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RIDE Stock Down As Lordstown Speeds Van Development, Readies Electric Truck Prototype| Investor’s Business Daily

Lordstown Motors (RIDE) reported widening losses Wednesday as well as progress on an electric pickup truck and a new van, after a short seller accused it of misleading investors. RIDE stock fell.




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Lordstown Earnings Report

Per-share losses widened to 23 cents in Q4 from 10 cents a year ago on zero revenue, while operating costs and expenses shot up to $38.6 million from $7.1 million. No reliable Q4 estimates are available for the pre-revenue company. For all of 2020, per-share losses ballooned to $1.04 from 15 cents a year earlier.

Lordstown said its Endurance full-size pickup will start production in September, with the first beta vehicles to be ready by the end of March for testing.

Management also said it’s accelerating the development of a second vehicle, a van, and will start production in the second half of 2022, with an unveiling of a demonstration vehicle this summer.

Lordstown sees 2021 capital expenditures of $250 million-$275 million. That includes money to build factory capacity to be able to produce 60,000 vehicles per year due to “greater Endurance interest than originally expected,” development of the new van, as well as additional tools and higher supply chain costs related to Covid-19.

Lordstown has estimated a $65 billion fleet pickup market and says the Endurance offers 25% lower cost of ownership vs. a traditional gas or diesel truck. In investor presentations, Lordstown touted 100,000 preorders for the Endurance electric truck, with 580 units per order on average.

But on March 12, Hindenburg Research accused Lordstown of “largely fictitious” orders. The short seller had earlier targeted Nikola (NKLA) and China’s Kandi (KNDI).

Lordstown CEO Steve Burns told the Wall Street Journal last week that the short-seller report held half-truths and lies. The company has said it will offer a fuller rebuttal later. Lordstown also said that it had made clear that its orders were nonbinding.


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RIDE Stock

Shares fell 0.3% after closing down 0.85% at 15.09 in Thursday’s stock market trading. RIDE stock remains below the 50-day line and 200-day line after the short-seller report. GM, which has a 5% stake in the company, jumped 5%. And Workhorse Group (WKHS), which had a 10% stake, added 1.4%.

Lordstown enters a competitive market, with GM, Tesla (TSLA), Ford (F), Amazon (AMZN)-backed Rivian and Canoo (GOEV) also launching electric pickups in the next one to three years.

But the company said in a January presentation that it will be “first to market” with its truck and calls its September delivery target “materially ahead of peers’ (more expensive) offering.”

According to CEO Burns, “The unique thing about this vehicle — it’s electric but it also has true four-wheel drive. The motors are in the wheels.”

RIDE stock came public in October after completing its merger with a special purpose acquisition company.

After its founding, Lordstown bought an old GM plant in Lordstown, Ohio, in November 2019. GM also supplies key parts for the Endurance EV, which Lordstown says saves design time and costs to certify.

Find Aparna Narayanan on Twitter at @IBD_Aparna.

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Short Sellers Boost Bets Against SPACs

Short sellers are coming for SPACs.

Investors who bet against stocks are targeting special-purpose acquisition companies, one of the hottest growth areas on Wall Street. The dollar value of bearish bets against shares of SPACs has more than tripled to about $2.7 billion from $724 million at the start of the year, according to data from S3 Partners.

Some of the stocks under attack belong to large SPACs that surged in recent months, in part because they were backed by high-profile financiers. A blank-check company created by venture capitalist

Chamath Palihapitiya

that plans to merge with lending startup Social Finance Inc. is a popular target, with 19% of its shares outstanding sold short, according to data from S&P Global Market Intelligence. The short interest in

Churchill Capital Corp. IV,

a SPAC created by former investment banker

Michael Klein

that is merging with electric-vehicle startup Lucid, more than doubled in March to about 5%.

Others are wagering against companies after they combine with SPACs. Muddy Waters Capital LLC announced last week it was betting against

XL Fleet Corp.

, a fleet electrification company that went public in December after merging with a SPAC. XL has since said Muddy Waters’s report, which alleged XL inflated its sales pipeline and made misleading claims about its technology among other issues, had “numerous inaccuracies.” 

XL’s stock price dropped the day Muddy Waters released its report by about 13%, to $13.86, from its prior close on March 2. Shares closed Friday at $12.79.

Shares of

Lordstown Motors Corp.

fell nearly 17% Friday after Hindenburg Research released a report saying the electric-truck startup had misled investors on its orders and production. The company, which merged with a SPAC in October, said the report contained half-truths and lies. The short interest in Lordstown shares rose to 5% from 3.4% in the week before the report’s publication, according to data from S&P.

“SPACs are an area of focus,” said Muddy Waters’s

Carson Block.

