Category Archives: Business

Business

Tesla CEO donates to carbon capture technology prize

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GRUENHEIDE, GERMANY – SEPTEMBER 03: Tesla head Elon Musk talks to the press as he arrives to to have a look at the construction site of the new Tesla Gigafactory near Berlin on September 03, 2020 near Gruenheide, Germany. Musk is currently in Germany where he met with vaccine maker CureVac on Tuesday, with which Tesla has a cooperation to build devices for producing RNA vaccines, as well as German Economy Minister Peter Altmaier yesterday.

Maja Hitij | Getty Images

Tesla and SpaceX CEO Elon Musk has announced that he is donating $100 million towards a prize for the best technology that can capture carbon dioxide.

Musk, who overtook Amazon founder Jeff Bezos to become the world’s richest person this month, made the announcement on Twitter late Thursday, saying he would share more details next week.

“Am donating $100M towards a prize for best carbon capture technology,” Musk tweeted to his 42.7 million followers.

Carbon capture is the process of trapping waste carbon dioxide either directly from the air, or just before it gets emitted from factories and power plants.

With the latter, the first step is often to install solvent filters on factory chimneys, which catch the carbon emissions before they’re released into the Earth’s atmosphere. Once captured, carbon dioxide can then be shipped or piped somewhere it can’t escape from (often deep underground) to prevent it contributing to global warming.

Most of the captured carbon dioxide remains underground, but some of it can also used to make plastics and fizzy drinks.

Why is carbon capture needed?

Global carbon dioxide emissions have soared over the last 100 years, leading to unprecedented global warming and climate change.

There are currently around 20 carbon capture, usage and storage (CCUS) projects operating commercially worldwide, according to the International Energy Agency.

The agency said that 30 new projects had been agreed since 2017, but stressed that many more were needed to prevent carbon emissions from raising the temperature on Earth by more than 1.5 degrees Celsius above pre-industrial levels.

The IEA believes CCUS projects could reduce carbon emissions by almost a fifth, while also slashing the cost of tackling the climate crisis by 70%. Adapting heavy industry to run on clean energy is relatively difficult and expensive compared to installing carbon capture systems.

U.S. President Joe Biden has pledged to put more of a focus on cutting emissions than his predecessor and said he wants the U.S. to be carbon neutral by 2050.

‘Plant more trees’

The prize that Musk has said he will contribute to is connected to the Xprize Foundation, TechCrunch reported, citing an anonymous source. The foundation is a nonprofit that puts on competitions to promote and support innovation.

According to the Bloomberg Billionaire Index, Musk has a total net worth of $201 billion, while Bezos has $193 billion. Microsoft founder Bill Gates is the next wealthiest person, with a total net worth of $134 billion.

Musk recently asked his Twitter followers what he should do with his money.

“Critical feedback is always super appreciated, as well as ways to donate money that really make a difference (way harder than it seems),” he tweeted Jan. 8.

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Business

Eurozone Flash PMIs January 2020: Business activity shrinks again

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A man over 75 years receives a coronavirus (Covid-19) vaccine shot in Strasbourg, France.

Anadolu Agency | Anadolu Agency | Getty Images

LONDON — Business activity in the euro zone fell to a two-month low in January, preliminary data showed on Friday, on the back of stricter coronavirus-related lockdowns.

The region is grappling with growing Covid-19 infection rates and tighter restrictions as new strains of the virus spread, causing further economic pain.

Markit’s flash composite PMI for the euro zone, which looks at activity across both manufacturing and services, dropped to 47.5 January, versus 49.1 in December. A reading below 50 represents a contraction in activity.

Chris Williamson, chief business economist at IHS Markit, said a double-dip recession for the euro zone was looking “increasingly inevitable.”

“Tighter Covid-19 restrictions took a further toll on businesses in January,” he said in a statement.

“Output fell at an increased rate, led by worsening conditions in the service sector and a weakening of manufacturing growth to the lowest seen so far in the sector’s seven-month recovery.”

