Dow Jones Futures: Trump Impeachment Vote Nears, Target Reports Strong Holiday Sales; GM, Uber Lead New Breakouts

Dow Jones futures turned modestly lower early Wednesday, along with S&P 500 futures and Nasdaq futures, as the House nears a Trump impeachment vote today. Target (TGT) reported strong holiday sales.




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The major indexes had a quiet session Tuesday, but small caps, financials and growth names fared well, with IPOs soaring and several new stock breakouts, including Uber and GM stock.

Tesla (TSLA) rebounded Tuesday after snapping an 11-day winning streak on Monday. But Tesla stock is still showing signs of being near a climax top. Fuel-cell stocks Plug Power (PLUG), Ballard Power (BLDP) and FuelCell Energy (FCEL), which all kept rising sharply Wednesday morning, also are going vertical.

General Motors (GM), Ford (F) and Uber Technologies (UBER) all cleared buy points Tuesday. So did housewares and furnishings retailer Williams-Sonoma (WSM).

Meanwhile, many recent IPOs were big winners, including DoorDash (DASH), Airbnb (ABNB) and Corsair Gaming (CRSR), all flashing various buy signals. FuboTV (FUBO) and China EV startups Xpeng (XPEV) and Li Auto (LI) rebounded powerfully from their 50-day lines.

Tech titans continue to struggle. Apple (AAPL) edged lower, trying to hold support levels in its handle. Microsoft (MSFT) and Google parent Alphabet (GOOGL) closed below key levels. Facebook (FB) and Netflix (NFLX) have broken below their 50-day lines and are moving toward their 200-day averages. Amazon.com (AMZN) didn’t fall but continues to lag.

But those megacap woes are keeping the stock market rally from overheating as many leading stocks get red hot.

Target reported November-December same-store sales rose 17.3% vs. a year earlier. Digital comparable sales skyrocketed 102%, while in-store comps grew 4.2%. However, in the prior third quarter, Target reported digital comps up 156% and in-store sales 9.9%.

Target stock were little changed early Wednesday after rising to a record high Tuesday.

Tesla, Microsoft and Apple stock are on IBD Leaderboard. GM and Uber stock are on SwingTrader. Microsoft stock is on IBD Long-Term Leaders. WSM stock is on the IBD 50.

House Impeachment Vote Wednesday

The House may hold a Trump impeachment vote Wednesday morning. House lawmakers backed a resolution Tuesday night asking Vice President Mike Pence and the cabinet to invoke the 25th amendment to remove Trump from office immediately. Pence told House Speaker Nancy Pelosi earlier that will not do so. Only one GOP lawmaker backed the 25th amendment resolution but at least a handful say they support a Trump impeachment vote.

If Trump is impeached, a Senate trial would follow, but probably not for weeks after Trump leaves office on Jan. 20. If convicted, Trump would be barred from seeking federal office again.

On Tuesday, Trump denied any wrongdoing in his Jan. 6 speech urging action to supporters, many of whom soon stormed the Capitol building, leaving five dead and forcing lawmakers to flee. Meanwhile, Trump said a new impeachment effort is “causing tremendous anger.”

Dow Jones Futures Today

Dow Jones futures fell 0.2% vs. fair value. S&P 500 futures sank 0.3% and Nasdaq 100 futures retreated 0.3%.

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 92.13 million. Covid-19 deaths topped 1.97 million.

Coronavirus cases in the U.S. have hit 23.37 million, with deaths above 389,000. U.S. Covid deaths topped 4,200 on Tuesday, a new daily high.

New York announced that it will open up vaccinations to people age 65 and up.

The Trump administration on Tuesday recommended opening vaccinations to anyone 65 or older or with a serious risk factor while also including community centers and no longer waiting until sufficient supplies for second doses are assured. All that is intended to speed up vaccinations, which got off to a rocky start but are gaining momentum.

The U.S. government will buy 1.25 million additional COVID-19 antibody cocktail doses from Regeneron Pharmaceuticals (REGN) for up to $2.6 billion. REGN stock rallied in the premarket.

Stock Market Rally Tuesday

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 31068.69 +60.00 +0.19
S&P 500 (0S&P5) 3801.19 +1.58 +0.04
Nasdaq (0NDQC ) 13072.43 +36.00 +0.28
Russell 2000 (IWM) 211.19 +3.65 +1.76
IBD 50 (FFTY) 44.29 +0.94 +2.17
Last Update: 4:28 PM ET 1/12/2021

The stock market rally had a constructive session, as tech giants kept the major indexes in check while many growth names did well.