The veteran short seller said SPACs largely make up the universe of companies he views as both “abysmal” and relatively free from technical challenges, such as high short interest, which can make betting against them difficult.

SPACs are shell firms that raise capital by issuing stock with the sole purpose of buying or merging with a private company to take it public. They are dominating the market for new stock issues, becoming a status symbol for celebrities while pumping the value of acquisitions, like betting company

DraftKings Inc.,

into the tens of billions of dollars.

Hedge funds that buy into SPACs early see them as a way to make lofty returns without much risk. Individual investors are attracted by the chance to get positions in newly public companies that they could rarely purchase through traditional IPOs. The Securities and Exchange Commission issued a statement on Wednesday warning that it “is never a good idea to invest in a SPAC just because someone famous sponsors or invests in it.”

A monthslong rally in the stocks lost steam recently amid a broad selloff in technology and high-growth companies. An index of SPAC stocks operated by Indxx fell about 17% from mid-February to March 10, while the Nasdaq Composite Index declined about 7.3% over the same period.

“These are all momentum stocks, and a lot of people want to short them,” said

Matthew Tuttle,

whose firm Tuttle Tactical Management runs an exchange-traded fund that allows investors to hold a portfolio of SPAC stocks. Mr. Tuttle is preparing to launch an ETF that bets against “de-SPAC” stocks of companies that have merged with a SPAC—like electric-truck manufacturer

Nikola Corp.

and baked-goods maker

Hostess Brands Inc.

—and a separate fund that invests in the stocks.

Private companies are flooding to special-purpose acquisition companies, or SPACs, to bypass the traditional IPO process and gain a public listing. WSJ explains why some critics say investing in these so-called blank-check companies isn’t worth the risk. Illustration: Zoë Soriano/WSJ

Postmerger companies are particularly attractive to short because they have larger market capitalizations, making their shares easier to borrow, and because early investors in the SPACs are eager to sell shares to lock in profits, analysts and fund managers said.

Short sellers borrow stocks they believe are overvalued and immediately sell them, hoping to repurchase the shares for a lower price when they need to be returned and to pocket the difference. The strategy proved dangerous in recent months when individual investors organized on social media to push up stocks like GameStop Corp., forcing short sellers to buy shares and cap their losses, helping to drive prices still higher.

Continued strong investor demand for SPACs could catch short sellers in a similar squeeze. Shorting SPACs can also be risky because their shares have a natural floor at $10, the price at which they can be redeemed before a merger, and because they are prone to sharp price moves, analysts said.

Still, the portion of shares sold short in SPACs and their acquisitions is climbing.

A blank-check company created by venture capitalist Chamath Palihapitiya that plans to merge with lending startup Social Finance Inc. is a popular target.



Photo:

Brendan McDermid/Reuters

Some are betting against stocks they believe rose too fast, to unsustainable valuations. The price of bioplastics company

Danimer Scientific Inc.

nearly tripled to $64 in the first six weeks of the year after it was bought by a SPAC. The short interest in Danimer stock has climbed to 8.5% from around 1% in January, and its share price has traded down to about $42, according to data from S&P.

Others are making bearish bets to hedge against potential losses in SPAC stocks they own.

Veteran short seller

Eduardo Marques

cited SPACs and their boosting the number of U.S.-listed stocks as a short-selling opportunity, according to a pitch for a stock-picking hedge fund called Pertento he plans to launch this year. America’s roster of public companies had shrunk from the mid-1990s onward, but that trend has recently reversed, partly because of SPACs.

Their popularity has helped spark new Wall Street offerings.

Goldman Sachs Group Inc.

this year started offering clients set baskets of similar stocks to short, pitching them as a way to hedge SPAC exposure, people who have seen the offering said. Clients typically customize the baskets Goldman offers, which are thematic and sector-focused, such as on bitcoin and electric vehicles.

Kerrisdale Capital founder

Sahm Adrangi

started shorting postmerger SPAC companies earlier than most, with a public bet in November against the stock of frozen-food maker

Tattooed Chef Inc.,

which still trades above its price at that time. But the stock has fallen about 13% during the recent market slump.

“We saw these stocks go up a lot and now that people are de-risking, these highflying SPACs are coming down to earth,” Mr. Adrangi said.

SHARE YOUR THOUGHTS

How long do you think the SPAC boom will continue, and why? Join the conversation below.

Write to Matt Wirz at matthieu.wirz@wsj.com and Juliet Chung at juliet.chung@wsj.com

Copyright ©2020 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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Free stay or private jet ride for guests who test positive

A Bahamas hotel chain hopes to lure American travelers with an odd offer: Catch Covid-19 and stay for free.

Baha Mar guests can take on-site rapid Covid-19 testing and if any of those swabs come back positive, they’ll have the choice of a complimentaryprivate jet home or a free, 14-day quarantine in a suitewith a daily dining credit of $150.