European Central Bank President Christine Lagarde acknowledged on Thursday that the pandemic still posed “serious risks” to the euro zone economy.

In addition to the new Covid variants, there are also concerns over a slow vaccination roll-out across the European Union.

“In this environment ample monetary stimulus remains essential,” Lagarde said. The ECB decided at a meeting on Thursday to keep interest rates and its wider stimulus programs unchanged for now, having boosted its support in December.

The ECB expects the euro zone’s GDP (gross domestic product) to expand by 3.9% in 2021, and 2.1% in 2022. This is after a contraction of 7.3% last year. However, these forecasts are dependent on the evolution of the pandemic.

France hires more

Earlier, France’s business activity data also came in at a two-month low, reflecting the imposition of stricter curfews across the country. The country’s composite PMI for January was 47, making a contraction.

However, French businesses hired more employees in January — the first increase in job figures in almost a year.

“The fact that firms have returned to recruitment activity points to some confidence in an economic recovery in the second half of this year,” Eliot Kerr, economist at IHS Markit said, in a statement.

In Germany, business activity managed to grow slightly in January, with the flash composite output index coming in at 50.8. However, the reading represented a seven-month low for Europe’s economic engine.

Phil Smith, associate director at IHS Markit, highlighted a slower momentum in manufacturing activity in the country, and a continued hit to the services sector during January.

“All in all, the German economy has made a slow start to the year, and the extension of the current containment measures until at least mid-February means this looks like being the picture for several more weeks to come,” he said.

The German government decided some days ago to extend the national lockdown until Feb. 14.

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Business

Stock futures fall after record week

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Axios markets editor Dion Rabouin provides insight into the winners and losers in the ‘Biden market.’

U.S. equity futures were trading lower the day after the S&P 500 and Nasdaq notched record closes.

The major futures indexes suggested a decline of 0.7% when the opening bell rings.

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Asian stock markets retreated Friday after a resurgence of coronavirus infections in China and a rise in cases in Southeast Asia.

The Nikkei 225 in Tokyo sank 0.4%, the Hang Seng in Hong Kong fell 1.6% and China’s Shanghai Composite Index lost 0.4%.

In Europe, London’s FTSE was off 0.9%, Germany’s DAX fell 0.9% and France’s CAC declined 1.3%.

The big number in the U.S. that traders will be watching will be existing home sales for December. The National Association of Realtors was expected to say that sales of previously owned homes slipped 2% month-over-month to a seasonally adjusted annual rate of 6.55 million units, down from 6.69 million in November.

HOUSING MARKET STAYS TIGHT AS HOMEOWNERS STAY PUT

The first week of earnings season wraps up Friday morning with a trio of financial names reporting: Ally Financial, Regions Financial and Huntington Bancshares.

Other companies reporting will be energy equipment and services giant Schlumberger, and railroad Kansas City Southern.

IBM shares are down more than 7% in the premarket after saying the company expects to return to revenue growth this year, after reporting lower sales every quarter in 2020. In the latest quarter, IBM’s revenue fell to $20.37 billion from $21.78 billion a year earlier. Fourth-quarter profit fell to $1.36 billion, or $1.51 a share. On an adjusted basis profit from continuing operations was $2.07 a share.

Intel shares are under pressure, down more than 4% in the premarket. The company reported record annual sales and fourth-quarter results topped expectations, but the company plans to outsource some chip production.

Ticker Security Last Change Change %
I:DJI DOW JONES AVERAGES 31176.01 -12.37 -0.04%
SP500 S&P 500 3853.07 +1.22 +0.03%
I:COMP NASDAQ COMPOSITE INDEX 13530.914939 +73.67 +0.55%

On Thursday, the benchmark S&P 500 index ended up less than 0.1% at 3,853.07 and the Dow Jones Industrial Average lost less than 0.1% to 31,176.01.

