Dow Jones futures rose solidly Tuesday morning, along with S&P 500 futures and Nasdaq futures. The stock market rally got a much-needed win Monday, with Apple (AAPL) and Adobe stock rebounding bullishly and Tesla (TSLA) moving back above a key level.
Additionally, Lennar (LEN) reported a surprise earnings gain late Monday as homebuilders and the broader housing sector have been holding up well. Lennar stock fell overnight after closing near a record high.
Meanwhile, would-be Tesla rival Nikola (NKLA) fell sharply in extended trade on a report that the SEC will examine recent short-seller claims. Nikola stock had jumped 11% on Monday as the electric-truck startup responded to Hindenburg Research claims of “intricate fraud.” Hidenburg said Tuesday that it viewed Nikola’s response as a “tacit admission of securities fraud.”
Stock Market Rally Rebounds
After a rough two weeks, the stock market rally had a positive session Monday, helped by merger activity and coronavirus vaccine news. The Nasdaq is back above its 50-day moving average, with Tesla and merger-fueled Nvidia (NVDA) among the big drivers. But investors should look to see if the Nasdaq can get back above its 21-day exponential moving average and even last week’s peak before feeling more confident.
Tech futures suggest the Nasdaq will open near its 21-day line.
Apple stock rebounded from its 10-week line. That’s actionable, though market conditions are a concern. Meanwhile, Adobe (ADBE) also bounced from its 10-week line, but with Adobe earnings due Tuesday night, a new position would be highly risky except with an options strategy. Tesla stock spiked back above its 21-day moving average and the 400 level. But it’s a very volatile chart with a slew of news for Tesla and rivals in the next few weeks.