“It is our hope that through this program, our guests will feel confident when booking a stay with us, as well as valued and supported by the Baha Mar family should any issues arise during their trip,” the hotel chain said of its “Travel with Confidence” initiative.

The program was rolled out three weeks ago and is still operating, a company representative said Friday.

It wasn’t clear Friday whether any recent guests of the Grand Hyatt Baha Mar, SLS Baha Mar or Rosewood Baha Mar had been forced to take advantage of the luxurious Covid-19 freebies.

“In this ever-changing travel environment, it is our goal to alleviate travelers’ concerns surrounding Covid-19, in an effort to ensure the health, safety and comfort of our guests,” Baha Mar said in a statement.

“Our ‘Travel with Confidence’ program is the first of its kind in the industry, providing travelers with added peace of mind and the option to safely return home, or quarantine at no added expense — the choice is theirs.”

The push to draw Americans is a far cry from spring 2020 when citizens of the United States, with more Covid-19 deaths by far than any nation in the world, had relatively few travel options. But Bermuda has been a steady option for Americans seeking a getaway since July 1.

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Tanger Shares Take a Wild Ride

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A worker carries a broom past closed stores at the Tanger Outlets center in Atlantic City, N.J. Shares of Tanger surged on Thursday.


Angus Mordant/Bloomberg


Tanger Factory Outlet Centers

took a wild ride on Thursday, the latest hot potato stock caught in a short squeeze.

The mall operator has a high amount of short interest, currently more than 33% of its shares, according to FactSet. That makes it among the most heavily shorted stocks along with

GameStop

(30.2%),

Rocket Cos.

(39.7%), and

GoodRx Holdings

(27.6%), according to MarketWatch data.

Shares of Tanger (ticker: SKT) jumped 22% Thursday morning to hit a 52-week high before settling down. By midafternoon, they had lost steam completely and were down 5.4%. The stock is up 38% over the last year, compared with a 20% one-year gain in the

S&P 500.

Malls have been among the most downtrodden stocks during the pandemic, forced to temporarily close locations and restrict the number of shoppers while also juggling budget-strapped tenants facing the same challenges. 

Tanger has been a topic on a Reddit forum called WallStreetBets. One post from Wednesday said “SKT is about to reach its highest point since may 2019 and it’s the second most shorted stock after GME. You know what to do!”

“Lets make this explode,” the post says. “Help bring this stock to the spotlight and make it the new GME.”

A spokesman for Tanger wasn’t immediately available on Thursday.

WSB on Reddit is the forum where stock trading enthusiasts share ideas. It’s also a big focus of those investigating the run-up in

GameStop

(GME),

AMC Entertainment Holdings

(AMC), and other stocks a few weeks ago in a trading frenzy described as retail investors going after professional short sellers.

The average rating of the six analysts who publish research on Tanger is Underweight, the equivalent of a Sell. Full-year 2020 revenue fell 10%, to $370 million, according to FactSet.

Write to liz.moyer@barrons.com

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‘This Is Us’ Recap: Season 5, Episode 9 — ‘The Ride’

We don’t talk enough about what This Is Us‘ Early Years Rebecca went through.

Let’s just think back to the series premiere for a minute. After carrying three babies for many months, Rebecca underwent immensely traumatic labor and an emergency caesarean section. And when she woke up afterward, she had to learn that one of her children hadn’t survived the horrific ordeal.

Yes, the Pearsons’ on-the-fly decision to adopt Randall was heartwarming (if not without lifelong issues). And yes, babies are cute and can have an outsized capacity to make you feel better when you’re down. But this week’s episode starts to get at how the loss of little Kyle isn’t something easily glossed over, especially in the physically aching, sleep-deprived state in which Rebecca finds herself on the ride home from the hospital. And though I focus on the new mom, it’s not like Jack gets off much easier here: As we see in Tuesday’s hour, he’s sad, too. And his demons are so close at hand, they’re practically riding shotgun the whole way back to the house.

That trip between the hospital and home is the focus of every storyline this week. So let’s see how it goes for Madison and Kevin; Toby, Kate and Ellie; Randall and Beth; and the aforementioned Pearson progenitors. Oh, and did someone say FLASH-FORWARD? Read on for the highlights of “The Ride.” (And then make sure to go deep with our detailed guide to the Rebecca-centric flash-forward, and hear what series star Jon Huertas had to say about directing this week’s episode.)

‘WE HAVE A FAMILY’ | Jack and Rebecca prepare to bring Kevin, Kate and Randall home from the hospital. Jack is trying his best to inject some joviality into the day, but Rebecca seems overwhelmed and sad… probably because she’s overwhelmed and sad. Jack’s bravado burns off the minute he realizes he’s a) got to install three carseats and has no clue how, and b) might be even more like his father than he realized.