The Dow Jones Industrial Average rose 0.2% in Wednesday’s stock market trading. The S&P 500 index edged higher. The Nasdaq composite climbed 1.3%. The Russell 2000 jumped 1.8%.

The yield spread between two-year and 10-year Treasuries is the widest since March. That’s good news for banks and other lenders, who profit by borrowing short and lending long.

The lackluster action in the major indexes after Monday’s retreat is constructive, allowing the 50-day moving average to catch up somewhat after the Nasdaq looked extended at the end of last week. The Nasdaq closed 6.3% above the 50-day for a second straight session, after being up 8% on Friday.

Tech Titans Lag

Tech titans are a key reason the major indexes are staying cool. Apple stock held up OK, dipping 0.1% to 128.80, hugging its 21-day exponential moving average. AAPL stock has a 138.89 buy point on a cup-with-handle base.

Microsoft stock, a Dow Jones, S&P 500 and Nasdaq component like Apple, retreated 1.2%, sinking below its 50-day line. Google stock lost 1.1%, also undercutting its 50-day. Facebook stock sank 2.2% and Netflix 1%, both moving down toward their 200-day lines. Amazon stock edged up 0.2% but is still below its 50-day line.

On Monday, Tesla stock tumbled 7.8%, weighing on the S&P 500 and Nasdaq. But shares rebounded 4.7% on Tuesday. TSLA stock is far extended from its 466 buy point and still appears to be in a climax run.

Plug Power stock shot up 22%, following a new alliance with French automaker Renault. That followed a SK Group investment in Plug Power as part of an alliance to push hydrogen in Asian markets. FuelCell stock leapt 21% on Tuesday and Ballard Power 19%. PLUG stock is up 95% already in 2021, with FCEL and BLDP skyrocketing as well.

Overnight, PLUG, FCEL and BLDP all rose solidly in heavy trade.

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) jumped 2.2%, while the Innovator IBD Breakout Opportunities ETF (BOUT) advanced 1%, both at fresh highs. The iShares Expanded Tech-Software Sector ETF (IGV) edged up 0.1%, with MSFT stock and other software giants weighing on IGV. The VanEck Vectors Semiconductor ETF (SMH) climbed 0.5%.

GM Stock, Ford Stock Break Out

GM stock jumped 6.2% to 47.82, breaking out above a 46.81 buy point and hitting a record high. The auto giant broke out of a shallow cup base, according to MarketSmith analysis, but it could also be viewed as a handle in a multiyear consolidation. GM stock had rebounded bullishly from its 21-day exponential moving average on a daily chart and its 10-week line on a weekly chart, offering an early entry.

General Motors rose early Wednesday on a price target hike.

GM CEO Mary Barra, in a  Tuesday CES keynote address, unveiled a new business called BrightDrop, producing electric vans and commercial delivery vehicles. The BrightDrop electric vans will debut in late 2021, around the same time as an electric Ford Transit. Ford dominates the delivery van market, but Amazon-backed Rivian, Workhorse (WKHS) and others are jumping in the EV delivery vehicle market.

Ford stock popped 5.2% to 78, clearing a 9.60 flat-base buy point. Like GM stock, Ford recently rebounded from its 21-day and 10-week lines, offering an early entry.

Uber Stock Races Past Buy Point

Uber stock rallied 7.2% to 58.54, decisively moving past a 56.12 entry from a short consolidation. It’s still within the 5% buy zone, which runs to 58.93. The relative strength line is almost at its June 2019 peak, shortly after the Uber stock IPO. The RS line tracks a stock’s performance vs. the S&P 500 index. Ride hailing is still very weak, but Uber Eats delivery business is doing well due to the coronavirus pandemic. Lyft (LYFT), a pure-play ride-hailing firm, jumped, also moving above a short consolidation and rebounding from its 10-week line.

Williams-Sonoma Stock

Williams-Sonoma stock jumped 6.4% to 118.25, breaking out beyond a 114.75 buy point. WSM stock has been rebounding from its 50-day and 10-week line in recent days, offering an early entry. RH (RH), a rival home furnishings chain, rose 4.2% to clear a short consolidation.

Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.

Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.

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