Dow Jones futures rose slightly late Thursday, along with S&P 500 futures and Nasdaq futures. The coronavirus stock market rally faded into Thursday's close, though the major indexes had a strong week. Tesla (TSLA) soared on second-quarter delivery figures, while Akamai Technologies (AKAM), Teladoc Health (TDOC), Taiwan Semiconductor (TSM) and Atlassian (TEAM) all cleared buy points. After the close, Regeneron Pharmaceuticals (REGN) fell on weak results for a possible coronavirus treatment.
XTesla stock held the bulk of Thursday's gains, capping a huge week for itself and other electric-vehicle plays such as Nio (NIO). Looking ahead, second-quarter Tesla earnings results could spur the S&P 500 index to add TSLA stock. Beyond that, Tesla faces no production constraints but questions about future demand remain.
Teladoc stock cleared two buy points Thursday, while Akamai stock blasted to a new high. Taiwan Semiconductor stock also broke out past a clear buy point. Atlassian stock cleared an early entry, just below an official buy point from a brand-new flat base.
On the downside, Regeneron and partner Sanofi (SNY) fell late Thursday. Both REGN stock and SNY stock had closed near buy points.
Tesla stock, TEAM stock and TDOC stock are on IBD Leaderboard. TSM stock is on the IBD 50, along with many other semiconductor companies.
Dow Jones Futures Today
Dow Jones futures rose 0.25% above fair value. S&P 500 futures advanced 0.3%. Nasdaq 100 futures climbed 0.3%. DJIA futures still trade until 1 p.m. ET on Friday, then resume trading at 6 p.m. ET Sunday. Dow Jones futures trading may be relatively muted with U.S. stock exchanges closed Friday, in observance of the Fourth of July holiday. But stock markets in Asia, Europe and elsewhere will be open.
Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
Coronavirus News
Coronavirus cases worldwide have reached 10.96 million. Covid-19 deaths have reached 522,000.
Coronavirus cases in the U.S. have exceeded 2.83 million, with deaths above 131,000. New coronavirus cases in the U.S. have already topped 50,000 by late afternoon Thursday, after hitting a record 51,097 on Wednesday.
Florida reported more than 10,000 new coronavirus cases. Texas issued a statewide order requiring face coverings.
Hospitalizations have increased in many Sun Belt and Southern states. So far coronavirus deaths have remained low. Recent coronavirus cases have skewed much younger than a few months ago, while standard of care has improved.
Regeneron and French drug giant Sanofi said a phase 3 trial of Kevzara failed to meet goals in coronavirus patients requiring ventilation. Regeneron stock and Sanofi stock fell 2% in extended trade. REGN stock had closed slightly below a quasi-ascending base entry. SNY stock was just below a consolidation buy point.
Coronavirus Stock Market Rally
The coronavirus stock market rally had a strong start Thursday, with the Nasdaq running to a record high. But the major indexes faded into the close. The Dow Jones Industrial Average closed up 0.4% in Thursday's stock market trading after hitting resistance once again at its 200-day moving average. The S&P 500 index rose 0.45% and the Nasdaq composite 0.5%.
But the Dow Jones and other indexes still had a strong week. The DJIA climbed 3.25%, the S&P 500 4% and the Nasdaq 4.6%.
Among the best ETFs, the Innovator IBD 50 ETF (FFTY) edged up 0.3% on Thursday but 3.6% for the week. The iShares Expanded Tech-Software Sector ETF (IGV) climbed 0.2% on Thursday, 3.7% for the week. The VanEck Vectors Semiconductor ETF (SMH) popped 1.5% on Thursday and 3.8% for the week. Taiwan Semiconductor stock is a top holding in SMH.
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Akamai Stock In A Buy Zone
Akamai stock jumped 6.4% to 113.12 on Thursday, breaking out past a 108.35 buy point, according to MarketSmith analysis. AKAM is just within the 5% chase zone. The relative strength line for Akamai stock still is a little ways from its March peak. The RS line, which tracks a stock's performance vs. the S&P 500 index, is the blue line in the charts provided.
Taiwan Semiconductor Stock Breaks Out
TSM stock rose 3.2% to 58.62, clearing a 58.14 cup-with-handle buy point. However, the RS line for Taiwan Semiconductor stock is still not at highs. Taiwan Semi hasn't been a huge winner in recent years, and has lagged several other top chip stocks.
Teladoc Stock
Teladoc stock rose 5.05% to 208.89, just clearing a 208.73 buy point above a high-ish handle from a recent consolidation. TDOC stock also moved past a very short trend line offering an early entry around 200. The RS line for Teladoc stock is near a record high after a huge run to start the year.
Atlassian Stock
Atlassian stock climbed 2.4% to 190.08 on Thursday, a record close. TEAM stock is just below a 191.82 flat-base buy point. But investors could have bought Atlassian stock as it got to around 188, clearing a short-term high as well as a downward-sloping trend line. In recent weeks, TEAM stock has found support at its 10-week line.
Tesla Stock
Tesla stock surged 8.4% to 1,208.66, hitting yet another-record high. Before Thursday, Tesla reported it delivered 90,650 electric vehicles in the second quarter. That beat recent estimates of around 88,000. Model 3 and Y deliveries were 80,050, while Model S and X deliveries were 10,600. Overall production from the Fremont and Shanghai plants was 82,272.
TSLA stock had already been soaring earlier in the week as leaked Elon Musk emails to staff signaled Tesla was close to breaking even in the second quarter. If Tesla earnings are positive for Q2, that could spur TSLA stock's entry into the S&P 500 index. Musk likely can recognize sufficient emission credits and "Full Self Driving" revenue to make that happen.
With investors pricing in strong deliveries and more, Tesla stock skyrocketed 26% for the week.
It was a huge week for EV-related plays. Nio stock leapt 36% to a 16-month high, including a 19% spike on Thursday. The Chinese luxury electric SUV maker reported record Q2 deliveries early Thursday. Workhorse Group (WKHS), which is developing electric vans, shot up 111% this past week after a 103% advance in the prior week. Blink Charging (BLNK) leapt 75%.
Late Thursday, TSLA stock rose a fraction. Nio stock rallied 3.5%.
What's Next For Tesla
For the next few weeks, investors will await Tesla earnings and possible S&P 500 admission news for TSLA stock. As for the business, Tesla should be producing record amounts, with no coronavirus shutdowns affecting either the Fremont or Shanghai factories. Tesla will begin to answer key questions about ongoing demand for the Model Y, Europe and China.
After the initial burst of Tesla Model Y orders, will the new EV show sustained demand, especially given widespread reports of poor build quality. If demand wanes, Tesla presumably could introduce a lower-cost variant to the Model Y, cut prices, or begin Y shipments to Europe.
Tesla's EV market share in Europe appeared to have peaked before the coronavirus crisis. There might be some pent-up demand in Q3, while European subsidies are increasing. But several more EV and hybrid rivals are rolling out.
As for China, Tesla presumably had strong June sales for its new made-in-China Model 3 LR, especially with subsidies being cut in July. What is the sustained demand for the Model 3 in China? EV competition is picking up there as well.
Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.
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