This last revelation plays out as they’re in transit. Rebecca is an anxious mess about not being able to see the babies in the backseat. The kids start crying. And an impatient and reckless driver honks at Jack to go faster, then speeds up and cuts him off just as both vehicles are pulling into a gas station. Jack has to stop short in order to avoid an accident, and that’s IT.

He bursts out of the car and starts yelling at the other driver, who is unrepentant about what just transpired. Jack even reaches through the open window to grab the guy’s shirt, but Rebecca’s angry cries stop him from doing anything more violent/stupid. Inside, when Jack pays for the gas, he also buys — and quickly drinks — a nip of whiskey. Then he asks Rebecca to drive home, saying he can more easily turn in his seat to keep an eye on the kiddos.

When they arrive, all three babies are asleep. So Jack and Rebecca decide to sit in the car until that changes. She mentions that her mother had a miscarriage when Rebecca was a child, and her sadness lasted a while. “What if I can’t be a great mom because I’m just too sad for too long?” she worries aloud. Jack reassures her that won’t be the case, the confesses about his mid-trip sip. “I was feeling really overwhelmed by everything that’s happened, and I was just trying to keep it together,” he says. Then he remembers how terrible his father was, and how drunk; every night when he came home from work, “all the air would get sucked out of the room.” Jack is concerned he’ll wind up the same way. “You don’t suck the air out of the room. You are the air,” Rebecca says, boosting him. He kisses her hand, Bread’s “Everything I Own” comes on the radio, and the mood lightens. “We have a family,” she says, smiling.

BABIES’ FIRST PAPARAZZI ENCOUNTER | Similarly, Kevin is having a lot of thoughts and feelings as he and Madison prepare to bring Nicky and Franny home. And all of these boiling emotions bubble over when he realizes there’s a paparazzo following them. He pulls over and gets out to yell at the guy, who is unmoved by both Kevin’s threats and Madison’s attempts to relate to him on a human level. So then Mads — who handles things like a boss throughout this episode, I might add — quietly negotiates a deal: If he leaves them alone, she’ll give him a heads-up for when Kevin goes running on Tuesdays, and he can grab a few shots then. Sure, she has to agree to Kev’s being “shirtless” and “in tight shorts, so I can see his package,” but it all ends well. Back at the car, she slips into the driver’s seat and lovingly tells Kevin that she’d like him to nap the rest of the way home. “I’m going to need you at your best,” she points out, “and aggro, Liam Neeson-movie Kevin is not your best.”

While he sleeps, Kevin dreams that Jack is holding Franny and Nicky. “Do ’em a favor: Stop living up to me. I was terrified of being like my dad, and you’re terrified of not being like yours,” Grandpa Jack says. “Close your eyes, decide what you want, and then you go and get it, son.” Kevin wakes up alone in the car, goes inside and does what he’s best at: making a grand gesture based solely on emotion with little thought about how its ramifications. He finds Madison in the house and says that even though they’ve been engaged for a while, he wants to do for real tho. “I really want you to be my wife. I want to be a family,” he says, slipping his hospital bracelet onto her wrist in lieu of a ring. She seems touched and says yes, then they kiss.

ELLIE’S OUT | Toby greets Kate and their new daughter outside the hospital with a huge sign that reads, “Hi Hailey, I’m your dad!” Then they ferry Ellie home, with Kate chattering about future meet-ups and such. But Ellie barely engages, until she suddenly and tearfully announces that she doesn’t think she wants to take part in an open adoption anymore. Yes, Hailey is still Kate and Toby’s. But Ellie doesn’t feel emotionally OK with being a part of the girl’s life. Kate presses a little, confused, but Toby gently tells her to back off.

Later, at home, Kate is upset: Randall’s adoption was so secretive, she says, and it brewed so much pain for him and the family. “I promised myself it would not be like that for Hailey,” she says. Toby says they’ll always make sure their daughter knows exactly where she came from. And once that crisis has passed, Toby lobs another one onto the court: He got laid off that morning. Kate does not freak out, saying that they’ll figure out job stuff the next day. “Let’s just be a family today.”

TWO BLIZZARDS AND A WARNING | As Beth and Randall leave the hospital after Annie’s birth, they’re feeling pretty good about how smoothly everything is going. Annie is a calm, smiling angel baby. They’ve packed in a way that is prepared for any little need that arises on the way home. And Beth is going to get the Dairy Queen Blizzard Randall promised her while she was in labor. It all goes well until Randall won’t stop raising the idea of having a third child so they can “go for a boy.”