The tech-heavy Nasdaq composite climbed 0.6% to 13,530.91 after traders bid up shares in Big Tech stocks, including Apple, Amazon and Facebook. That helped outweigh losses in energy, bank and other stocks.

Stocks have risen on optimism the rollout of vaccines developed by U.S., European and Chinese drug companies would allow economies to return to normal.

BIDEN’S $1.9T CORONAVIRUS RELIEF PACKAGE ‘GOOD STEP’: ECONOMIST MARK ZANDI

Markets also have been encouraged by the inauguration of President Biden, who has proposed a $1.9 trillion economic aid package, including $1,400 cash payments for most Americans.

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Benchmark U.S. crude lost $1.32 to $51.78 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell 11 cents on Thursday to $53.13. Brent crude, the price standard for international oils, shed $1.23 to $54.86 per barrel in London. It rose 2 cents the previous session to $56.10 a barrel.

The Associated Press contributed to this report.

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Business

Google says it will disable Search in Australia if it’s forced to pay for news

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When asked about Google’s declaration, Prime Minister Scott Morrison said: “People who want to work with that, in Australia, you’re very welcome. But we don’t respond to threats.” Silva denies that her statement was a threat. “It’s a reality,” she said, clarifying that pulling Search in the country is the “worst case scenario.” She said making payments to news outlets for content would break Google’s business, and the proposal “would set an untenable precedent for [its] businesses and the digital economy.” She added: “It’s not compatible with how search engines work or how the internet works.” In a blog post the company published, it said it’s “committed to reaching a workable code and see a clear path to getting there.”

Aside from Google, Facebook has also been opposed to mandatory payments from the start. The social network didn’t threaten to leave Australia if the proposal becomes a law, but it wouldn’t be able to offer news as a product anymore.

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Business

Google threatens to shut down search in Australia

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At a Senate hearing in Canberra on Friday, Google (GOOGL) Australia Managing Director Mel Silva said the draft legislation “remains unworkable,” and would be “breaking” the way millions of users searched for content online.
“If this version of the Code were to become law, it would give us no real choice but to stop making Google Search available in Australia,” she told lawmakers. “That would be a bad outcome not just for us, but for the Australian people, media diversity and small businesses who use Google Search.”

The company’s main concern with the proposal is that it “would require payments simply for links and snippets just to news results in Search,” according to Silva.

“The free service we offer Australian users, and our business model, has been built on the ability to link freely between websites,” she said.

Google and Facebook have tussled with publishers for years over how they display their content, with media companies arguing the tech giants should pay them for the privilege. Critics of the two tech firms point out that since they dominate the online advertising business, it puts news publishers in a bind and leaves them scrambling for leftovers.

The new legislation would allow certain media outlets to bargain either individually or collectively with Facebook and Google — and to enter arbitration if the parties can’t reach an agreement within three months, according to the Australian Competition and Consumer Commission, which put out the proposed legislation.

Australian Prime Minister Scott Morrison hit back at Google later on Friday.

“Let me be clear. Australia makes our rules for things you can do in Australia. That’s done in our parliament. It’s done by our government and that’s how things work here in Australia and people who want to work with that in Australia, you’re very welcome,” he said at a press conference. “But we don’t respond to threats.”

Asked about Morrison’s remarks, Google declined to comment.

A warning of ‘consequences’

Both American tech companies have been vehemently opposed to the code since its introduction last summer. Last August, Google used its homepage to warn Australians that the bill would harm their ability to search and lead to “consequences” for YouTube users.

The US giant is now proposing three changes to the code, including how it would compensate news publishers.

One suggestion is for News Showcase — a program launched by Google last year that aims to pay publishers more than $1 billion over the next three years — to be formalized and expanded in Australia. The company already pays seven publishers in the country for content.

The company also wants to amend a requirement that would force Google to notify publishers about changes in its algorithm, saying it should do so only “to make sure publishers are able to respond to changes that affect them.”

