Dow futures: bullish market reaction to target news; BYD to supply batteries to Tesla

Overnight Dow Jones futures were slightly lower, along with S&P 500 futures and Nasdaq futures. The stock market rally had a strong response on Tuesday to another targeting (TGT) Earnings warning, bouncing off early lows to close higher.


China EV and battery giant BYD (BYDDFBatteries will be supplied Tesla (TSLA), a BYD executive said Wednesday local time, after months of speculation. It comes as BYD auto sales outpace Tesla. Investors may get more clarity on Tesla China sales ahead of Wednesday’s open.

VRTX stock, Ulta Beauty (Ulta), ZIM Integrated Shipping (ZIM), Albemarle (ALB), Ashland International Holdings (ash), Timken Steel (TMS) And the chevron (CVX) are the stocks located in or near the buying areas. Vertex Pharmaceuticals (VRTX), Ulta Beauty and Albemarle in the handles. ZIM stock flirts with ASH stock below the official level buy point But it is arguably doable now. TMST stock broke out on Tuesday while Chevron maintains a buying range.

The Lines of relative force These stocks are at or near their highs. The RS line, the blue line in the provided charts, tracks the stock’s performance against the S&P 500 Index.

ALB stock is running IBD LeaderboardAshland’s stock is on the leaderboard’s watch list. ZIM is located in defect 50. CVX stock is in file IBD Big Cap 20. Vertex Pharmaceuticals IBD stock today. The video included in this article discusses market action on Tuesday and analyzes TimkenSteel, Chevron, and ULTA stocks.

Booming EV Giant Takes Over Tesla’s EV Crown

BYD-Tesla Battery Deal

In an interview with state-owned television, a senior BYD executive said BYD will supply Tesla with batteries. It is a major verification for BYD as a supplier of batteries to third-party automakers. Tesla has relied on battery giant CATL for its cars made in China. There have been rumors for months that Tesla will use BYD Blade batteries, a specialized LFP battery.

It comes as Tesla is virtually guaranteed to lose its EV crown in the second quarter to BYD, even though the latter includes additional EVs and hybrids. So the Tesla-BYD battery deal is a bit like stronghold (F) Approval of the supply of engines to general motors (GM).

The China Association of Automobile Manufacturers is likely to release auto sales data for May early Wednesday morning. In addition to industry-wide electric vehicles and overall vehicle sales, investors will receive Tesla China deliveries.

Tesla China’s production and deliveries in May definitely improved compared to April, when the Shanghai plant was closed for most of the month. Tesla production remained limited through May, although it has rebounded in recent weeks and could reach full capacity sometime in June.

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Most other automakers reported an improvement in China’s production and delivery last month, but they remain restricted. The big exception is BYD, which hit record sales in April and again in May thanks to its internal battery and chip operations.

Tesla stock rose 0.25% to 716.66 on Tuesday, rebounding from its morning lows. While it is far from its lows in late May, TSLA stock is well below its 50-day and 200-day moving averages.

BYD stock fell 0.5% to 38.12. Shares have risen strongly over the past four weeks, approaching 41.34 buying points from a deep cup base.

Dow jones futures contracts today

Dow futures were down 0.1% against fair value. S&P 500 futures dropped 0.1% and Nasdaq 100 futures lost 0.1%.

Remember to work overnight in Dow Jones futures contracts and elsewhere that does not necessarily translate into actual circulation in the next regular session Stock market session.

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stock market rise

Target said early Tuesday that big cuts to tackle sudden stocks will do Hitting profit margins more difficult Than I expected just a few weeks ago. This raised concerns about consumer spending and the economy. But the target stock, which fell to 147.15 shortly after opening, closed down just 2.3% to 155.98.

The stock market rally, which opened sharply lower, quickly erased losses and moved aggressively higher.

The Dow Jones Industrial Average rose 0.8% on Tuesday stock market trading. The S&P 500 advanced 0.95%. The Nasdaq Composite Index rose 0.9%. Small cap Russell 2000 jumped 1.6%.

US crude oil prices rose 0.8 percent to $119.41 a barrel.

The 10-year Treasury yield fell 7 basis points to 2.97%.

between the Best ETFsThe Innovator IBD 50 ETF (fifty) by 2.9%, while the Innovator IBD Breakout Opportunities ETF (fit) rose 0.65%. iShares Expanded Technology and Software Fund (ETF)IGV) made 1.6%. VanEck Vectors Semiconductor Corporation (SMH) rose 0.8%.

