Dow Jones Futures: Elon Musk Tesla soars, Warren Buffett stocks soar, Dow soars as losing streak ends

Elon Musk’s plans to build a new Tesla factory propelled the stock up.

Warren Buffett (RH) stock saw a sharp rise in price after the company reported strong financial results. Finally, an important milestone for Apple (AAPL) was within reach.

Many stocks were able to exceed their respective buying targets. While Archer-Daniels-Midland (ADM) and Restaurant Brands (QSR), Burger King’s parent company, were trying to break out, Palo Alto Networks (PANW) made an early entrance.

According to preliminary figures, volume was inconsistent, rising on the Nasdaq but falling on the New York Stock Exchange.

With an increase of three basis points, the benchmark yield on ten-year government bonds now stands at 3.32%. West Texas Intermediate crude rose more than $3, reaching over $86.

According to Oanda’s senior market analyst, Edward Moya, bullish sentiment has prevailed despite aggressive comments from many Federal Reserve officials.

He told clients in a letter that “economists are slightly lowering their inflation estimates,” which could prevent the Federal Reserve from raising interest rates by more than 4%. “Today’s stock market rally could not be stopped by the aggressive comments from the Fed Bullard and Waller.”

Nasdaq conquers frontrunner while small caps shine

The Nasdaq’s gain was the largest of the major indices at 2.1%. In addition, Zscaler (ZS), a cybersecurity company, saw its stock price rise more than 22% after reporting its quarterly earnings.

The S&P index also rose sharply, 1.5 percent, and is now trading above the 50-day moving average. Here, Dish Network (DISH) stood out with a gain of 8.6%.

All sectors of the S&P 500 rose, with technology, energy and communications services leading the way. Defending utilities lagged behind.

The Russell 2000 ended the day up 2.0%, with small caps leading the way.

Growth stock barometer Innovator IBD 50 ETF (FFTY) also showed strength, rising 1.9%.

Shares Rising on the Dow Today, Led by a Rise in Apple and Salesforce

The Dow Jones index gained 1.2%, or more than 400 points, while lagging the gains of the other major indices.

Apple shares are up 1.9%, moving closer to the critical 50-day moving average, a crucial technical level. However, the current price of 176.25 is still well below the handle of 176.25.

The iPhone 14 series of smartphones was unveiled earlier this week at a media event themed “Far Out.”

Salesforce (CRM), on the other hand, was the star of the day in the Dow Jones, up 3.6%. In addition, Caterpillar (CAT) showed strength and added 3.5 percent to its value.

Share price rises as Elon Musk reveals next move

News that Tesla could build a lithium processing plant in Texas boosted the company’s stock price. Elon Musk’s electric car giant is exploring the possibility of building a lithium hydroxide refinery on the Texas Gulf Coast.

Tesla estimates it could begin construction in the fourth quarter if the project is approved, and commercial production will begin in late 2024.

The MarketSmith algorithm predicts that the best time to buy Tesla stock is now, with a target price of $402.73. Although it was up 3.6% on the day, it is still quite far from where it started.

While it would be a bold move, some plucky investors might view Friday’s 200-day revival as an opportunity to step in.

Elon Musk tweeted that he has had “positive discussions” with iPhone maker Apple about integrating SpaceX’s Starlink technology into the company’s products.

Gain in Warren Buffett Shares on Strong Earnings

After the release of the quarterly financial report, RH, formerly known as Restoration Hardware, saw a significant rise in its share price. It gained 4.4% at the close of the trade.

The household goods trader has been backed by Warren Buffett, whose company Berkshire Hathaway (BRKB) owns more than 2 million shares.

Following RH’s announcement of gains that wiped out expectations on Wall Street, the renowned investor is likely to be in good spirits. Earnings per share were $8.08 and revenues of $992 million were ahead of expectations.

The bad news is that the company forecasts a 15%-18% decline in net sales for the third quarter. Gary Friedman, the company’s CEO, said a recession had occurred.

During the conference call, Friedman said, “Anyone who thinks we’re not in a recession is crazy.”

New leader comes from the Dow Jones

Now is the time to look for companies you can take immediate action on as the market rally picks up again.

The Palo Alto Networks share price jumped above a trendline of 560. In addition, it has set its sights on the price level of 578.89, which represents a buying target for a “cup with handle”.

After a solid upward trend, the stock was recognized by IBD and included in the list of top stocks, the IBD Leaderboard. It also organized a support group for competitor Zscaler (ZS).

Archer-Daniels-Midland, a major food processor, opened above a cup-and-handle entry of 91.54 and eventually closed below. There is a possibility of minimal profit on the next breakout as this is a third stage base.

Even as the stock created its handle, the relative strength line was trending higher, indicating bullish momentum.

In addition to excellent earnings growth, the stock’s share price performance over the past year places it in the top 6% of all companies. MarketSmith statistics indicate that experts expect a 31% increase in sales by 2022.

Restaurant Brands – Burger King’s parent company – tried a cup with a handle BUY point of 61.19, almost narrowing the entrance. But because it’s gotten so close, it’s worth keeping an eye out for.

With a price increase of 11% in the past year, the restaurant chain’s stock is in the top 11% of all stocks. Plus, it has an impressive Composite Score of 95.

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