Dow Jones Futures: 5 stocks near buy points in market rally; Tesla FSD Beta is expanding a lot

Dow Jones futures rose slightly Thursday afternoon, along with S&P 500 futures and Nasdaq futures, with U.S. markets closed for the Thanksgiving Day holiday. Apple, Microsoft and Tesla are in the news.




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Stock market gains were positive for a second session in a row on Wednesday. Fed officials see slower rate hikes coming “soon,” according to Fed minutes from the November meeting released Wednesday afternoon.

The Nasdaq led, supported by a rebound Tesla (TSLA). The major indexes are all up solidly so far this holiday-shortened week. But a longer holiday for the market rally could be constructive.

Investors should be cautious about adding exposure given key technical resistance and noteworthy financial reports ahead.

However, Dexcom (DXCM), UnitedHealth (UNH), Neurocrine Life Sciences (NBIX), Medpace Holdings (MEDP) and Shockwave Medical (SWAV) are five healthcare stocks showing interesting action.

DXCM shares and Neurocrine Biosciences are on the IBD Leaderboard, with MEDP shares on the Leaderboard watchlist. NBIX shares and Medpace are on the IBD 50.

Tesla FSD Beta Release

Tesla CEO Elon Musk tweeted Thursday that the Full Self-Driving Beta is now available to all FSD owners in North America who request it.

That could allow Tesla to recognize more deferred revenue from FSD.

Despite its name, Full Self-Driving does not offer full self-driving, but is a level 2 driver assistance system. The National Highway Traffic Safety Administration is investigating autopilot and FSD safety. The Department of Justice is reportedly conducting a criminal investigation into Tesla’s self-driving claims.

Tesla shares jumped 7.8% to 183.20 on Wednesday, rebounding from Tuesday’s market lows as Citigroup upgraded the EV giant from a sell to a hold. TSLA stock is still down 19.5% so far this month and is about to halve in 2022.

News about Dow Stock Trading

In Dow Jones stock news, Apple (AAPL) is reportedly interested in buying the British soccer giant Manchester United (MANU). The Federal Trade Commission can try to block Microsoft (MSFT) agreement to buy Activision Blizzard (ATVI) for nearly $69 billion.

Dow Jones Futures Today

Dow Jones futures rose 0.1% against fair value. S&P 500 futures rose 0.2% and Nasdaq 100 futures gained 0.4%.

Mainland China reported more than 31,000 Covid cases, including those without symptoms, topping levels in mid-April during the Shanghai lockdown. Covid infections with symptoms are still below the peaks in April.

US stock markets will be closed Thursday for the Thanksgiving Day holiday. On Friday, US stock markets close early at 1 p.m. ET. But other exchanges around the world are usually open on Thursday and Friday.

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


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


Stock market rally

The stock market rally had some wobbles on Wednesday, but extended gains, led by technicians.

Initial jobless claims rose to the highest level in three months, while continuing claims hit an eight-month best. S&P Global’s purchasing managers’ indexes for U.S. manufacturing and services both signaled a decline.

Fed minutes reinforced expectations for a 50 basis point rate hike at the December 14 meeting. Markets still favor another half-point move in February, but there is a decent chance of a quarter-point increase.

The Dow Jones Industrial Average rose 0.3% in Wednesday trading. The S&P 500 rose 0.6%, led by TSLA shares. The Nasdaq composite rose 1 per cent. The small-cap Russell 2000 rose 0.1 percent.

U.S. crude oil prices fell 3.7% to $77.94 a barrel. barrel. Futures on natural gas rose 7.2 per cent.

The 10-year government yield fell 5 basis points to 3.71%. The two-year government yield, which is more closely linked to the outlook for a Fed rate hike, fell below 4.5 per cent.

The US dollar fell sharply for the second time in a row, back close to recent lows.


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ETFs

The iShares Expanded Tech-Software Sector ETF (IGV) rose 1.5 per cent. VanEck Vectors Semiconductor ETF (SMH) rose 0.9 percent.