SPDR S&P Metals & Mining ETF (XME) jumped 3.5%, with TimkenSteel stock a small component. Global Infrastructure Development Fund X US (cradle) gained 1.65%. US Global Gates Foundation (ETF)Planes) rose 1.3%. SPDR S&P Homebuilders ETF (XHB) rose 0.4%. SPDR Specific Energy Fund (SPDR ETF)XLE) rose 3%, with a large stake in CVX stock. SPDR Financial Choice Fund (SPDR)XLF) by 0.8%. SPDR Healthcare Sector Selection Fund (XLV) closed up 1.3%.

Shares reflect more speculative stories, the ARK Innovation ETF (see you) up 3% and the ARK Genomics ETF (ARKG) 3.6%. Tesla stock continues to be the No. 1 carrier across Ark Invest ETFs.

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Top 5 Chinese stocks to watch right now

stock to watch

ULTA stock rose 1.8% to 421.02, advancing despite a recent target warning. Ulta Beauty stock contains a cup with handle Buy point of 426.93. Last month, shares of the beauty supplies retailer tumbled in the wake of Target’s initial warning, but it returned strongly on Ulta’s earnings.

ZIM stock rose 1.9% to 68.52, flirting with some short-term levels that one would treat as a semi-handle. On the weekly chart, ZIM stock has a small handle, offering 68.63 buying points. But on the daily chart, the container based shipping company has cup base With 75.81 official buy points.

ALB stock rose 10 cents to 257.89 on Wednesday. The shares of the lithium giant have 273.78 buy handle points in a large cup base. In late May, ALB stock jumped past 248 early entries following its second big earnings upgrade in a month, but then briefly fell below those levels a few days later.

ASH stock closed up 0.3% at 110.51 to close at its lowest level on the day. On Monday, the chemical additive company exceeded 111.15 flat base Buy intraday point, but closed below this level. An investor can use 108.95 as early income for Ashland stock.

TimkenSteel stock jumped 8.8% to 26.18, clearing 24.90 cups from a point of purchase with a handle, MarketSmith . said. TMST stock has been extended a bit. Specialized steel companies stand out, with Howmet Aerospace (HWM) shows strong action. Other steelmakers are starting to turn back.

Chevron stock advanced 1.9% to 180.21, a new closing high and moving up in a buying range of 174.86 entry points with a flat base. CVX stock is less volatile than many energy names, and so far is only 5.9% above its 10-week streak.

VRTX stock rose 1.4% to 271.86. Vertex stock has a buy point of 276.10 cup handle, finding support at the 50-day line.

Market Rise Analysis

Major economic, business and political news is important to the stock market, but what really matters is the market’s reaction to that news.

Target’s earlier warning on May 18 sparked a massive sell-off in the market, indicating that the just-confirmed uptrend was in serious trouble. Two days later, the major indexes cut their lows in mid-May.

But on Tuesday, the current confirmed market rally responded well to the latest target’s warning, and rebounded after the initial sell-off. Even the target came from morning lows – above late-May lows after his initial earnings warning. Other retailers pared losses or even turned positive.

Major indices, lowering their 21-day moving averages, rose Tuesday morning to post solid gains.

The 10-year Treasury yield, which fell below 3% after Monday’s big gains, was quietly a major contributor to Tuesday’s uptrend reversal.

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However, the stock market rally has not quite figured out whether it wants to move higher or test the May lows.

Extended lateral action may be positive. A number of handles have been formed in the past few days. Longer pauses will allow more knobs and bases to be developed, as well as allow moving averages to catch up.

If the major indicators move above their recent ranges, they will soon reach the 50-day moving average. The S&P 500 index is just below the 10-week line, with Dow Jones closing above that key level. Small Capital Russell 2000 is above the 50-day and 10-week average.

Energy stocks continue to lead the market. A number of other sectors are trying to bounce back, including metals and mining plays like TimkenSteel. Lithium plays like Albemarle can be viewed as a metal mining game but also as an energy store. Pharmaceutical makers and large biotech companies are generally holding up, as is Vertex stock. Even some retailers like Ulta Beauty are sassy.

But it is clear that all of these non-energy sectors need the market rush to at least hold, and may struggle to make much progress without broad progress.

Time to Market with IBD’s ETF Market Strategy

What are you doing now

After fading out on Monday, Tuesday’s action was more positive. But as the market continues to rise in flux, investors still have to keep their overall exposure from negligible to modest. They should also keep the individual poses small, at least to start. Consider taking partial profits relatively quickly, given current market conditions.

If the market rally breaks through the recent levels and the major indicators cross the 50-day lines, investors can take advantage of buying opportunities. But continue to gradually increase exposure.

Investors should keep their watch lists up to date. Some fertilizer names may be swept aside, paying more attention to retail and steel names. Make sure you are ready and aware when the market is building momentum.

Read The Big Picture Every day to stay in sync with the trend of the market, stocks and leading sectors.

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