“There is a clear pathway to a fair and workable Code,” said Silva. “Withdrawing our services from Australia is the last thing that I or Google want to have happen — especially when there is another way forward.”

An aggressive battle

Facebook (FB) is also pushing back.

In the same Senate hearing on Friday, Simon Milner, Facebook’s vice president of public policy for Asia Pacific, said the company could ultimately block news content in Australia, though he emphasized a commitment “to make the law workable.”

Milner told lawmakers there was already a “deterrent effect of this law on investment in the Australian news industry,” citing a recent decision by Facebook to launch a news product in the United Kingdom instead of Australia.

“Sir Tim Berners-Lee said, this precedent set by this law could ‘make the web unworkable around the world,'” he added, citing the inventor of the web.

Regulators say the legislation is needed to level the playing field for the news media in Australia, as newsrooms across the country have reduced service, closed temporarily or permanently shut down.

Similar cases have emerged in other countries. On Thursday, Google announced it would pay news publications in France for the use of their content online in a landmark agreement that could soon be replicated elsewhere in Europe under new copyright laws.

— Hanna Ziady contributed to this report.

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Business

Hundreds receive vaccines at Prisma Health Greenville vaccination facility

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Gov. Henry McMaster said his administration is doing what it can to urge hospitals to speed up statewide administration of their COVID-19 vaccine supply after a visit to Greenville Thursday morning. “They get a first dose shipment one week and that same week they get a second dose shipment,” McMaster said of South Carolina hospitals. “Use them all up. Don’t keep any on the shelf. Get the people in as quickly as we can.” His message came as hundreds of Greenville County residents received their first doses of the vaccine at Prisma Health’s vaccination facility in Greenville at the old Kmart Thursday. Some people there said they never saw the parking lot so crowded. Lines grew into the afternoon, stretching outside along the front of the building. Right now, vaccinations are open to people age 70 and older. Prisma Health encourages appointments through VAMS. Gloria Duckett and her husband, of Greenville, scheduled their appointment for Thursday. They were done by the early afternoon. “I just thank God that my husband and I were able to get in and do it,” she said. “It ran smoothly. We were in and out in about 45 (minutes) to an hour and that wasn’t bad with all the people that are here,” she said. Prisma Health said if you’re having trouble registering, you can walk in to receive the vaccine without a scheduled appointment. That’s what Walt and Jean Miller did. Walt already received his vaccination, but he and Jean went together so she could have hers. They waited in line for about an hour Thursday morning. “We got through it pretty fast,” Walt said. “It was good. Everybody was pretty well staying separated and everybody wore their mask.” “I was trying to get it sooner to be closer to him and I did, so we’re fine,” Jean said. Prisma Health said it is maintaining social distancing and mask wearing for people while inside. People who went inside the building said chairs are also available to sit in while waiting. But outside, some people had concerns. “What I’m observing is that people seem to have totally forgotten about the separation,” said Dennis Anderson, of Greenville. “I’m looking at the large lines of people right close to each other, plus the huge number of people in the building. “There have to be affected people in that group,” he said. McMaster urged patience for all South Carolinians who haven’t yet been vaccinated. “I think that you’re gonna see some more progress in South Carolina, but eventually we need more vaccine and I’m confident that that’s coming, but probably won’t be until March or so,” he said. When asked, McMaster also said he doesn’t see any immediate major changes to vaccine distribution or supply with President Joe Biden’s administration.

GREENVILLE, S.C. —

Gov. Henry McMaster said his administration is doing what it can to urge hospitals to speed up statewide administration of their COVID-19 vaccine supply after a visit to Greenville Thursday morning.

“They get a first dose shipment one week and that same week they get a second dose shipment,” McMaster said of South Carolina hospitals. “Use them all up. Don’t keep any on the shelf. Get the people in as quickly as we can.”

His message came as hundreds of Greenville County residents received their first doses of the vaccine at Prisma Health’s vaccination facility in Greenville at the old Kmart Thursday.

