Dow Jones futures rose modestly early Thursday, along with S&P 500 futures and Nasdaq futures as Tesla (TSLA) and Nio reported news before the open. The major indexes retreated Wednesday on economic concerns.
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The OECD slashed U.S. and global economic growth forecasts Wednesday, coming on the heels of Tuesday’s fresh Target (TGT) warning. Intel (INTC) and Altria (MO) tumbled as analysts grow wary in the current environment.
Oceangoing shipping stocks such as ZIM Integrated Shipping (ZIM) and Star Bulk Carriers (SBLK) plunged to their 50-day lines and beyond, wiping out a few weeks of gains. It’s not clear if the sector faces a long slide or simply a short pause, but Wednesday’s action was ugly. Rail, trucking and other shipping stocks also tumbled.
Travel, mining and especially steel stocks were notable losers amid broad-based selling.
Meanwhile, Eli Lilly (LLY), Synopsys (SNPS), Equinor (EQNR), Westlake (WLK) and Callon Petroleum (CPE) are all near buy points. LLY stock is among several big drugmakers holding up well. Synopsys is a rare growth stock showing some strength. Norwegian state-owned oil and gas play Equinor and shale operator Callon are in the energy space. WLK stock is among several solid chemicals names.
Eli Lilly stock is on IBD Leaderboard. SNPS stock is on IBD Long-Term Leaders. ZIM, Westlake, Synopsys and CPE stock are on the IBD 50. Westlake was Wednesday’s IBD Stock Of The Day.
Dow Jones Futures Today
Dow Jones futures rose 0.5% vs. fair value, reversing higher from slim losses overnight. S&P 500 futures advanced 0.6% and Nasdaq 100 futures climbed 0.8%.
The 10-year Treasury yield fell 1 basis point to 3.02%.
Crude oil prices edged lower early Thursday. Natural gas prices fell solidly Thursday, extending Wednesday’s losses on an LNG-export terminal fire.
The European Central Bank is likely to end asset purchases at Thursday’s policy meeting, with an announcement before the opening bell. That would set the stage for a July rate hike.
The Labor Department will release weekly jobless claims data at 8:30 a.m. ET, followed by the consumer price index on Friday morning. That comes ahead of the Fed policy meeting next week, with another half-point hike priced in.
Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
Tesla News
Tesla sold 32,165 made-in China vehicles last month, well below normal, but up from just 1,512 in April. Tesla Shanghai produced 33,544 vehicles, up from 10,757 in April, when the Shanghai plant was shut down for most of the month. The May figures are part of industrywide data from the China Passenger Car Association. Official media said Tesla has just now returned to full daily production.
Of the May vehicles sold, 22,340 were exported and 9,825 were sold locally. Shanghai, Tesla’s biggest market in China, only ended its Covid lockdown on June 1.
Tesla stock rose nearly 4% before the open, signaling a move above the 21-day moving averag. Shares climbed 1.25% to 725.60 on Wednesday but off morning highs. TSLA stock is well below its 50-day and 200-day lines.
On Wednesday, China EV giant BYD (BYDDF) said it will supply Tesla with batteries. BYD, which is passing Tesla in vehicle sales for the first time this quarter, climbed 1.8% to 38.80. On track for a fifth straight weekly gain, BYD stock is not far from record highs.
Tesla CEO Elon Musk’s Twitter (TWTR) takeover saga has weighed on TSLA stock, amid fears that Musk will have to sell a lot more shares. On Wednesday, Twitter’s board reportedly will give Musk access to all its internal data. Musk, after signing a $44 billion Twitter deal and waiving away due diligence, has threatened to try to walk away unless he gets more data about fake users. TWTR stock rose 0.8% on Wednesday 40.44, hitting its highest level intraday since May 13. But Twitter is still well below Musk’s $54.20 takeover price.
Read More: Dow Jones Futures: Market Rally Falls As Would-Be Leaders Crack; Tesla, Nio News