Futures on Dow Jones rose slightly on Monday evening, as did futures on the S&P 500 and futures on the Nasdaq. The coronavirus market rally rebounded on Monday, led by the giants of DJIA Boeing (BA) and Apple (AAPL). Tesla title once again surpassed 1000, as CEO Elon Musk hinted You’re here (TSLA) could reach breakeven point in Q2. After the close, the Micron, Lululemon and Wells Fargo shares moved to the news.
Micron technology (MU) reported better than expected revenues, Lululemon Athletica (LULU) purchased home fitness company Mirror. Wells fargo (WFC) cut its dividend while other large banks kept their payments stable after annual stress tests.
Micron stock surged overnight, while several other games related to memory chips and chip OEM stock Applied materials (AMAT) has also increased. Lululemon’s stock appeared, while the home exercise specialist Platoon (PTON) fell. Wells Fargo shares fell a fraction following the somewhat expected drop in the dividend.
Apple stock and You’re here (TSLA) are on IBD Leaderboard. Lululemon’s stock is on SwingTrader.
Dow Jones Futures Today
Dow Jones futures contracts were up 0.2% from fair value. The S&P 500 futures contracts were up 0.3%. Nasdaq 100 futures climbed 0.45%. Remember that overnight action on Dow and elsewhere does not necessarily translate into actual transactions during the next regular trading session.
Join the IBD experts as they analyze the actionable actions of the coronavirus market rally on IBD Live.
Coronavirus cases worldwide have reached 10.40 million. The deaths of Covid-19 are more than 507,000.
In the United States, coronavirus cases have risen to 2.68 million, with more than 128,000 deaths.
The Covid-19 cases have exploded in Arizona, Texas, Florida and many other southern states. Hospitalizations also increased in hot spots.
On Monday evening, Arizona ordered the closure of all bars, clubs and gyms. Earlier, New Jersey halted reopenings and postponed meals indefinitely. Cases in New Jersey have dropped sharply from April highs, but officials may be concerned about a relapse amid evidence that indoor dining is linked to higher coronavirus outbreaks.
So far, coronavirus deaths have not resumed. But the pause and the reversals in facilitating the cessation of coronaviruses, as well as the increase in social distancing, will have an impact on the nascent economic recovery.
On Monday evening, Fed chief Jerome Powell stressed the economic importance of keeping the coronavirus under control.
Coronavirus stock market rally
The rally in the coronavirus stock market opened in a mixed manner but has regained momentum on sales data awaiting eruption, the DJIA and other major indices finding or recovering a key support.
US Stock Market Today overview
|Index||symbol||Price||Loss of profit||% Change|
|S & P500||(S & P500)||3041.18||+32.13||+1.07|
Last update: 5.30 p.m. ET 6/29/2020
The Dow Jones Industrial Average rose 2.3% in Monday’s stock market. The title Apple, the biggest weight of the DJIA weighted by prices, rose 2.3% to 361.78, not far from records. Boeing inventory increased 14% when the Boeing 737 Max completed its first recertification flight.
The S&P 500 index gained 1.5% and the Nasdaq composite by 1.2%.
The DJIA has rebounded from its 50-day moving average, but is still well below its 200-day line. The S&P 500 has returned above its 200-day line. The Nasdaq, which fell sharply at the start of the session, has recovered above its 21 days.
Although Covid-19 cases continue to soar, coronavirus games have declined, including Video zoom (SP) Teladoc Health (TDOC), Quickly (FSLY), DocuSign (DOCU) and the peloton stock. All, except the Teladoc stock, were extensive. Several other names of software compatible with coronaviruses have also declined, but generally did not show major damage to the cards.
Among the best ETFs, the Innovator IBD 50 ETF (FFTY) rallied to close flat. The iShares Expanded Tech-Software Sector (IGV) ETF fell 0.3%, after increasing slightly last week. The VanEck Vectors Semiconductor (SMH) ETF rose 1%. The Micron share is part of the SMH ETF.
Micron profit fell 22% to 82 cents a share. Revenues for the third fiscal quarter increased 14% to $ 5.44 billion. Analysts had expected Micron to earn 77 cents on revenue of $ 5.31 billion.
The memory chip giant also gave bullish indications for the current quarter.
The micron stock climbed 5.7% to 50.94 overnight. MU shares rose 1.4% on Monday, rebounding from its 50-day line and closing just above its 200-day line. A point of purchase of 50.24 cups with handle for Micron action is technically still valid, but investors may want to focus on 54.92 as the best entry.
However, Micron’s relative strength line has drifted lower since early January and has generally declined over the past two years. This reflects the underperformance of MU stocks compared to the S&P 500. The RS line is the blue line in the charts provided.
Micron results also increased memory play Western digital (WDC) and Seagate technology (STX). Giant smart equipment Applied materials (AMAT), which has a lot of exposure to the memory market, also climbed trading around a buying area.
Lululemon buys home fitness game mirror
Monday night, Lululemon announced it would buy Mirror for $ 500 million. Mirror offers weekly live lessons and thousands of on-demand workouts. It also offers individual personal training.
Lululemon and his athletic giant Nike (NKE) expanded its home fitness offerings during the coronavirus pandemic. They face the Platoon in pure play.
Lululemon’s shares rose 3.7% overnight. LULU shares rose 1.7% Monday to 294.35. The shares have been consolidating for a few weeks since the race from its March trough to its June 10 peak. But Lululemon’s stock needs more time before it has an appropriate basis, and perhaps for the 10-week moving average to catch up.
Meanwhile, Peloton’s stock fell 1.7% overnight. PTON shares fell 2.1% on Monday, but after reaching a record high on Friday.
Survival Of The Fitness: These Big Names Want To Win The Home Fitness Race
Tesla’s gains in Q2?
CEO Elon Musk, in another “leaked” email to staff, said “break even seems super tight” but possible for the second quarter. This suggests that an equilibrium quarter or Tesla’s real gains are likely, if the past quarter-end Musk indices are a guide.
Tesla’s production and delivery figures for the second quarter are expected in early July, likely this weekend. Tesla deliveries will reach 90,000 to 100,000, RBC Capital predicted on Monday. Many Wall Street analysts have set deliveries at around 70,000, but independent analysis tends to be around 85,000.
In addition to Tesla’s deliveries, boosted by the Model Y and the Shanghai factory, Elon Musk has many levers if he wants to make a profit in the second quarter. These include recognition of zero emission credits and full service driving revenues. Another quarter of Tesla’s profits could prompt Standard & Poor’s to add TSLA stocks to the S&P 500 index.
Tesla stock, already up before Tesla’s results were announced, rose 5.2% on Monday to 1,009.35. TSLA stock rebounded again from its 21-day moving average. Tesla stock has consolidated since reaching a record 1,027.48 on June 10. It is too short to provide a legitimate point of purchase. On the positive side, the RS line for Tesla action is at an all time high.
Conclusions of the stock market rally
The coronavirus market rally found support at key levels. But that doesn’t mean the Nasdaq will return to records. The rally in the coronavirus stock market continued at an unsustainable rate. Lateral market action would be normal and healthy. This would allow major stocks such as Tesla and Lululemon to form new bases and moving averages to catch up.
But the stock market rally will do what it will do. It could be a quick return to all-time highs or a sudden setback. Stay engaged, stay flexible.
Read The Big Picture every day to stay in step with the direction of the market and the main titles and sectors.
Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.
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