Ford Motor Tops SP-500 Performance List

Ford Motor Co. (F) has surged to a 20-year high in the first week of 2022, joining rivals Tesla Inc. (TSLA) and General Motors Co. (GM) in the momentum wave generated by the electric vehicle revolution. It now stands atop the SP-500 performance list for the first time this century, marking the next step in restoring its diminished reputation. However, the rally seems premature, with December U.S. sales dropping 17.1% year-over-year from 2020’s depressed levels.

Industry-Leading Fourth Quarter

Admittedly, Ford was also America’s best-selling automaker in the fourth quarter, with 508,451 vehicles marking a 16.8% increase over the third quarter. Overall industry sales fell about 3% in the quarter, yielding a strongly bullish divergence that highlights growing interest in the company’s new product line. EV sales contributed to this sales burst, growing 36% faster than the broad segment in 2021 while hitting December and full-year sales records, with 121% annual growth.

The all-electric F-150 pickup is capturing consumer and Wall Street attention, with Ford announcing this week it will double production due to strong demand. The company had shut down reservations for the truck to deal with an “overwhelming response” and has now started to accept purchase orders once again. In addition, customers who already placed reservations will receive invitations to convert those requests into actual orders.

Wall Street and Technical Outlook

Wall Street consensus has deteriorated in the last 12 months, now standing at a ‘Moderate Buy’ rating based upon 11 ‘Buy’, 2 ‘Overweight’, 6 ‘Hold’, 1 ‘Underweight’, and 2 ‘Sell’ recommendations. Price targets currently range from a low of $12 to a Street-high $26 while the stock is set to open Thursday’s session less than $3 below the high target. This lofty placement suggests recent gains are unsustainable, which makes sense with industry sales still below pre-pandemic levels.

Ford topped out in the mid-teens in 2013 and entered a steep downtrend that hit an 11-year low in March 2020. The subsequent uptick reached 20-year horizontal resistance in the upper teens in November 2021 and broke out, stretching in a straight line into the mid-20s. This price level marks strong resistance at the .618 Fibonacci retracement level of the 1999 into 2008 downtrend, raising odds for a long overdue reversal and pullback that tests new support.

Catch up on the latest price action with our new ETF performance breakdown.

Disclosure: the author held no positions in aforementioned securities at the time of publication. 

Ford Wants to Double the Production of its Electric F-150 Lightning Pickup

Ford Motors is looking to boost the production of its electric vehicles and compete with industry leaders like Tesla.

Ford to Boost F-150 Production

Ford Motors announced earlier today that it plans to double the annual production capacity of its upcoming electric F-150 pickup. Currently, the company manufactures less than 100,000 of the pickups but wants to boost production to 150,000 by 2023.

Kumar Galhotra, Ford president of the Americas & international markets, told CNBC earlier today that the reception of the electric F-150 vehicle has been absolutely incredible. As a result, the car manufacturer intends to boost its production and make it available to more people.

The increase in the production of the electric F-150 by Ford shows the company’s desire to boost its presence in the electric vehicle sector. Tesla remains the industry leader, but Ford wants to provide stiff competition in the growing sector.

Ford’s production plans came after the company began to take orders again for its vehicles. The company had previously halted production at multiple factories due to the Coronavirus pandemic.

Ford is also spending big on modernizing some of its auto plants. Thus, showing the desire to become one of the biggest players in the electric vehicle sector.

Ford’s Stock Price Rallies by Over 11%

The shares of Ford are up by more than 11% since the US market opened a few hours ago. At press time, F is trading at $24.15, up by 11.03% over the past 24 hours. F has outperformed numerous auto manufacturing stocks over the past few months.

In 2021, Ford’s stock value rose by more than 180%, performing better than the likes of Tesla. Bank of America’s Securities analyst John Murphy increased Ford’s price target from $22 per share to $26.

Ford joins other car manufacturers like General Motors in expanding their presence in the electric vehicle sector.

Why Ford Stock Is Up By 9% Today

Ford Stock Rallies As Company Highlights Strong Demand For F-150 Lightning

Shares of Ford gained strong upside momentum after Ford reported that it would “nearly double all-electric F-150 Lightning production to 150,000 units annually”.

Ford also noted that it already had nearly 200,000 reservations for the vehicle, so the demand for F-150 Lightning is very strong. Ford added that more than 75% of reservation holders were new to the brand, which means that Ford may be gaining market share from its competitors.

Interestingly, the market looks concerned about Ford’s impact on the EV leader Tesla, whose shares are down by 4% today. Yesterday, Tesla stock rallied after the company released its Q4 production & deliveries report which exceeded market expectations. However, Tesla trades at an extremely rich valuation so the stock is sensitive to any material news about the success of its competitors.

What’s Next For Ford Stock?

Unlike Tesla, Ford is trading at reasonable valuation levels. Analysts expect that the company will report earnings of $1.99 per share in 2022, so Ford stock is trading at 12 forward P/E compared to 136 forward P/E for Tesla stock.

In this light, Ford stock may attract more value-oriented traders who are willing to bet on the strong growth of the EV segment but are not ready to buy stocks which are valued at more than 100 forward P/E.

For Tesla investors, Ford story is the one to watch closely as Ford may establish itself at the top position of the lucrative EV truck market segment, which may have a negative impact on the valuation of Tesla stock.

