Stock futures struggled to hold tight gains on Tuesday after President Donald Trump on Monday declared a state of emergency in Washington, DC, on Monday, and the Pentagon convened 10,000 troops for deployment to the capital. Electric vehicle manufacturers Tesla and Xpeng were ready for early rebounds. Rent-A-Center, Shopify and Datadog hovered close to buying points. And Walmart led the Dow Jones today after announcing plans to launch a fintech startup.
Dow Jones futures rose 0.2%. The S&P 500 futures crawl eased to just 0.1% above fair value. The Nasdaq 100 futures erased most of their early progress to trade flat in the stock market today. Baidu (START), Tesla (TSLA) and Nvidia (NVDA) held all the top slots on the Nasdaq 100.
Small cap modestly exceeded the early action, with Russell 2000 futures rising 0.6% as WW International (WW), the old Weight Watchers, collected 6.7%. Luminex (LMNX) jumped 5.9% after leading revenue in the fourth quarter and 2021 above analyst targets.
Nasdaq led the market retreat on Monday, pausing at least a brief consolidation after flashing some mild signs of overheating after a 15.4% rally in the fourth quarter. While investors seemed to be rotating away from growth stocks, many executives still had a good day, sending the Innovator IBD 50 ETF (FFTY) up 1% in its third-move advance.
On Tuesday, the top of the S&P 500 showed a healthy mix of stocks. Insurance company Aflac (AFL) jumped 4.7% after Morgan Stanley upgraded the stock to overweight. Aflac shares closed less than 5% on Monday below a buy point of 46.53 in a flat base.
Dow Jones today: Walmart jumps into FinTech
Walmart (WMT) climbed higher on the Dow Jones today, up 1.3%, after announcing it would launch a fintech startup in partnership with Ribbit Capital. Ribbit is one of the venture capital firms that supports the online trading platform Robinhood. CNBC reported that the company’s board of directors would include Walmart US Chief Executive John Furner, Chief Financial Officer Brett Biggs and Ribbit Capital managing partner Meyer Malka. The company planned growth through acquisitions and partnerships.
Walmart shares rose 22% in 2020. They have risen 2.2% so far in January.
Goldman Sachs (GS) also rose higher on the Dow, up 1.2% after JPM Securities raised its stock price target to 320 from 285 ahead of Goldman’s fourth quarter report on 19 January. The Goldman stock is working on 11 straight weekly advances and is up more than 30% after a breakout in November.
S&P 500: Tesla, Enphase
Tesla traded high on the S&P 500. So did it Enphase Energy (ENPH), an increase of 2.6% after Truist began coverage with a purchase valuation and a 254 price target. Oil issues also strengthened early action Occidental Petroleum (OXY) and Marathon oil (MRO), which trades among the S & P 500’s top 10 advances.
Emergent BioSolutions (EBS) increased 3.8% after updating the full-year earnings and revenue outlook to the above forecasts.
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Shares to look at on Tuesday include Rent-A-Center (RCII) ended Monday in a buy range above a buy point of 41.52 in a bullish rising base pattern. Shopify (SHOP) has bubbled above and below a buy point of 1,147.01. Datadog (DDOG) is knocked down just below a 111.59 buy point in a cup-with-handle base.
Central Garden Pet (CENTA) trades below several potential buy points. The default entry would be a 41.20, but the stock also formed a possible handle, which could provide a lower entry point.
China is on the move: Baidu, Futu
Once in China-based stocks, early signs of strength flashed. Baidu led the Nasdaq 100, a 3% increase. But Baidu’s positive market trading on Monday developed to a 8.6% drop during the regular session.
On the IBD 50 list Futu Holdings (FUTU) total 7%. The online trading platform rose more than 31% above a buy point of 51.20 after a breakout last week, then pulled back almost 5% on Monday. The stock has technically triggered an eight-week hold rule for the second time in two months, a rarity. However, the nature of the Chinese IPO gives this team rule some specific qualifications that investors should be aware of.
Bitcoin is approaching $ 36,000; Marathon, MicroStrategy Jump
Bitcoin rose again by more than 6% and traded above $ 35,600 early Tuesday, according to CoinDesk. It rose from an early low of around $ 30,525, but still below Friday’s high of $ 41,529. Despite the retreat, Bitcoin has continued up nearly 22% since the beginning of January after accumulating more than 50% in December.
