Driven by China’s hot stocks Pinduoduo, Xiaopeng Motors and Tencent’s strong growth, Dow Jones futures fell slightly with S&P 500 futures on Thursday morning, while Nasdaq futures rose slightly.
The stock market’s gains were mixed again on Wednesday, but at least for now, the rotation of technology stocks has stopped. Nasdaq (Nasdaq) led the way after falling in the first two trading days, because the news of the coronavirus vaccine hit national inventories and many other growth factors.Chip stocks that outperformed many technology stocks on Monday and Tuesday rebounded on Wednesday, including TSMC (TSM).
modern (MRNA) The outbreak on Wednesday was due to Dr. Anthony Fauci’s statement that the efficacy of his coronavirus vaccine Pfizer (PFE) and Biotechnology (BNTX) Candidate vaccine. After biotech companies stated that there were enough Covid cases to review early vaccine data, the stock of MRNA kept rising overnight.
The Chinese stock market became the focus on Thursday morning, Pinduoduo (PDD) report the first ever profitable and Internet giant Tencent (TCEHY) also goes beyond the point of view. Both are closely followed by the huge 11.11 Double Eleven shopping event.These headlines are also right Alibaba (BABA) and Jingdong (JD), Chinese regulators and other Internet giants such as Tencent are under increasing scrutiny. China’s three major e-commerce giants all rose in early trading on Thursday, while Tencent’s stock price is not yet active.
at the same time, Xiaopeng Motors (XPEV)’s performance was mixed, but it rose in pre-market trading due to strong revenues and optimistic prospects. Alibaba is a major investor in Chinese electric car startups, which launched an initial public offering in the US in August and broke out last week.
Xpeng P7 is a competitor of Tesla Model 3. Tesla (TSLA) Despite several price cuts, Chinese-made Model 3 electric vehicles are being exported to Europe due to stagnant Chinese demand.
Tesla stocks, TSMC, JD.com and Pinduoduo are on the IBD rankings. Alibaba stock is the long-term IBD leader and IBD 50 stock.
Dow Jones Futures Today
Dow Jones futures fell 0.45% to fair value. S&P 500 futures fell 0.1%. Nasdaq 100 futures rose 0.4%.
Keep in mind that overnight trading in Dow Jones Index futures and elsewhere will not necessarily translate into actual trading in the next regular stock market session.
Join the IBD experts who analyze the actionable stocks during the stock market rally in IBD Live.
Global coronavirus cases reached 52.56 million. The death toll from Covid-19 exceeds 1.29 million.
In the United States, the number of coronavirus cases has reached 10.7 million and the death toll has exceeded 247,000.
The number of new coronavirus cases in the United States exceeded 100,000 for the eighth consecutive day, setting a new high of 142,808 on Wednesday. The number of hospitalizations has soared.
When Western European countries reached this threshold, the total number of coronavirus cases in Italy exceeded 1 million, along with France, Spain and the United Kingdom. With the outbreak of Covid cases every day, all these countries and other European countries are imposing stricter restrictions.
IBD stocks on the day are approaching the buying point on a “particularly encouraging” outlook
Coronavirus vaccine news
But the coronavirus vaccine may continue to get better. Pfizer (PFE) and partners Biotechnology (BTNX) said on Monday that their coronavirus vaccine candidates are more than 90% effective in the interim data of later trials. They can submit the coronavirus vaccine to the FDA for emergency approval later this month.
modern (MRNA) “will begin to evaluate the data of its Phase III vaccine trial within a week, according to Anthony Fauci, a top infectious disease expert in the United States. Fauci added that if we don’t see a similar degree of flu vaccine, he Will be surprised. Effectiveness” to the positive results released by Pfizer. “
The Pfizer/BioNTech Covid-19 vaccine relies on mRNA technology. As its mRNA code implies, Moderna also uses mRNA technology.
Moderna shares rose 8.4% on Wednesday to 82.44, clearing the 81.49 entry point.
The biotech company said late Wednesday that there were enough Covid-19 cases to view data in its coronavirus vaccine trial. This suggests that early results may come soon.