It should be noted that traders look interested in stocks of legacy automakers, so shares of General Motors have also enjoyed a strong rally in recent weeks. It remains to be seen whether it will be a “year of the legacy automaker” on the stock market, but it is possible that higher yields will push traders towards value stocks, which will be bullish for Ford and General Motors.

For a look at all of today’s economic events, check out our economic calendar.

Best ETFs For November 2021

October was a great month for markets. Given the up-and-down nature of this year, some people may think it’s time for a downward turn. I can’t predict what will happen tomorrow, much less a month from now or beyond (nobody can). But when thinking about the market going forward and reviewing the Big Money data, I like what I see.

Going to MAPsignals.com, we can scan Big Money ETF Buys and Sells. Big selling (red bars) led markets lower followed by huge buying (blue bars) lifting markets. This year has been wild, as you can see below. But we’re in a lift now, with minimal selling.

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Source: www.mapsignals.com

Long-term investors should look for ETFs (and their stocks), with great setups for the months ahead.

Remember: ETFs are just baskets of stocks, so we need to look at them in detail. MAPsignals specializes in scoring more than 6,000 stocks daily. If I know which stocks compose the ETFs, I can apply stock scores to the ETFs. Then I can rank them all strongest to weakest.

Let’s get to the 5 best ETF opportunities for November.

#1 Technology Select Sector SPDR Fund (XLK)

Technology stocks are hot. We see Big Money has been buying XLK this year, especially of late. The fresh buy signals are possibly a play to capitalize on the surging semiconductor sector:

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XLK holds solid stocks; one example is NVIDIA (NVDA). Here are Big Money signals for NVDA:

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#2 iShares PHLX Semiconductor ETF (SOXX)

Speaking of the semiconductor sector, it’s been on fire lately. An ETF play on the sector at large is SOXX, which contains THE JUICE – all the hottest names in semis. Big Money is there too, as you can see by all the green lines below:

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One great stock SOXX holds is Advanced Micro Devices, Inc. (AMD). It’s a long-time outlier with awesome fundamentals. Being around for multiple decades, the company has seen its share price fluctuate. But, as the multi-year chart below shows, when red appears on great stocks, it’s usually an opportunity:

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#3 SPDR Portfolio S&P 500 Growth ETF (SPYG)

The SPYG is a large-cap, growth-oriented ETF that holds some of the biggest names in the economy today. After a couple pullbacks over the past year, it’s rebounded substantially:

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One big winner within SPYG is Amazon.com, Inc. (AMZN). It’s an outlier stock:

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#4 Vanguard Small-Cap ETF (VB)

The first three ETFs were from the strong part of my ranked list. Now we look for bargains by identifying weaker ETFs holding stocks with strong fundamentals. Small-cap stocks were the stars leading the race as our economy began its recovery. While the momentum has dulled, VB shows we could be seeing a breakout:

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This ETF holds great stocks. One such winner is Entegris, Inc. (ENTG). Big Money loves it. The multi-year chart says don’t bet against it:

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#5 iShares MSCI USA Value Factor ETF (VLUE)

As happens with stocks, value stocks were darlings not too long ago, but now aren’t as much in favor. These are the situations that seasoned investors call opportunities. Some value stocks are moving the needle, making an ETF like VLUE a potentially nice play for a long-term investment:

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A great stock in VLUE that’s moving the needle is Ford Motor Company (F). Its push to become a full-on electric vehicle powerhouse is on. Big Money likes F, which helps make me a believer that stocks like these will recover and thrive:

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Here’s a Big Money recap:

  • When Big Money buying pours in, stocks tend to go up
  • Red selling on great quality can be a great opportunity
  • Repeated buying usually means outsized gains

Let’s summarize here:

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XLK, SOXX, and SPYG rank high. VB and VLUE however, rank lower on our list, due to weaker technicals. That’s why I think these weaker ETFs represent great potential bargains.

The Bottom Line

XLK, SOXX, SPYG, VB, and VLUE are my top ETFs for November 2021. October proved to be an outstanding month. But the remainder of 2021 can bring THE JUICE too (historically that’s been the case). Remember, volatility hits all stocks eventually. But, time helps them recover and thrive.

To learn more about MAPsignals’ Big Money process please visit: www.mapsignals.com

Disclosure: the author holds no positions in XLK, SOXX, SPYG, VB, VLUE, NVDA, AMD, AMZN, or F but holds long positions in ENTG in managed accounts at the time of publication.

Investment Research Disclaimer

https://mapsignals.com/contact/

 

Why Rivian Automotive Stock Is Set To Rally Today

Rivian Automotive Prices IPO Above Expected Range

Rivian Automotive priced its IPO at $78/share, so the company enters the marketplace with a valuation of $66.5 billion. In comparison, Ford is valued at $81 billion while General Motors has an $85 billion market cap. Previously, Rivian was expected to price its IPO at $72 – $74. It should be noted that premarket indications show that Rivian stock could open above the $120 level.

The company will raise $11.9 billion from the IPO, and it will have a lot of money to invest in its business. Traders and investors look ready to pay a major premium for the shares of the electric vehicle startup as they do not want to miss a high-growth story in a market that is trading near all-time high levels.

It should be noted that Rivian is supported by Amazon, which owns a roughly 20% stake in the company. Clearly, Amazon’s involvement serves as a material upside catalyst for Rivian shares as Amazon has the ambition to compete with Tesla in the EV market.