Some people there said they never saw the parking lot so crowded.

Lines grew into the afternoon, stretching outside along the front of the building.

Right now, vaccinations are open to people age 70 and older. Prisma Health encourages appointments through VAMS.

Gloria Duckett and her husband, of Greenville, scheduled their appointment for Thursday. They were done by the early afternoon.

“I just thank God that my husband and I were able to get in and do it,” she said.

“It ran smoothly. We were in and out in about 45 (minutes) to an hour and that wasn’t bad with all the people that are here,” she said.

Prisma Health said if you’re having trouble registering, you can walk in to receive the vaccine without a scheduled appointment.

That’s what Walt and Jean Miller did.

Walt already received his vaccination, but he and Jean went together so she could have hers.

They waited in line for about an hour Thursday morning.

“We got through it pretty fast,” Walt said.

“It was good. Everybody was pretty well staying separated and everybody wore their mask.”

“I was trying to get it sooner to be closer to him and I did, so we’re fine,” Jean said.

Prisma Health said it is maintaining social distancing and mask wearing for people while inside.

People who went inside the building said chairs are also available to sit in while waiting.

But outside, some people had concerns.

“What I’m observing is that people seem to have totally forgotten about the separation,” said Dennis Anderson, of Greenville. “I’m looking at the large lines of people right close to each other, plus the huge number of people in the building.

“There have to be affected people in that group,” he said.

McMaster urged patience for all South Carolinians who haven’t yet been vaccinated.

“I think that you’re gonna see some more progress in South Carolina, but eventually we need more vaccine and I’m confident that that’s coming, but probably won’t be until March or so,” he said.

When asked, McMaster also said he doesn’t see any immediate major changes to vaccine distribution or supply with President Joe Biden’s administration.

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Business

Texas doctor charged with stealing COVID-19 vaccine doses

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A Texas doctor has been charged with stealing nine doses of the coveted COVID-19 vaccine while working at a county vaccination site, prosecutors announced Thursday.

Dr. Hasan Gokal, who worked with the Harris County Public Health system, is accused of stealing a vial that contained the doses from a vaccination site in Humble on Dec. 29, Harris County District Attorney Kim Ogg said in a statement.

A week later, Gokal bragged about the theft to a co-worker, who then complained to his supervisors, Ogg said.

Gokal was later fired from his job.

Ogg said Gokal stole the doses to give them to his family and friends, leaving those who need a shot the most without one.

“He abused his position to place his friends and family in line in front of people who had gone through the lawful process to be there,” Ogg said of Gokal. “What he did was illegal and he’ll be held accountable under the law.”

Lawyer Paul Doyle defended his client arguing the vaccine would have expired anyway.

“Dr. Gokal is a dedicated public servant who ensured that COVID-19 vaccine dosages that would have otherwise expired went into the arms of people who met the criteria for receiving it,” Doyle said in a statement to KHOU11.

“Harris County would have preferred Dr. Gokal let the vaccines go to waste and are attempting to disparage this man’s reputation in the process to support this policy. We look forward to our day in court to right this wrong,” the lawyer continued.

Gokal faces up to a year in jail and a $4,000 fine.

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Business

Southwest Airlines announces daily flight destinations out of Santa Barbara, including Vegas

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SANTA BARBARA, Calif. – Southwest Airlines has announced the destinations they will be flying to out of Santa Barbara Airport, including several daily flights to Las Vegas.

Southwest will begin service out of SBA on April 12, 2021. The initial schedule includes three daily departures to Las Vegas, one daily flight to Denver and one daily flight to Oakland.

“Obviously all strong markets in their own right, but they’re also major connecting points within the Southwest network,” said airport spokeswoman Deanna Zachrisson, who says Santa Barbara passengers will now have access to 50 other Southwest destinations via the new connections.

