GameStop (GME) said late Thursday it would seek shareholder approval for a split in GME, following a similar plan by Tesla (TSLA) earlier in the week. GME shares jumped overnight, while other meme shares AMC Entertainment (AMC) and Bed Bath & Beyond (BBBY) also fell. The March Jobs report appears on Good Friday morning. It’s also a big day for car sales. General Motors (GM) and other major automakers will release data on car sales in the US on Friday morning. Chinese electric vehicle makers Nio (NIO), Xpeng (XPEV) and Li Auto (LI) are likely to report EV deliveries in March before opening. Tesla could announce first-quarter global deliveries from Friday. Advanced Micro Devices (AMD) has declined due to analyst downgrade, although competing Nvidia (NVDA) maintains a large recent recovery. AMD and Nvidia stock charts show the risks and rewards of buying former leaders who are breaking sharp declines.
Car Sales
GM will announce first-quarter car sales in the US on Friday, while Toyota (TM), Stellantis (STLA) and others will announce results in the US for March and the first quarter. Ford Motor (F) may announce its results early next week. Industry sales are likely to decline from February and fall sharply compared to March 2021, as chip problems and other supply chain constraints limit production, despite strong demand. Shares of GM, Ford, Toyota and Stellantis are slightly below the 50-day moving average. Nio, Xpeng and Li Auto should report recovery in deliveries, as Chinese New Year affected February sales. Shares of Nio and Li Auto fell below the 50-day moving average on Thursday, losing about 5%. XPEV fell 3%, with write-off fears still affecting US-listed Chinese companies. All three manufacturers of electrical appliances in China are well below potential market points.
Tesla deliveries
Tesla deliveries could come on Friday, though they may not come until Tuesday. This report could be a big catalyst for Tesla’s stock, which currently has a market cap of 1,208.10 cups, according to MarketSmith analysis. Investors are expecting strong results for the EV giant, although Tesla’s Shanghai plant is temporarily closed due to concerns about Covid in China. Tesla shares fell 1.5% to 1,077.60 points. The TSLA stock could work on a handle, but it needs a substantial pull to shake off the weak holders after a huge ride from the bottom of its base. Microsoft shares and Nvidia are on the IBD Leaderboard. Shares of Microsoft and Google are the long-term leaders of IBD. Shares of Google, Microsoft, Nvidia, AMD and Tesla are at IBD 50.
GME stock split plan
GME shares jumped 16% overnight as GameStop said it would ask shareholders to approve a split of some sort. On Monday, TSLA’s stock jumped 8% as the EV giant said it would seek approval for a split at its annual shareholders’ meeting. AMC and BBBY traded slightly higher in extended trading.
Dow Jones Futures Today
Dow Jones futures rose 0.3% against fair value. Futures on the S&P 500 were up 0.3%. Nasdaq 100 futures were up 0.2%. Remember that overnight action on Dow futures and elsewhere does not necessarily translate into real trading at the next regular trading session. Join the IBD experts as they analyze stocks that can act in the stock market rally at IBD Live
Job report
The Ministry of Labor will publish the March Jobs Report at 8:30 a.m. ET. Economists expect non-agricultural wages to generate a profit of 455,000, with the unemployment rate falling to 3.7%. Wage earnings and labor force participation will be closely monitored. The job report is likely to affect Dow Jones futures and bond yields.
Stock Market Rally
The stock market rally fell for the second consecutive session, increasing the losses late in the day, as the main indices closed their first lost quarter in two years. The Dow Jones Industrial Average fell 1.6% on Thursday. The S&P 500 index also fell 1.6%, with AMD’s share being the biggest loser. The Nasdaq composite fell 1.5%. Russell 2000 small capitalization fell 1%. US crude fell 7% to $ 100.28 a barrel, the lowest level in two weeks. President Joe Biden announced a significant release of strategic oil reserves, delivering 1 million barrels a day for the next six months. This will give a gradual boost to world oil supplies amid Russia’s invasion of Ukraine. Energy stocks did relatively well. The yield on the 10-year bond decreased by 3 basis points to 2.33%.
