Shares slipped open on a mixed open Tuesday, with the Dow lagging behind and the Nasdaq joining a resistance test of nearly 14,000. Tesla shares rose on strong data on electric vehicle sales from China. Revenue news sent Marvell, Stitch Fix and Rev Group sharply higher. And Apple topped the Dow Jones today, after reports that it had entered into discussions with leading suppliers of EV batteries.
The Nasdaq Composite jumped 0.6%, s Marvell Technology (MRVL) and Tesla (TSLA) with a high level of the Nasdaq 100. The S&P 500 rose 0.1%, holding just below its March 7 record.
The Dow Jones industrial average fell 0.2%. Finance Goldman Sachs (GS) and JPMorgan (JPM) weighed on the index as bond yields plummeted to undermine recent levels in morning trading.
Tesla advanced 1.6 percent after data from May sales by the China Passenger Car Association showed that the carmaker was leading growth in electric vehicle sales in the country in May.
Marvell started with 6.7% growth, after reporting strong results for the first quarter late on Thursday, and raised its guidelines for the second quarter. Earnings on opening sent shares to the top of the buying range, after passing a buying point of 49.31 in a cup with a handle.
Other leaders in early movement include IBD 50 stocks Generac Holdings (GNRC) and CrowdStrike (CRWD). Generac jumped more than 4% after KeyBanc upgraded the stock to overweight with a price target of 400. Earnings lifted the stock in a buying range above 342.38 points for a double-bottom defective buy. CrowdStrike traded just below the handle purchase point of 227.30.
The US trade deficit narrowed sharply, but according to forecasts, data from the Department of Commerce showed in April, falling to $ 68.9 billion for the month. That was from a record trade gap of $ 75 billion in March and just below economists’ forecasts of tightening to $ 69 billion. Job creation and labor turnover surveys at the Ministry of Labor are expected at 10 a.m. ET.
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Dow Jones Today: Apple, Boeing Lead
Boeing (BA) increased by 0.4% and Apple Shares of (AAPL) were trading 1.3% against the Dow Jones today. Reuters reports that Apple has entered into early negotiations with China’s CATL and WORLD (BYDDF) as the iPhone maker is looking for a battery supplier for the planned electric vehicle.
BYD is a Chinese carmaker backed by Warren Buffett. CATL is state-of-the-art Amperex technology that supplies batteries for electric vehicles to Tesla and other major automakers. Reuters reports that CATL is the world’s largest car battery maker and that BYD is the fourth largest.
Apple has not yet publicly announced its plans for cars and declined to comment to Reuters. Shares of Apple ended Monday with less than 9% below the flat base point of purchase at 137.17.
Boeing, acquired after a regulatory filing by Southwest Air, showed that the company has added 34,737 Max aircraft to its confirmed orders for 2022. The supplementary agreement increases a total of 737 Max orders from Southwest to 234 aircraft.
Boeing’s stock is in a 13-week glass base. It is possible to form a handle with a potential buying point of 258.50.
Chinese EV sales: Tesla, WORLD, Li And Nio
The CPCA reported 177% annual growth in electric vehicle sales in May to 185,000 units. Total passenger car sales rose 1.6% to 1.66 million vehicles.
During the month, Tesla sold 33,463 cars. This was an increase of 29% compared to April levels, but still below 35,478 in March. Also in May, the company exported 11,527 of the Model 3 sedans and Model Y sports models it produces in China.
BYD has seen sales of all-electric vehicles double in the month to 18,711 units. This was 126% compared to the levels a year ago. China based competitor Nio (NIO) sold 6711 EVs, which is a 95% increase.
Xpeng (XPEV) shipments jumped 483% year-over-year to 5,686 EVs in May and 10% in April. Li Auto (LI) reported deliveries of 4,323 in May, which is 101% more than the same period last year, but 22% less than in April. BYD sold 32,800 new energy vehicles, a category that includes hybrids, by almost 190%.
