Dow Jones futures fell after the recovering market closed poorly; Tesla Stock Prepares For Investor Day

Dow Jones futures fell slightly overnight, along with S&P 500 futures and Nasdaq futures. First Solar posted earnings Tuesday night, with Nio and other Chinese electric vehicle makers releasing key figures early Wednesday. TSLA stock is setting up with Tesla’s investor introduction date Wednesday night.

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The stock market rally remains in range, with the major indexes falling and fading to close once again. Some of the top stocks have signaled buy, while others are setting up. But the bulls remain under pressure with a key short-term resistance level.

first sun (FSLR), axon enterprise (SWITCH), monster beverage (MNST), Duolingo (DUOL) and rival Tesla Rivian (RIVN) was reported late Tuesday. FSLR, Axon and Duolingo shares could be active on Wednesday, while Monster Beverage and RIVN shares are down in extended trading

Fourth beginning, Nio (NIO) will Q4 earnings announcementwith Nio, Li Auto and XPeng (XPEV) February delivery report as well. Li Auto topped Q4 views early Monday and gave a bullish Q1 delivery forecast. Chinese EV and battery giant BYD (BYDDF) will announce February sales by Friday.

China’s EV registrations for the week ended Feb. 26 showed an increase in BYD registrations, but still far below the late 2022 pace. Nio, Li Auto, and XPeng also showed an improvement. increase.

Tesla (TSLA) China’s electric vehicle registrations rebounded in the latest week but fell short of forecasts, suggesting that local sales may fall below Q4 levels despite a sharp price drop.

All eyes will be on Tesla’s investor day event, with the big news starting at market close on Wednesday. Expect a new Tesla EV platform and confirmation of a planned Mexican factory. Elon Musk plans to roll out his “Master Plan 3” and possibly other news.

Tesla stock fell on Tuesday but is setting up a possible positive entry.

Dow Jones Futures Today

Dow Jones futures contract lost 0.3% from fair value. S&P 500 futures fell 0.5%. Nasdaq 100 futures fell 0.6%.

Nvidia (NVDA) filed for a $10 billion hybrid securities offering. NVDA stock fell slightly in extended trading.

The yield on the 10-year Treasury note rose 3 basis points to 3.94%.

Crude oil futures inched lower.

The ISM Manufacturing Index for February will be released at 10 a.m. ET.

Remember that action overnight in future index and other places that don’t necessarily translate into actual transactions the next time stock market meeting.

Join IBD experts as they analyze stocks that could act in the stock market rally on IBD Live

Main income

FSLR stock jumped 4% in the long run after First Solar reported a smaller-than-expected Q4 loss, inline revenue, and bullish forecast. Shares of First Solar rose 1.8% on Tuesday to 169.14, up from the 50-day line and breaking the trendline, offering early entry in addition to earnings risk. FSLR stock has 185.38 buy points from a shallow merge.

AXON stock rose nearly 4% at the end of the session as Axon’s corporate income top views. Shares of Taser and the body camera maker rose 2.7% to 200.31 on Tuesday. It is in range from a 193.95 buy point. Investors can use 205.09 as an alternative entry.

MNST stock fell nearly 4% overnight as Monster Beverage earnings and sales fell. Shares fell 0.55% on Tuesday to 101.76, just below the 50-day moving average. Monster Beverage stock has a 104.75 buy point from a 6% depth flat solea part of base on base the making progress. Stocks exploded on February 15 but immediately fell back. C Corporation (CELH), Monster’s smaller but faster-growing rival, reported Wednesday night.

DUOL stock jumped nearly 8% in overnight trading after Duolingo’s revenue and loss views surpassed views, with active users growing. Duolingo stock rose 2% to 90.79, recovered from the 200-day line and closed just above the 21-day line. DUOL stock could enter early on Wednesday if it breaks the strong one-handle from a deep cup pattern. The official buy point is 105.56.

RIVN shares plunge 10% Rivian reports a smaller-than-expected loss, but revenue fell. The luxury electric vehicle maker expects production to roughly double by 2023 to 50,000 vehicles, but that’s a figure below the horizon. Rivian stock rose 4.6% to 19.30 on Tuesday, back above the 50-day line but much lower than the 200-day line.

Stock market recovers

The stock market rally managed to make progress on Tuesday but withered by late afternoon.

The Dow Jones Industrial Average fell 0.7% on Tuesday stock market trading. The S&P 500 index fell 0.3%. The Nasdaq composite index fell 0.1%. The Russell 2000 Small Cap Index closed just above breakeven.

U.S. crude oil prices rose 1.8% to $77.05 a barrel on Tuesday. Crude oil futures fell 2.1% in February, the fourth consecutive drop.

Copper prices rose 2.2% on Tuesday but fell 3.1% on the month.

The yield on the 10-year Treasury note fell 1 basis point to 3.91% after touching 3.98% on the day. This is still up 58 basis points from the February 2 intraday low.

