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Dow Jones Futures: Market Rally Stops While Tesla Dives; Upcoming leads 8 IPOs late with Rivian in print




Dow Jones futures fell slightly late Tuesday, along with S&P 500 futures and Nasdaq futures, which Upstart Holdings (UPST) and COIN shares provided main income overnight. The rise in shares fell modestly Tesla (TSLA) fell solid again with the Rivian IPO in print.




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UPST stock, Coin base (COIN), FuboTV (FUBO), by Dash (DASH), Toast (TOAST), Unity software (U), Doximity (DOCS), Global-e Online (GLBE) and Tesla EV rival Nio (NIO).

UPST shares, DoorDash, FuboTV and Unity Software were announced at the end of 2020, while COIN shares, Doximity, Global-e Online debuted this year.

The nine-share, no longer a “new listing”, began trading a little over three years ago.

Most of these stocks have been big winners, or at least had strong races in the last year. But many were big losers overnight, not a good sign of the market upturn. Upstart earnings and guidance were strong, but the UPST share plunged 20% after trading at key levels in recent days. COIN shares fell 10% as Coinbase’s revenues missed crypto trading fell more than expected. Unity Stock and DOCS also sold hard after mixed results. The TOST share fell solidly, while the FUBO share and Global-e did the same.

However, DASH shares rose more than 20%. It signals a pull back over the 50-day line and more for the DoorDash stock.

The nine-share fell slightly after the China EV start-up received top views, but gave weak guidance.

Several more 2021 IPOs report on Wednesday, including Olaplex (OLPX), Applovin (APP), Monday.com (MNDY), Pocket (TASK) Dutch Bros (BROS) and Confirm inventory (AFRM).

Rivian IPO

At the end of the big week for new issues, Rivian IPO will probably price on Wednesday night, and sell 135 million shares. Late Friday, the Amazon- and Ford-backed EV startup increased its expected RIVN IPO price range to $ 72- $ 74 per share from $ 57- $ 62. At the high end, the RIVN share will have an initial valuation of $ 65 billion.

Rivian began limited deliveries of its R1T electric pickup in September, hitting General motors (GM), Ford (F) and Tesla to market. It will launch the large SUV RS1 by the turn of the year. But much of the production focus will be on Amazon.com (AMZN), which has ordered 100,000 electric vans from Rivia.

The Rivian IPO comes with the Tesla stock retreating, but after shooting in recent weeks.


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Tesla shares

The TSLA share fell 12% to 1,023.50 on Tuesday, after Monday’s fall of 4.8% when CEO Elon Musk signaled that he would sell 10% of the Tesla share. Late Monday, the company revealed that Kimball Musk, Elon’s brother, sold TSLA shares for $ 109 million on November 5.

But the electric car giant has been gathering for 11 weeks in a row. The Tesla stock is just below the 21-day limit. It is still well above a buying point of 900.50 cups, according to MarketSmith analysis, but has given up the bulk of these gains.

Investors who bought at 900.50 point of purchase must make a decision whether they want to make any TSLA profit – if they have not already locked in any gains. Former Tesla stock investors have much more leeway.

Tesla and OLPX shares are on the IBD Leaderboard. Tesla, Affirm, Dutch Bros, Unity and UPST shares are at IBD 50.

The video embedded in this article analyzed the market rally action as well as Tesla, MP materials (MP) and the Dutch Bros share.

Dow Jones Futures today

Dow Jones futures fell 0.1% to fair value. S&P 500 futures fell 0.1% and Nasdaq 100 futures fell 0.15%.

Keep in mind that overnight trading in Dow futures and elsewhere does not necessarily translate into actual trading in the next regular trading session.


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Stock market rally

The stock market rise finally had a downturn, but did not give up much terrain. The Dow Jones Industrial Average fell 0.3 percent in Tuesday’s trading session. The S&P 500 index lost 0.35% and the Nasdaq composite fell 0.6%, with TSLA shares and PayPal (PYPL) which weighs both. Small-cap Russell 2000 fell 0.6%.

The 10-year government interest rate fell 6.5 basis points to 1.32%, the lowest in several weeks.

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) declined 0.8%, while the Innovator IBD Breakout Opportunities ETF (BOUT) declined 0.2%. iShares Expanded Tech-Software Sector ETF (IGV) increased 0.4%, with many software executives delivering strong gains on Tuesday. VanEck Vectors Semiconductor ETF (SMH) rose 0.1%.

SPDR S&P Metals & Mining ETF (XME) gave up 0.75% and Global X US Infrastructure Development ETF (PAVE) fell 0.3% after Monday’s infrastructure-driven upturn. US Global Jets ETF (JETS) fell 0.5%. SPDR S&P Homebuilders ETF (XHB) rose 1.9%. Energy Select SPDR ETF (XLE) increased 0.4% and Financial Select SPDR ETF (XLF) decreased 0.55%.

ARK Innovation ETF (ARKK) reflected more speculative history stocks, retreated 2.3 and ARK Genomics ETF (ARKG) lost 2.5%. The Tesla share is still the top holding across ARK Invest’s ETFs. Several ARK ETFs own COIN shares.


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Market Rally Analysis

After rising nearly 2,000 points from early October, the Nasdaq dropped xxx points on Tuesday, ending an 11-day winning streak. The action on the stock market rise was completely normal and healthy. Nasdaq is now 5.3% above its 50-day line, while Nasdaq 100 is 5.6% above this level. Both had been above the 6% limit, which signaled that they have been extended.

Yes, a few executives, especially the Tesla stock, withdrew quite a bit. However, in connection with major movements in recent weeks and months, the lists do not look seriously damaged.

Ideally, the stock market rise would stop or decline modestly for a few days or even weeks, so that the moving averages catch on and give managers a chance to offer new buying opportunities. If the Nasdaq quickly picked up again, it would be extended almost immediately.

The sale of UPST shares, COIN shares and more is worrying. IPOs have been big winners since the coronavirus crash, putting the “new” in CAN SLIM. If Upstart, Unity stocks and more get in trouble, it will be a bad sign for leading stocks and market upswings.

But there is only one session overnight for a handful of IPOs. UPST action, et al. may return in Wednesday’s session or in the coming days. Or perhaps these specific IPOs are on their way to a breather, but new issues and growth stocks in general are still marching higher.


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What to do now

The stock market rise is still in good shape. There is no strong reason to reduce net exposure right now. But it may not be a good time to make many new purchases. If the market upturn recedes over the next few days, outbreaks and early entries are likely to suffer. If the market upturn picks up over the next few days, how far can it go before serious warning signs flash.

The Tesla stock is a good example of why investors should not buy extended, even with a real market leader. Anyone who has bought at one of several correct buying points in recent weeks is still up solid or strong on the TSLA share. But if you bought at the top of Thursday, you are down 18%.

This is a good time to let the portfolio work for you while you work on your watch lists.

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

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

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