A two-day advance has kept Tesla’s stock at the bottom of its 200-day moving average. The shares have been working to receive and retain support at this 200-day level since mid-May. At the end of trading on Monday, Tesla was about 33% below its record level set on January 25.
Shares of Li Auto recovered sharply from lows in mid-May, recovering to 18% growth in May and over 14% since early June. This leaves the shares 132% above the original offer price in July 2020, but still decreases by 44% from its peak in November and without a valid point of purchase.
Shares of Xpeng, BYD and Nio are recovering above support at their 40-week moving averages after four weeks of climbs. Maybe the Nio could be in the buying range, over 43.32 purchase points in the base model at the bottom.
Revenue News: Fix Fix, Rev Group
Online shopping assistant Stitch repair (SFIX) fired more than 12% higher. Financial results for the third quarter of the San Francisco-based one eased analysts’ forecasts. The shares are working on a fifth consecutive weekly advance, but ended on Monday with more than 75% below their January high.
Website for e-retail and delivery Nexus chest (DADA) caused 12% after announcing a $ 150 million share repurchase program, along with its first-quarter earnings.
Rev Group (REVG) increased by 7.5% after reporting the results. The manufacturer of recreational vehicles and fire trucks closed trading on Monday with about 14% below 22.33 points for purchase in a seven-week base for glasses.
RV manufacturer Thor industry (THO) achieved a profit of up to 0.4%, after reporting 665% earnings per share and 106% revenue growth. The shares are working to form a floor in the event of a steep five-week decline.
IBD 50: Global-E Rally
Among the stocks of IBD 50, Israeli Global-E Online (GLBE) is set to continue its rally, with 4.1% at the beginning of the action. More than half a dozen analysts initiated coverage with ratings for purchases, excellence and overweight on Monday, following an e-commerce platform provider’s report for the first quarter late last week, citing its recent exclusive agreement with Shopify (SHOP).
Shares of Global-E ended on Monday with 55% compared to its initial offer price on May 12. Investors will reduce the risk by waiting for the variable new issue to form an IPO base, offering a valid entry point for the shares.
PLBY Group (PLBY) collapsed by almost 9%, by the end of the list with IBD 50. The company announced late Monday an offer for 4 million shares of ordinary shares.
Dow Jones Today Lags; 14,000 Nasdaq test
The stock market on Friday had its status upgraded to an “uptrend” for the first time since May 12. The Nasdaq Composite has limited the shaky three-week rally by responding over support for its close 50-day and 21-day moving averages on Friday and adding to that support cushion on Monday.
The index is below 1% below the 14,000 mark, a level that has limited its progress since February.
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The S&P 500 remains within 0.3% of its record level from May 7. Dow Jones today is about 1.3% below its record level of May 10. Both the Dow and the S&P 500 continue to show strong support for their short-term 21-day moving averages.
The increased market status opens investors to a more aggressive game plan. This means it’s time to start coming back in cash fundamentally strong stocks and ETFs coming out of sound chart models.
However, don’t skip all at once: new positions are too small to get started. The market will tell you pretty quickly whether it was a timely purchase or not. Stay disciplined and stick to the right buying and selling rules.
Stocks to watch: Alphabet, Bio Techne
Google parent Alphabet (GOOGL) is approaching a buying point of 2,431.48 on a flat base. Dell technologies (DELL) is also in a flat base and briefly cleared 103.90 entry on Monday. Fox factory (FOXF) continues to test maintenance at its 50-day moving average, within a flat base that has 166.98 points to buy. Applied materials (AMAT) may form manipulation in its 10-week consolidation. His current purchase point is 146.10. Bio Techne (TECH) holds firm support on its 50-day line, below 444.93 points for flat-rate purchases.
The alphabet and application materials are the stocks of IBD Leaderboard. Applied Materials is also in the IBD SwingTrader line.
Find Alan R. Elliott on Twitter @IBD_Aelliott
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