Dow Jones Futures: Stock Market Rally Gets A Win; Apple In Buy Zone; Tesla Rival Nikola Dives On SEC Probe – Investor's Business Daily

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.

Join IBD experts as they analyze actionable stocks in the

Read More Here...

Bookmark the permalink.

Comments are closed.