Beth — far nicer than I would be, were I the one likely sitting atop a donut pillow for the drive home — says no… and then hell no when her husband doesn’t get the hint. While she burns off a little ire ordering the ice cream, Randall tells his new daughter that he’s so happy she looks like him, because he grew up not looking like anyone in his family. Then he muses a bit about his grandchildren and great-grandchildren, and Beth comes back with two Blizzards. She’s no longer testy, and the pair joke and smile. But Randall, I really wouldn’t bring that all up again.

BACK TO THE FUTURE | Especially because, as we know — and as is illustrated in the episode’s flash-forward — Randall eventually does have the three children he wanted.

But let’s back up a second. Throughout the episode, we watch as a female medical intern (I think — if these are actually residents we’re looking at, someone please holler) gets an orientation to the labor and delivery department of a hospital. But she’s not into it, and she asks one of her colleagues to cover her as she sneaks out.

Outside the hospital, she’s picked up by another young woman. There’s a big screen in her car near the driver’s console, which was my first hint that we were in the future. The driver gives the doctor a Sophie teething giraffe: Turns out, the intern is pregnant, herself, though she hasn’t told anyone yet.

They drive and eventually arrive at Kevin’s cabin. Tess comes outside to meet them, and that’s when we realize that the driver is Annie and the doctor is Deja. When Old Randall joins them outside, they ask how he’s holding up. He replies he’s doing better now that they’re there. Everyone starts to go in, but Randall and Deja are held up when they notice the arrival of another car. (We don’t see who’s inside.) He asks her how the drive was, and she says OK: “It always goes by faster than you think.” (And for a very deep dive into this flash-forward, make sure to check out our ongoing investigation.)

Now it’s your turn. What did you think about the episode? Sound off in the Comments!



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Dow Jones Futures: What’s Next For Stock Market Rally After Growth’s’ Wild Ride? Tesla, Square Lead Key Movers Late

Dow Jones futures fell slightly Tuesday night, along with S&P 500 futures and Nasdaq futures, with Square (SQ) headlining key earnings and Tesla (TSLA) among several EV plays active overnight.




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It was a wild day for the stock market rally, at least for the Nasdaq and especially speculative growth names such as Tesla stock and China EV rival Nio (NIO). The Nasdaq fell more than 3% intraday, but rallied back for a modest loss. The Bitcoin price plunged for a second straight session.

Square earnings topped views, helped by its Bitcoin operations. But net revenue and purchase volume missed estimates. Recent IPOs Upwork (UPWK) and PubMatic (PUBM) also topped views.

Square stock fell 5% late. SQ stock retreated 4.3% Tuesday after rebounding from its 50-day line. Upwork stock skyrocketed 19% and PubMatic jumped 9.5% overnight after both rallied sharply Tuesday from key levels intraday. UPWK rebounded from its 50-day line to finish modestly higher. PUBM closed for modest losses but after plunging below a buy point, making it very hard to hold.


These Stocks Show Strength, Pass Buy Points Amid Market Turbulence


The Nasdaq had looked like it was flashing a vertical violation intraday as it tumbled rapidly through its 50-day line. But the strong rebound to modest losses leaves the market direction unclear. The Dow Jones and S&P 500 erased relatively modest losses to close just above break-even. The stock market rally could simply be in a sector rotation, with rising yields and commodity prices spurring a shift into mining, agricultural and financial stocks.

Dow Jones components Caterpillar (CAT), Disney (DIS) and JPMorgan Chase (JPM) advanced, all extended from recent breakouts. Microsoft (MSFT) edged lower but rebounded from its 10-week line and closed above its 232.96 buy point.

The Bitcoin price fell below $45,000 intraday after topping $58,000 on Sunday. The cryptocurrency recovered to nearly $49,000 overnight. Bitcoin is well above where it was before the market open on Feb. 8, when Tesla disclosed it had bought $1.5 billion worth of the cryptocurrency.

Tesla Rebounds, Workhorse Crashes

Tesla stock fell 2% to 698.84 on Tuesday but after falling as low as 619. Shares are still down nearly 11% so far this week and 11% below its 10-week line. TSLA stock rose modestly overnight as ARK Invest’s Cathie Wood said ARK bought “a lot” on Tuesday. That follows a big Ark buy of Tesla stock on Monday and Wood talking up the company last week.

Tesla is ARK’s biggest holding across its ETFs and in many ways is a marker for the type of speculative growth plays that Cathie Wood focuses on.

Nio stock sank 3.1% to 49.11 after skidding as low as 41.66. Shares tumbled 7.8% on Monday, knifing through its 50-day line. Nio stock edged higher overnight. Nio earnings are due March 1.

But some EV stocks fared far worse. EV delivery van maker Workhorse Group (WKHS) lost a major USPS vehicle contract to Oshkosh Corp. (OSH) WKHS stock cratered 47%, then kept falling sharply overnight. Oshkosh stock rose 6.1% on Tuesday, then jumped in extended trade.

