA of 1.75, which is more than a full run lower than Atlanta’s mark of 2.76. 

The Braves still have the edge, but it’s been diminished

That’s an obvious thing to say, given that Atlanta still leads the best-of-seven series by a count of three games to two. Teams up 3-2 who opened the series on the road have — across the history of MLB best-of-seven postseason series — won the series 61.8 percent of the time. That’s a high figure, but consider that teams up 3-1 who opened up on the road have gone on to win the series more than 80 percent of the time. That’s what the Braves squandered by blowing that 4-0 lead in Game 5. 

Need more concerning news, Braves fans? Teams up 3-2 have won Game 6 just 28.6 percent of the time. In other words, history suggests we have a strong chance of this going the full seven games.