Stock Market Rally Still Looks Healthy; Lithium Play Soars On Tesla Buzz, Nvidia Earnings Loom

Dow Jones futures will open on Sunday evening, along with S&P 500 futures and Nasdaq futures. A possible Tesla lithium deal and upcoming Nvidia earnings are in focus.


The major indexes slashed solid midweek gains, finishing mixed as inflation and Fed concerns weighed on stocks. The Nasdaq held key support, while the S&P 500 just undercut some levels.

After a strong start to the week, several leading stocks suffered violent sell-offs but then came back. Among them were Albemarle (ALB), Etsy (ETSY) and Shopify (SHOP).

The stock market rally still appears to be in the midst of a normal pullback. But investors should be less aggressive in the short run, perhaps slightly trimming exposure by cutting losers and taking some partial profits.

Nvidia (NVDA), luxury homebuilder Toll Brothers (TOL) and Latin American e-commerce giant MercadoLibre (MELI) are among the many notable earnings reports in a holiday-shortened week. All three are near potential buy points. Nvidia earnings will be important for Advanced Micro Devices (AMD) and the chip sector generally. Toll Bros. earnings will be key for other homebuilders.

Tesla (TSLA) is mulling a bid for Sigma Lithium (SGML), Bloomberg reported late Friday. Sigma has not generated any revenue, but is poised to start commercial production. SGML stock soared Friday night, with ALB stock and other lithium plays also rising after hours.

Meanwhile, weekly China EV registrations will be out early Tuesday. That’ll offer some clues about Tesla demand, as well as whether rivals such as BYD (BYDDF) are ramping up deliveries.

TSLA stock continued its huge run last week.

Dow Jones Futures Today

Dow Jones futures open at 6 p.m. ET on Sunday, along with S&P 500 futures and Nasdaq 100 futures.

U.S. stock markets will be closed Monday in observance of the Presidents Day holiday. But other markets will remain open.

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

Join IBD experts as they analyze actionable stocks in the stock…


Read More

Recommended For You

Leave a Reply

Your email address will not be published. Required fields are marked *