Dow Jones futures will open Sunday evening, along with S&P 500 futures and Nasdaq futures. The stock market rally is now in a confirmed uptrend but is struggling as the major indexes fell and many leading stocks fell in whipsaw fashion.
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Investors should be on the defensive, waiting for clear market strength before boosting exposure, especially in growth stocks. Microsoft (MSFT) has now joined fellow megacap stalwart Google parent Alphabet (GOOGL) below its 50-day line. Apple (AAPL) fell solidly in its heaviest volume in months, though it’s still holding above its 21-day line.
Nio Day
Nio (NIO) holds its annual Nio Day on Saturday. The Chinese EV startup is expected to unveil a mid-size EV sedan, a potential competitor to the Tesla Model 3, the Xpeng P7 and P5 and the BYD Han. It’ll also likely provide more details about the upscale ET7 sedan, unveiled at Nio Day 2020, which is set to begin deliveries in Q1.
Nio stock could use a lift, hitting a 13-month low intraday before closing higher. Xpeng (XPEV) and Tesla (TSLA) also reversed higher from recent lows. China EV and battery giant BYD (BYDDF) is testing recent lows.
Tesla stock could be building a double-bottom base, but the same could have been said in early December. It’s better to wait for a real buy point rather than try to guess the bottom. For TSLA stock, the official buy point could be 1,202.05, with a trend line early entry around 1,140.
Micron, Nike Earnings Due
Meanwhile, Micron Technology (MU) and Dow component Nike (NKE) are on tap Monday night, headlining a relatively quiet earnings slate during Christmas week. MU stock and NKE stock are in consolidations, but have pulled back over the past couple of weeks. The Micron earnings and guidance will be relevant for memory and many chip-related plays, while Nike results, forecasts and supply chain comments may be key for apparel and shoe makers and retailers.
Tesla, Microsoft and Google stock are on IBD Leaderboard. Microsoft stock and Google are on IBD Long-Term Leaders.
The video embedded in this article analyzed the expectation-breaking market action this week and analyzed Nucor (NUE), CubeSmart (CUBE) and MSFT stock.
Dow Jones Futures Today
Dow Jones futures will open at 6 p.m. ET, along with S&P 500 futures and Nasdaq 100 futures.
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
Coronavirus News
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Coronavirus cases in the U.S. have hit 51.58 million, with deaths above 826,000.
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