Moderna stock rose 5% in early trading Thursday.
at the same time, CureVac (CVAC) said that the third phase of its coronavirus vaccine trial will begin as soon as possible. CVAC stocks rose before the market opened.
BioNTech fell 2.9% on Wednesday to 109.45, one day after Monday’s vaccine news broke the base. Pfizer’s share price also plummeted on Monday, but it has fallen back to base, and fell 0.5% to 38.50 on Wednesday.
Stock market rebound
U.S. stock market overview today
|Russell 2000||(and many more.)||172.48||-0.22||-0.13|
Last update: ET 11/11/2020 4:02 PM
The stock market’s rise indicates that this week’s new stock market rotation will at least be suspended. This time, the Nasdaq index led the decline and the Dow Jones index fell behind.
The Dow Jones Industrial Average fell 0.1% in Wednesday’s stock market trading. The S&P 500 index rose 0.8%. The Nasdaq Composite Index rose 2%. However, the Dow Jones Index rose 3.8% this week and the S&P 500 Index rose 1.8%. The Nasdaq Index fell 0.9%.
Growth stocks performed well on Wednesday. Among the best ETFs, the innovative IBD 50 ETF (FFTY) rebounded by 3.25%. iShares expanded technology software industry ETF (IGV) rose 2.8%.
The VanEck Vector Semiconductor ETF (SMH) rose 3.5%. Main holding company Taiwan Semiconductor (Taiwan Semiconductor) rose 3.65% after rebounding from its 21-day exponential moving average, while many technology stocks are still struggling to break through the 50-day line. TSM stock fell only 0.6% this week.
Read The Big Picture every day to keep up with the market direction and leading stocks and industries.
Pinduoduo’s earnings were 5 cents per American Depositary Share, which was the first non-GAAP profit in history, and it opposed the 22 cent loss. Revenue soared 99% to $2.09 billion. Pinduoduo is the third largest e-commerce company in China after Alibaba and JD.com.
Average monthly active users increased by 50% over the same period last year, reaching 643.4 million.
PDD stock surged 24% in pre-market trading. On Wednesday, the stock jumped 8.1% on Wednesday to 111.46, rebounding from the 98.30 price back to the buying zone. On Monday and Tuesday morning, their stocks sold off, briefly fell below the buying point, and then rebounded from Tuesday’s low.
Pinduoduo can gain insight into its performance in the 11.11 shopping event on the world’s largest e-commerce day later on the earnings conference call.
From the 11.11 event held from November 1 to 11, Alibaba reported a total turnover of 74.1 billion U.S. dollars. d JD.com announced just over 40 billion U.S. dollars.
Beijing has issued draft rules to prevent monopolies by large e-commerce and payment platforms, especially those owned by Alibaba and Tencent.
Jingdong shares rose 6% in early trading on Thursday, indicating that its 85.49 buy point has resumed. The stock triggered a 7%-8% sell rule in intraday trading on Wednesday and Thursday, but it never fell below the 50 antenna. On Wednesday, Jingdong shares rose 3.45% to 82.84. Jingdong’s revenue will expire on November 16.
As the e-commerce giant suddenly fell behind, Alibaba’s shares rose 2% in early trading on Thursday. On Wednesday, Alibaba’s stock price fell slightly by 0.3% to 265.65. Prior to this, Baba shares fell on Monday and Tuesday, and Alibaba may be the biggest threat from Chinese regulators. After China unexpectedly suspended Ant Group’s initial public offering, Alibaba’s stock price chart has been damaged. The stock is well below the now invalid 299.10 entry point and is already testing the previous entry point of 268.10.
Tencent’s revenue was 38.5 billion yuan ($5.8 billion), an increase of 89% in local currencies. Easily beat the $30.81 billion views. Revenue increased 29% to RMB 125.4 billion (US$18.93 billion), which also hit a new high. It expects that as cloud computing and other business services continue to grow, slow revenue growth will be “temporary.”
Tencent stocks traded over the counter in the United States were not active on Thursday. According to MarketSmith’s chart analysis, the stock fell 0.5% on Wednesday to 73.44, found support at the 50-day line, and closed above the 73.05 buying point. On Monday and Tuesday, the stock sold off.