Churchill Capital (CCIV) crashed 38%. Luxury EV startup Lucid Motors confirmed it’ll go public in a SPAC merger with Churchill Capital late Monday. CCIV stock had skyrocketed 468% since Jan. 8, as Lucid SPAC rumors grew. Churchill Capital rose modestly overnight.

Tesla stock is on IBD Leaderboard, but cut from a one-half to a one-quarter position on Tuesday. Microsoft stock is on Leaderboard and IBD Long-Term Leaders. Disney stock and Caterpillar are on SwingTrader.

Dow Jones Futures Today

Dow Jones futures fell 0.2% vs. fair value. S&P 500 futures sank 0.25% and Nasdaq 100 futures retreated 0.35%.

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 112.61 million. Covid-19 deaths topped 2.49 million.

Coronavirus cases in the U.S. have hit 28.88 million, with deaths above 514,000.

Stock Market Rally Tuesday

The stock market rally started Tuesday with the Nasdaq leading sharp losses. But the major indexes pared losses as Fed chief Jerome Powell spoke. Powell said there is a link between Fed liquidity and asset prices. But he once again reaffirmed his commitment to current aggressive monetary policy and stressed that strong job growth is a primary goal. Powell also said the Fed is looking closely at whether to issue a “digital dollar,” but not significant technical and policy issues.

The Dow Jones Industrial Average was a fraction higher in Tuesday’s stock market trading, just below record highs. The S&P 500 index edged up 0.1%. The Nasdaq composite fell 0.5%.

Microsoft stock fell as low as 228.73 intraday, testing the 10-week line but not with wild plunges like many stocks Tuesday, including Square. Shares also never undercut early entries around 227-228. By the close, MSFT stock recovered to a 0.5% loss to 233.27, above the official 232.96 buy point.

Growth stocks generally lost ground, even with big afternoon rebounds.

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) fell 2%, while the Innovator IBD Breakout Opportunities ETF (BOUT) sank 2.1%. The iShares Expanded Tech-Software Sector ETF (IGV) retreated 1.1%, with MSFT stock the top component. The VanEck Vectors Semiconductor ETF (SMH) slid 1%.

Reflecting more-speculative story stocks, Ark Innovative ETF sank 3.3% and Ark Genomics ETF 3.05%.

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

Stock Market Analysis

The Nasdaq tumbled intraday to just above the Jan. 29 low and the 13,000 level then moved up and down before nearly returning to break-even.

We’ll need to see how the market reacts in the next few days to put Tuesday’s action in perspective.

Perhaps Tuesday marks the start of a recovery for the Nasdaq and big winners such as Tesla and Nio stock. But sometimes a stock market rally will find support, then break it. That’s what happened in the early September sell-off, where the Nasdaq slashed losses on day two of a pullback before plunging on day three to close below its 50-day line.

With the Dow Jones holding up as real economy stocks thrive, in many ways this looks like a sharp sector rotation within a market rally.

What To Do Now

Investors should be somewhat defensive, especially with regards to high-value growth stocks. The Nasdaq has been trending lower over the past several sessions. Meanwhile, many growth stocks have damaged-looking charts after the past couple of days. Even before the recent pullback, there were a lot of good buying opportunities.

One reason to take partial profits when the Nasdaq was extended in late January to early February is to make pullbacks easier to handle. Selling extended stocks into strength can help you hold a core position through pullbacks. If you sold some winners at Tuesday’s lows, those early partial profits at least raised the average selling price.

Don’t let a stock get down more than 7%-8% from your purchase price. Yes, if you had to sell at Tuesday’s lows you might regret that, at least for now, but the point is preserve your capital, not hope for a recovery.

Meanwhile, make sure to keep working on watch lists. The past several sessions have shown the value of diversifying leadership. Holding a few names like Disney would have made the past few days less painful.

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

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SpaceX’s Crew Dragon performing ‘beautifully’ on ISS as NASA eyes a backup ride

SpaceX’s Crew Dragon astronaut taxi is doing “beautifully” so far in its first operational, long-duration stay on the International Space Station, NASA’s human spaceflight chief Kathy Lueders told The Verge. The capsule, named Resilience, sent three NASA astronauts and a Japanese astronaut to the station last November, and a trivial housekeeping task is the only unexpected hiccup faced by the crew.

“We’ve been very, very happy with how things are going,” Lueders said in an interview. “The only minor thing we had was we’re getting some little bits of lint on the seal” where Crew Dragon connects to the ISS, she added. Astronauts have been floating in and out of the spacecraft for months, leaving behind a buildup of lint and dust.

