Dow Jones futures rose slightly late on Monday, and S&P 500 futures and Nasdaq futures also rose. On Monday, the DJIA giant led the coronavirus stock market to rebound Boeing (BA) and apple (AAPL). Tesla CEO Elon Musk hints that Tesla’s stock price once again exceeded 1000 Tesla (TSLA) may reach breakeven in the second quarter. After the close, Micron shares, Lululemon shares and Wells Fargo shares rose.
Micron Technology (MU) The reported benefits are better than expected, Lululemon athlete (LULU) purchased the home fitness company Mirror. FuGuo bank (WFC) cut dividends because other large banks have maintained a stable dividend payout level after conducting annual stress tests.
Micron stock jumped last night, while several other stocks related to memory chips and stocks of chip equipment manufacturers Applied materials (AMAT) also rose. Lululemon inventory surges, while home exercise experts Pelotton (PTON) fell. Wells Fargo’s stock fell, due to expected dividend cuts.
Apple stock and Tesla (TSLA) is on the IBD leaderboard. Lululemon is stocked in SwingTrader.
Dow Jones Futures
Dow Jones futures prices rose 0.2% from fair value. S&P 500 futures rose 0.3%. Nasdaq 100 futures rose 0.45%. Remember, overnight actions in Dow Jones Futures and elsewhere will not necessarily translate into actual trading during the next regular stock market period.
Join IBD experts, who analyze viable stocks in the rise of the coronavirus stock market on IBD Live.
At present, the number of coronavirus cases worldwide has reached 10.4 million. The death toll from Covid-19 exceeds 507,000.
In the United States, there have been 2.68 million cases of coronavirus and more than 128,000 deaths.
In Arizona, Texas, Florida and many other southern states, Covid-19 cases have proliferated. Hospitalization in hot spots has also increased.
Later on Monday, Arizona ordered the closure of all bars, clubs and stadiums. Earlier, New Jersey suspended operations and postponed indoor dining indefinitely. The number of cases in New Jersey has fallen sharply since its peak in April, but officials may be worried about recurrence due to evidence that indoor eating is related to a coronavirus outbreak.
So far, the death of coronavirus has not recovered. However, mitigating the pause and reversal of the coronavirus shutdown, and the increasing distance from society, will have an impact on the nascent economic recovery.
Later Monday, Federal Reserve Chairman Jerome Powell emphasized the economic importance of controlling coronaviruses.
Coronavirus stock market rebound
Coronavirus stocks have mixed ups and downs, but rebounded by the pending home sales data is strong. The Dow Jones Industrial Average and other major stock indexes have found or withdrawn key support.
Overview of the US stock market today
Last updated: 2020, June 29th at 5:30 pm EST
The Dow Jones Industrial Average rose 2.3% in stock trading on Monday. Apple, the largest of the Dow components, rose 2.3% to 361.78, not far from its historical high. With the first recertification flight of Boeing 737 Max aircraft, Boeing shares soared 14%.
The S&P 500 index rose 1.5% and the Nasdaq composite index rose 1.2%.
The Dow rebounded from the 50-day moving average, but still far below its 200-day line. The S&P 500 index is back above its 200 antenna. Nasdaq fell sharply in early trading, and its stock price returned to its 21st high.
Even though the number of Covid-19 cases continues to soar, the role of coronaviruses has declined, including Zoom video (ZM), Teladoc Health (TDOC), fast (FSLY), DocuSign (DOCU) and Peloton inventory. In addition to Teladoc’s inventory, all other inventory has been well expanded. Several other corona virus-friendly software names have also been withdrawn, but usually do not show major damage on the chart.
Among the best ETFs, the innovator IBD 50 ETF (FFTY) closed flat. The iShares Expanded Technology Software Industry ETF (IGV) fell 0.3% after a slight increase last week. The VanEck Vector Semiconductor ETF (SMH) rose 1%. Micron stock is part of the SMH ETF.
Micron’s earnings per share fell 22% to 82 cents per share. Revenue in the third fiscal quarter increased by 14% to US$5.44 billion. Analysts on average expected Micron to earn 77 cents and revenue of $5.31 billion.
The memory chip giant also gave bullish guidance for the current quarter.
Overnight Micron shares rose 5.7% to 50.94. On Monday, MU’s stock rose 1.4%, rebounded from the 50-day line and closed above the 200-day line. Technically, the 50.24 cup handle acquisition point of Micron stock is still valid, but investors may want to focus on 54.92 as a better entry point.
However, since early January, the relative strength line of Micron stock has declined, and has generally declined in the past two years. This reflects the poor performance of MU stock compared to the S&P 500. The RS line is the blue line in the chart provided.
Micron results also improve memory Western Digital (WDC) and Seagate Technology (STX). Chip equipment giant Applied materials (AMAT) occupies a large share of the memory market, but as it trades near the purchase area, its share price has also climbed.
Lululemon buys home fitness game mirror
Later on Monday, Lululemon said it would acquire Mirror for $500 million. Mirror provides live classes and thousands of on-demand exercises weekly. It also provides one-on-one private training.
Lululemon and the sportswear giant Nike (NKE) has expanded the range of home fitness services during the coronavirus pandemic. They are playing pure Peloton.
Overnight, Lululemon’s stock rose 3.7%. LULU stock rose 1.7% to 294.35 on Monday. From the low point of March to the high point of June 10, stock prices have been consolidating for several weeks. But Lululemon stock will take longer to have the proper foundation, and perhaps it will take another 10-week moving average to catch up.
At the same time, Peloton shares fell 1.7% overnight. PTON shares fell 2.1% on Monday, but hit a record high on Friday.
Fitness survival: these big names compete for home fitness competitions
Tesla’s second quarter earnings?
CEO Elon Musk said in another “leak” email to employees that “the balance of payments looks very tight,” but the second quarter may be achieved. This shows that if Musk hinted at any guidance at the end of the past quarter, Tesla’s breakeven or actual surplus is likely to appear.
Tesla’s production and delivery data for the second quarter will be released in early July, and may be released later this week. RBC Capital predicted on Monday that Tesla’s delivery volume will reach 90,000-100,000. Many Wall Street analysts expect delivery to be about 70,000, but independent analysis tends to be about 85,000.
In addition to Tesla’s delivery of products driven by Model Y cars and the Shanghai plant, Elon Musk has a lot of leverage if it wants to release second-quarter profits. This includes the recognition of zero emission credits and full service driving income. A further quarter of Tesla’s profit may stimulate Standard & Poor’s to include TSLA stock in the S&P 500 index.
Tesla shares rose 5.2% to 1,009.35 this Monday. TSLA stock rebounded again from its 21-day moving average. Since hitting a record high of 1,027.48 on June 10, Tesla’s stock has been consolidating. This is too short to provide a legal buying point. On the bright side, the RS line of Tesla shares hit a record high.
Stock market rebound conclusion
Coronavirus stock market rebound has gained support at key levels. But this does not mean that Nasdaq will return to a record high. Coronavirus stocks have been growing at an unsustainable rate. The horizontal market will be normal and healthy. This will allow leading stocks such as Tesla and Luremont to form a new foundation where the moving average can catch up
But the stock market rally will do what it will do. That may be a rapid return to historical highs or a sharp pullback. Stay involved and stay flexible.
Read The Big Picture every day to keep pace with market direction and leading stocks and industries.
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