Tencent is a messaging, gaming and payment giant with a large stake in JD.com.
Xpeng earnings report
Xpeng reported that the adjusted third quarter lost 32 cents per share of American depositary receipts. Revenue reached 293.1 million US dollars, an increase of 342.5% in local currency. Previously, the average market expected: ADS will lose 18 cents per share and revenue will reach 284.6 million US dollars.
Gross profit margin was 4.6%, compared with -10.1% in the same period last year.
Reported vehicle deliveries reached 8,578 in the end of September quarter, an increase of 266% compared to the same period last year, and a 166% increase compared to the second quarter of 2020. P7 electric vehicle deliveries jumped from 325 in the second quarter to 6,210. Delivery of Tesla competitors began at the end of the second quarter.
Xpeng expects electric vehicle deliveries in the fourth quarter to be 10,000, an increase of 211% over the same period last year. Revenue should reach 2.2 billion yuan, or about 332 million US dollars.
China’s electric vehicle initial public offering (IPO) has stated that October deliveries reached 3,040 vehicles, including 2,104 P7 vehicles.
Xpeng stock soared 9% before the opening, setting a record high. The stock rose 1.9% on Wednesday to 33.53, and has been consolidating since it rose to a record 39.50 in intraday trading on November 6. The stock skyrocketed from the base last week and expanded substantially.
Other Chinese electric car stocks rose in early trading on Thursday, including o (NIO) and Lee Motors (LI). Li Auto reported earlier on Friday and Nio reported next week.
According to data from the China Association of Automobile Manufacturers, Tesla has produced 22,292 Model 3 electric vehicles at its Shanghai plant. This is a huge leap, as Tesla began exporting Chinese-made Model 3 sedans to Europe, partially replacing its factory in Fremont, California. In October, Tesla sold 12,143 electric vehicles in China, and another price cut drove demand growth. However, together with the estimated 7,000 Model 3 exports to Europe, this shows that Tesla’s inventory in China continues to grow.
After a reversal on Monday and a decline on Tuesday, Tesla shares rose 1.7% to 417.13, still below 50 antennas. However, TSLA stock fell only 3% this week, which is not good, but it is far better than many growth stocks. The purchase price of Tesla stock is 466. Aggressive investors can use 452.60 (slightly above Monday’s intraday high) as an early entry.
Is the stock market rotation over?
From the perspective of major indexes, the stock market rebounded well. The Dow Jones, Standard & Poor’s 500 and Russell all set record highs in 2000. The Nasdaq Composite Index fell back from Monday’s all-time high, but not far behind.
Leading stocks cannot be less attractive, and many of the big winners of 2020 suffered heavy losses on Monday and Tuesday. Some stocks showed obvious chart losses, while others performed better and made a good recovery on Wednesday, such as Taiwan Semiconductor.
Does the stock market’s rotation stay at resident stocks and technology stocks? On a day when many growth companies were hit hard, the market rebounded well or even rose. This does not mean that those leaders are done. Dow Jones futures also hinted at the suspension of round prices.
Again, Wednesday’s action does not mean that the stocks left at home have obviously sailed.Or a giant like Dow Jones caterpillar (Cat), JPMorgan (JPM) and Boeing (BA) is just a miracle.
Why use this IBD tool to simplify the search for popular stocks
The news of the coronavirus vaccine aroused people’s pursuit of “real economy” stocks and at the same time triggered a sell-off of stay-at-home games. However, due to the surge in coronavirus cases in the United States, Europe and many parts of the world outside of East Asia, it is not a good thing for the “real economy” now and now. Therefore, it is difficult to know how the stock market rebound will respond to these severe coronavirus headwinds and which stocks will remain high.
Therefore, as always, investors need to remain flexible, rather than prejudge whether the stock market spin will gain momentum or fail. The big winners of 2020 may continue to lead, or they may not. When you want to know the “story” of the name of growth, remember that this is not a never-ending story.
Please follow Ed Carson on Twitter via @IBD_ECarson on Twitter for stock market updates and other information.
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