ETF
Among the best ETFs, the Innovator IBD 50 ETF (FFTY) sank 0.9%, while the Innovator IBD Breakout Opportunities ETF (BOUT) fell 0.7%. The iShares Expanded Tech-Software Sector ETF (IGV) fell 0.75%. The VanEck Vectors Semiconductor ETF (SMH) fell 2%, with AMD stocks and Nvidia major components. The SPDR S&P Metals & Mining ETF (XME) fell 0.6% and the Global X US Infrastructure Development ETF (PAVE) fell 1.15%. The US Global Jets ETF (JETS) rose 0.3%. The SPDR S&P Homebuilders ETF (XHB) plunged 3.9%. The Energy Select SPDR ETF (XLE) fell 1.35%. The Financial Select SPDR ETF (XLF) stumbled 2.3%. Health Care Select Sector SPDR Fund (XLV) lost 1% Reflecting the most speculative stocks, the ARK Innovation ETF (ARKK) fell 3.5% and the ARK Genomics ETF (ARKG) 1.8%. Tesla’s stock remains the No. 1 stake in Ark Invest’s ETFs. Ark also has some Nio and XPEV shares. Five best Chinese stocks to watch now
AMD share
AMD shares fell 8.3% to 109.36 points, falling below the 50-day and 200-day moving averages. Barclays downgraded AMD shares on Thursday, fearing slower growth in its PC and gaming markets next year. On Monday, Goldman Sachs downgraded the chip maker. On March 24, AMD stock jumped above the 50-day and 200-day highs and broke a downtrend, offering an aggressive entry. But while such transactions can certainly work, they involve high risks.
Nvidia Stock
Nvidia shares, meanwhile, regained 200 days on March 17, a week before AMD. Shares rose on March 18 and then again on March 24 as the NVDA stock cleared some short-term resistance. These moves offered some first entries. On Thursday, the shares fell 1.5% to 272.86. While Nvidia competes with AMD in games and data centers, it’s not on PC chips. Nvidia’s stock could work on a handle, but that would be, at best, in the middle of a deep, undefined base. A handle would look more attractive if Nvidia went up to 300 or a little more.
Market Rally Analysis
The stock market rally fell for the second consecutive session. The Nasdaq has stopped just before its 200-day line. The Dow Jones fell below that level again and the S&P 500 returned to it. Although it is not fun to watch the indicators go down, this is still a normal and healthy action so far. Ideally, the market would move sideways or slightly lower for at least a few more days. That would help companies like Apple (AAPL), Tesla Shares or even Nvidia build handles – or return to uptrends. A market downturn that is just beginning to make investors nervous about the market or various stocks would most likely be positive – assuming upward momentum pays off. The market rally still seems broad-based, although the top sectors change daily. Market time with IBD ETF market strategy
What should we do now
The stock market rally looks healthy, but that does not mean you have to make many purchases right now. It’s probably a good time to sit back and watch, hold current positions and wait to see what the market and top stocks will do next. When a new market rally moves higher, the vast majority of shares will participate. A less warm rise and occasional departures will separate the leaders and the laggards. There aren’t many great settings right now, with many stocks expanding by outbursts or by running from below. Some names, such as Apple Stock, could be working on handles, but they are still days away. Create these watch lists so that you are ready if and when the market grows and the market signals flourish. Read the Big Picture every day to stay in sync with market direction and top stocks and industries. Follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more. YOU CAN ALSO LIKE: Why this IBD tool simplifies the search for top stocks Do you want to make quick profits and avoid big losses? Try SwingTrader The best growth stocks for buying and monitoring IBD Digital: Unlock IBD Premium stock lists, tools and analysis today Tesla Vs. BYD: Which Booming EV Giant is best to buy?