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Among Bitcoin-related stocks Marathon Patent Group (MARA) jumped 8% higher. MicroStrategy (MSTR) took a 4.1% rejection. IBD Leaderboard stock PayPal Holdings (PYPL) rose 0.8%. The PayPal stock is expanding, slightly more than 10% up, since clearing a purchase basis for the cup base was 215.93.
State of emergency, troops called up
On Monday, President Donald Trump declared a state of emergency in Washington DC The executive order allows the Federal Emergency Management Agency and the Department of Homeland Security to mobilize federal resources, “to save lives and protect property and public health and safety and reduce or avert the threat of disaster in the District. of Columbia. “
The city itself had been under a state of emergency ordered by Mayor Muriel Bowser since Trump supporters ransacked the Capitol building on Wednesday. The Secret Service and the Department of Homeland Security have extended their national special security event status due to security concerns associated with the inauguration of Joe Biden and Kamala Harris on January 20th.
The Military Times reported Monday that the Department of Defense had called in 10,000 National Guard troops to the city and approved more. “Right now we have 10,000 inbound and we have permission to go to [15,000]”The National Guard Bureau Chief General Daniel Hokanson told the Times. Hokanson declined to say whether the troops would be armed, but said the plans were to” work very closely with the federal agency, the FBI and police to determine if there is a need. ” for that, ”the Times reported.
25. amendment, indictment, FBI alert
The House is today voting on a resolution calling on Vice President Mike Pence to “convene and mobilize the Cabinet to activate the 25th Amendment to declare the President unable to perform his duties, after which the Vice President would immediately exercise powers as acting president.” “A blog by historian Heather Cox Richardson notes that the decision does not concern the president’s physical or mental health, but instead focuses” on his inability to perform his duty to respect the legitimate results of the presidential election “and to accept the peaceful transfer. . of power.
If Pence does not respond to the decision by Wednesday, House Speaker Nancy Pelosi said Parliament will initiate a prosecution. Parliament could charge as early as this week. The Senate will not fully reconvene until Jan. 19, suggesting a trial will not occur to potentially follow up on the prosecution with a conviction before Biden has taken over the presidency.
Acting Home Secretary Chad Wolf resigned late Monday, relinquishing control of one of the key departments overseeing the inauguration of Federal Emergency Management Agency leader Pete Gaynor. Gaynor has officially been in his role in FEMA since January 2020. Wolf is the third Trump cabinet member to resign since last Wednesday’s events at the Capitol. The White House, the Department of Justice, the FBI and the Department of Homeland Security have not submitted any briefings in the meantime.
ABC News reported that a memo from the FBI warned government agencies of “right-wing extremist groups” planning demonstrations in all 50 state capitals over the weekend of 16-17. January before the January 20 inauguration. Information said groups could storm government offices. A statement from the FBI said: “” Our focus is not on peaceful protesters, but on those who threaten their safety and the safety of other citizens with violence and destruction of property. “
EV manufacturers: Tesla, Xpeng Climb
Luxury electric car maker Tesla jumped 3% in early trading after a 7.8% retreat on Monday snapped up an 11-day winning streak. Monday’s big picture noted: The electric carmaker’s skyrocketing move since mid-November has given it a market value close to $ 770 billion, making it the sixth largest company on the Nasdaq. Thus, Tesla’s 7.8% slide on Monday had a major impact on the index and will continue to be one.
Tesla currently represents 5.5% of the Nasdaq 100’s weighting just behind Amazon.com (AMZN), Microsoft (MSFT) and Apple (AAPL). Tesla shares have flashed some signals of a possible climax peak.
Among other EV manufacturers, China-based Xpeng (XPEV) rose 3.5% after entering into a $ 1.98 billion credit deal with plans to use funds to support and expand its operations. The Xpeng stock has hugged its rising 50-day line and tried to climb off the floor in a seven-week, 50% deep correction. Shares have risen about 196% since their initial offering in August.
Dow Jones today: Chevron follows oil prices higher
Chevron rose 1% and traded high on the Dow Jones today as West Texas Intermediate oil prices rose to their highest level since late February. The WTO rose 0.6% to $ 52.84 per share. Barrel, after the International Energy Agency’s CEO Fatih Birol told Bloomberg that US shale oil was needed in the short term to fill the global gap in supply versus demand.
But Birol warned that shale producers should not underestimate the electrification of the transport sector and should be aware of the declining share of crude oil in the future global energy mix.
Find Alan R. Elliott on Twitter @IBD_Aelliott
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