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Dow Jones Rises Ahead Of Earnings Season; Tesla Stock Surges

Dow Jones Rises Ahead Of Earnings Season; Tesla Stock Surges

The Dow Jones Industrial Average rose Monday, looking to add to Friday’s powerful stock market gains. December-quarter earnings season kicks off this week, with highly anticipated results from Dow Jones members JPMorgan Chase (JPM) and UnitedHealth Group (UNH). And Tesla (TSLA) stock continued to bounce after hitting a new low Friday.




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Global markets and oil prices received a boost after positive recovery comments from a People’s Bank of China official on Sunday. That helped send Tesla and a number of China-based stocks, as well as chip stocks including ASML Holding (ASML) and Nvidia (NVDA) to the top of the Nasdaq 100 in early trade.

Companies reporting earnings Monday morning include Acuity Brands (AYI) and Commercial Metals (CMC). Acuity Brands was up 1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} after posting better-than-expected results for its fiscal first quarter. And Commercial Metals shares rose nearly 3{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} after strong results. Lastly, Lululemon Athletica (LULU) plunged 10{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} after it warned its fourth-quarter gross margin would come in lower than expected.

Other companies reporting later this week include Jefferies (JEF), KB Home (KBH), Taiwan Semiconductor Manufacturing (TSM), Bank of America (BAC), Citigroup (C) and Wells Fargo (WFC).

Dow Jones stock Visa (V) and Mastercard (MA) were both upgraded to overweight ratings at KeyBanc. Visa shares climbed 0.5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, while MA stock moved up 0.8{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}.

Electric-vehicle leader Tesla rallied more than 8{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Monday. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were both squarely higher after today’s stock market open.

Cardinal Health (CAH), Deere (DE), Medpace (MEDP) and IBD Leaderboard stock Neurocrine Biosciences (NBIX) — as well as Dow Jones names Caterpillar (CAT), Chevron (CVX) and Walmart (WMT) — are among the top stocks to buy and watch with the market back in rally mode.

Neurocrine is an IBD Leaderboard stock. Caterpillar and Medpace were recent IBD Stock Of The Day companies. And Cardinal Health was featured in a recent Stocks Near A Buy Zone column.

IBD’s latest newsletter MarketDiem gives you actionable ideas for stocks, options and crypto right in your inbox

Dow Jones Today: Oil Prices, Treasury Yields

After Monday’s opening bell, the Dow Jones Industrial Average rose 0.4{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, and the S&P 500 gained 0.9{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. And the tech-heavy Nasdaq composite rose 1.7{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} in morning action.

Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 1.3{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} and the SPDR S&P 500 ETF (SPY) traded up 0.5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} early Monday.

The 10-year Treasury yield ticked higher to 3.58{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Monday morning, looking to rebound from last week’s sharp losses. Big losses Friday were sparked by the December jobs report.

Meanwhile, oil prices rebounded Monday morning following last week’s slide. West Texas Intermediate futures rose more than 2{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, trading around $76 a barrel.

Stock Market Rally

On Friday, the Dow Jones Industrial Average advanced 2.1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, and the S&P 500 jumped 2.3{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. The Nasdaq composite surged 2.6{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}.

Friday’s The Big Picture column commented, “The positive action in high volume has caused the IBD market outlook to switch to “market in confirmed uptrend.” Nevertheless, it is still an uncertain environment, and exposure should be increased in a measured fashion. Investors should stick to 20{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} to 40{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} exposure for now.”

Five Dow Jones Stocks To Buy And Watch Now

Dow Jones Stocks To Buy And Watch: Caterpillar, Chevron, Walmart

Dow Jones member Caterpillar closed squarely in buy range above a flat base’s 239.95 buy point following Friday’s 3.6{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} advance, according to IBD MarketSmith pattern recognition. The buy zone goes up to 251.95. Bullishly, the stock’s relative strength line, a key technical indicator, is at new highs. Shares were up 0.1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Monday.

CAT stock shows a strong 98 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. The Composite Rating is designed to help investors easily find top growth stocks.

Energy giant Chevron is trying to retake its 50-day line, as it continues to build a cup base that has a 189.78 buy point. CVX shares rose 0.6{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Monday morning, climbing with oil prices.