What’s Next For Rivian Stock?

The expected price range for Rivian’s IPO has been raised several times which highlights the strength of demand for the company’s stock.

There’s a lot of buzz around Rivian, and the stock has a decent opportunity to gain upside momentum in the upcoming trading sessions as many retail traders will likely rush to get a piece of another hot electric vehicle stock.

At this point, it’s too early to talk whether the valuation at IPO is justified, and the near-term direction of Rivian stock will depend solely on market sentiment.

The recent rally in Tesla shares showed that traders and investors are ready to pay a huge premium over stocks of traditional automakers, and Rivian stock will have an opportunity to ride the wave of investor enthusiasm. Traders should be prepared for fast moves as the stock will certainly experience elevated volatility in the next few weeks.

For a look at all of today’s economic events, check out our economic calendar.

Tesla Price Prediction: A Blow-off Top Followed by Epic Collapse

  • Hertz Announced an initial order of 100,000 Tesla’s to be filled by year-end 2022.
  • Tesla skyrocketed from a $913-billion market cap (October 22, 2021) to $1.21 trillion.
  • The bullish response added $300 billion, implying a $3-million price tag per vehicle ordered (not sold).

Tesla Daily Chart

Tesla shares skyrocketed above $1000 on the Hertz announcement. Tesla is now worth more than all the auto manufacturers combined. More on that later.

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Tesla Market Cap

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https://ycharts.com/companies/TSLA/market_cap

Gross Profit

Let’s say Tesla makes a generous $20,000 profit per vehicle ($20,000 X 100,000). That indicates a gross profit of $2 billion, far shy of the $300-billion increase. What is going on here?

Ford Motor Company

By comparison, Ford Motor Company currently sports a $72-billion market cap, so Tesla adding $300 billion in market cap is like adding four (4) Ford Motor Companies.

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https://ycharts.com/companies/F/market_cap

Major Auto Companies by Market Cap

Below is a quick rundown of all major auto manufacturers by current market cap. Tesla is worth more than all and sells less than 1% of the vehicles.

With a market cap of $1.21 trillion, TSLA is trading at a 25% premium above all auto manufacturers on the planet!

Tesla looks, acts, and smells like a bubble. The question is…when will it pop?

AG Thorson is a registered CMT and expert in technical analysis. He believes we are in the final stages of a global debt super-cycle. For regular updates, please visit here, or follow AG on Twitter at https://twitter.com/ag_thorson

Best Stocks, Crypto, and ETFs to Watch This Week – GME, Dogecoin and Invesco Solar ETF on the Spotlight

Gamestop Corp. (GME) filed a SEC disclosure after Friday’s close, noting the departure of Chief Operating Officer Jenna Owens after just eight months on the job. Owens, a former Amazon.com Inc. (AMZN) and Alphabet Inc. (GOOG) executive, was hired in March as part of GME’s highly-publicized ‘digital transformation’.  However, the company has offered few details about the initiative since that time and her departure may be viewed as a setback, encouraging shareholders to jump ship.

Investors have lost patience with Uber Technologies Inc. (UBER) after 2020’s strong run-up, contributing to a 14% year-to-date loss. Driver shortages, escalating ride-share fees, government catfights, and heavy food delivery competition may have taken a toll in the third quarter, raising odds for an aggressive ‘sell-the-news’ reaction after Thursday’s post-close report, when UBER is expected to post a 16-cent per-share loss.

Dogecoin (DOGE) rallied out of a deep basing pattern at 16 cents in August, topping out at 35 cents a few weeks later. It posted a higher low in September and bounced once again, nearly completing a 100% retracement into the prior peak on Thursday. The coin has been pulling back since that time but strong support around 25 cents should ease selling pressure, setting up a potential buying thrust that may complete a cup and handle breakout pattern, with an upside target just above 50 cents.

Watch Invesco Solar ETF (TAN) on Wednesday because the passage of President Biden’s massive infrastructure bill may depend on Tuesday’s hotly-contested gubernatorial election in Virginia. The sector has been trading in tandem with acrimonious negotiations for several months now, rallying 31% in the last 19 trading days. A Republican victory may be viewed as a mandate against big government spending, potentially shifting moderate Democratic votes to the ‘no’ column.

Ford Motor Co. (F) joined the EV bandwagon this year, announcing a series of initiatives to compete with better positioned rivals Tesla Inc. (TSLA) and General Motors Co. (GM). The automaker beat Q3 expectations and raised 2021 guidance last week, adding to an uptick that’s posted an impressive 94% 2021 year-to-date return. However, the stock is now approaching resistance going back to 2011, raising odds for a reversal and decline that could last for weeks or months.

For a look at this week’s economic events, check out our economic calendar.

Disclosure: the author held no positions in aforementioned securities at the time of publication.

Why Ford Stock Is Up By 10% Today

Ford Rallies On Strong Q3 Report

Shares of Ford moved to multi-year highs after the company reported its third-quarter results.

Ford reported revenue of $35.7 billion and adjusted earnings of $0.51 per share, easily beating analyst estimates on both earnings and revenue. The company’s revenue declined on a year-over-year basis, but it exceeded analyst estimates despite chip shortage that remained a problem for the whole industry.

The company stated that demand for its products was strong and that Ford should enjoy solid performance in North America as semiconductor volumes increase.

