Dow Jones Rally; Tesla rises as Elon Musk approaches the end of stock sales
The Dow Jones Industrial Average rose 50 points on Wednesday as the benchmark nears a record high. Tesla climbed, when CEO Elon Musk sold the last of his Tesla stock options expiring in ’22. And the No. 1 Dow Jones stock – Microsoft – approached a new buying point.
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Among the Dow Jones executives, apple (AAPL) rose 0.3% on Wednesday, while Microsoft (MSFT) rose 0.25% in today’s stock market. Also on Dow 30, Home Depot (HD) continues to rebound from support, while Nike (NKE) fought to take a key level again.
Head of electric vehicles Tesla (TSLA) traded up more than 1% on Wednesday. Its rival, Rivian (RIVN), fell around 1%. Lucid group (LCID) was down around 1%. And Chinese electric car executives Li Auto (LI) and Xpeng engines (XPEV) was mixed on Wednesday morning ahead of sales reports in December, expected over the weekend.
Among Wednesday’s best stocks to buy and see, Materials used (AMAT), ArcBest (ARCB), Fortinet (FTNT), Icon (ICLR) and Mosaic (MOS) is in or near new shopping zones. Following Thursday’s bullish market signal, investors have the green light to buy new breakouts.
Icon, Microsoft and Tesla are IBD Leaderboard shares. The fort was mentioned in this week’s Shares near a buy zone column. Applied Materials and Mosaic are IBD SwingTrader shares.
Dow Jones today
After the stock exchange opened on Wednesday, the Dow Jones Industrial Average rose 0.2%, while the S&P 500 rose 0.2%. The technology-heavy Nasdaq composite rose 0.1% in morning trading.
Among exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.1% on Wednesday, while the SPDR S&P 500 ETF (SPY) traded up less than 0.1%.
Elsewhere, the 10-year government bond yield rose to around 1.52% on Wednesday morning, after closing just above 1.48% on Monday.
US markets will operate on a normal schedule this week, ahead of the New Year.
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Stock market rally
The stock market posted mixed action on Tuesday, when the Nasdaq and S&P 500 found four-day winning streaks. Meanwhile, the Dow Jones industrial capital’s winning streak expanded to five sessions, approaching a new high.
After some strong action last week, the market outlook is back in a “confirmed uptrend.” This means that investors can buy top-rated growth stocks that break out previously correct buy points.
Tuesday’s The Big Picture commented: “Tuesday’s moderate losses can actually be taken as a necessary break. The S&P 500’s losses on Tuesday may not be enough to reset the table for buyers. But S&P must be careful right now so they do not run away. too extended. “
For daily stock market comments, check out IBD’s The Big Picture.
Dow Jones shares to see: Home Depot, Nike
The Home Depot share rose 0.5% on Tuesday, rising for the sixth day in a row, as the housing improvement chain continues to pick up from its 50-day support level. Shares are in a buying zone on a setback from support. In the middle of the current winning streak, Home Depot is the No. 2 Dow Jones athlete in 2021, up 52.9% so far this year through Tuesday’s close. (The top Dow Jones stock is Microsoft with a rise of 53.4%.) The HD stock rose 0.35% on Wednesday.
Dow Jones retail leader Nike is tracking a new flat base that has a buying point of 179.20, according to IBD MarketSmith chart analysis. Shares continue to see strong resistance around their 50-day line after Tuesday’s loss of 0.7%. So far this year, it has a gain of 17.6%. Nike shares rose 0.4 percent on Wednesday.
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Shares to buy and look at: Applied Materials, ArcBest, Fortinet
The chip equipment manufacturer Applied Materials ended just above a buying point of 159.10 in a flat base after Tuesday’s decline of 1.9%. The shares are in the 5% buying area which goes up to 167.06. The AMAT stock rose 0.6% on Wednesday.
Trucker ArcBest fell 1.2% on Tuesday, returning a small portion of Monday’s 9.1% rise which saw the stock break past a buying point of 116.89 in a shallow consolidation. The purchase area ends at 122.73. The stock rose 0.7 percent early Wednesday.
