Dow Jones Futures Rise: 5 Stocks Near Buy Points In Market Rally; Tesla FSD Beta Expands Widely

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




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The stock market rally was positive for a second straight session on Wednesday. Fed officials see slower rate hikes coming “soon,” according to Fed minutes from the November meeting released Wednesday afternoon.

The Nasdaq led, sustained by a rebound Tesla (TSLA). The major indexes are all solidly so far in this shorter week of holidays. But a longer holiday for the market rally could be constructive.

Investors should be cautious about adding exposure to key technical resistance and notable economic reports going forward.

However, Dexcom (DXCM), UnitedHealth (UNH), Neurocrine Bioscience (NBIX), Medpace Holdings (MEDP) and Shockwave Medical (SWAV) are five health care stocks that show interesting action.

DXCM and Neurocrine Biosciences stocks are on the IBD Leaderboard, and MEDP stocks are on the Leaderboard watchlist. NBIX and Medpace stocks 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 any FSD owner in North America who requests it.

This 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 the safety of Autopilot and FSD. The Justice Department is reportedly conducting a criminal investigation into Tesla’s self-driving claims.

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

Dow Stock Deal News

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

Dow Jones Futures Today

Dow Jones futures rose less than 0.1% against fair value. S&P 500 futures advanced 0.2% and Nasdaq 100 futures rose 0.35%.

The 10-year Treasury yield fell 5 basis points to 3.66%.

Mainland China has reported more than 31,000 Covid cases, including those without symptoms, surpassing mid-April levels during Shanghai’s lockdown. Covid infections and symptoms are still below the April peak.

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U.S. stock markets were closed Thursday for the Thanksgiving Day holiday. On Friday, US exchanges will close early at 1 pm ET. But other exchanges around the world open normally on Thursday and Friday.

Remember that overnight actions in Dow futures and elsewhere do not necessarily translate into actual trading in the next regular stock market 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 Wednesday, but gains extended, led by technology.

Initial jobless claims rose to a three-month high while continuing claims hit an eight-month best. The S&P Global purchasing managers’ index for US manufacturing and services both signaled contraction.

The Fed’s mint boosted expectations for a 50-point rate hike at its December 14 meeting. Markets still favor another half-point move in February, but there’s a decent chance for a quarter-point hike.

The Dow Jones Industrial Average rose 0.3% in Wednesday’s trading. The S&P 500 index rose 0.6%, led by TSLA shares. The Nasdaq composite is already 1%. The small-cap Russell 2000 rose 0.1%.

US crude oil prices fell 3.7% to $77.94 a barrel. Natural gas futures jumped 7.2%.

The 10-year Treasury yield sank 5 basis points to 3.71%. The two-year Treasury yield, which is most closely tied to the Fed’s rate hike outlook, dipped below 4.5%.

The US dollar fell significantly for a second straight session, back near the recent lows.


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ETFs

The iShares Expanded Tech-Software Sector ETF ( IGV ) rose 1.5%. VanEck Vectors Semiconductor ETF (SMH) gained 0.9%.

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

Reflecting the more speculative stock history, the ARK Innovation ETF (ARKK) appeared 2.9% and the ARK Genomics ETF (ARKG) 0.9%. TSLA stock is a major holding through Ark Invest’s ETFs.

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The five best Chinese stocks to watch right now


Actions To Watch

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

Medpace stock fell 1.3% to 218.81 on Wednesday. Shares have consolidated near record highs since rising 38% on Oct. 25 after earnings. Since then, MEDP stock has forged a dirty handle on a year-round cup tub. While stocks had some big swings on the day, MEDP stock is now on track to forge a three-week-tight pattern at Friday’s close. Investors could use the November 15 close of 226.57 as an early entry, above the bulk of recent trades.

NBIX stock sank 1.5% to 118.97. Shares are consolidating near multi-year, extending from an October breakout. Despite a dip in the 50-day line last week, Neurocrine stock has a tight three-week pattern that is on track for a fourth week. Technically, there is a buy point of 126.09, although investors may want to wait for some quieter actions.

Shockwave stock was already up 4.7% at 264.06 on Wednesday, back above its 21-day line but hitting resistance at the 50-day line. After a failed breakout at the end of October and the sharp sell-off that continued through earnings, SWAV shares rebounded in the past week. A new base will take longer, but aggressive investors can use a strong move above the 50-day as an early entry.

Shares of UNH rose 1.3% to 529.71, bouncing above its 50-day and 21-day lines after briefly dipping below its 200-day line last week. UnitedHealth stock used to be a long-term IBD leader and still shares many characteristics. Investors can use a bounce of the 50-day line as either an early entry or a long-term Leader entry. UNH stock needs to forge a new base after a breakout from a cup-and-handle base failed quickly last month.


Tesla vs. BYD: Which EV Giant is the best buy?


Market gathering analysis

The stock market rally added to Tuesday’s gains. The S&P 500 just surpassed its Nov. 15 high on the day and closed within 1% of its 200-day line.

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The Russell 2000 reached its 200-day line.

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

The Dow Jones reached 20 points from its August 16 high of the day.

The S&P 500 moving decisively above its 200-day line — roughly coincident with a year-long declining trend line — is a big test of the market’s rally.

A series of economic data could sway Fed 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 favorite gauge of inflation, will be released, along with jobless claims and the ISM manufacturing index. The November job report is due Friday, November 2.

Ideally, the market would move aside for a few days, leaving at least the 21-day line to catch up, headlines in these economic reports.


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What To Do Now

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

But they may want to be cautious about making significant new purchases with the S&P 500 hovering below its 200-day line and plenty of Fed-critical economic data due next week.

Also consider taking some partial profits in stocks that run up quickly. Stocks made long-lasting gains amid an uptrend and sector rotation.

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

Read the Big Picture every day to stay connected with market direction and leading stocks and sectors.

Please follow Ed Carson on Twitter @IBD_ECarson for the latest stock market news and more.

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