Dow Jones futures contracted late Wednesday, along with S&P 500 futures and Nasdaq futures. The stock market rally saw another mixed session on Wednesday, but market turnover outside the tech sector has stalled, at least for now.
The Nasdaq led the way after declining in the previous two sessions, as coronavirus vaccine news hit home stocks and many other growth operations.
Chip stocks, which held up better than many tech companies on Monday and Tuesday, rebounded during the Wednesday session, including Taiwan Semiconductor (TSM).
Chinese stocks will be in focus Thursday morning, with Bindowdu (PDD) And the Tencent (TCEHYReport earnings right after the 11.11 Singles’ Day mega shopping event. These titles also have major implications for Ali Baba (Baba) And the JD.com (Dinar), Which is facing greater scrutiny by Chinese regulators along with other internet giants like Tencent.
at the same time, Exping Motors (XPEVWill report quarterly results. Alibaba is a major investor in the Chinese electric car startup, which held its initial public offering (IPO) in the United States in August and launched last week.
The Xpeng P7 is a competitor to the Tesla Model 3. Tesla (TSLA) It exports Model 3 electric cars to Europe amid stalling Chinese demand despite several price cuts.
Dow Jones futures today
Dow Jones futures fell 0.3% against fair value. The S&P 500 futures lost 0.35%. Nasdaq 100 futures fell 0.4%.
The number of Coronavirus cases worldwide has reached 52.41 million. The death toll from COVID-19 has surpassed 1.28 million.
The number of coronavirus cases in the United States has reached 10.70 million, with the number of deaths exceeding 247,000.
The new coronavirus cases in the United States surpassed 100,000 for the eighth consecutive day, and hit a new high of 142,808 on Wednesday. Hospitalization is on the rise.
Italy topped one million cases of Coronavirus, joining France, Spain and the United Kingdom as countries in Western Europe that reach this point. All these countries and others in Europe are imposing tougher restrictions with the daily explosion of COVID cases.
Coronavirus vaccine news
But the coronavirus vaccine could continue to improve. Pfizer (PFE) And partner Biotechnology (BTNXHe said Monday his candidate coronavirus vaccine was more than 90% effective in provisional data from the last phase of the trial. They can file the coronavirus vaccine for emergency Food and Drug Administration approval later this month.
modern (MRNA“He will begin evaluating data from Phase III vaccine trials within a week, according to Anthony Fauci, the nation’s top infectious disease expert.” Fauci added that he would “be surprised if we don’t see a similar degree of effectiveness” to the positive results from Pfizer.
The Pfizer / BioNTech Covid-19 vaccine is based on mRNA technology. Moderna, as its MRNA indicator suggests, also uses mRNA technology.
Moderna stock rose 8.4% to 82.44 on Wednesday, surpassing 81.49 buy points, although the midpoint of the handle is slightly below the midpoint of the base. Aggressive investors could buy MRNA shares on Monday, as they removed a downward sloping trendline from the left side of the base.
Moderna shares rose 2% in extended trading. Biotech has said it has had enough Covid-19 cases in its coronavirus vaccine trial to look at the data. This indicates that early results may be coming soon.
BioNTech fell 2.9% to 109.45 on Wednesday, another intraday drop after breaking out of base in vaccine news on Monday. Pfizer stock also broke out on Monday, but fell again to its base, down 0.5% at 38.50 on Wednesday.
For the general public, the more coronavirus vaccines, the better. This will speed up vaccination efforts.
The stock market rises
An overview of the US stock market today
|index||Code||price||Profit / loss||% They change|
|Standard & Poor’s 500||(0S & P5)||3571.73||+26.20||+0.74|
Last update: 4:02 PM ET 11/11/2020
The stock market rally signaled at least a pause in the emerging equity market cycle this week. This time, the Nasdaq index topped and the Dow Jones index declined.
The Dow Jones Industrial Average fell 0.1% on Wednesday Stock market trading. The S&P 500 rose 0.8%. The Nasdaq Composite Index jumped 2%. However, the Dow Jones Index is up 3.8%, and the S&P 500 is 1.8%. The Nasdaq is from 0.9%.
(VanEck Vectors Semiconductor Foundation)SMHIncreased 3.5%. Taiwan Semiconductor, a major holding company, rose 3.65% after recovering from its 21-day exponential moving average, while several tech companies struggled in the 50-day streak. TSM shares are down only 0.6% this week.
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Pinduoduo is expected to post a slightly larger loss per share of 22 cents versus 20 cents a year earlier. Revenue should balloon by 74% to $ 1.83 billion. Pinduoduo is the # 3 player in e-commerce in China after Alibaba and JD.com.
