Dow Jones Extends Gains As Major Retailers Report; Lucid, Rivian Lead EV Stocks – Investor's Business Daily

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The Dow Jones Industrial Average gained more than 200 points Tuesday afternoon, as Home Depot rallied but Walmart lagged.

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The Dow Jones industrials rose 0.6%, the Nasdaq gained 0.7% and the S&P 500 maintained a 0.6% advance in the stock market today. Small caps tracked by the Russell 2000 brought up the rear, defending a 0.2% gain. Volume was higher on both major exchanges vs. the same time Monday.

Among exchange traded funds, Innovator IBD 50 (FFTY) advanced 1.2%, while the Nasdaq 100-tracking Invesco QQQ Trust (QQQ) climbed 0.6%. The IBD 50 ETF is still trading below a 52.56 buy point in a flat base, after finding support at its 50-day line last week.

October retail sales data jumped a stronger-than-expected 1.7%, according to data reported by the Commerce Department before the open. Economists had projected a 1% increase, up from a 0.8% rise in September.

The retail sector turned higher midday with the SPDR S&P Retail ETF (XRT) recovering to a 0.9% gain. The ETF is trading in potential buy range from a 99.34 entry of a long consolidation.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 36293.78 +206.33 +0.57
S&P 500 (0S&P5) 4711.55 +28.75 +0.61
Nasdaq (0NDQC ) 15962.42 +108.57 +0.68
Russell 2000 (IWM) 238.99 +0.44 +0.18
IBD 50 (FFTY) 50.92 +0.61 +1.21
Last Update: 1:32 PM ET 11/16/2021

The U.S. economy continues to recover from the Covid-19 pandemic, which triggered nationwide lockdowns over a year ago. A resurgence in cases fueled by the more contagious delta variant has been slowing down as vaccinations rise.

Globally, Covid-19 cases are approaching 255 million, with over 5 million deaths, according to Worldometer. In the U.S., cases have topped 48 million with nearly 785,000 deaths.

Growth Stocks To Watch

EV stocks cruised along Tuesday.

Lucid Motors (LCID) surged 19% in fast turnover to a new high. LCID stock is sharply extended from a 28.49 buy point of a cup with handle, according to MarketSmith chart analysis. Late Monday, Lucid said customer reservations grew from 10,000 to 13,000 in Q3, while the EV maker ended the period with about $4.8 billion in cash.

Rivian Automotive (RIVN) climbed more than 8% after paring a bigger earlier gain. It’s on track to extend its win streak since the Nov. 10 IPO.  Despite the stock’s initial surge, remember that investors should be disciplined about buying new issues. Wait for an IPO base to form and offer the stock’s first buy point before considering a purchase.

Tesla (TSLA) reversed from an early loss and rose 3.5%. TSLA stock is finding support along the 21-day exponential moving average. CEO Elon Musk sold an additional 934,000 Tesla shares valued at around $930 million to help pay taxes related to the exercise of stock options, according to regulatory filings late Monday.

TSLA shares remain sharply above a 764.55 buy point in a cup with handle, as well as earlier entries at 700.10 and 730. The chart also showed an alternate entry at 900.50.

On Holding (ONON), featured in Monday’s IBD Stock Of The Day, leapt 20% to break out past a 39.90 buy point of a cup-with-handle base. Shares are now extended from the entry, which topped out at 41.90. The premium footwear seller beat Q3 forecasts and raised its guidance for the rest of 2021 and ’22.

But Riot Blockchain (RIOT) dived more than 16% before paring its loss to 7%. Shares are now below the 40.90 buy point of a cup base, triggering the 7%-8% loss-cutting sell rule. Late Monday, the Bitcoin miner reported a loss of 16 cents a share on revenue of $64.8 million, missing views.

IBD 50 Action

Over in the IBD 50, Monday.com (MNDY) led on Tuesday with an 8% pop in fast trade. Williams-Sonoma (WSM), Trade Desk (TTD) and Tandem Diabetes Care (TNDM) added about 4% each.

But StepStone Group (STEP) and Dutch Bros (BROS) hindered the IBD 50, posting respective losses of 10% and 4%.

StepStone announced a secondary offering of 4.5 million shares with a price of $52.35 each. That’s below Monday’s 54.99 closing price. Shares of the private markets investment firm gapped down and are back near the 49.13 buy point of a cup with handle.

Dow Jones Movers

Home Depot (HD), up 6% in heavy trade to a new high, led the blue chip index. Shares traded in a buy range above a 375.25 buy point in a three-weeks-tight pattern. The buy range extends to 394.01.

The home improvement giant reported Q3 earnings of $3.92 a share on sales of $36.8 billion. That easily beat FactSet’s forecast for $3.41 EPS on revenue of $34.88 billion.

That gave rival Lowe’s (LOW), which reports Wednesday, a boost. The stock rose nearly 5% in twice normal trade, also to a new high. Analysts expect Lowe’s earnings to rise 18% to $2.34 a share on sales of $22 billion, a 1.4% dip. The advance placed shares in a buy zone above a three-weeks-tight pattern with an entry at 239.37. The buy zone extends to 251.34.

Back on the Dow, Walmart (WMT) fell more than 2% in heavy volume to breach its 50-day line for the first time in four weeks. Shares fell despite Walmart’s earnings and sales beat. The discount giant reported adjusted earnings of $1.45 a share on revenue of $140.5 billion. FactSet analysts expected $1.40 per share on sales of $135 billion.

Follow Nancy Gondo on Twitter at @IBD_NGondo

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