The SPDR S&P Metals & Mining ETF (XME) rose 0.3 percent. The US Global Jets ETF ( JETS ) edged 0.1% higher. The SPDR S&P Homebuilders ETF (XHB) rose 0.5 percent. The Energy Select SPDR ETF (XLE) fell 1.1 percent. The Health Care Select Sector SPDR Fund (XLV) rose 0.4 per cent. Dow Jones giant UNH stock is the top holding in XLV.

As a result of more speculative story stocks, the ARK Innovation ETF ( ARKK ) rose 2.9% and the ARK Genomics ETF ( ARKG ) rose 0.9%. TSLA stock is a large holding across Ark Invest’s ETFs.


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Stocks to watch

Dexcom shares rose 1.7% to 112.92, finding support at the 21-day moving average. DXCM stock has paused this month after hitting earnings on Oct. 28. Dexcom stock arguably has a long handle, with a 123.46 buy point from a seven-month consolidation. Investors could buy DXCM shares from an early entry from the 21-day line, perhaps using Tuesday’s high of 113.88 as a specific buy point.

Medpace shares fell 1.3% to 218.81 on Wednesday. Shares have been consolidating near record highs since surging 38% on Oct. 25 after earnings. Since then, MEDP shares have made a messy handle on a deep, years-long bearish base. While stocks have seen some big intraday swings, MEDP stock is currently on track to form a three-week tight pattern at Friday’s close. Investors can use the November 15 close of 226.57 as an early entry, above the majority of recent trading.

NBIX shares fell 1.5% to 118.97. Shares are consolidating near multi-year highs, extended from a breakout in October. Despite a dive to the 50-day line last week, Neurocrine stock is in a three-week tight pattern that is on track to enter a fourth week. Technically, it has a buy point at 126.09, although investors may want to wait for some quieter action.

Shockwave stock rose 4.7% to 264.06 on Wednesday, back above its 21-day line but hitting resistance at the 50-day line. After a failed breakout in late October and sharp selloff that continued through earnings, SWAV stock has bounced back over the past week. A new base will take more time, but aggressive investors can use a strong move above the 50-day as an early entry.

UNH stock rose 1.3% to 529.71, returning above its 50-day and 21-day lines after briefly undercutting its 200-day line last week. UnitedHealth stock used to be an IBD long-term leader and still shares many characteristics. Investors could use a bounce from the 50-day line as either an early entry or a long-term leader entry. The UNH warehouse must forge a new base after a breakout from a cup-with-handle base quickly failed last month.


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Analysis of market rally

The stock market rally contributed to Tuesday’s gains. The S&P 500 just topped its intraday high on November 15 and closed within 1% of its 200-day line.

The Russell 2000 came right up to its 200-day line.

The Nasdaq added to Tuesday’s rebound from its 21-day moving average, though it remains below its short-term high of Nov. 15 and well below its 200-day.

The Dow Jones came within 20 points of its August 16 intraday high.

The S&P 500’s decisive move above its 200-day line — which roughly coincides with a year-long trend line of declining tops — is a huge test of the market rally.

A series of economic data can fluctuate the Fed’s interest rate expectations and thus the stock market. On Wednesday, November 30, the October JOLTS report will show job openings, with Fed chief Jerome Powell speaking later in the day. On Thursday, the PCE price index, the Fed’s preferred inflation gauge, will be released along with jobless claims and the ISM manufacturing index. The jobs report for November will be released on Friday, November 2.

Ideally, the market would move sideways for a few days and let at least the 21-day line catch up with the economic reports.


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What should I do now

The market rally has shown some nice gains this week, with several stocks flashing buy signals in the past few days. Investors could have added a little more exposure as a result.

But they may be wary of making significant new purchases with the S&P 500 hovering below its 200-day line and so much Fed-critical economics expected next week.

Also consider taking some partial profits in fast-rising stocks. Stocks have made short-lived gains amid a choppy uptrend and sector rotation.

Still, investors should work hard on their investment shopping lists, looking for setups and actionable names across a range of sectors.

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

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

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