Discount retailer Walmart bullishly reclaimed its 50-day line during Friday’s 2.45{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} jump. Shares are building a cup with handle that has a 154.74 buy point and are about 5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} away from the latest entry. Walmart shares fell 0.5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Monday morning.

4 Top Growth Stocks To Buy And Watch In The New Stock Market Rally

Top Stocks To Buy And Watch: Cardinal Health, Deere, Medpace, Neurocrine

Cardinal Health, a recent IBD Stock Of The Day, rallied 2.6{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Friday, regaining its 50-day line. CAH stock was down 0.1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Monday.

Another recent IBD Stock Of The Day, Deere, is building a flat base with a 448.50 buy point. Shares are approaching their latest buy point after moving back above the 50-day line during Friday’s 2.8{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} rise. DE stock traded up 0.5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Monday morning.

Medpace continues to consolidate below its 50-day line. For now, the correct buy point stays at 235.82, but an earlier entry at 220.09 is also in play. MEDP stock was up 1.2{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Friday.

IBD Leaderboard stock Neurocrine Biosciences is rebounding from support at its 50-day line. A new flat base shows a buy point at 129.39, with an early entry at 122.93. NBIX stock was down 0.1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}.

Stocks To Buy And Watch In New Stock Market Rally

These are six top stocks to watch in today’s stock market, including three Dow Jones leaders.

Company Name Symbol Correct Buy Point Type Of Base
Cardinal Health (CAH) 81.67 Flat base
Deere (DE) 448.50 Flat base
Neurocrine Biosciences (NBIX) 129.39 Flat base
Caterpillar (CAT) 239.95 Flat base
Chevron (CVX) 189.78 Cup base
Walmart (WMT) 154.74 Cup with handle
Source: IBD Data As Of Jan. 9, 2023

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

Tesla Stock

Tesla stock reversed from big losses Friday, ending the session up 2.5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. On Friday, shares hit a 52-week low at 101.81, closing about 71{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} off their 52-week high.

Shares looked to add to Friday’s gains, rising 8.4{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Monday morning.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares rebounded 3.7{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Friday. Last week, the stock hit a new 52-week low price of 124.17. The stock remains around 30{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} off its 52-week high. Shares rose 1.3{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Monday morning.

Microsoft stock rallied 1.2{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Friday, snapping a four-day losing streak. The software giant is about 31{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} off its 52-week high and is still just off its 52-week low of 213.43, reached on Nov. 4. MSFT stock moved 1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} higher early Monday.

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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Dow rises for a fifth day, S&P on pace to snap 7-week losing streak

Dow rises for a fifth day, S&P on pace to snap 7-week losing streak

Stocks rose Thursday, putting Wall Avenue on observe to break a very long string of weekly declines.

The Dow rose for the fifth trading day in a row, introducing 516.91 points, or 1.6{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, to close at 32,637.19. The S&P 500 climbed about 2{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} to 4,057.84. The Nasdaq Composite sophisticated approximately 2.7{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} to 11,740.65, assisted by a surge in Dollar Tree shares. The tech-centered index was the outperformer, soon after trailing the other averages earlier in the working day.

The Dow has fallen the final eight months, although the S&P 500 and Nasdaq are driving seven-week shedding streaks. The market appears to have fairly regained its footing this 7 days, nonetheless, as buyers hope to see a peak in inflation and seek value at these concentrations.

The Dow and S&P 500 are up 4.4{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} and 4{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, respectively, for the week. The Nasdaq is up 3.4{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}.

“Although this was an expected, and hugely talked about prospective ‘oversold’ rally, the underpinning for modern marketplace climb greater, suggests that previous week’s doom and gloom about the all-critical U.S. purchaser may well have been overdone, along with the dire recession headlines,” reported Quincy Krosby, main fairness strategist for LPL Fiscal.

“To be certain, the facts releases this week propose the financial state is slowing, and the Fed seems poised to elevate rates at a 50 basic level clip in excess of the upcoming two months,” she additional. “But the notion that the purchaser, 70 per cent of the U.S. financial state, is on a shelling out strike, is overblown as earnings reviews coupled with good guidance suggest if not.”

