Dow Jones Futures: Market Rally Strong But Fed Taper On Tap; Google,

Dow Jones futures will open on Sunday evening, along with S&P 500 futures and Nasdaq futures, with earnings, economic data and a Fed taper in focus. The stock market rally had strong gains last week, with the Dow Jones, S&P 500 and Nasdaq composite all hitting record highs.

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Tesla (TSLA) rival Xpeng (XPEV), Edwards Lifesciences (EW) and Google parent Alphabet (GOOGL) are all in or near buy zones.

EW stock and Google are buyable now and have just gotten earnings out of the way.

XPEV stock is hovering just below a buy point, with Xpeng releasing October sales early next week, with earnings likely a week or two after that. Xpeng rivals Nio (NIO) and Li Auto (LI) also will report October deliveries on Monday or Tuesday, with earnings in mid-November. Li Auto stock is near a buy point as well.

Tesla stock and Google are on IBD Leaderboard and the IBD 50. EW stock is on SwingTrader. Google stock is on Long-Term Leaders.

The video embedded in this article analyzed the market rally and took a look at Google, Edwards Lifesciences and Xpeng stock.

Fed Taper Decision

After many months of inching toward a Fed taper decision, policymakers are expected to end this week’s two-day meeting Wednesday by agreeing to scale back asset purchases. The actual policy would kick in at year-end. The $120 billion in monthly purchases — $80 billion in monthly Treasury purchases and $40 billion in government-backed mortgage securities — would be cut back to zero by mid-2022. After that, Fed rate hikes could be on the table.

While a stock market “taper tantrum” is always possible, this Fed decision certainly won’t be a surprise. With inflation expected to stay hot for some time, investors may welcome a shift away from easy monetary policies.

Dow Jones Futures Today

Dow Jones futures will open Sunday evening, along with S&P 500 futures and Nasdaq 100 futures.

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live

Coronavirus News

Coronavirus cases worldwide reached 246.74 million. Covid-19 deaths topped 5 million.

Coronavirus cases in the U.S. have hit 46.77 million, with deaths above 765,000.

The FDA on Friday authorized the Pfizer (PFE) and BioNTech (BNTX) vaccine for children aged 5-11, paving the way for vaccinating millions of elementary-school kids heading into winter. The CDC will weigh in on Tuesday.

Stock Market Rally Last Week

The stock market rally finished with decent to strong gains despite some midweek wobbles. The Dow Jones Industrial Average rose 0.4% in last week’s stock market trading. The S&P 500 index climbed 1.3%. The Nasdaq composite jumped 2.7%. The small-cap Russell 2000 edged up 0.3%.

The 10-year Treasury yield pulled back substantially last week, down 10 basis points to 1.56%. The two-year Treasury yield, more closely tied to Fed decisions, continued…