Stock futures climbed towards Monday’s open, boosted by positive international trade, as the market looked for a rebound from Friday’s sharp losses. Electric vehicle makers posted early gains after an analyst doubled Tesla’s price target. China-based stocks moved higher as global markets rallied. GameStop’s retail investor/short seller skirmish looked set to shift to silver. And Apple took over the early lead on the Dow Jones today.


Dow Jones futures bounced 0.6{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811}, looking for some payback after taking a 2{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} tumble on Friday. S&P 500 futures notched a 0.8{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} gain. Nasdaq 100 futures traded 0.9{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} above fair market value on the stock market today as Tesla (TSLA) and Skyworks Solutions (SWKS) ran atop the index, up about 3{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} apiece.

The market could be flashing optimism toward sparks of bipartisanship flickering in Washington. President Biden will discuss possible coronavirus stimulus measures with a group of 10 Republican senators at the White House Monday afternoon. The group had proposed on Sunday a $600 billion package, vs. Biden’s $1.9 trillion relief plan.

On the S&P 500, International Fragrance (IFF) led, up more than 12{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} as the company completed its merger into DuPont‘s (DD) Nutrition & Biosciences unit. DuPont shares tumbled more than 9{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} to the bottom of the S&P 500.

Oilfield services leader Halliburton (HAL) gained 3{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} early Monday. Piper Sandler upgraded the stock to overweight, from neutral, with a price target at 22.

Earnings news started the week slowly. Chipmaker ON Semiconductor (ON) gained 3.4{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} after results cleared analyst expectations. Akoustis Technologies (AKTS) rallied 7.4{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} following its fiscal second-quarter report.

Gear up for the week’s market action by reading IBD’s Investing Action Plan.

Dow Jones Today: Apple Buy Point; Chevron/Exxon Talks

Apple (AAPL) rallied 1.4{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811}, wrestling with Visa (V) and Chevron (CVX) for the early lead on the Dow Jones today. Apple stock, an IBD Leaderboard listing, is angling to retake a 138.89 buy point after a three-day pullback that broke support at its 21-day exponential moving average.

Chevron climbed 1.5{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811}, possibly lifted by reports that the company had engaged in merger discussions with Exxon-Mobil (XOM) early in 2020. Discussions between the company’s two CEOs were described as preliminary and not ongoing, “but could come back in the future,” according to the Wall Street Journal. The merger would mark one of the largest deals in U.S. corporate history, and would mark a significant change of course for the U.S. energy trades.

Global Markets Rally, China Stocks Rise

Markets staged strong sessions across Asia, including a 2.2{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} advance by Hong Kong’s Hang Seng Index, after China’s central bank injected $15 billion into financial markets. India’s BSE 30 staged a 5{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} rally, as that nation’s government announced a broad-based economic stimulus initiative. In Europe, markets maintained a brisk rally, with benchmarks in London, Paris and Frankfurt all up more than 1{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} entering afternoon trade.

Stock Market ETF Strategy And How To Invest In The Current Uptrend

China stocks trading in the U.S. showed early signs of strength, with Alibaba Group Holdings (BABA), Baidu (BIDU) and (JD) all up nearly 2{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811}. Futu Holdings (FUTU) spiked 9{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811}. ReneSola (SOL) climbed 5{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811}. On the IBD Leaderboard roster, Pinduoduo (PDD) grabbed a 3.5{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} premarket gain.

Pinduoduo has been struggling to breakout past a 187.80 buy point in a bullish ascending base.

China-based IBD 50 stock 360 Digitech (QFIN) was poised to retake a buy point, trading 5.6{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} higher. The online consumer finance platform ended Friday 4{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} below what IBD MarketSmith analysis charts as a 18.16 buy point in a 27-week cup base. 

EV Makers: Tesla Stock’s Price Target Doubled

Electric vehicle makers generally gained ground as January sales numbers rolled in. IBD Leaderboard stock Tesla rose 3{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811}, as Piper Sandler more than doubled its price target on the stock to 1,200, from 515. The note projected the company would deliver 894,000 vehicles in 2021, rising to more than nine million units by 2030.  The premarket move was enough to boost shares back above the stock’s 21-day exponential moving average, if it holds through the open.

Among other EV makers, China Xpeng (XPEV) vaulted 5.6{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} higher. Nio (NIO) rallied 3.7{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811}. Li Auto (LI) gained 2.1{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811}. Xpeng reported early Monday its January deliveries increased 470{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} vs. year-ago levels, to 6.015 vehicles. Nio delivered 7,225 vehicles in January, up 353{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} year-over-year.

R/WallStreetBets: GameStop, AMC, Gatos Silver

The battle between Reddit-based r/WallStreetBets traders and institutional short sellers appeared set to continue on Monday. GameStop (GME) shares traded up 5.4{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811}, at 342.40 — up 1,8oo{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} vs. their Dec. 1 price. GameStop then reversed to a 4.4{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} loss.

Silver had become a focus of the r/WallStreetBets crew, which shares trade information and discusses specific stock targets using Reddit. The group grew from around 1 million participants at the beginning of January to more than 7.6 million participants early Monday.

Near-month silver futures were up more than 10{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} early Monday. The iShares Silver Trust ETF (SLV) gained 9.8{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} in premarket trade. Silver miner Gatos Silver (GATO) traded more than 19{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} higher, after ending Friday up almost 89{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} from its October initial offering price.

Another r/WallStreetBets target, Express (EXPR), dropped 12{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811}. AMC Entertainment (AMC) climbed 22.5{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} higher. Premarket trade had AMC shares above 16, a 666{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} increase over its Dec. 31 price.

Other possible targets of the group included Montreal-based Alithya Group (ALYA), which spiked 235{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} in premarket trade, but still traded below 10. Austin, Texas-based Phunware (PHUN) bolted 57{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} higher. Tuscan Holdings (THCB) rocketed 53{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} higher. And Sino-Global Shipping (SINO) rallied 24{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811}.

Coronavirus: Cases Down, Vaccine Up

The average number of new cases of coronavirus reported daily have been declining from a peak of 254,862 reached on Jan. 11. The seven-day average for daily new cases on Sunday fell to 150,903 – down almost 41{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} to the lowest level since Nov. 14, after 20 straight days of declines. Deaths reported continue to be up-and-down, with the average hovering near the high of 3,439 marked on Jan. 26.

The Centers for Disease Control and Prevention reports that 49.933 million doses of vaccine have so far been distributed in the U.S. Some 31.12 million doses, 62.3{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} of those distributed, have been administered. At Dec. 30, fewer than 11.5 million doses have been distributed, with about 2.1 million shots administered, an 18.2{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} application rate.

Dow Jones Today: Preparing For Merck, Amgen Earnings

No earnings reports are scheduled for stocks on the Dow Jones today, after last week’s earnings rush that left more than two thirds of the Dow’s December quarter reports accounted for. Biotech giant Amgen (AMGN) reports after Tuesday’s close. Drugmaker Merck (MRK) reports Thursday morning.

Find Alan R. Elliott on Twitter @IBD_Aelliott


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Dow Jones Today, Futures Rebound Amid Stimulus Talks; Tesla’s Target Doubled, Reddit Crew Buys SPACs, Silver