“We know we’ve been an attractive market for Southwest, but it took the shake-up of the industry as the result of the COVID-19 pandemic to provide the impetus to enter the market,” said Airport Director Henry Thompson in a statement. “Whatever the reason, it’s our region that stands to benefit.”

Southwest’s network and notoriety for low fares and no baggage fees make it a popular airline.

“They just have such a large, loyal customer base,” Zachrisson said. “And that’s one of the reasons why we pursued them for so long.”

The airport staff and other local organizations have courted the airline for at least five years.

Tourism group Visit Santa Barbara has been actively involved in those conversations. The organization is now committing $250,000 to support the new flights, including marketing campaigns to attract visitors in each of the new Southwest destination cities.

Once leisure travel is deemed safe once again, the new airlines could help galvanize a significant rebound for Santa Barbara’s hospitality industry and broader economy overall.

“Obviously this is important for our very critical tourism industry, for meetings and conferences industry, for weddings,” said Kathy Janega-Dykes, president and CEO of Visit Santa Barbara. “The easier it is for people to get here, the more likely they are to consider a visit, and become, certainly, a repeat visitor.

“We also know that air passengers stay in the region longer than those that arrive by car or train. They also tend to spend more money in our community… And the pandemic has certainly illuminated how essential tourism is to our local community.”

Southwest flies with Boeing 737-700 and 737-800 aircraft for all its destinations and will do so out of Santa Barbara as well.

The new flights are currently bookable on Southwest’s website. Introductory fares start as low as $39 one way to Las Vegas.

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Business

Google threatens to remove its search engine from Australia if new law goes into effect

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Google is threatening to pull its search engine from an entire country — Australia — if a proposed law goes into effect that would force Google to pay news publishers for their content.

“If this version of the Code were to become law it would give us no real choice but to stop making Google Search available in Australia,” Google Australia and New Zealand VP Meg Silva told Australia’s Senate Economics Legislation Committee today.

“We have had to conclude after looking at the legislation in detail we do not see a way, with the financial and operational risks, that we could continue to offer a service in Australia,” she added, according to The Sydney Morning Herald.

The company, which has been lobbying against Australia’s plan for months, claims the country is trying to make it pay to show links and snippets to news stories in Google Search, not just for news articles features in places like Google News, saying it “would set an untenable precedent for our business, and the digital economy” and that it’s “not compatible with how search engines work.”

Australia’s Competition and Consumer Commission (ACCC), which drafted the law, seemed to suggest in August that this shouldn’t affect Google’s search business: “Google will not be required to charge Australians for the use of its free services such as Google Search and YouTube, unless it chooses to do so.” Clearly, Google disagrees.

As Google explains in Silva’s full statement and an accompanying blog post, it would rather pay publishers specifically for its Google News products. (It already announced a program to pay publishers in Australia, Germany and Brazil back in June.)

Australia doesn’t seem to think that’s enough, though. The ACCC believes the proposed law addresses “a significant bargaining power imbalance between Australian news media businesses and Google and Facebook.” As my colleague Jon Porter put it in August:

Australia’s proposed News Media Bargaining Code law, which is currently in draft and targets Facebook alongside Google, follows a 2019 inquiry in Australia that found the tech giant to be taking a disproportionately large share of online advertising revenue, even though much of their content came from media organizations. Since then, the news and media industry have been hit hard by the pandemic. The Guardian reports that over a hundred local newspapers in Australia have had to lay off journalists and either shut down or stop printing as advertising revenue has fallen.

Facebook is also in the ACCC’s sights with this particular law, and is threatening to block its news from being shared in Australia, too. Both companies are calling these blockages a “worst case” scenario, and Google insisted it wasn’t a threat, but it certainly sounds like one.

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Business

Dow Jones Futures: Apple, AMD, Nvidia Lead But Stock Market Rally Warnings Grow Louder; Intel Headlines Earnings Movers Late

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Dow Jones futures tilted lower Thursday night, along with S&P 500 futures and Nasdaq futures. The Nasdaq again led the stock market rally to fresh highs, with tech giants Apple stock, Amazon.com (AMZN), Intel (INTC), Advanced Micro Devices (AMD) and Nvidia (NVDA) fueling the gains.