Ford decided to increase its full-year 2021 adjusted EBIT guidance to $10.5 billion – $11.5 billion. Full-year 2021 adjusted free cash flow guidance remained intact at $4 billion – $5 billion.

Importantly, the company announced that is board of directors reinstated quarterly dividend starting in Q4. Ford will pay a quarterly dividend of $0.1 per share, so the stock yields about 2.35% at current levels.

What’s Next For Ford Stock?

Ford stock moved higher in recent months despite worries about chip-related problems as the market focused on demand for Ford vehicles and the company’s ambition to build its presence in the EV market.

It looks that Tesla‘s rally also provided some support to the stock, which is trading at a huge discount to the leading EV play. Analysts expect that Ford will report earnings of $1.63 per share in 2021 and $1.87 per share in 2022, so the stock is trading at 9 forward P/E while Tesla is trading at an astronomical 136 forward P/E.

While it’s hard to expect that shares of a legacy automaker will suddenly begin to trade at a valuation of a hot tech stock, the huge gap will likely attract more value-oriented players, who will provide support to Ford stock. In addition, the dividend will put Ford on the radar of dividend-oriented individual investors and funds, although the current yield is not big.

For a look at all of today’s economic events, check out our economic calendar.

Why Ford Stock Is Up By 3% Today

Ford Stock Gains Ground As Tata Motors Is Reportedly Ready To Buy Ford’s Chennai Factory

Shares of Ford gained additional upside momentum after reports indicated that Tata Motors may take over the company’s Chennai factory.

The reports provided support to Ford stock as the company has previously announced its decision to restructure its India operations. According to Ford’s plans, manufacturing at Chennai engine and vehicle assembly plants was expected to wind down by Q2 2022.

Ford stated that it accumulated operating losses of more than $2 billion over the past 10 years, and restucturing was necessary to create a profitable business in India.

In this light, a successful sale of the Chennai unit should serve as a material positive catalyst for Ford stock. While the current move of the stock is based on a report rather than on an official announcement, the deal looks logical and has decent chances to go through.

What’s Next For Ford Stock?

Ford stock has been under pressure for several months amid worries about lower sales due to global chip shortage. However, the market has managed to focus on Ford’s plans in the electic vehicle space, and the company’s shares gained some upside momentum at the end of September.

Currently, analysts expect that Ford will report earnings of $1.57 per share in the current year and $1.87 per share in the next year, so the stock is trading at 8 forward P/E which is cheap for the current market environment.

The key question for Ford investors is whether the market will start to pay attention to electric vehicle plans of legacy automakers. At this point, the valuation gap between legacy automakers and electric vehicle leader Tesla is astronomical. If this gap begins to close, Ford stock will be able to develop strong upside momentum and move to multi-year highs.

For a look at all of today’s economic events, check out our economic calendar.

Wall Street Stumbles on Rising Treasury Yields, Inflation Worries

All three major U.S. stock indexes slid nearly 2% or more, with interest rate sensitive tech and tech-adjacent stocks weighing heaviest as investors lost their risk appetite.

The S&P 500 index and the Nasdaq Composite index were on track for their largest monthly declines since September 2020.

“The big picture is the sudden surge in the past week of yields, which has led to a ‘sell first, ask questions later’ mentality,” Ryan Detrick, senior market strategist at LPL Financial in Charlotte, North Carolina.

“(But) there are multiple factors weighing on sentiment today,” Detrick added. “The back-and-forth in Washington with the debt ceiling and the spending bill and potential higher taxes have weighed on overall investor psyche and has led to a pretty good sized sell-off.”

The benchmark index was also setting a course for its weakest quarterly performance since the COVID pandemic brought the global economy to its knees.

Weakness pervaded across most asset classes, including gold, suggesting widespread risk-off sentiment.

U.S. Treasury yields continued rising, to the highest level since June, as inflation expectations heated up and fears grew that the U.S. Federal Reserve could shorten its timeline for tightening its monetary policy.

Treasury Secretary Janet Yellen said she expected inflation to end 2021 near 4% and warned lawmakers their failure to avert a government shutdown as the nation moves closer to exhausting its borrowing capabilities could cause “serious harm” to the economy.

Senate Republicans appeared set to strike down Democrats’ efforts to extend the government’s borrowing authority and avoid a potential U.S. credit default.

A Conference Board report showed consumer confidence weakened unexpectedly in September to the lowest level since February.

Unofficially, the Dow Jones Industrial Average fell 565.16 points, or 1.62%, to 34,304.21, the S&P 500 lost 90.34 points, or 2.03%, to 4,352.77 and the Nasdaq Composite dropped 420.41 points, or 2.81%, to 14,549.56.

Among the 11 major sectors of the S&P 500, all but energy ended red, with tech and communications services suffering the steepest percentage losses.

Apple Inc, Microsoft Corp, Amazon.com Inc and Alphabet Inc weighed heaviest on the S&P and Nasdaq.

Ford Motor Co was one of the few bright spots, advancing on news that it would join Korean battery partner SK Innovation to invest $11.4 billion to build an electric F-150 assembly plant and three U.S. battery plants.

For a look at all of today’s economic events, check out our economic calendar.