SpaceX launched the Crew-1 mission on November 15th carrying Commander Mike Hopkins, pilot Victor Glover, and mission specialists Shannon Walker and Soichi Noguchi, a Japanese astronaut. The mission marked SpaceX’s first fully operational mission under its NASA contract after nailing its final test milestone last summer with the launch and return of two US astronauts, Bob Behnken and Doug Hurley.

Some extra dust is definitely not the worst problem NASA and SpaceX could face on a $100 billion orbital laboratory that has housed astronauts in low Earth orbit for over 20 years. “I can handle having housekeeping issues,” Lueders said. Astronauts have been using a vacuum to suck out all the lint, but for a longer-term fix to the pileup, a tiny cover was trucked to the station on the NG-15 cargo resupply mission, launched Saturday by Northrop Grumman.

NASA and SpaceX have been closely monitoring Crew Dragon’s health in space as it tallies 98 days docked to the ISS — the longest duration for a human-rated US spacecraft. Perhaps most intimately familiar with the capsule is Hopkins, who’s been using Crew Dragon as his bunking quarters while others sleep elsewhere on the station. (Lueders made clear that Hopkins wasn’t solely to blame for all the dust — “don’t make me get in trouble with Mike Hopkins, Joey!”)

SpaceX’s Crew Dragon “Resilience” spacecraft is seen docked to the International Space Station’s Harmony module.
Image: NASA / Johnson Space Center

SpaceX’s next mission, Crew-2, is slated for April 20th, reusing the capsule that flew Behnken and Hurley for the DM-2 mission. NASA decided to allow SpaceX to reuse its capsules for astronaut flights last year, setting the stage for a rigorous refurbishment and certification process for SpaceX. It’s similar to what the agency will go through with Boeing’s Starliner, Crew Dragon’s rival capsule that’s still in development.

That refurb process will take place in Florida, where the company used to refurbish its old Cargo Dragon vehicles. Lueders said SpaceX engineers call their Kennedy Space Center refurbishment facilities “Dragonland.” SpaceX has already added infrastructure for Crew Dragon refurbishment.

NASA still needs a backup seat

Even though Crew Dragon Resilience is doing well on the ISS, and the upcoming Crew-2 launch is on schedule for April, NASA still wants to have a backup plan. The station’s other three crew members are two Russian cosmonauts and NASA astronaut Kate Rubins, who are due to return to Earth in April on the same Soyuz capsule they rode in on last year. If the Crew-2 spacecraft runs into problems before its April flight, NASA will need another option to get an astronaut to the ISS. Otherwise, they risk leaving the station with no NASA crew members for the first time since the station was first occupied in 2000.

The agency announced earlier this month that it’s seeking another seat on Russia’s Soyuz spacecraft as a safety net. The Verge reported that NASA was in talks with space infrastructure startup Axiom Space to book that Soyuz seat, instead of buying directly from the Russians — only the second time in the decades-long NASA-Russia relationship to do so.

Lueders said the US company (without specifically naming Axiom, because the talks were ongoing) reached out to NASA with its own proposal and offered the backup solution. So, as a legal formality, NASA issued a notice saying it’s looking to buy a Soyuz seat because — as Lueders put it — “one of our commercial providers out there said ‘Hey, there’s a commercial opportunity for me here,’ so they gave us an unsolicited proposal.”

Axiom’s chief executive, Michael Suffredini, co-founded the Houston-based company in 2016 after spending 10 years as NASA’s ISS program manager. It’s unclear whether Axiom had already owned the Soyuz seat it’s selling to NASA or whether the Houston-based company is currently going through the process with Roscosmos to buy it. Roscosmos (Russia’s space agency) and Axiom both declined to comment.

No matter the arrangement, the dealmaking and seat swapping is poised to give NASA the assurance it needs to keep a US astronaut on the ISS. NASA and the State Department are “in the final stages” of coming up with an agreement with Roscosmos to fly Russian cosmonauts on future flights of SpaceX’s or Boeing’s capsules in exchange for flying more US astronauts on Soyuz spacecraft, Lueders said. Nailing that agreement has been a yearslong process.

“We were hoping it would happen a little bit sooner, and so unfortunately it wasn’t happening in time for the April Soyuz seat,” Lueders said. That delay gave Axiom a chance to make a deal.

“If you said, ‘Kathy, what’s your logistics dream?’ I would say every vehicle going up to the ISS needs to have a US crew member on it, and we believe every US vehicle going up to have a Russian crew member on it,” Lueders said.

Correction February 22, 1:20PM ET: A previous version of this story incorrectly stated a cargo version of Crew Dragon that launched in January was the same spacecraft used in a previous uncrewed test mission, DM-1. The DM-1 spacecraft was destroyed in a testing explosion in 2019, and the cargo Crew Dragon was a new vehicle.

