Dow Jones Futures Await Jobs Report As Market Rally Holds Gains; Tesla Semi

Dow Jones futures fell slightly overnight, along with S&P 500 futures and Nasdaq futures. Investors will turn to the November jobs report Friday morning.

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A Tesla Semi truck delivery event took place Thursday night with Tesla (TSLA) archrival BYD set to release booming EV sales numbers.

The stock market rally showed solid action on Thursday, with the indexes mixed but consolidating Wednesday’s huge gains on Fed chief Jerome Powell’s comments. Thursday’s PCE inflation report, the Fed’s favorite price gauge, showed smaller-than-expected monthly increases with overall and core inflation cooling slightly once again.

Ulta Beauty (ULTA) headlined earnings reports Thursday night. ULTA stock was little changed overnight after reporting strong earnings and raised guidance. Shares of the beauty products retailer are already at record highs, extended from buy points. Veeva Systems (VEEV) beat fiscal Q3 views, but Q4 guidance was slightly below the midpoint of consensus. VEEV stock fell modestly in extended trade. Shares closed above the 200-day line, right around an early entry.

Meanwhile, Dow giant Caterpillar (CAT) continues to look strong, with CAT stock just below a buy point. Cybersecurity leader Palo Alto Networks (PANW) and Marriott International (MAR) are also flashing buy signals.

Boeing stock is on SwingTrader. Caterpillar was Thursday’s IBD Stock Of The Day.

Dow Jones Futures Today

Dow Jones futures fell 0.2% vs. fair value. S&P 500 futures sank 0.3%. Nasdaq 100 futures declined 0.4%.

Dow futures, Treasury yields and more will swing on the November jobs report, due out at 8:30 a.m. ET.

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

Jobs Report

Economists expect the November jobs report to show a nonfarm payrolls gain of 200,000, down from 261,000 in October. Pay attention to the household survey, which showed jobs down by 328,000 in October. The jobless rate, based on the household survey, is expected to hold steady at 3.7%, with the labor force participation rate edging up to 62.3%.

Other labor data this week has generally pointed to gradual slowing. Initial jobless claims unexpectedly fell, but continuing claims rose yet again. ADP reported a sharp slowdown in private-sector hiring last month, while the October JOLTS survey saw a modest decline in job openings.

Tesla Semi Delivery Event

A Tesla Semi model truck delivery event kicked off shortly after 5 p.m. PT.

Tesla CEO Elon Musk will hand over some Tesla Semi EVs to PepsiCo (PEP) on Thursday night. Speaking of late, the Tesla Semi was first unveiled six years ago and was supposed to enter production in 2020.

Musk says that the Tesla Semi, which will use the same Plaid drive units as the high-end Model S, has a 500-mile range on a single charge. Investors will be looking for precise specs on price, range and cargo. That will be important as the Tesla Semi takes on big-rig EVs already on the market from Volvo, Nikola (NKLA), BYD (BYDDF) and more.

Another big question is what will Tesla Semi production be in the coming months. Musk didn’t provide clarity on that front.

Meanwhile, Tesla is now offering $3,750 discounts for the Model 3 and Model Y in the U.S. this month. The idea is to encourage people to take delivery now. On Jan. 1, new U.S. tax credits of $7,500 come into effect, subject to certain price and income limits, spurring many would-be buyers to wait. The tax credits should apply to most Model 3 sedans and Model Y crossovers, though the government hasn’t provided clarity yet.

Tesla also has cut an 8,000 yuan ($1,133) insurance subsidy in half for December purchases, as planned, but is now offering free charging and other perks that reportedly top 15,000 yuan

Tesla stock closed flat at 194.70 Thursday. On Wednesday, TSLA stock surged 7.7%, retaking its 21-day line, amid the big market rally and as China EV stocks soared.

Tesla Vs. BYD: Which EV Giant Is The Better Buy?

BYD Sales

China EV giant BYD is expected to release November deliveries on Friday or Saturday, with yet another record seen. BYD is expected to be China’s No. 1 auto brand for the month, overtaking Volkswagen (VWAGY). VW Group will likely remain No. 1 including Audi.

BYD stock fell 2.2% to 25.07 but it’s still above its 50-day line. BYDDF vaulted 9.9% on Wednesday, along with other China EV stocks.

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Stock Market Rally

The stock market rally had a 30-minute tumble Thursday morning, but gradually improved to mixed, a solid performance following Wednesday’s big gain.

The Dow Jones Industrial Average fell 0.6% in Thursday’s stock market trading, with Salesforce.com (CRM) a big negative. The S&P 500 index dipped 0.1%. The Nasdaq composite rose 0.1%. The small-cap Russell 2000 retreated 0.2%.

U.S. crude oil prices rose 0.8% to $81.22 a barrel.

The 10-year Treasury yield…