ETFs

Among the growth ETFs, the Innovator IBD 50 ETF (FFTY) fell 0.2%, while Innovator’s IBD Breakthrough Opportunity ETF (HOUR) increased by 0.2%. iShares Expanded Tech-Soft Sector Sector ETF (IGV) increased by 0.1%. VanEck Vectors Semiconductor ETF (SMH) just above breakeven.

Reflecting stocks with more speculative stories, the ARK Innovation ETF (ARKK) increased by 2.1%. ARK Genomics ETF (ARKG) reached 1.4%. Tesla stock is a major component of Ark Invest ETFs.

SPDR S&P Metals & Mining ETF (XME) rebounded 1.9% and the Global X US Infrastructure Development ETF (PAY THE ROAD RED) increased by 0.4%. US Global Jets (jet plane) increased by 1.2%. SPDR S&P Home Builder (XHB) increased by 0.5%. Energy Select SPDR ETF (XLE) fell 1.4% and the Financial Select SPDR ETF (XLF) increased by 0.2%. SPDR Foundation for healthcare sector (XLV) decreased by 0.7%.

The five best Chinese stocks to watch right now

Tesla Investment Day

Tesla’s Investor Day is on Wednesday, with important news to be expected shortly after the market closes. Here are five big announcements investors are looking for, along with other possible news.

New EV platform: Tesla says it will reveal details of a new EV platform, potentially for a cheaper model that can compete in China and Europe. But how much information will Tesla provide and when will the new model launch? Any low-cost Tesla will have to contend with loads of competition in China, especially from BYD.

Upgrade model 3: Tesla can confirm the long-rumored Model 3 “Project Highland” upgrade and indicate when production will begin.

New EV factory: The Mexican president said on Tuesday that Tesla would build a factory in the country, near the Texas border. Tesla may also discuss plans to expand the Nevada factory to protect the 4680 battery and assemble the Tesla Semi.

HW 4.0: Tesla could tout an upcoming set of updated hardware for Tesla EVs’ driver assistance systems, with upgraded chips, more cameras, and a return to radar. In 2016, Tesla said all of its electric vehicles were “hardware ready” for fully autonomous driving.

Master plan 3: Elon Musk has hinted that he will release his third “Master Plan,” which lays out his Tesla vision for the coming years. His second master plan, released in 2016, is still largely a to-do list.

Tesla is also likely to discuss expanding its energy storage business and showcase its artificial intelligence efforts. There is also some speculation that the EV giant will announce a buyback of TSLA shares.

Tesla shares

Tesla shares fell 0.9% to 205.71 on Tuesday, after gaining 5.5% on Monday. Stocks are said to have a cup model with handle going back to early November (or processing is too low in the facility starting September). That would suggest a 217.75 buy point. But investors should probably wait for TSLA stock to break above the 200-day line, currently just above 221.

Tesla stock has more than doubled from a bear market low to 0f 101.81 on Jan. 6. Much of that reflects the buzz of the day among Tesla investors. So how much good news is valued?

Analysis of market recovery

The stock market rally had a relatively quiet session, once again fading towards the end of the session.

The S&P 500 dipped slightly below its 50-day moving average after regaining that level on Monday. The 200-day line is not far below.

The Nasdaq composite also reversed slightly lower, trading above the 200-day line and below the falling 21-day line.

The Dow Jones Industrial Average, which has tumbled in recent months, slid to a two-month low and was its worst close since early November.

The Russell 2000, looking better than the large-cap indexes, hit resistance at the 21-day moving line for the second straight session.

Several top stocks signaled buy on Tuesday, including Reservation hold (BKNG), Application materials (amateurs), Outdoor wood floors (FLOOR) And Meta . Platform (META).

But the market recovery remains under pressure.

The S&P 500 and Nasdaq need to hold current levels and reclaim the 21-day line along with the Russell 2000. The early February high will be the next resistance. But 10-year Treasury yields and the US dollar are also hovering below key levels. If yields and the greenback move higher, stocks are likely to struggle.

Markets could stay on hold until investors get a fresh batch of key economic data from the Fed. The February jobs report is due March 10, with the February CPI inflation report next week.

Market Timing with IBD’s ETF Market Strategy

What to do now

The stock market rally is trading in a very narrow range. Major indexes fade from intraday highs for the second straight session.

With the S&P 500 and Nasdaq below the 21-day line and at risk of breaking other key levels, it’s time to be patient with large amounts of cash. Don’t get excited about a strong opening.

But if the market rally shows renewed strength, investors will want to be ready with their watchlists.

Network Arista (NET), replace (AYX) And unified airline (UAL) are examples of stocks that are setting up, close to an official buy or early entry. So does Tesla stock.

Also, don’t ignore stocks that are showing relative strength, even if they don’t have a clear buy point yet.

Read Big picture every day to stay in sync with market trends and top stocks and sectors.

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

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