(Reporting by Stephen Culp; Additional reporting by Noel Randewich in New York and Devik Jain in Bengaluru; Editing by Richard Chang)

S&P Ends Modestly Lower as Rising Treasury Yields Offset Robust Retail Data

The three major indexes spent much of the day in negative territory as rising U.S. Treasury yields pressured market-leading tech stocks, and the rising dollar weighed on exporters.

Amazon.com Inc, buoyed by solid online sales in the Commerce Department’s report, helped push the Nasdaq into positive territory.

“Looking at today, clearly we had positive news from retail sales and it looks as if the massive slowdown in the economy is not materializing as a lot of people expected,” said Ryan Detrick, senior market strategist at LPL Financial in Charlotte, North Carolina.

“It’s a nice reminder that the economy is still taking two steps forward for each step back even amid the COVID concerns,” Detrick added.

Economically sensitive transports and microchips were among the outperformers.

Data released before the opening bell showed an unexpected bump in retail sales as shoppers weathered Hurricane Ida and the COVID Delta variant, evidence of resilience in the consumer, who contributes about 70% to U.S. economic growth.

“Once again, it shows the U.S. consumer continues to spend and continues to help this economy grow,” Detrick said.

The Dow Jones Industrial Average fell 63.07 points, or 0.18%, to 34,751.32; the S&P 500 lost 6.95 points, or 0.16%, at 4,473.75; and the Nasdaq Composite added 20.40 points, or 0.13%, at 15,181.92.

Eight of the 11 major sectors in the S&P 500 ended lower, with materials suffering the largest percentage drop.

The consumer discretionary spending sector posted the biggest gain, with Amazon.com doing the heavy lifting.

Apparel company Gap Inc gained 1.6%. Online marketplace Etsy Inc and luxury accessory company Tapestry Inc rose 3.1% and 1.9%, respectively.

Ford Motor Co rose 1.4% after it announced plans to boost production of its F-150 electric pickup model.

Declining issues outnumbered advancing ones on the NYSE by a 1.27-to-1 ratio; on Nasdaq, a 1.06-to-1 ratio favored advancers.

The S&P 500 posted nine new 52-week highs and one new low; the Nasdaq Composite recorded 82 new highs and 94 new lows.

Volume on U.S. exchanges was 9.37 billion shares, compared with the 9.44 billion average over the last 20 trading days.

For a look at all of today’s economic events, check out our economic calendar.

(Reporting by Stephen Culp; Additional reporting by Ambar Warrick in Bengaluru; Editing by Richard Chang)

GM to Cut North American Production, Citing Chip Shortage

The largest U.S. automaker will halt production next week at its Fort Wayne plant in Indiana and its Silao plant in Mexico, both of which build pickup trucks. In total, GM is cutting production at eight North American assembly plants in September.

The industry-wide chip shortage is causing massive auto production cuts around the globe and auto industry officials say the problem is getting worse.

GM shares were largely unchanged in late trading Thursday.

Earlier this week, Ford Motor Co said it will also cut truck production next week because of the chips shortage and said its August U.S. sales were down 33% on the chip shortage. Toyota Motor Corp said last month it will slash global production for September by 40% from its previous plan.

GM will halt production at its Wentzville, Missouri plant for two weeks starting Sept. 6 that builds midsize trucks and full-size vans. GM will also halt production at the CAMI Assembly in Canada and San Luis Potosi Assembly in Mexico for two additional weeks. The company builds its Equinox SUV at both plants.

The automaker is also idling production for two additional weeks at its Lansing Delta Township plant that builds the Chevrolet Traverse and the Buick Enclave.

GM will cut two weeks of production in September at the Spring Hill Tennessee plant that builds the GMC Acadia, Cadillac XT5 and Cadillac XT6. Its Ramos, Mexico plant will take two additional weeks of downtime for Blazer production, while Equinox production will be down through the week of Sept. 27.

Production of the Equinox has been down since Aug. 16.

Democratic Senator Mark Warner said the “continuing impact of the chip shortage – epitomized most recently in the news that GM will be forced to idle plants across North America – speaks to the urgency of passing bipartisan legislation to fund new semiconductor production in the United States.”

GM said during production downtime it will repair and ship unfinished vehicles from many impacted plants, including Fort Wayne and Silao.

For a look at all of today’s economic events, check out our economic calendar.

(Reporting by David ShepardsonEditing by David Evans and Chizu Nomiyama)

Today’s Market Wrap Up and a Glimpse Into Friday

Stocks turned lower on the heels of a record session for the S&P 500 and Nasdaq. Today the Dow Jones Industrial Average fell nearly 200 points while the S&P 500 and tech-heavy Nasdaq each fell about 0.6%.

The mood on Wall Street went south after a development out of Kabul in which U.S. troops and Afghans were killed in an explosion at the airport. Investors are also watching and waiting for Federal Reserve Chairman Jerome Powell to tip his hand on economic stimulus and inflation at the Jackson Hole symposium on Friday.

Stock index futures flipped green in extended-hours trading. The Dow, S&P 500 and Nasdaq all reclaimed some ground ahead of Friday’s session with all eyes on Jackson Hole.