X



But the tech-heavy Nasdaq composite is becoming increasingly extended, raising the risk of a pullback.

Key Earnings Late

Intel jumped the gun, reporting earnings just before the close. Intuitive Surgical (ISRG), IBM (IBM) and CSX (CSX) reported quarterly results late Thursday.

Intel earnings and sales beat views while the Dow Jones chip giant also guided higher for Q1. Incoming CEO Pat Gelsinger, who takes over on Feb. 15, committed to keeping the chip giant’s manufacturing business, despite calls from some investors to shed those assets. Intel stock fell 5% overnight. That was after soaring 6.5% to 62.46 on Thursday, with some of those gains coming in the last few minutes on the early earnings release. Intel stock has been running on the announcement Gelsinger, Intel’s former CTO, will become chief executive. But it’s still far from a buy point.

Intuitive Surgical earnings and revenue rose slightly, rebounding from declines in the prior two quarters. The maker of the da Vinci robotic surgical system gave preliminary revenue figures last week. ISRG stock fell slightly in extended trade after closing up 10 cents at 798.67. Intuitive Surgical stock looks set to dip back below a 792.64 buy point. It could try to find support at the 10-week line again as it builds a short consolidation on top of the prior base.

IBM earnings topped views, but sales missed, once again declining vs. a year earlier. IBM stock tumbled overnight after rising 1.2% to 131.65 on Thursday. The Dow tech giant has a 131.98 buy point in a bottoming base. But it’s still in a long-term downtrend, with weak fundamentals for years.

CSX earnings missed while revenue topped. CSX stock was little changed overnight after closing down 1.7% to 91.61, around its 50-day line. An early January breakout from a flat base quickly fizzled, though the 93.80 buy point is still valid, according to MarketSmith analysis.

Why This IBD Tool Simplifies The Search For Top Stocks

Tech Giants Eye Buy Points

As for other tech giants, Apple (AAPL) rose to just below a buy point. Amazon stock climbed toward possible early entries after regaining its 50-day line Wednesday. AMD stock moved back above key levels and within a prior buy zone. Nvidia stock rebounded from key support, but investors likely want to see a little more strength first.

But looming earnings — as well as the extended stock market rally — complicate buying any of those tech giants. Apple and AMD stock have earnings next week. Amazon is also next week. Nvidia isn’t due for a few weeks, but may move on AMD’s earnings and guidance.

Apple, AMD and Nvidia stock are on IBD Leaderboard. Apple stock is on SwingTrader. AMD stock and Nvidia are on the IBD 50.

Find The Best Long-Term Investments With IBD Long-Term Leaders

Dow Jones Futures Today

Dow Jones futures fell 0.2% vs. fair value, with Intel and IBM stock weighing on the blue-chip index. S&P 500 futures lost 0.15% while Nasdaq 100 futures retreated 0.2%.

Bitcoin continued to slide, falling below $30,000 Thursday night, down $10,000 from a week earlier and the all-time high of nearly $42,000 on Jan. 8.

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live.

Coronavirus News

Coronavirus cases worldwide reached 98.04 million. Covid-19 deaths topped 2.09 million.

Coronavirus cases in the U.S. have hit 25.18 million, with deaths above 419,000.

Newly reported U.S. Covid cases continue to trend lower, with hospitalizations and deaths also turning down.

U.S. coronavirus vaccinations hit 1.6 million on Wednesday as the pace continues to improve.

President Biden signed new executive orders to increase vaccine production and to impose mask mandates in airplanes and airports, as well as on federal property.

