Dow Jones Futures: Market Rally Falls As Would-Be Leaders Crack;
Dow Jones futures fell slightly overnight, along with S&P 500 futures and Nasdaq futures. Tesla (TSLA) and Nio news is on tap before Thursday’s open. The major indexes retreated Wednesday on economic concerns.
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The OECD slashed U.S. and global economic growth forecasts Wednesday, coming on the heels of Tuesday’s fresh Target (TGT) warning. Intel (INTC) and Altria (MO) tumbled as analysts grow wary in the current environment.
Oceangoing shipping stocks such as ZIM Integrated Shipping (ZIM) and Star Bulk Carriers (SBLK) plunged to their 50-day lines and beyond, wiping out a few weeks of gains. It’s not clear if the sector faces a long slide or simply a short pause, but Wednesday’s action was ugly. Rail, trucking and other shipping stocks also tumbled.
Travel, mining and especially steel stocks were notable losers amid broad-based selling.
Meanwhile, Eli Lilly (LLY), Synopsys (SNPS), Equinor (EQNR), Westlake (WLK) and Callon Petroleum (CPE) are all near buy points. LLY stock is among several big drugmakers holding up well. Synopsys is a rare growth stock showing some strength. Norwegian state-owned oil and gas play Equinor and shale operator Callon are in the energy space. WLK stock is among several solid chemicals names.
Eli Lilly stock is on IBD Leaderboard. SNPS stock is on IBD Long-Term Leaders. ZIM, Westlake, Synopsys and CPE stock are on the IBD 50. Westlake was Wednesday’s IBD Stock Of The Day.
Dow Jones Futures Today
Dow Jones futures dipped 0.2% vs. fair value. S&P 500 futures declined 0.25% and Nasdaq 100 futures lost 0.3%.
The 10-year Treasury yield rose 2 basis points to 3.05%.
The European Central Bank is likely to end asset purchases at Thursday’s policy meeting, with an announcement before the opening bell. That would set the stage for a July rate hike.
The Labor Department will release weekly jobless claims data at 8:30 a.m. ET, followed by the consumer price index on Friday morning. That comes ahead of the Fed policy meeting next week, with another half-point hike priced in.
Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
Tesla News
Investors will get Tesla China sales figures for May as part of industrywide data from the China Passenger Car Association. Tesla Shanghai production improved in May after the plant was shut down for most of April, but was still well below normal. Tesla production could hit full capacity sometime in June.
That came as China EV giant BYD (BYDDF) said it will supply Tesla with batteries. BYD, which is passing Tesla in vehicle sales for the first time this quarter, climbed 1.8% to 38.80. On track for a fifth straight weekly gain, BYD stock is not far from record highs.
Tesla CEO Elon Musk’s Twitter (TWTR) takeover saga has weighed on TSLA stock, amid fears that Musk will have to sell a lot more shares. On Wednesday, Twitter’s board reportedly will give Musk access to all its internal data….
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