Stocks Extend Greenland Rebound; Tesla, Alibaba, Nextpower In Focus

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0:40Good afternoon, everyone, and welcome to Stock Market Today for Thursday, January 22nd. It's Alexis Garcia here, and stocks extended their gains today after news yesterday that President Trump looked to back off European tariffs over Greenland. Tesla also popped on some self-driving updates. And small caps continue to outperform. And here with me to help break down everything we need to know about today's trading action is IBD News Editor Ed Carson. So Ed, what's on tap for us today? Yeah, we have to take a look at Tesla. Big news today. Nice bullish action today. And I'll also look at Alibaba and NextPower, ticker BABA and NXT.

1:25All right, great. Before we get into that, let's just do a quick roundup of the major indexes. The S &P 500 up over half a percent today. The Dow finishing up six-tenths of a percent. The Nasdaq up nine-tenths of a percent. And small caps also closing up seven-tenths of a percent. So let me get the charts going here, starting with the S &P 500. Again, up today, holding above the 21-day line. Look, a nice little bounce, getting above the 21-day line. So yesterday got above the 50-day, today got above the 21. So, you know, this is what you want to see. And it was pretty broad action. You know, once again, breadth was pretty good, and we'll see that with the indexes.

2:09Yeah, not far from record highs and not far from that 7 ,000 level. Yeah, and the NASDAQ 100 also getting back above the 50-day line today as well. Yeah, that was one. And it looks like it edged above the 21-day line. Yeah, this one was the laggard. It hit resistance yesterday. That was one of the negatives. There was, you know, even though there was some strength in tech, there was a lot of some weakness as well. So nice to see that get above those levels. And how about we check in on small caps, because continuing to do well, fading off the highs today, but another gain here of about eight-tenths of a percent.

2:46Yeah, you see like, oh, this fell on Tuesday, but it only fell to touch its 10-day line. Very different than having that strength, having that, you know, and yeah, it just continues to lead. Just really, really impressive performance to start 2026. And we can quickly check in on the Dow as well, Ed. this one also got back above the 21-day line yesterday and, again, moving back above the short-term average, but also, again, near those highs here. Near those highs, almost got there. You know, there's a lot of strength. This also just shows that there's a lot of strength in the market when you look at all these things out there and you look at the equal weight ETFs.

3:22That also shows that strength. RSP hit a new high. Yeah, it closed sort of poorly, but, you know, It did nudge and hit a record high. So I can't be too upset about that. And the RS strength, you know, relative strength had improved for a couple of months. QQQE, you know, that one is just below record highs. I don't think it quite – oh, it did get there. It did nudge into a record high as well. So, yeah, it just – there's, you know, once you get outside of some mega caps and a few of some of the software names, there's a lot of, you know, strength even in tech. And let's take a look at ARKK just for a look at some of the more growthy speculative names.

4:05This went up 2.4 % today, Ed. And again, got back above the 50-day yesterday, back above the short-term moving averages. So nice action here for ARKK. Yeah, absolutely. And, you know, ARKK, obviously, its biggest holding is Tesla, which we'll go over. But there's plenty of other stuff that was going up, too. And look, it was disappointing to see this come through the 50-day line a couple days ago, like a lot of the other stuff. So, like, you know, but here we are, right back above. So, encouraging to see that. And how about we check on XBI? That's the S &P Biotech ETF. Another strong day here, up 2.7%.

4:44Again, Ed, we see this nice action over the last few days. So, what's been going on with Biotech? There's just a lot of good things that have been happening with biotech. And actually you could go in the hot, and there's a lot of things going right, but you can also take a look at ARKG, which is ARK genomics. And that's not just biotech, it's more like speculative, but you can see how that's moving. And it's like that one is going out to new highs as well. So a lot of interest in biotechs and genomics, a variety of kinds. Definitely, this is a growth area that isn't tied to AI so much. You know, something that investors can be thinking about.

5:17I want growth, but you don't want to be everything to be tied to AI. And this is a sector that offers a lot of opportunities. All right. How about a KRE? This is a look at the banking, regional banks, reversing lower today, down about two-tenths of a percent. It's right around this 70-25 pivot point here, Ed. But we had a lot of earnings rolling in. So what's been going on here? Yeah, we've had a lot of earnings rolling in, and there were a lot that were still doing well. that came off highs today, but there have been a lot of things. They've just delivered some strong numbers. Now, I don't know why a number of them did come off highs today, some of them, but this has been a strong area.

