Equity futures eased on Monday as the market stalled on top of a four-week rally that put the Dow and S&P 500 at a record high. Material shares acquired, with Freeport-McMoRan in a buy range. Nvidia has struggled hard on issues raised by UK regulators. Coca-Cola shares led the Dow Jones today and rose higher after its first-quarter report.
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Dow Jones futures fell 0.2%, and S&P 500 futures took a 3% drop in the stock market today. Nasdaq 100 futures also fell nearly 0.5% below fair value, with Tesla (TSLA) and Nvidia (NVDA) trades at the bottom of the Nasdaq 100 and the S&P 500.
Manufacturer of specialty chemicals Albemarle (ALB), glassmaker Corning (GLW) an ore miner Freeport-McMoRan (FCX) ran at the top of the S&P 500, by about 2% apiece.
Evercore ISI upgraded Albemarle to perform better. JPMorgan has raised Corning’s rating to overweight. Freeport-McMoRan is at 37.71 in a buying range above a double-base buying point.
Wood products leader Louisiana Pacific (LPX) topped the IBD 50 list, 0.9% higher after completing an 11-week rally on Friday. Shares have risen more than 78% so far.
China-based Baidu (BIDU) was at the top of the Nasdaq 100 with a gain of 0.6%. Chinese markets recorded a strong session on Monday, with the Shanghai Composite up 1.5%.
Among shares in valid bases, Sea Limited (SAY), Square (SQ), Cut (SNAP), 10X Genomics (TXG) and Netflix (NFLX) has newly formed handles with buying points. appeal (AAPL), Amazon.com (AMZN) and Tesla are working on possible handles.
Coke leads Dow Jones today on earnings
Coca-Cola (KO) led the week’s heavy earnings under Dow Jones shares. Shares rose 0.8% to lead the index after earning earnings and earnings above analysts’ targets in the first quarter. Management has led to high single-digit, low-double-digit earnings growth for 2021.
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Like many stocks in the current market, Coke stock is just below a buy point in a cup-with-handle base. Coke is a lag behind the Dow, with a 45 compound rating and 34 relative strength. But the positive results in the first quarter add another brick to the economic recovery, and the base-and-handle chart action helps reinforce the message of rising strength in the confirmed rise in the stock market.
Nvidia, Tesla Stock Weighs Nasdaq, S&P 500
Nvidia share fell 3% after Reuters reported that UK regulators plan to intervene in the company’s $ 40 billion acquisition Soft bank‘s (SFTBY) UK based ARM Holdings unit. The issue raised seems to be the concern of national security.
Britain’s digital secretary Oliver Dowden said: ‘After careful consideration of the proposed takeover of ARM, I issued an intervention notice today based on national security reasons,’ according to Reuters.
Nvidia share broke out of a cup base last week. Shares remain up to 645.75 in a buy range, above a 615 buy point.
Tesla dropped early action by 2.9%. A Tesla crashed near Houston on Saturday, killing the two passengers. None of them were in the driver’s seat, which made it likely that the Tesla used an autopilot or a full self-driving feature. A first quarter safety report from Tesla also showed that the average distance accidentally decreased while driving a motor aircraft, according to Benzinga.
Tesla jumped more than 9% last week and also put in the first three days of a possible handle. A handle may be valid on a daily chart after Tuesday. The current potential buying point is at 780.89.
Important signs of the market: oil, copper, bond yields
Oil prices, held near recent highs and lows, rose early Monday. Copper rose 2.5%, to above $ 4.27 per pound. Prices hit a nearly 4-year high of $ 4.30 on February 24th.
Intermediate oil in West Texas owned about $ 63 a barrel, the highest level since mid-March and 10% higher than a low in March. At the beginning of March, WTI reached $ 65.05, the highest price since January 2020. Copper and oil prices are both important indicators of confidence in the world economy.
Bond yields rose higher, with ten-year yield trading at 1.60%, after rising 1.57% on Friday, according to the CBOE. Yields last week experienced their worst week since July when traders piled back into a safe haven.
Bitcoin’s Weekend Dive
Bitcoin prices reached a slight bounce, with nearly 3% trading close to $ 57,000 early Monday, after taking a steep dive on Saturday and Sunday, according to CoinDesk. Bitcoin hit $ 64,800 ahead of new highs on Wednesday Coinbase Global (MUNT) IPO. Shares fell below $ 54,000 on Sunday, but the cryptocurrency remains more than 90% higher, after the year started just over $ 29,000.
Shares of cryptocurrency exchange Coinbase rose 36.8% last week with their first trading days. The Coinbase exchange initially cost 250, and the Coinbase share fell 3.2% early Monday.
CAN SLIM rules recommend not jumping to IPOs too early, amidst all the initial speculation and excitement. It is better to look at the chart of the new stocks. Waiting for the formation and outbreak of an IPO base can limit the negative risk.
Nasdaq ETF Breakouts
The Invesco QQQ Trust (QQQ) broke out last week from the IBD MarketSmith analysis planned as an eight-week cup base. The ETF remained within the buy price above the buy point of 338.29. The buying zone is 356.25.
The charged ProShares UltraPro QQQ ETF (TQQQ) flashed very short above an 111.96 buy point on Friday. It ended up a fraction below the entry, so a potential outbreak is still underway.
The last real breakthrough for the SPDR Dow Jones Industrial Average ETF (DIA) occurred in November. It offers some buying opportunities on ten-week support rebounds. The fund ended 18% above the buying point in November on Friday. For the S&P 500, the SPDR S&P 500 ETF Trust (SPY) is also being expanded from a breakthrough in November.
Dow Jones shares: American Express, Intel earnings
Johnson & Johnson (JNJ) reported Tuesday. Verizon (VZ) reported Wednesday. American Express (AXP) and Honeywell (HON)’s report Friday. Honeywell is expanding from an outbreak in March. Verizon and Johnson & Johnson base them, but both have work to do before their shares will be worthy.
American Express has formed a solid, five-week flat base that sits on top of the ten-week support. The buying point is at 151.56, and the stock has easily outperformed the market so far this year, up 25% since December 31st. its relative strength has climbed sharply since October.
For a more detailed analysis of the current stock market and its status, study the big picture.
Intel‘s report (INTC) Thursday will be closely watched as a disk sector indicator. Chip shortages and moves by holding appeal (AAPL) and AlphabetGoogle’s (GOOGL) Google to produce their own chips has helped muddy the industry’s recovery prospects.
Intel shares have been volatile since clearing a cup-with-handle base in March. That left shares still in a buy range on Friday, amounting to 66.82.
Find Alan R. Elliott on Twitter @IBD_Aelliott
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