Dow Jones Futures: Stock Market Rally Lessons For 2021; Tesla, Nio Await Key News; 25

On Feb 17, 2022

Dow Jones futures will open Sunday evening, along with S&P 500 futures and Nasdaq futures. The stock market rally had modest gains last week, capping a strong year, especially for tech and growth stocks.

Tesla (TSLA) and Nio (NIO) are due to report key sales figures in the next few days, along with Xpeng (XPEV), Li Auto (LI) and BYD Co. (BYDDF). Tesla and Nio stock were two of 2020’s biggest winners, with Xpeng, Li Auto and BYD also delivering triple-digit gains.

After such a surprising and often-powerful stock market rally in 2020, what are the lessons for 2021? There are several, but investors should always remember this: The stock market is going to do what the stock market is going to do.

25 Stocks In Buy Range Now

The following stocks are quality stocks that are flashing buy zones, either from traditional breakouts, early entries, or bullish rebounds from key levels. So have better-looking charts and fundamentals than others. But they offer an ideas at the breadth of stocks and sectors that are actionable heading into 2021. Several of these sectors have numerous other stocks that are setting up for possible buying opportunities.

Chips: Taiwan Semiconductor (TSM), Monolithic Power (MPWR), Micron Technology (MU) and Advanced Micro Devices (AMD).

Investment Banks: Jefferies (JEF) and T. Rowe Price (TROW).

Cyclical: Freeport McMoRan (FCX) and Deere (DE).

Payments: Visa (V) and Mastercard (MA).

Discounters: Five Below (FIVE), Ross Stores (ROST).

Medical Products: Intuitive Surgical (ISRG), Idexx Labs (IDXX).

EV Stocks: Nio stock and BYD.

Internet: Google parent Alphabet (GOOGL), Twitter (TWTR), JD.com (JD),

Chipotle Mexican Grill (CMG), Pool Corp. (POOL), Chegg (CHGG), MSCI (MSCI), Epam Systems (EPAM) and Logitech (LOGI).

The 100 Best Stocks Of 2020

Tesla stock is on IBD Leaderboard, along with Taiwan Semiconductor, AMD and Chipotle. Chipotle stock, Five Below and Freeport McMoRan are on SwingTrader. Idexx Labs, Epam Systems, Pool Corp., MSCI and Mastercard are on IBD Long-Term Leaders, while MPWR stock and Chegg are on the watchlist. AMD stock, Monolithic Power, Chegg, Taiwan Semi and Pool are on the IBD 50.

Dow Jones Futures Today

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

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 market rally on IBD Live.

Coronavirus News

Coronavirus cases worldwide reached 84.35 million. Covid-19 deaths topped 1.83 million.

Coronavirus cases in the U.S. have hit 20.61 million, with deaths above 356,000.

Stock Market Rally

The stock market rally continued to advance last week, though some growth names struggled.

The Dow Jones Industrial Average rose 1.35% in last week’s stock market trading. The S&P 500 index climbed 1.4%. The Nasdaq composite advanced 0.65%.

For the year, the Dow Jones rose 7.2% and the S&P 500 index 16.3%. The Nasdaq surged 43.6%, its best annual gain since 2009.

Meanwhile, IBD Leaderboard leapt 58.4% in 2020, while SwingTrader spiked 86.4%.

Software stocks and many IPOs were big winners in 2020, but several suffered significant losses last week. That’s not entirely bad. Bullish sentiment is at high levels, according to several psychological indicators. Reducing some of the frothy segments in the stock market rally could be healthy.

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) fell 1.3% last week, while the Innovator IBD Breakout Opportunities ETF (BOUT) slid 1.5%. The iShares Expanded Tech-Software Sector ETF (IGV) retreated 1.7%. The VanEck Vectors Semiconductor ETF (SMH) rallied 1.65%.

Tesla Deliveries Due

Tesla deliveries for the fourth quarter are due in the coming week. Some forecasters with a good track record are predicting Tesla deliveries were around 182,000-183,000, fueled by big growth in China. A tally of 181,000 or more would mean Tesla deliveries for the full year reached the 500,000 mark.

Tesla reports quarterly deliveries and production figures within three business days of the following quarter. That could mean anytime from now to Wednesday, Jan. 6.

On Jan. 1, Tesla said it would start delivering the made-in-China Model Y this month, setting a base price of 339,900 yuan ($52,074). The Model Y crossover will compete with the relatively new Nio EC6 as well as the soon-to-debut Volkswagen (VWAGY) ID.4. The VW ID.4 launched in Europe last month and will reach the U.S. in March.

Meanwhile, Tesla slashed prices of its MIC Model 3 vehicles yet again. It reduced prices on its base SR+ and higher-end Performance variants, and is pulling the mid-level LR from its website. China OK’d the Performance variant for the 10% purchase tax cut.

Tesla stock rose 1.6% on Thursday, hitting a record high and closing out a mammoth 743% surge in 2020. TSLA stock is well extended from any conceivable buy…