6:01You can see the RS line had been sort of lagging or going sideways, and it's still not really out of its sideways trend, but you can see the last few months, it's been improving. For a while, it was just the big banks, the global banks, but there's been more, just the basic net interest margin. I borrow at this rate, Then I lend it out to you at this rate. That stuff has been working, which is a positive sign for the economy, too. And speaking of rates, let's just check in on the 10-year Treasury yield, Ed. That's one taking down fractionally today. But thoughts here? Yeah, essentially flat. But again, we moved up and we've hit a higher high.

6:36I mean, in the short term, obviously not even within. But so it's just sort of like, is the 200-day line kind of going to be a floor? or are we going to go back down into that prior range of, say, 4.1 to 4.2 that we were in for a while? So that's just something to be watching, you know, going forward. In a new episode of Tech Fluential, Deloitte's Ludie Lorenzo talks with Gabriella Ricci, Chief Data and Technology Officer at Takeda, and Karen Anturell, board member and former Chief Digital and Technology Officer across industries on the role leaders play in operationalizing AI at scale, moving from experimentation to accountability.

7:10They discuss how leaders can embed AI into core operations and measure success by outcomes instead of pilots. Where technology and influence converge, new opportunities can emerge. That's Tech Fluential, a podcast from Deloitte and custom content from WSJ. All right. Well, let's move on to some individual stock names. We talked about Tesla. Big winner today, Ed. This one up 4%. Again, nice move above these conjoined 50 and 21 day lines. Yeah. So the big news, just as like Tesla, I mean, Elon Musk and his AI autopilot chief both came out and said, confirmed, you know, the videos that Tesla is now having vehicles, you know, robotaxis without safety monitors in the vehicles.

7:55That was obviously seems like that seems like a huge deal. Now, it is possible it does seem like there are chase vehicles behind that. Now, that could just be to provide a physical buffer so nobody's really messing with the tailpipe kind of thing. But it could also mean that there's still safety monitors in those vehicles. So that may be one reason why there was a strong action. We didn't see an explosive one. Obviously, a trillion plus of its valuation is already on expectations that something positive will happen. But you might have expected an even bigger one. So that's just something. And maybe it will come.

8:25Maybe we're like, oh, no, this really, really is unsupervised. And so this will just keep on going. So that's one thing to know. But I think you could have done an aggressive buy here. The problem is earnings are so close. Now, Musk has really said a lot of the things. Maybe the earnings call will be boring. I mean, I'm sure there'll be plenty of interest. And we're like, do you see what I want to know? But maybe there really won't be much news because there's been a lot of the buzz, a lot of the things that Musk might have said on the call he's already been saying. So that will be in the last few days.

8:56So that'll be interesting. So really strong move here. The volume wasn't as high as you expect, but the news didn't break until the afternoon. So that's the thing. But, yeah, obviously, it's going to be huge in the next, you know, a few days, few weeks. What we learn more about that and obviously see how that goes if it expands beyond a few cars and it really seems like it's unsupervised. So, you know, it's potentially the start of something very big for Tesla. Yeah, this is one we covered in our upcoming earnings cheat sheet episode, which drops tomorrow. And as you said, self-driving, it's all self-driving, self-driving, self-driving.

9:35So aggressive entry here, possibly. But if you're an investor that maybe wants to see the stock prove itself a little bit more, what other areas could you be looking at here? Well, I mean, obviously, I think just the earnings report, there is a base, but that wouldn't happen until the end of next week. So it's possible that the end of next week or after earnings, at that point after earnings, we're getting pretty close. I mean, you know, we're getting to the next Thursday. So we'd be a day away from a consolidation at that point, I think, in terms of how like one, two, three, four, it's too deep for a flat base, I believe.

10:07So, you know, it'd be some kind of consolidation. So, but, you know, if it broke out, then you could do that. It's just there's often a lot of momentum. If it gets up to 500 or close to that, then it's gone a fair amount. That's always a concern with that. But, you know, that would be something there. Or, you know, I guess you could argue the 474 level. I mean, because there's a lot of trading sort of there and you just have a little bit about that. I suppose you could use something in there. But, yeah, it's something you can be aggressive. But knowing that there is earnings coming up and just have to see how, you know, some more details on this, which is, you know, again, so.

10:44But we just don't know a whole lot. It seems positive. And obviously the market reaction is positive. It could be a lot more positive or some of those gains could fade away over the next few days. Yeah, well, hopefully we'll see if it's a boring call. I don't think Elon Musk doesn't really seem like a boring person to me. He does seem to bring something every time, I'll admit. He does, which is why I think people like him. Let's go ahead and go over to BABA. That's Alibaba. This one, a gain of over 5 % today and gapping up around some of these short-term highs here, Ed. So talk to me about this chart.