Stocks to Watch

  • Shares of apparel retailer The Gap are rallying 6% in after-hours trading on better-than-expected quarterly results. Sales rose to more than USD 4 billion and The Gap also raised its full-year earnings outlook despite supply chain issues, the threat of the delta variant and inflation risks.
  • Southwest Airlines is trading lower after the company announced it would be slashing the number of flights starting next month. The company is changing its schedule in response to backlash from staff who were spread too thin. Southwest had already been suffering from weaker demand as a result of a spike in COVID cases.
  • Shares of meme stock AMC Entertainment tumbled 8% on the day. Shares were starting to recover with modest gains in the after-hours market and no clear catalyst either way.
  • Shares of U.S. automaker Ford fell 2% seemingly in response to chip problems that continue to plague the industry.
  • A technical glitch allowed FBI agents to view secret evidence data using Palantir Technologies software that they would otherwise not have been permitted to see.  On social media, users were quick to defend Palantir and blame the agents. Shares of Palantir gained 2% on the day.

Look Ahead

The Federal Reserve’s Jackson Hole meeting is in focus in anticipation of chairman Powell’s speech. The theme of this year’s symposium, which will take place virtually, is “Macroeconomic Policy in an Uneven Economy.”

Despite Thursday’s declines, the three major stock market indices are poised to finish the month of August with gains.

Today’s Market Wrap Up and a Glimpse Into Thursday

Stocks finished the day mixed after the Fed revealed that the economy is on track for employment and inflation. The Dow Jones Industrial Average and S&P 500 were each down fractionally, while the tech-heavy Nasdaq added 100 points to end modestly higher.

As the economy continues on the path to recovery, the Fed tipped its hand, saying it would begin to pull back from its asset purchasing activity. The major indices still remain close to all-time high levels.

One winner in the Dow was Boeing, which surprised Wall Street by swinging to a profit for the first time almost in two years.

Stocks to Watch

The tech earnings parade rolled on, with Facebook taking the spotlight today. Mark Zuckerberg’s company sees 3.51 billion people flock to its platforms,  including Facebook, Instagram, Messenger and Whatsapp, each month, up 12% YoY.

Facebook’s Q2 revenue came in at USD 29.08 billion, continuing a trend that Google, Microsoft and Apple similarly experienced in the quarter. While Facebook’s Q2 results topped Wall Street’s estimates, revenue growth is not expected to be sustained at these levels, the company warned.

PayPal bucked the positive trend in corporate America after its Q2 results disappointed. Worse, the payments company isn’t expecting things to get much better for Q3. Investors punished the stock in extended hours, sending shares lower by about 6%.

Ford shares found a reason to rally thanks to a stronger than expected Q2 in which the company was profitable. The automaker lifted its Q3 forecast on the heels of robust demand for its Ford Bronco SUV.

Shares of cannabis company Tilray climbed more than 25% in the wake of a profitable fiscal Q4. Tilray CEO Irwin Simon sees a world in which marijuana will become legalized at the federal level in the U.S. in the next 18-24 months.

Look Ahead

On Thursday, an advance look at GDP comes out at 8:30 a.m. ET. Wells Fargo economists predict that the economy grew at an annualized pace of 9.1% in the quarter. The economy has come a long way since last year’s pandemic-fueled contraction, which lasted for two months. The economists forecast that consumer spending and business investments were strong in Q2, while supply chain constraints persisted.

Amazon’s earnings come out on Thursday. Bitcoin investors might be listening to the call to hear if the company addresses the recent crypto-related drama.

Today’s Market Wrap Up and a Glimpse Into Thursday

Another day, another new all-time high for the S&P 500. The broader market index just set its fifth-straight record after finishing the day fractionally higher to just under 4,300. The Nasdaq failed to keep up and ended the day slightly lower, while the Dow Jones Industrial Average tacked on 210 points, with Boeing, Goldman Sachs and Walmart leading the gains.

Now that the month of June is in the rear-view mirror, it’s clear investors have managed to push stocks to impressive gains despite signs of inflation and lofty valuations. The S&P 500 and Dow are up roughly 14% and close to 13%, respectively, year-to-date.

The economy is humming along, with consumers exhibiting signs of resilience. For the back half of the year, however, investors will be weighing whether the economy can stand on its own two feet without the help of a dovish Fed. This will begin with Friday’s all-important employment report.

Stocks on the Move

When you hear that an electric vehicle stock is rallying, you would not be alone to guess Tesla. Today, however, that title went to NIO, a Shanghai-based EV maker. The stock gained nearly 6% on the day amid optimistic investors ahead of the company’s Q2 results coupled with China’s recovering economy. Wall Street analysts are also reportedly turning more bullish on the stock.

Sticking with the auto stock theme, shares of Ford fell 1% today. The company revealed it would suspend operations at some of its North American facilities due to a shortage of chips. The shutdown will cost the automaker upwards of USD 2 billion and slash its production significantly in the interim.

China’s ride-share company Didi made its debut on the U.S. stock market today. The ADR shares came out of the gate strong, rallying by a double-digit percentage, but the enthusiasm didn’t last. Didi finished the day with a gain of 1%.

Look Ahead

The ISM Manufacturing index for June comes out after surpassing estimates and climbing to 61.2 in May. Wells Fargo predicts the reading will stay “elevated” for June amid a strong orders pipeline.

On the earnings front, retailer Walgreens and spice maker McCormick are on deck. McCormick has benefited from rising demand as consumers spent more time cooking during the shift to staying at home during the health crisis.

