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Dow Jones Futures: Market Rally Gains Steam; Nvidia, Google, GE Are Buys; Nio, Tesla Rivals On Tap

May 31 2021
Dow Jones futures were little changed Monday morning, along with S&P 500 futures and Nasdaq futures. The stock market rally continued to strengthen last week, with more breakouts and buying opportunities picking up. But investors should step cautiously, ready to act in a still-tricky market.
Goldman Sachs stock, Nvidia (NVDA), Google-parent Alphabet (GOOGL) and General Electric (GE) are all in buy range.
Nvidia stock and Google are on IBD Leaderboard. Goldman Sachs (GS) is on SwingTrader and the IBD 50.

Nio, Tesla EV Rivals To Report Sales

Xpeng (XPEV), Li Auto (LI) and BYD Co. (BYDDF) are expected to release May production and delivery figures next week, perhaps as soon as June 1. Can Nio and its China EV rivals take advantage of Tesla (TSLA) woes in that huge auto maker? Or will chip shortages stymie their expansion plans?
Nio in particular has warned that chip woes will limit production in Q2. Xpeng and Li Auto, which reported earnings last week, see sequential growth in the second quarter.
Tesla's China sales for May will come later in June from industry reports. In April, Tesla's China sales plunged by nearly two thirds. It's unclear if that reflected weak demand amid a China consumer backlash, fanned by state media, or production limits due to chip or battery shortages. China has been Tesla's main growth driver over the past year, so an extended retreat would be a major blow for the EV giant.
Nio stock reclaimed its 50-day line last week, along with Xpeng, Li Auto and BYD, but all are still far below old highs. Tesla stock reclaimed its 200-day moving average, moving back toward its 50-day.

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