Dow Jones futures and S&P 500 futures fell slightly Monday morning, while Nasdaq futures nudged higher. Tesla jumped on strong deliveries, with shares of China EV rivals Li Auto Nio and XPeng also making big gains on sales.
The stock market rally rebounded last week, with the S&P 500 back to 14-month highs and the Nasdaq nearly so. Apple closed Friday with a $3 trillion market cap, though shares edged lower Monday on reports of production issues for its Vision Pro mixed-reality headset.
AstraZeneca fell solidly after releasing disappointing results from a phase 3 lung cancer study.
Tesla stock is on IBD Leaderboard.
Dow Jones Futures
Dow Jones futures lost 0.15% vs. fair value. S&P 500 futures fell slightly and Nasdaq 100 futures just edged higher. Tesla stock is giving a boost to the S&P 500 and especially the Nasdaq 100.
The 10-year Treasury yield climbed 3 basis points to 3.85%.
Crude oil climbed more than 1%.
U.S. stock markets will close at 1 p.m. ET today, with bond markets closing at 2 p.m. ET. Financial markets will be closed on Tuesday for Independence Day.
Stock Market Rally
The Dow Jones Industrial Average popped 2% in last week's stock market trading. The S&P 500 index jumped 2.35% and the Nasdaq composite advanced 2.2%. The small-cap Russell 2000 leapt 3.7%.
Leading stocks broke out or flashed buy signals in significant numbers last week.
The only concern? The Nasdaq composite closed Friday at 7.6% above its 50-day line, while the Nasdaq 100 is 8.3% above that key level. That's raising the risk of yet another pullback.
Tesla Deliveries Hit Record
Tesla deliveries jumped to 466,140 in the second quarter, up from Q1's record 422,875 and Q4's 405,278. That sprinted past Q2 estimates of around 445,000, according to FactSet.
Model 3 and Y deliveries hit 446,915 in Q2. Model S and X deliveries picked up to 19,225.
After huge price cuts worldwide in Q1, Tesla made some official price cuts and a few modest price hikes in Q2. But it offered substantial discounts on inventory, along with other incentives that could further pressure gross margins.
Production hit 479,700, exceeding deliveries once again, even with Tesla curbing output below capacity. That suggests Tesla will need to keep cutting prices, especially if it wants to increase deliveries.
Tesla stock jumped 6% in premarket trading.
Shares rose 2% to 261.77 last week. TSLA stock has more than doubled in 2023 and is well extended from recent buy points.
China EV Sales
Li Auto reported June sales of 32,575, topping 30,000 for the first time. Deliveries soared 150% from a year earlier and 15.2% vs. May.
Nio deliveries jumped 74% to 10,707 vehicles from May's 6,155, but they fell 17.4% vs. a year earlier. Sales are picking up on price cuts as well new or totally revamped models.
Xpeng delivered 8,620 vehicles in June, up 14.8% vs. May and the fifth straight month-to-month gain. But sales dived 44% vs. a year earlier.
EV and battery giant BYD sold 253,046 vehicles in June, up 88% vs. a year earlier and from 240,220 in May and 210,295 in April. Of the 251,685 passenger vehicles, BYD sold 128,196 battery electric vehicles (BEVs).
Li Auto stock jumped 6% and Nio gained 4% early Monday, while XPeng raced 7% higher. All three China EV startups had big gains last week, especially XPEV stock.
BYD stock, which trades over the counter in the U.S., was not yet active. But strong gains in Hong Kong suggest at least a positive open. BYD stock is in a buy zone.
Apple Stock
AAPL stock rose 3.9% last week and 49% in the first half of the year, giving it a $3.05 trillion market cap.
Apple stock lost a fraction in premarket trading.
The Dow Jones tech titan is slashing Vision Pro production forecasts, according to the Financial Times. Apple had aimed to ship 1 million units Vision Pro headsets in 2024, but supply-chain woes and the headset's complexity may mean that shipments are less than half that for the $3,500 Vision Pro.
Separately, Goldman Sachs reportedly is trying to hand over its partnership with Apple, including an Apple credit card, to American Express. GS stock and American Express were little changed before the open.
Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.
