Dow Jones futures will open Sunday, along with S&P 500 futures and Nasdaq futures. The stock market rally continued to strengthen last week, with more breakouts and buying opportunities picking up. But investors should step cautiously, ready to act in a still-tricky market.
Nio, Tesla EV Rivals To Report Sales
Nio (NIO), Xpeng (XPEV), Li Auto (LI) and BYD Co. (BYDDF) are expected to release May production and delivery figures next week, perhaps as soon as June 1. Can Nio and its China EV rivals take advantage of Tesla (TSLA) woes in that huge auto maker? Or will chip shortages stymie their expansion plans?
Nio in particular has warned that chip woes will limit production in Q2. Xpeng and Li Auto, which reported earnings last week, see sequential growth in the second quarter.
Tesla’s China sales for May will come later in June from industry reports. In April, Tesla’s China sales plunged by nearly two thirds. It’s unclear if that reflected weak demand amid a China consumer backlash, fanned by state media, or production limits due to chip or battery shortages. China has been Tesla’s main growth driver over the past year, so an extended retreat would be a major blow for the EV giant.
Nio stock reclaimed its 50-day line last week, along with Xpeng, Li Auto and BYD, but all are still far below old highs. Tesla stock reclaimed its 200-day moving average, moving back toward its 50-day.
AMC Stock, GME Stock: Meme Streets
Finally, meme stocks boosted by Reddit users remain in focus, after GameStop (GME) and AMC Entertainment (AMC) soared last week. GME stock leapt 26%, even with Friday’s 13% slide. AMC stock vaulted 116%, hitting a record high.
Whether it’s a squeeze play or buyers selling to new retail investors, AMC stock and GME stock have a huge amount of momentum, with bulls plowing into options, especially for AMC stock. Fundamentals are terrible. The long-term pitches for AMC and GameStop, which were struggling before the pandemic, come with enough grains of salt that they should come with a health warning.
When a stock swings 20%, 40% or more intraday with no clear reason, investors generally should steer clear and focus on trades where they have an edge.
Bitcoin fell to above $34,000 Saturday evening. Weekend trading often is even more volatile for Bitcoin and other digital currencies, but Saturday wasn’t especially so.
Bitcoin tried to get above $40,000 several times last week, quickly turned back each time. The $40K level is an area close to Bitcoin’s 200-day moving average.
Bitcoin hit a record $64,829.14 in mid-April, but the sell-off really began from May 9 when it began tumbling from just above $59,000. The cryptocurrency fell to nearly $30,000 in late May.
Other cryptocurrencies are also trending lower, with Dogecoin undercutting 30 cents.
Coinbase (COIN) fell 4.3% on Friday to 236.54 as Bitcoin slid. But COIN stock rose 5.4% for…
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