Pinduoduo can also get an insight into the 11.11 shopping event, the largest e-commerce day in the world.
Alibaba announced $ 74.1 billion in total merchandise volume from the 11.11 event, which ran from November 1-11. JD.com announced just $ 40 billion.
PDD shares jumped 8.1% to 111.46 on Wednesday, up outside the buy zone. Stocks broke out, surpassing 98.30 Point purchase On the 4th of November, the PDD was sold off on Monday and Tuesday mornings, briefly dipping the buying point before rising from its lows on Tuesday.
Beijing has released draft rules to prevent monopolistic actions by large e-commerce and payment platforms, particularly those owned by Alibaba and Tencent. Pinduoduo is potentially less at risk of being suppressed. This may explain why PDD stocks performed better than Alibaba and JD.com this week.
Tencent earnings are expected to rise 31% to 47 cents a share. Revenue is expected to rise 32% to $ 18.29 billion.
Tencent stock fell 0.5% to 73.44 on Wednesday, finding support at the 50-day line and closing just above the 73.05 buy point, according to MarketSmith Chart Analysis. The shares were sold off Monday and Tuesday.
Tencent is a messaging, gaming and payments giant, with a large stake in JD.com.
JD.com shares rose 3.45% to 82.84, bouncing from the 50 day line but still below the 85.49 buy point. Shares fired the 7% to 8% sell base on the day on Wednesday and Thursday, but the chart does not look broken. JD.com’s earnings are due November 16.
Alibaba shares fell 0.3 percent to 265.65 points. This comes on the heels of BABA stock drops on Monday and Tuesday, with Alibaba potentially being exposed to risk from Chinese regulators. Alibaba stock chart already took a hit last week after China unexpectedly suspended the IPO of the Ant Group. Stock is well below the invalid 299.10 buy point and the previous entry of 268.10 has been tested.
Xpeng Earnings Report
Xpeng is expected to post a loss of 17 cents a share, versus 15 cents a year earlier. Revenue should rise 352% to $ 284.6 million.
Sales growth is expected to continue to boom in the near future as the Chinese EV startup continues to increase its production of the Xpeng P7, an electric vehicle close competitor to the Tesla Model 3.
Xpeng shares rose 1.9% to 33.53 on Wednesday, consolidating since rallying to a record high of 39.50 during the day on November 6th. Shares exploded from the base last week and expanded dramatically.
The Tesla plant in Shanghai produced 22,292 Model 3 electric vehicles, according to data from the China Association of Automobile Manufacturers. That’s a big leap, as Tesla begins exporting Chinese-made Model 3 sedans to Europe, partly replacing the Fremont plant in California. Tesla sold 12,143 electric cars in China in October, as another price cut helped boost demand. But, combined with the 7,000 Model 3s exported to Europe, this indicates that Tesla’s inventory in China continues to grow.
Tesla stock rose 1.7% to 417.13, still below the 50-day line after Monday’s reversal and slumping on Tuesday. But TSLA stock is only down 3% this week, which is not good but also much better than many growth stocks. Tesla stock has 466 handle buy point. Aggressive investors can use the 452.60, just above Monday’s high, as an early entry.
Has the stock market turnover ended?
From a major index perspective, the equity market rally looks fine. The Dow Jones, S&P 500, and Russell 2000 indexes hit records. The Nasdaq Composite has reversed from Monday’s all-time high, but it is not far from that.
The leading stocks are less attractive, as many of the big winners in 2020 suffered big losses on Mondays and Tuesdays. Some are showing significant damage on the chart, while others held out better and recovered well on Wednesday, such as the sub-Taiwan.
Has the stock market turnover ended away from the stay-at-home and stocks of technology growth? There have been many instances where the market rally held up well or even advanced on a day when many of the growth names took a heavy hit. This does not mean that these leaders are gone.
Then again, Wednesday’s action doesn’t mean stocks are clearly staying home. Or that the Dow Jones giants are like Larva (Cat), C. B. Morgan Chase (JPM) And the Boeing (Bachelor ofIt was just one wonders with a single hit.
Coronavirus vaccine news has fueled a rush into “real economy” stocks while sparking sell-offs in stay-at-home offers. But with coronavirus cases on the rise in the United States, Europe and most of the world outside of East Asia, what’s happening here now isn’t that great for “real economy” games. So it is difficult to know how the stock market rally will deal with this severe accidental wind of the Coronavirus, and which stocks will hold.
Therefore, as always, investors need to be flexible and not pre-judge whether stock market turnover will gain momentum or diminish. The big winners of 2020 may or may not continue to drive. While you want to know the “story” of growth names, just remember that it is not a never-ending story.
Please follow Ed Carson on Twitter at IBD_ECarson Stock market updates and more.
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