Dow Jones Futures fall after bullish market action; Tesla is to buy batteries from its leading EV competitor

Dow Jones futures, along with S&P 500 futures and Nasdaq futures, fell moderately early Wednesday. The stock market responded with another rise on Tuesday The goal (Digit) Revenue alert, recovered from the initial decline and rose solidly.


China EV and battery giant BYD (I will do) To provide batteries Tesla (DSLA), The BYD executive said Wednesday after several months of speculation. BYD vehicle sales are higher than Tesla.

VRTX stock, Ulta beauty (Ulta), ZIM integrated shipping (Jim), Albemerley (ALB), Ashland Global Holdings (Gray), Timkensteel (DMST) And Chevron (CVX) Shares in or near the buying zones. Vertex Pharmaceuticals (VRDX), Ulta Beauty and Alpemerley are on hand. ZIM stock is hilarious ASH stock is below an officer Buy point But now a debatable act. DMST stock exploded on Tuesday while Chevron was in the buying range.

The Relative strength lines These stocks are at or near the maximum. The RS line, the blue line in the charts provided, tracks the performance of a stock against the S&P 500 index.

ALB stock is active IBD Leaderboard, While Ashland stock is on the Leaderboard watch list. ZIM has stock IBD 50. CVX has stock IBD Big Cap20. Vertex was Pharmaceuticals IBD Day Stock. The video embedded in this article discussed market activity on Tuesday and analyzed TimkenSteel, Chevron and ULTA shares.

The EV Giant that captures Tesla’s EV crown

BYD-Tesla Battery Deal

A senior BYD executive said in an interview with state-owned television that BYD would supply batteries to Tesla. Given some details, this deal is an important verification for BYD as a battery supplier to third-party vehicle manufacturers. Tesla relies on battery company CATL for its vehicles made in China. There have been rumors for months that Tesla will use BYD blade batteries, a specialized LFP battery.

As Tesla was confirmed to lose its EV crown to BYD in the second quarter, it included EVs and plug-in hybrids. As far as most automakers in China are concerned, BYD announced record sales in April and May thanks to its internal battery and chip functionality.

Shares of Tesla rose 0.25% to 716.66 on Tuesday, recovering from a morning low. TSLA stock is below its 50-day and 200-day moving averages.

BYD stock was down 0.5% at 38.12 on Tuesday. The stock has risen strongly over the past four weeks, approaching the buy point of 41.34 from the deep cup base.

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Dow Jones Futures Today

Dow Jones Futures fell 0.4%. Reasonable value. The S&P 500 futures lost 0.35% and the Nasdaq 100 futures lost 0.2%.

10-year Treasury revenue rose 4 basis points to 3.01% and again rose above the 3% level.

U.S. crude rose 1% to more than $ 120 a barrel.

Amid economic and regulatory optimism, the Chinese Internet recovered overnight.

Intel (INTC) Citigroup, citing recent management comments, said it expects a warning in Q2, citing a moderate fall.

Remember that action is overnight Dove futures Elsewhere there is no need to translate it into the next regular real trade stock market Session.

Join IBD Experts when researching stocks that may operate on the stock market rally at IBD Live

Stock market rally

Target says there will be big markdowns early Tuesday to address surprising inventory The profit margins were hit even harder Than predicted a few weeks ago. This has exacerbated concerns about consumer spending and the economy. The target stock, however, fell to 147.15 when it opened, down 2.3% to 155.98.

The rally of the stock market, which started very low, quickly destroyed the losses and rose solidly.

The Dow Jones Industrial Average rose 0.8% on Tuesday Stock market trading. The S&P 500 index advanced 0.95%. The Nasdaq compound rose 0.9%. Small Cap Russell 2000 rose 1.6%.

US crude rose 0.8% to $ 119.41 a barrel.

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

In the middle The best ETFsInnovator IBD 50 ETF (FFTY) 2.9%, while Innovator IBD Breakout Opportunities ETF (BoatIncreased by 0.65%. iShares Extended Technology-Software Industry ETF (VAT) Advanced 1.6%. WANEX Vectors Semiconductor EDF (SMHIncreased by 0.8%.

SPDR S&P Metals & Mining ETF (XME) 3.5%, TimkenSteel stock was a small component. Global X US Infrastructure Development ETF (Pavement) Received 1.65%. US Global Jets ETF (JETS) 1.3% higher. SPDR S&P Homebuilders ETF (XHBIncreased by 0.4%. Energy Selection SPDR ETF (XLE) 3% higher, CVX stock a larger holding. Financial Examination SPDR ETF (XLF0.8%. Health Care Selected Sector SPDR Funding (XLV) Closed 1.3% higher.

