Dow Jones Futures Rise: What To Do Before Monday’s Market Open; Nio, GME Stock, Silver In Focus – Investor’s Business Daily
Dow Jones futures were solidly higher Monday morning, along with S&P 500 futures and Nasdaq futures, all reversing from sharp losses Sunday evening as the stock market rally tries to find support. Nio stock, GME stock and sliver were in focus.
Last week the major indexes broke through key levels, with leading stocks also struggling. The stock market rally may be undergoing a character change. Investors need to be more cautious, perhaps reducing exposure, especially if they haven’t already done so.
The GameStop (GME) saga is likely far from over. GME stock, AMC Entertainment, Koss (KOSS) and Express (EXPR) were little changed in relatively calm trading Friday morning. Last week, these and other short-squeeze plans had another mammoth week of ultra-volatile gains. But the risks are extremely high. Investors are better served following a consistent strategy and trading rules, not taking wild bets.
The GME stock experience has the Robinhood trading app reeling, while regulators are eyeing the situation. Robinhood is still limiting trading in GameStop and a handful of other stocks.
Silver is the latest shiny object for squeeze play investors, with the precious and industrial metal surging about 10%. GME stock fell slightly.
China-based Tesla (TSLA) EV rivals Nio (NIO) and Xpeng Motors (XPEV) reported booming January sales, with Li Auto (LI) and BYD Co. (BYDDF) also due in the coming days. All four EV stocks suffered sharp weekly losses, with Nio stock closing slightly below a buy point. Tesla stock also retreated last week following its earnings miss.
Nio, Xpeng, Li Auto stock and Tesla rose Friday morning, TSLA stock getting another Street-high price target.
Keep an eye on MSFT stock. Microsoft (MSFT) retreated below at least one buy point Friday but closed the week with solid gains. It’s the best-looking tech titan after fellow Dow Jones component Apple (AAPL) reversed lower last week on its earnings.
Microsoft, Tesla and Apple stock are on IBD Leaderboard. Microsoft stock also is on IBD Long-Term Leaders and the IBD 50.
GOP Stimulus Compromise