The stock market’s gains were uneven at midday, as Tesla‘s (TSLA) big deliveries report gave Wall Street an initial boost. But many IBD 50 stocks sold off.
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The main stock market indexes were higher, but gains varied widely. The Nasdaq composite climbed 0.7% and the Russell 2000 was up nearly 0.8%. But the S&P 500 added only 0.1%.
The Dow Jones Industrial Average reversed lower for a while and was barely higher. Dow component Nike (NKE) fell 1.8% and is meeting resistance around the 50-day line.
U.S. Stock Market Today Overview | ||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 36352.74 | +14.44 | +0.04 |
| S&P 500 | (0S&P5) | 4771.49 | +5.31 | +0.11 |
| Nasdaq | (0NDQC ) | 15742.85 | +97.88 | +0.63 |
| Russell 2000 | (IWM) | 223.86 | +1.41 | +0.63 |
| IBD 50 | (FFTY) | 45.38 | -0.46 | -1.00 |
Last Update: 11:48 AM ET 1/3/2022 | ||||
Volume rose on the NYSE and Nasdaq, after a week of quiet trading between Christmas and New Year’s Day. Advancing stocks led decliners by 2-to-1 on the Nasdaq and by 5-to-4 on the NYSE.
Tesla Deliveries Impress Stock Market
Tesla raced 10% higher after the electric-vehicle maker’s fourth-quarter deliveries blew past expectations. The stock climbed closer to the 1,202.05 buy point of a lopsided double-bottom base. Tesla is in IBD Leaderboard, where a trendline was used to identify an alternative buy point.
Tesla deliveries totaled 308,600, which included 296,850 Model 3 and Y vehicles. Full-year deliveries were 936,172 vehicles. The FactSet consensus was for 276,900 total Q4 vehicles.
Other EV makers also posted strong deliveries, and EV stocks were mainly higher at midday.
Xpeng Motors (XPEV) and Li Auto (LI) outsold Nio (NIO) in December, more than doubling sales of electric vehicles.
Nio climbed nearly 5%. Xpeng fell 1.5%. Lucid Group (LCID) climbed more than 4% and is now trying to reclaim the 21-day line. Charging-station stock Plug Power (PLUG) rose 2.2%. Li rose 0.4%.
Legacy automakers Ford (F) and General Motors (GM), which are boosting their EV offerings, rose as well. Ford rallied 4% to a new high; GM gapped up to a 4.5% gain.
IBD 50 Underperforms Nasdaq
The stock market just ended another successful year in which the S&P 500 rose 27%. Much of this year’s market will depend on how investors handle inflation, rising interest rates and the often unpredictable risks related to Covid-19.
The Innovator IBD 50 ETF (FFTY) underperformed with a 0.9% decline, as a number of IBD 50 stocks lost 2% or more.
Himax Technologies (HIMX) plunged more than 15% as it unwinds much of last week’s 28% surge. The Taiwan-based chip company is forming a cup base, according to MarketSmith pattern recognition, but now has some damage to repair.
Tradeweb Markets (TW) slid 3.5% and is now below the 21-day exponential moving average. West Pharmaceutical Services (WST) lost more than 5% and is now below the 458.09 buy point of a cup with handle it cleared Dec. 23.
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Source: https://www.investors.com/market-trend/stock-market-today/stock-market-starts-2022-with-gains-as-tesla-helps-spark-ev-stocks/?src=A00220&yptr=yahoo