Some remained distrustful of the rally as stocks have been on a persistent downward pattern considering the fact that the begin of year, inspite of the aid bounces sprinkled during. Zachary Hill, head of portfolio method at Horizon Investments, advised CNBC it really is much too early to shift aim from inflation to growth.

“We view this week’s rally in equity markets as technological in nature and not a alter in the in general trend,” he reported. “Tighter monetary conditions suppressing need in the actual overall economy continue to be the channel as a result of which the Fed hopes to cool inflation. Right up until that changes, rallies like we are observing in equity markets this 7 days, while somewhat expected soon after nearly two months of relentless declines, are most likely to be quick-lived.”

Shares going on earnings

Stocks pushed greater right after robust earnings from the retail sector gave a enhance to investor sentiment. Macy’s shares surged 19.3{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} right after the firm elevated its 2022 income outlook, and Williams-Sonoma rose 13{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} immediately after beating estimates on the top and base strains.

Discounted retailer Greenback Tree jumped about 21.9{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} after putting up an earnings beat, which assisted push the Nasdaq higher. Dollar Basic also claimed potent earnings, including 13.7{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} to its shares. The SPDR S&P Retail ETF acquired more than 4{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. Traders are on the lookout ahead to Costco’s quarterly results, which it will report immediately after the bell.

Shares of chipmaker Nvidia bounced just after falling on weaker-than-envisioned assistance for the second quarter and a warning of a slowdown in using the services of. Shares reversed and climbed 5.1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} soon after a slew of analysts reiterated their obtain rankings on the shares and highlighted momentum in the company’s information middle business enterprise.

A “glimmer of the return of deals” also served carry trader sentiment, Krosby claimed. Exclusively, chipmaker Broadcom introduced programs to acquire cloud business VMware in a $61 billion deal, which would be one of the most important tech acquisitions of all time. Broadcom shares added about 3.6{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, and VMWare rose approximately 3.2{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}.

“[It] indicates that worth is currently being produced as the industry re-calibrates its valuation whilst the Federal Reserve raises interest premiums and commences the taper of its equilibrium sheet,” Krosby explained.

Somewhere else, Twitter shares jumped 6.3{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} after Elon Musk enhanced his dedication in his takeover bid to $33.5 billion, which analysts have stated signifies a new seriousness and improved chance that he’ll finish the deal.

On the flipside, computer software stock Snowflake pared steeper losses but was down 4.5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} just after the company’s advice for working margin arrived in narrower than predicted.

First-quarter gross domestic product or service declined at a 1.5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} yearly speed, even worse than the 1.3{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Dow Jones estimate and a writedown from the initially claimed 1.4{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, the Commerce Department claimed Thursday.

Preliminary jobless statements for the 7 days finished Might 21 totaled 210,000, a lessen from the former week’s level of 218,000.

— CNBC’s Jeff Cox contributed reporting.

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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.




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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.

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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November U.S. auto sales: Toyota, Honda, Hyundai, Kia sales fall 4th straight month; Ford rises 5.8{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

Supply-chain disruptions, driven by the ongoing shortage of microchips that has dented new-vehicle stockpiles, undercut U.S. sales at Toyota Motor Corp., American Honda, Hyundai and Kia for the fourth straight month in November.

But there was another clear sign that the U.S. market is bottoming out. The seasonally adjusted annualized rate of sales (or SAAR), came in at 13.1 million units — unchanged from October, according to Motor Intelligence. The SAAR was 16.1 million a year ago.

Among automakers that reported November results, sales slipped 14 percent, but LMC said overall sales fell 16 percent, which was worse than previous forecasts that called for a drop of 11-12 percent.

For the recent month, volume dropped 25 percent at Toyota Motor, 17 percent at American Honda, 20 percent at Hyundai — its biggest decline of the current slump — and 5.4 percent at Kia last month, the companies said Wednesday.

Deliveries at Subaru skidded for the sixth consecutive month, down 35 percent in November.

Volvo, the last major automaker to report November results, on Friday said deliveries plunged 34 percent to 7,667 units.

Meanwhile, Ford Motor Co. said Thursday it was the top-selling automaker in the U.S. for a third consecutive month, posting a 5.8 percent increase in November light-vehicle sales that contrasted with declines for nearly all other companies that reported monthly results.

