Dow Jones futures rose Monday morning, along with S&P 500 futures and Nasdaq futures — and Treasury yields. That followed Friday’s strong March jobs report and record Tesla (TSLA) deliveries.
The stock market rally showed strong action last week, with the S&P 500 hitting a new high and the Nasdaq moving back to some key areas.
Google parent Alphabet (GOOGL), Microsoft (MSFT), Apple (AAPL) iPhone supplier Qorvo (QRVO) and Diamondback Energy (FANG) all flashed new buy points Thursday. Google stock and Microsoft reflect bullish action among tech titans. Qorvo stock is the latest chip player to blast out. Diamondback stock is one of many oil plays looking strong as crude oil prices trend higher.
Breakouts are among the many reasons to be more optimistic about the stock market rally. The S&P 500 topped 4,000 for the first time while the Nasdaq and Russell 2000 reclaimed their 50-day lines. The Nasdaq still has one last test before investors can feel that the split market is turning into a broad market rally.
Meanwhile, GameStop (GME) said it will sell up to 3.5 million shares, a long-awaited move to take advantage of the very high stock price. GME stock fell more than 10% in early trading.
Google stock and Microsoft are on IBD Leaderboard. Google and FANG stock are on SwingTrader. MSFT stock is on IBD Long-Term Leaders. Tesla stock is on the IBD 50. Google and Qorvo stock are on the IBD Big Cap 20.
The Labor Department’s March jobs report showed a nonfarm payrolls gain of 916,000. Economists expected to see nonfarm payrolls up 625,000. Job growth should run hot as easing coronavirus restrictions and multiple stimulus packages spur a hiring boom.
Job gains for January and February were revised up by a combined 156,000. February’s initially reported 379,000 gain was revised to 468,000.
The jobless rate fell to 6% from 6.2%, in line with estimates.
Tesla reported first-quarter deliveries of 184,000, a new record. Analysts expected Tesla deliveries of 168,000. That’s more than double a year earlier, and 2% above Q4’s 180,570.
Tesla produced 180,338 vehicles in Q1, all Model 3 or Model Y vehicles. Tesla deliveries were almost entirely Model 3 and Model Y vehicles, selling 2,020 Model S sedans and Model X SUVs.
Tesla Model Y sales launched in China in January. Model Y sales reportedly were strong in the U.S.
So will blowout Tesla deliveries trigger a TSLA stock revival?
Tesla stock jumped 7% before Monday’s open, gapping above the 21-day line to right around its March short-term peaks. After that, the 50-day line is the next key level for TSLA stock.
Last week, shares rallied 7% to 661.75, but slipped back below the 21-day exponential moving average on Thursday.
The Plaid Truth
The headline figure was certainly impressive. However, the low number of high-end Model S and X vehicles suggests actual Q1 automotive revenue excluding emissions credits may be lower…