Could This Be The End? Lordstown Motors Says It Could Go Out Of Business

Startup electric-car manufacturer Lordstown Motors warned that it might be forced out of business as it is running low on cash. The company’s stock has been plummeting since then, and it could sustain further losses in the coming hours.

Lordstown Motors is going bankrupt

Lordstown Motors, an electric vehicle manufacturer in Ohio, has revealed that it could go out of business soon if it doesn’t get additional funding. The company stated that its ability to stay in business depends on completing the development of its electric vehicles, obtaining regulatory approval, starting commercial-scale production and launching the sale of such vehicles. The company can only achieve this with additional funding.

In its SEC filing, Lordstown Motors revealed that it had $259.7 million in cash left as of March 31. The company recorded a loss of $125.2 million in the past three months. When contacted by CNN, Lordstown Motors declined to comment beyond the statement in its SEC filing. The company maintains that it is focused on starting production in a few months.

Analysts have questioned the company’s viability in recent months. Hindenburg Research predicted that Lordstown Motors’ stock price would decline after questioning the validity of the contracts the company was telling investors it had.

Lordstown Motors’ stock price has taken a hit

The company’s stock price has taken a hit since it announced that it could soon go out of business. At the time of this report, Lordstown Motors’ stock price is down by 9%. The stock is currently trading at $9.86 per share, down from $15 yesterday. Overall, the stock price is down by 37% since its announcement yesterday.

<em>Lordstown’s stock chart. Source: </em><a href="https://www.fxempire.com/stocks/ride/chart"><em>FXEMPIRE</em></a>
Lordstown’s stock chart. Source: FXEMPIRE

The electric car industry is becoming more competitive as the traditional vehicle manufacturers are now making their way into the sector. Ford recently launched the electric version of its F-150, one of the best-selling pickups in the United States. Tesla, the leading electric car manufacturer, is also set to start production of its Cybertruck later this year. The massive competition in the electric car industry could affect the performance of startups like Lordstown Motors in both the long and short term.

Ford’s Electric Mustang Tops Norway Car Sales in May

By Terje Solsvik

Battery electric vehicles made up 60.4% of all new cars sold in Norway last month, the Norwegian Road Federation (OFV) said, up from 43.1% a year ago as the country seeks to become the first to end the sale of petrol and diesel engines by 2025.

By exempting fully electric vehicles from taxes imposed on internal combustion engines, Norway has turned its car market into a testing ground for automakers seeking a path to a future without fossil fuels.

A total of 1,384 electric Ford Mustangs were registered in May for a 10% share of Norway’s overall car market, ahead of Toyota’s RAV4 hybrid vehicle and Skoda’s electric Enyaq. Tesla Inc’s Model 3 took sixth place.

“Our realistic goal is to remain prominent in the sales statistics for several months to come,” Chief Executive Per Gunnar Berg of Ford Motor Norway said in a statement.

In 2020, electric cars grabbed a 54% share of the overall Norwegian market, outselling the combined volume of petrol, diesel and hybrid engines for the first time on a full-year basis.

By contrast, cars with diesel-only engines have tumbled from a peak of 75.7% of the Norwegian market in 2011 to just 8.6% last year.

The introduction of new models will frequently give a brand a boost as pre-orders are shipped in large numbers, such as the 2019 launch of Tesla’s Model 3, the top selling car in Norway that year.

Ford first presented its Mustang Mach-E to the public in late 2019, giving the U.S. automaker well over a year to build a backlog of orders before customers could receive them.

Ford earlier this year said its car line-up in Europe will be all-electric by 2030.

(Editing by Gwladys Fouche and David Evans)

Ford Motor Trading at Five-Year High

Ford Motor Co. (F) is trading at a five-year high on Thursday following a well-received Investors’ Day presentation that unveiled a major turnaround plan to address the company’s electric future. A RBC Markets upgrade has added to growing bullishness, triggering a breakout above March resistance at 13.62. The uptick raises hopes the company will play now catch-up with outsized returns at rivals Tesla Inc. (TSLA) and General Motors Co. (GM).

Shift Into Electric Vehicle Era

The automaker will invest more than $30 billion in electric vehicle research and production and is looking for EV to comprise up to 40% of all sales by 2030. It will invest part of those funds in battery technology, creating Ford Ion Park, which will include “more than 150 experts in battery chemistries, testing, manufacturing and value-chain management, who will boost battery range and lower costs to customers and Ford”.

RBC Capital Markets upgraded the stock to ‘Outperform’ and raised their target to $17 after the event, noting the plan addresses long-term concerns about the automaker’s shift into electric vehicles. Analyst Joseph Spak provided upbeat commentary on the long-term outlook, noting “we have more confidence in financial targets, concerns over BEV strategy were addressed, numbers are likely moving higher, and the stock is still not overly expensive.”

Wall Street and Technical Outlook

Wall Street consensus stands at an ‘Overweight’ rating based upon 8 ‘Buy’, 1 ‘Overweight’, 11 ‘Hold’, and 1 ‘Sell’ recommendation. Price targets currently range from a low of $9.00 to a Street-high $17 while the stock is set to open Thursday’s session about $1.25 above the median $13 target.  There isn’t much wiggle room for traders to book profits in this sleepy configuration but it could mark a major opportunity for long-term investors.