Head of cybersecurity Fortinet remains in the buying range of 5% above a buying point of 355.45 in a consolidation after Tuesday’s decline of 0.45%. The shopping area tops at 373.22. Bullishly, the stock’s relative strength hit a new high Monday at the eruption, confirming the stock as the market leader. The RS line measures a share price development vs. S&P 500. Fortinet shares rose 0.4% on Wednesday.
The IBD Leaderboard stock icon is still in the buying area past a buy price of 301.82 in a consolidation, according to the IBD MarketSmith chart analysis, in the wake of last week’s breakout move. The purchase area of 5% goes to 316.91. Per Leaderboard comment, Icon also cleared resistance around 290, which served as an early entry. The stock fell 0.3 percent in morning trading on Wednesday.
IBD SwingTrader stock Mosaic bullishly regained its 50-day moving average during last week’s strong progress. The stock forms the right side of a cup base with a buy point of 43.34. Look for a handle to offer a more risk-optimal entry. The MOS stock shows strong 98 of a perfect 99 IBD Composite Rating, according to the IBD Stock Checkup. Mosaic shares fell 0.2% on Wednesday after Tuesday’s fall of 0.35%.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
EV shares: Li Auto, Xpeng, Lucid Motors, Rivian
Li Auto continues to work on the early stages of a new base, having triggered a 7% -8% loss-reducing sales rule below a cup-with-handle base’s buy point of 34.93. The stock is below the 50-day line after finding support around the long-term 200-day moving average. The stock rose 0.3 percent on Wednesday.
Xpeng Motors activated a return sell signal from a buy point of 48.08 during the beginning of December’s strong sales. XPEV stocks continue to test resistance around the key 50-day moving average. Wait until the stock forms a new base, which will offer a new entry. The stock fell 0.2 percent on Wednesday.
Lucid Motor’s shares fell around 1% on Wednesday, threatening to increase Tuesday’s 4.3% drop. The LCID share is still extended to a buy point of 28.49 in a cup with handles, but large gains have faded. Stocks are trying to find support on their 50-day line, but are having trouble getting back above that level.
The recent listing of Rivian fell about 1% on Wednesday, in line with Tuesday’s loss of 3.9%. RIVN shares closed on Tuesday with a 43% discount after the listing. Continue to wait for an IPO to form before considering a purchase. Recent heavy losses are a significant setback in the share’s base process, and there is no new buying point in sight.
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Tesla shares
Tesla shares rose above 1% on Wednesday, looking after Tuesday’s decline of 0.5%. On Tuesday, CEO Elon Musk exercised all of his options that expire next year, which may signal that he, at least temporarily, has finished selling his shares. In addition, Musk sold an additional 934,090 shares worth about $ 1.02 billion to cover the associated taxes on the option exercises, according to regulatory records.
On Monday, Tesla shares briefly topped a downward trend line buying point around 1115 before closing below it. Getting over Tuesday’s high intraday can serve as a trigger, while a handle will be the most constructive price action at this point. Meanwhile, a double bottom with a buy point of 1,202.05 continues to take shape.
The stock traded as high as 1243.49 on November 4, but the stock ended Tuesday with about 12% of its 52-week high.
Dow Jones executives: Apple, Microsoft
Among the Dow Jones shares, the Apple share took a four-day winning streak on Tuesday with a loss of 0.6%. The stock is about 17% above a buy point of 153.27 from a cup-with-handle base, according to IBD MarketSmith chart analysis, and close to new highs. AAPL shares rose 0.3 percent on Wednesday.
Software leader Microsoft certainly regained its 50-day line last week, placing the top Dow Jones stock in a new buying area. Meanwhile, MSFT shares form a flat base with a buy point of 349.77 with an early entry of 343.89. Shares rose 0.25% on Wednesday, in line with the decline from Tuesday’s loss of 0.35%.
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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