Search

Dow Jones Futures: Stock Market Rally Hits Resistance As Coronavirus Cases Step Up; Netflix Leads Stocks Entering Buy Areas - Investor's Business Daily

Dow Jones futures fell solidly late Wednesday, along with S&P 500 futures and Nasdaq futures after a mixed session for the coronavirus stock market rally. Rising coronavirus cases in the U.S., China and much of the world weighed on markets, but growth stocks fared relatively well.

X

Twilio (TWLO), Teradyne (TER), Lam Research (LRCX), Alteryx (AYX), Netflix (NFLX), Atlassian (TEAM) and Vertex Pharmaceuticals (VRTX) are actionable.

Tesla (TSLA) continues to fight to reclaim the 1,000 level as the Nasdaq composite tries to get back to 10,000. Meanwhile, the Dow Jones faces resistance at a tougher level.

Fed chief Jerome Powell, continuing his congressional testimony Wednesday, said fiscal policy has helped the economy. But he reiterated that more fiscal stimulus is needed. Meanwhile, coronavirus cases continued to ramp up across much of the U.S. while Beijing slashed flights.

Twilio stock cleared a short consolidation. Alteryx stock, Teradyne stock and Lam Research stock broke out of traditional bases. Vertex stock and Atlassian stock rebounded from their 10-week lines. Netflix stock extended its 10-week rebound and cleared another entry point.


Join IBD experts as they analyze actionable stocks in the coronavirus stock market rally on IBD Live.


VRTX stock, TEAM stock and Netflix stock are all on IBD Leaderboard, along with TSLA stock. NOW stock and VRTX stock are on SwingTrader. NFLX stock, Vertex stock and Teradyne stock are IBD 50 list members.

TEAM stock is on the Long-Term Leaders watchlist.

Dow Jones Futures Today

Dow Jones futures fell 1.2% vs. fair value. S&P 500 futures retreated 1%. Nasdaq 100 futures sank 0.8%. While nowhere near as volatile as during the market crash, Dow Jones futures have shown bigger swings in recent days. Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.


How To Profit From IBD's ETF Market Strategy


Coronavirus News

Coronavirus cases worldwide have reached 8.40 million, with daily new Covid-19 infections at or near record highs. Covid-19 deaths are at 451,000.

Coronavirus cases in the U.S. have topped 2.23 million, with deaths above 119,000. Daily new coroanvirus cases have been trending higher, topping 25,000 for four of the last six days. California and Southern states are leading the way.

Texas hospitalizations for the coronavirus popped 11% in the latest 24-hour reporting period.

However, New York Gov. Andrew Cuomo said signs are looking good for New York City to begin phase two of its reopening on Monday.

Meanwhile, Beijing canceled most flights Wednesday, a day after closing city schools, in an effort to contain a recent coronavirus outbreak.

Brazil, Chile, India and Russia are among the countries with major outbreaks.

Coronavirus Stock Market Rally

The coronavirus stock market rally was mixed for much of the session, fading from midafternoon on.

The Dow Jones Industrial Average sank 0.65%, the S&P 500 index dipped 0.4%, and the Nasdaq composite clung to a 0.15% gain. The Dow Jones today hit resistance at its 200-day moving average after clearing it intraday. The S&P 500 index has rebounded from that key level. The Nasdaq nearly reclaimed 10,000 in Wednesday's stock market trading after closing above that level on June 10.

Growth stocks had a decent day in the coronavirus market rally.

Among the best ETFs, Innovator IBD 50 (FFTY) rose 0.8%. The iShares Expanded Tech-Software Sector ETF (IGV) closed just below break-even. The VanEck Vectors Semiconductor ETF (SMH) rallied 1.1%. Both Teradyne stock and LRCX stock are in SMH.

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

Tesla Stock Range Limit?

Tesla rose 1% to 991.79 after hitting 1,005 intraday. Since jumping above 1,000 on June 10 as the Nasdaq hit a record high above 10,000, TSLA stock has been hitting resistance at the 1,000 level. Tesla stock is well-extended from an 869.92 handle buy point, so a consolidation would be perfectly normal. With coronavirus cases picking up in the U.S. and Beijing reimposing Covid-19 restrictions, Tesla stock and other "recovery" growth names could be vulnerable.

Tesla delivery times for U.S. orders are back down to one to two weeks for the Model S. Model 3 and Model X delivery times have been at one to two weeks, which implies little or no backlog. Model Y delivery times are still at four to eight weeks, though actual deliveries may be faster.

Twilio Stock

Twilio stock rose as high as 216.62, but faded to close up 0.8% to 211.28. That's just above a 210.04 buy point from a few weeks of tight action. That short TWLO pause, which has some elements of a high tight flag pattern, follows a huge earnings gap breakout in early May.

The relative strength line for Twilio stock surged to a record high on that earnings gap and is not far from that peak now. The RS line, the blue line in the charts below, track a stock's performance vs. the S&P 500 index.

Teradyne Stock

Teradyne stock climbed 1.8% to 78.42, just above a 78.29 cup-with-handle buy point, according to MarketSmith analysis. The RS line for TER stock already was at a record high, an especially bullish sign. Teradyne joins ASML (ASML) and some other chip equipment makers breaking out.

Netflix Stock

Netflix stock popped 2.7% to 447.77, clearing a 445.67 buy point. The FANG stock's 445.67 entry is from a three-weeks-tight pattern, but could also be seen as a handle on a short consolidation. On Tuesday, NFLX stock rebounded bullishly from its 10-week moving average.

Vertex Stock

Vertex stock rose 2.3% to 280.09, rallying from its 10-week moving average. VRTX stock has been finding support and rebounding from its rising 10-week line for the past several weeks. This latest move is actionable, but will this one truly succeed? Meanwhile, Vertex stock could have a proper base at the end of next week.

Atlassian Stock

TEAM stock rallied 2.4% to 176.71, rebounding from its 10-week line. Atlassian stock rebounded from near its 50-day line on Tuesday.

Lam Research Stock

Lam Research stock climbed 2.7% to 313.78, breaking above a 310.10 cup-with-handle buy point. The RS line for LRCX stock is closing in on a consolidation high. But overall Lam Research has lagged the leading chip gear stocks such as ASML and even Teradyne.

Alteryx Stock

Alyterx stock rallied 3.6% to 150.99 after moving to 155.71 intraday. AYX stock closed below a 151.60 cup-with-handle buy point, but aggressive investors could have bought it at a short downward-sloping trend line in the handle. The RS line for the data storage software maker has moved sideways for several months.

Alteryx was Wednesday's IBD Stock Of The Day.

Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.

YOU MAY ALSO LIKE:

The Big Picture: Stocks Slump Late, But Bullish Charts Abound

Why This IBD Tool Simplifies The Search For Top Stocks

Coronavirus Stock Market Survival Guide

Best Growth Stocks To Buy And Watch

IBD Digital: Unlock IBD's Premium Stock Lists, Tools And Analysis Today

Let's block ads! (Why?)



Business - Latest - Google News
June 18, 2020 at 10:07AM
https://ift.tt/3ecoS2v

Dow Jones Futures: Stock Market Rally Hits Resistance As Coronavirus Cases Step Up; Netflix Leads Stocks Entering Buy Areas - Investor's Business Daily
Business - Latest - Google News
https://ift.tt/2Rx7A4Y


Bagikan Berita Ini

0 Response to "Dow Jones Futures: Stock Market Rally Hits Resistance As Coronavirus Cases Step Up; Netflix Leads Stocks Entering Buy Areas - Investor's Business Daily"

Post a Comment

Powered by Blogger.