Stock Market Rally

U.S. Stock Market Today Overview
Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 31176.01 -12.37 -0.04
S&P 500 (0S&P5) 3853.07 +1.22 +0.03
Nasdaq (0NDQC ) 13530.92 +73.67 +0.55
Russell 2000 (IWM) 212.51 -1.88 -0.88
IBD 50 (FFTY) 46.12 +0.46 +1.01
Last Update: 4:24 PM ET 1/21/2021

The stock market rally continued to advance, once again led by tech giants.

The Dow Jones Industrial Average lost a fraction in Thursday’s stock market trading. The S&P 500 index edged higher. The Nasdaq composite climbed 0.55%. The Nasdaq 100, which includes Apple, Amazon, Intel, AMD and Nvidia stock, popped 0.8%.

Apple stock, a member of the Dow Jones, S&P 500 and Nasdaq composite, rose 3.7% to 136.87. That’s just below a 138.89 cup-with-handle entry. Apple earnings are on Jan. 27.

Amazon stock climbed 1.3% to 3,306.99, flirting with a trend line starting with the Sept. 2 peak. Investors also could use 3,350.75 as another early entry. Amazon earnings are due Feb. 2.

AMD stock rallied 3.1% to 91.53, back above its 50-day and 21-day lines and back above an 88.82 double-bottom buy point. Shares rose 2% overnight after initially falling following the Intel earnings report. AMD competes with Intel in PC microprocessors and data center chips. AMD earnings are due Jan. 26.

Nvidia advanced 3.75% to 554.70, above its 50-day. Several short-lived moves above the 50-day line have fizzled, so investors likely should wait until NVDA stock decisively clears at least the Jan. 11 high of 558.44 before starting a position.

Key ETFs

Growth stocks were mixed, with chips clearly leading.

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) rose 1% to a fresh all-time high, while the Innovator IBD Breakout Opportunities ETF (BOUT) dipped 0.2%. The iShares Expanded Tech-Software Sector ETF (IGV) edged down 0.4%. The VanEck Vectors Semiconductor ETF (SMH) climbed 1.55%, with AMD, Nvidia and Intel stock all notable components.

IBD Stock Of The Day Hits Buy Zone, Building On Gains

Stock Market Rally Extended

The Nasdaq composite is now 8.1% above its 50-day moving average, picking up from Wednesday’s 7.8% and the highest since Sept. 2. (With Apple stock and other tech giants rallying, the big-cap Nasdaq 100 is now 7% above its 50-day.) Further, the Nasdaq is 4.1% above its 21-day exponential moving average, the most since just after the early November follow-through days.

When the Nasdaq is 6% or more above its 50-day line, that’s a yellow flag. The odds of a pullback are higher. The market doesn’t have to retreat right away, but the more extended it gets, the higher the risk of a significant pullback or correction.

In August, the Nasdaq was generally at least 6% above the 50-day, with Apple stock and Tesla (TSLA) leading a big-cap rally. As of Aug. 25, the index was more than 8% extended, but it kept going. It finally reached 11.6% above the 50-day line on Sept. 2. But on Sept. 3, the Nasdaq plunged 5%, wiping out all the gains after Aug. 25. By Sept. 8, the third day of the pullback, the Nasdaq had wiped out essentially all of August’s gains, closing slightly below the 50-day line. It’s a classic example of the stock market rising on a escalator, falling on an elevator.

Ideally, the stock market rally would move sideways or drift lower over several weeks. Last week the major indexes did retreat modestly, but only enough to bring the Nasdaq from extended to “almost extended.” A bigger pullback or longer sideways action would be helpful.

But, as always, the stock market rally is going to do what it’s going to do.

What Investors Should Do

With that in mind, what should investors be doing? Right now, the stock market rally is working. There’s no need to get defensive. Investors may want to consider selling some stocks into strength, taking some profits. You probably should be cautious about starting new positions and adding exposure, especially if you’re on margin. Breakouts that happen just before a market pullback are highly likely to run into trouble.

Most importantly, have a game plan if the stock market rally does reverse. Where will you take partial profits and which stocks are your core holdings? Then stick to those rules.

Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.

Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.

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