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Video of Super Nintendo World’s Mario Kart ride is like being there

Since the opening of Super Nintendo World at Universal Studios Japan on Feb. 4, visitors have been posting videos and photos of attractions all over the internet. While the posts have left those still in lockdown absolutely salivating, new footage of the theme park at least allows people to appreciate it from afar. Now we have a full look at the new Mario Kart ride, Mario Kart: Koopa’s Challenge, from Universal Park News Today.

The attraction uses augmented reality, so every visitor gets their own Mario-themed headset to play the game as they ride. The ride treats guests to a first-person view of a variety of classic courses like Mario Kart Circuit and Rainbow Road. As people progress from course to course, everyone fires AR shells at Bowser and his underlings to rack up points.

The waiting area is charming, too. The line goes through a model Bowser’s Castle filled with all sorts of fun props. There’s a giant throne — presumably Bowser’s — that has a framed photo of Princess Peach sitting on it, and an award case with all the Mario Cup trophies. That case also features a new cup, which integrates the Universal Pictures logo into the Mario Cup.

Overall, the ride looks fantastic — and for now, I can only dream about experiencing it live in its full glory someday.

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Video: Pedro Burns Races a Solar Eclipse in ‘Ride into Darkness’

Press Release: Red Bull

In just three minutes and during a total solar eclipse, Pedro Burns descended from Villarrica Volcano at full speed to perform a backflip at the exact moment that the sun was covered by the moon.

On December 14, the career of Chilean enduro athlete Pedro Burns set a new milestone by running against an Eclipse and achieved an incredible backflip in the very same moment the sky of southern Chile darkened completely.

The astronomical phenomenon was accompanied by a heavy rain which gave an extra challenge to this crazy race against time starred by three-time Chilean Enduro national champion and top 20 on the last Enduro World Series.

Burns’s challenge was recorded in a 3 minute action clip where you can experience the frantic race along a narrow path from the side of the volcano passing through a thick native forest to arrive just at the moment of the climax of the eclipse at a ramp on which he performed a back flip.

The video available on redbull.com is accompanied by a behind-the- scenes production where Burns details the main difficulty he had in accomplishing this challenge: the rain.

Besides the weather conditions Pedro Burns’s helmet was another novelty in this project. As the action was going to happen in the darkness. The Spanish company OneTech Media developed and luminic technique that mixes electroluminescent paint and a tiny battery inside the helmet. This provided the light that Burns needed to bright in the middle of a total eclipse.

After completing the challenge, Burns commented the difficulties of doing a backflip in the middle of darkness:

From the beginning I wanted to make a jump, but I never imagined that we would have so many complications. We arrived and it was all raining, the floor didn’t allow us to reach the necessary speed and we thought we wouldn’t achieve it.

Finally, together with the team, we decided to try it and we began to dig and remove all the first layer of earth and we succeeded. It really is something that gives an incredible closure to my year.

Pedro Burns

Read original article here

Video: Pedro Burns Races a Solar Eclipse in ‘Ride into Darkness’

Press Release: Red Bull

In just three minutes and during a total solar eclipse, Pedro Burns descended from Villarrica Volcano at full speed to perform a backflip at the exact moment that the sun was covered by the moon.

On December 14, the career of Chilean enduro athlete Pedro Burns set a new milestone by running against an Eclipse and achieved an incredible backflip in the very same moment the sky of southern Chile darkened completely.

The astronomical phenomenon was accompanied by a heavy rain which gave an extra challenge to this crazy race against time starred by three-time Chilean Enduro national champion and top 20 on the last Enduro World Series.

Burns’s challenge was recorded in a 3 minute action clip where you can experience the frantic race along a narrow path from the side of the volcano passing through a thick native forest to arrive just at the moment of the climax of the eclipse at a ramp on which he performed a back flip.

The video available on redbull.com is accompanied by a behind-the- scenes production where Burns details the main difficulty he had in accomplishing this challenge: the rain.

Besides the weather conditions Pedro Burns’s helmet was another novelty in this project. As the action was going to happen in the darkness. The Spanish company OneTech Media developed and luminic technique that mixes electroluminescent paint and a tiny battery inside the helmet. This provided the light that Burns needed to bright in the middle of a total eclipse.

After completing the challenge, Burns commented the difficulties of doing a backflip in the middle of darkness:

From the beginning I wanted to make a jump, but I never imagined that we would have so many complications. We arrived and it was all raining, the floor didn’t allow us to reach the necessary speed and we thought we wouldn’t achieve it.

Finally, together with the team, we decided to try it and we began to dig and remove all the first layer of earth and we succeeded. It really is something that gives an incredible closure to my year.

Pedro Burns

Read original article here