Ford hit an all-time high in the upper 30s in 1999 and rolled into a 9-year decline that ended near a buck in 2008. The subsequent rally stalled in the upper teens in 2011, ahead of persistent downside that cratered to an 11-year low in March 2020. The stock rallied above a massive trendline of lower highs in January 2021, signaling the first uptrend since 2009. However, the advance is now headed toward heavy resistance in the upper teens, limiting upside potential.

For a look at all of today’s economic events, check out our economic calendar.

Disclosure: the author held no positions in aforementioned securities at the time of publication. 

Why Ford Stock Is Up By 8% Today

Ford Video 26.05.21.

Ford Stock Gains Ground After Company Announces Ambitious EV Plans

Shares of Ford gained strong upside momentum after the company stated that 40% of its global vehicle volume would be all-electric by 2030. Other electric vehicle stocks also moved higher after this announcement.

Ford plans to invest more than $30 billion by 2025 to reach its goal on the electric vehicle front. The company has also announced the creation of Ford Pro vehicle services and distribution business which will be focused on commercial and government customers.

Ford’s electric F-150 Lightning enjoyed strong customer demand, and the company is ready to bet on the strong expansion of electric vehicles’ market share. The market is pleased with the company’s ambitions, and shares of Ford are gaining more than 8% during today’s trading session.

What’s Next For Ford Stock?

Ford stock started the year below the $9 level but quickly gained upside momentum and is currently trying to settle above the $14 level.

The shares have recently suffered a setback after the company announced that it would lose about 50% of its planned second-quarter production due to chip shortage, but the stock managed to get back to the upside mode after it became obvious that demand for F-150 Lightning was strong.

The recent strategic announcements served as additional bullish catalyst for Ford stock. Analysts expect that the company will report earnings of $1.67 per share in 2022, and earnings estimates have been moving higher in recent months. At current stock price levels, Ford is trading at about 8 forward P/E which is much cheaper than the valuation of its all-electric peers.

If the market sees that Ford’s EV ambitions are achievable, the stock may enjoy significant multiple expansion, which will push Ford’s shares to new highs. I’d note that traders may not start questioning whether Tesla is worth almost 100 forward P/E when Ford is trading at less than 10 forward P/E in the current market environment, but such questions will arise when the interest rates start to move higher.

For a look at all of today’s economic events, check out our economic calendar.

Ford Follows GM, VW With Two New Dedicated EV Platforms by 2025

By Paul Lienert and Ben Klayman

The all-EV platforms are part of an ambitious multi-year, multi-billion-dollar plan the No. 2 U.S. automaker will outline to investors at its Capital Markets Day in an online event.

The dedicated platforms will give Ford common architectures — including shared chassis components, electric motors and battery packs — on which to base many of its future electric vehicles. That will enable it to simplify and reduce the expense of everything from logistics to manufacturing as it transitions from a global lineup of mostly fossil-fueled products.

Ford said it does not comment on future product speculation.

At Wednesday’s investor event, the company also will provide more details on its long-range battery strategy, including a recently announced battery joint venture with Korea’s SK Innovation, as well as broader goals for electric, commercial and self-driving vehicles, said the sources, who asked not to be named.

Ford previously said it will spend $22 billion through 2025 on electrifying many of its vehicles in the Americas, Europe and China. The sources said Ford is planning to launch at least nine all-electric cars and car-based SUVs and at least three electric trucks, vans and larger SUVs, including second-generation editions of the Ford F-150 Lightning and Mustang Mach-E at mid-decade.

What Ford Chief Executive Jim Farley cannot predict, however, is whether — and how many — customers will embrace the newer battery-powered vehicles, even if they are able to match or beat current combustion-engine counterparts in price, performance and operating costs. That concern is shared by nearly all automakers except Tesla, whose lineup is 100% electric.

Ford’s traditional rivals have sprinted ahead, with both VW and GM committing tens of billions of dollars to electrify their fleets in the same markets as Ford, but on more aggressive timetables. VW and GM each will have at least two dedicated EV platforms, on which many of their future vehicles will be based.

VW launched the first of its all-new electric vehicles, the ID.3, last year in Europe, while GM will begin building its new Hummer EV pickup later this year in the United States. Both companies also are rolling out additional EV models that will share key components with those vehicles.

Ford earlier this year introduced the Mustang Mach-E, an electric crossover built on a new dedicated platform with the internal designation GE, the sources said.

A newer version of that platform, designated GE2, will debut in mid-2023, underpinning new Ford and Lincoln SUVs, according to Sam Fiorani, head of global forecasting at AutoForecast Solutions.

The same GE2 platform eventually will be used as the base for replacements for the Mustang coupe and Mach-E, the sources said.

Ford will use a second passenger car platform — a version of Volkswagen’s MEB architecture — in Europe for at least two new models beginning in 2023, the sources said.

In February, Ford said its European lineup will be all-electric by 2030.

The redesigned F-150 Lightning, due in late 2025, is expected to be the first to employ the new TE1 truck architecture, Fiorani said. The first-generation Lightning, which debuts next spring, uses a platform that is heavily derived from the standard F-150.

Ford could also use the new TE1 platform for electric versions of the Lincoln Navigator and Ford Expedition SUVs, the sources said.

In addition, Ford is expected to get a new electric vehicle, possibly a midsize pickup, that would be based on a platform from EV startup Rivian, in which Ford is an investor.

(Reporting by Paul Lienert and Ben Klayman in Detroit; Editing by Dan Grebler)