Ford’s utility vehicle sales jumped 21 percent from a year ago, and F-Series pickup sales rose 15 percent despite the ongoing microchip shortage that has thinned dealership inventories. The automaker said sales of its electrified vehicles grew at triple the rate of those from other manufacturers.

Ford said its total light-vehicle sales of 157,417 was enough to beat all other automakers, including General Motors and others that report on a quarterly basis, based on numbers those companies provide privately to analysts and industry data trackers. The last time Ford had such a streak at No. 1 was 1974, company officials said.

Toyota Motor, which has overtaken longtime U.S. market leader General Motors this year, has been forced to cut output in recent months because of tight chip supplies. It has now posted declines of 22 percent or more three consecutive months. Sales last month dropped 24 percent at the Toyota brand and 32 percent at Lexus.

The Toyota brand was hampered by a 47 percent drop in November car deliveries, with Corolla sales skidding 63 percent to 8,906 and Camry off 34 percent to 19,261 units. The brand’s top-selling light trucks also saw double-digit declines: RAV4, off 14 percent; Highlander, down 13 percent; and Tacoma, off 21 percent.

Toyota said it had 116,638 cars and light trucks in inventory — or an 18-day supply — at the end of November, down 67 percent from 349,639 units a year earlier.

Honda said volume dropped 17 percent at the Honda division and 21 percent at Acura, with American Honda car volume off 24 percent and light-truck deliveries down 13 percent. Honda Civic sales slid 26 percent and CR-V volume dropped 19 percent.

Hyundai said it ended November with just 17,096 units in stock, down from 19,894 at the end of October and 145,885 at the close of Nov. 2020. Some of the company’s top-sellers posted notable declines last month; Elantra, down 42 percent; Sonata, off 56 percent; Santa Fe, down 24 percent and Kona, off 37 percent.

Hyundai’s fleet shipments also dropped sharply last month — 97 percent, and represented less than 1 percent of overall volume.

Randy Parker, senior vice president for national sales at Hyundai Motor America, said “consumer demand remains exceptionally high” but “lingering availability issues persisted into November.”

At Kia, some of the brand’s key models — led by the Telluride, Seltos, Sportage and Soul — all posted declines. The company said it sold 77 percent of available U.S. inventory in November.

Three of Subaru top U.S. sellers — the Outback, down 19 percent; Crosstrek, off 51 percent and Forester, down 70 percent — suffered significant declines last month, leaving the company on pace to post back-to-back declines in annual U.S. volume for the first time since the 1990s.

Mazda said volume dropped 5.3 percent in November, its third straight decline.

Genesis, helped by an expanding product lineup, continued to rack up major gains, with November volume advancing 435 percent to 5,002 sedans and crossovers. 

General Motors, Stellantis, Nissan Motor Co., Volkswagen Group and the rest of the industry post U.S. sales quarterly.

Analysts had expected a more substantial finish to 2021 fueled by traditional year-end holiday discounts — after volume dropped 14 percent in 2020 at the onset of the pandemic.

The emergence of another COVID-19 variant also threatens to upend the spotty recovery to the extent supply chains and manpower are impacted by new travel and other possible operating restrictions.

Retail inventories remained below 1 million units in November for the fourth straight month, J.D. Power and LMC Automotive said.

“The typical Black Friday sales surge will be difficult to support,” this year, said J.D. Power analyst Thomas King. “The traditional year-end sales push will be somewhat non-traditional.”

Industry sales rose 13 percent through September behind a strong first quarter and a 4.96 percent rise in the second quarter, followed by a 13 percent decline in the third quarter.

Still, November sales are expected to increase slightly from October, rising less than a percent to reach an estimated 1.05 million, Cox Automotive said.

“The market is stuck in low gear,” said Cox Automotive Senior Economist Charlie Chesbrough. “There are potential buyers out there, but many are waiting on the sidelines, put off by limited selection and high prices.”

Even amid tight supplies, some automakers continue to pitch deals to keep consumers and buyers engaged.

Hyundai and Ford last month offered 0 percent financing and waived payments up to 90 days on select models, and BMW dangled up to $2,500 off on select new models through Nov. 30.