Represents more speculative story stocks, ARK Innovation ETF (ARKK3% accumulated and ARK Genomics ETF (ARKG) Tesla still holds the No. 1 position in 3.6% of Ark Invest’s ETFs.

Five best Chinese stocks to watch now

Stocks to watch

ULTA stock rose 1.8% to 421.02, advancing despite the latest target warning. Ulta Beauty has a role to play Handle with cup 426.93 Purchase point. Last month, cosmetics retailer shares plummeted following an early warning from Target, but they rebounded strongly on Ulta earnings.

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ZIM stock rose 1.9% to 68.52, floundering, removing some short-term positions that could be considered a half-handle. On a weekly basis, the ZIM stock has a small handle, giving it a buying point of 68.63. But on the daily schedule, there is a container-based shipping company File Basic With an official 75.81 buy point.

ALB shares rose 10 cents to 257.89 on Wednesday. Lithium Company shares have a buy point of 273.78 on the large cup platform. In late May, ALB stock crossed the 248 opening entry following a second-month high earnings upgrade, but briefly fell below those levels a few days later.

ASH stock was up 0.3% at 110.51, closing the intraday low. On Monday, the chemical additives company got over 111.15 Flat base Buy point intraday, but closed below that level. An investor can use 108.95 as the initial entry for Ashland stock.

Timkensteel shares rose 8.8% to 26.18, removing the buying point at 24.90 cup-with-hand, Market Smith said. TMST stock has been slightly extended. Specialized steel companies stand out Howmet Aerospace (HWM) Shows strong action. Other steelmakers have begun to make progress again.

Chevron shares were up 1.9% at 180.21, a new final high and advancing in the buying range from a flat-base entry of 174.86. CVX stock is less volatile than many energy names, still only 5.9% of its 10-week range.

VRTX shares rose 1.4% to 271.86. Vertex stock has a buying point of 276.10 cup-with-hand, which has found support in the 50-day order.

Market Rally Analysis

Important economic, business and political news is important to the stock market, but what really matters is the market reaction to those news.

Target’s earlier warning on May 18 triggered a major market sell-off, indicating that the now-confirmed boom is in serious trouble. Two days later, key indices eased to low in mid-May.

But on Tuesday, the current stabilized market rally responded well to the latest target alert, rising again after initially selling. Even Target, after its initial profit warning, fell to a low in the morning – above the last low of May. Other retailers reduced losses or turned positive.

Key indices, which had outperformed the 21-day moving average on Tuesday morning, rallied for solid gains.

The 10-year treasury yield, which fell below 3% after huge gains on Monday, was a key contributor to Tuesday’s reversal.

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However, the stock market rally did not find out whether it wants to test the May slump or move higher.

Extended lateral action may be positive. Several handles have been developed over the past few days. Longer pause will allow you to create more handles and bases, as well as allow you to catch the moving average.

If key indices move above their latest limits, they will soon reach the 50-day moving average. The S&P 500 is below its 10-week high and the Dow Jones is closing above that key level. Small-cap Russell 2000 is above its 50-day and 10-week average.

Energy stocks continue to dominate the market. Many industries are trying to make a comeback, including metals and mining like Timkensteel. Lithium plays such as Albemarle can be seen as metal mining but can also be seen as energy stocks. Pharmaceutical makers and major biotechnologies generally own the likes of Vertex Stock. Some retailers like Ulta Beauty are also interested.

But the market rally clearly needs to be at least sustainable for all of these non-energy sectors, and can struggle to make much progress without a broader improvement.

Market time with IBD’s ETF Marketing Strategy

What to do now

After Monday’s fading, Tuesday’s action was very positive. But as the market rally is still in flux, investors need to keep the overall outlook slim. They need to keep personal positions small, at least to begin with. Consider making a relatively quick profit somewhat based on current market conditions.

If the market rally breaks below recent levels and key indices cross their 50-day limits, investors can take advantage of buying opportunities. But continue to gradually increase exposure.

Investors need to keep their watchlists fresh. With more attention paid to retail and steel names, the names of some fertilizers may be pushed aside. Make sure you are prepared and vigilant when creating market momentum.

According to The big picture Every day the direction of the market and the leading stocks and sectors must be consistent.

Follow Ed Carson on Twitter @IBD_ECarson For stock market updates and more.

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