11:19Yeah. You know, Alibaba, it looks like they didn't confirm, but there's a Bloomberg report that it's going to put its AI chip unit up for an IPO. And so that gapped up. And if you look at Baidu, B-I-D-U, they did announce a couple of weeks ago, we're going to put our AI chip unit to that. And that, I think, brought, yeah, right into there. I think that's around when the news came in. So people are excited about that, maybe unlocking some value, what have you. So, Baba moving there, this is almost, it was an almost, well, it was going to be too low anyway, but it cleared the short-term high, this sort of pseudo handle that, yeah, was around some of these levels.

11:59And so, I think you could buy it off of that, you know, if you wanted to look at an early entry. It is already getting a fair amount above the 50-day line. Yeah, so that, you know, that's, it's, you know, somewhat almost extended from that. So, that would be the problem about waiting for it to get to 192 or so. But strong action here. And you see the volume today, the volume from a couple weeks ago. So definitely turning around. The RS line has really improved. China names can really swing around. There are concerns about earnings. There's been a pretty expensive, you know, in like basically like their, you know, food delivery.

12:36They've been getting into that, and it's been extremely tough to compete in. But the market sees a lot of growth. but there's cloud computing, they have AI. So they have a lot of the things that some of the hyperscalers in the U.S. did, you know, that made their big moves in recent years. All right, how about we hop on over to NXT? That's Next Power. I'll switch back to the daily here. A move of 4.8 % today, Ed, and another one kind of getting above some short-term levels here in that round 100 level. Yeah, and this one was almost a handle. Like that day from a couple of days ago, So it fell just a little too much if it hadn't fallen so much.

13:16But it actually turned out to be a nice test of the 50-day. But if the midpoint of the handle is below the midpoint of the base, we say it's not proper. So it was a little too low. But I think this one, you definitely could have used that as an entry today. This is one of the leading ones there. You can look. There's strong growth here in recent quarters. It's not supposed to be very strong growth in fiscal 2026. 2026, I'm not quite sure how that's lining up because I'm looking at the numbers. It looks like it's better than 1 % for the full fiscal year, but maybe March is going to be really poor.

13:49So we'll see how that turns around. So that would be one issue there, but nice move there. Earnings are next week. That is something to watch out for. So that's one reason why I didn't pull the trigger today because it was a nice move in today's session. One way to play solar would be with TAN, the solar ETF. And in fact, you could argue this is the best way to do it right now, because except for the fact of NextPower, most of the stocks are like out of position. They're either fell back down or they're extended or just sort of we're setting up in some way. But this one was actionable today. And yeah, if NextPower has bad results next week, I'm sure TAN would have some impact, but it's not going to crash on you.

14:33So especially with NextPower having earnings next week, this might have been the better way to play it. You know, sometimes it isn't, but right now it seems to be a good way to play the solar space. Yeah, still at the top of that buy range here, Ed. And, you know, we've been talking about earnings. I think we had some after the close. We want to check and see. We can start with Intel. That's INTC down 6 % after hours here, Ed. Yeah. I mean, they beat Fuse on Q4. They guided low on Q1, at least at the midpoint, as far as I could tell. Now, I don't know if they've said anything. I mean, the real issue, why has this stock rose so much in January and so much over the last few months?

15:15It's obviously the Trump and NVIDIA, you know, capital injections. I mean, capital injections, the billing, buying estates. The question is, so we're going to want to hear more about the founders. So this, maybe there's all that news in there, but we want to find out what about the longer term? Are people using Intel for the founder? Are they going to use them for this and that? So that may end. So this is only a fraction of what it's gained just this month. So just to put that in perspective, it's only, heck, it's only giving up the gains from the past couple of days, you know? So it's not, yeah, so while it might be disappointing, but so that, I probably want to see what they say on the conference call and some more details on that.

15:53But that's one of the big movers. Yeah, let's take a look at ISRG2. That's Intuitive Surgical. This one up 2 % after hours, also reporting earnings today. Yeah, I wasn't sure if there was going to be much of any movement. They beat EPS by a fair amount. They already reported preliminary revenue last week, and that was pretty good. But the stock sold off because the guidance for procedures using their system just was below expectations. So you can see how much is sold off. This needs a lot of repair work. So it'd be nice to get a bounce, but you can see how much it's lost in the last few days. Yeah, and how about ticker COF?

16:30That's Capital One Financial. That's also reporting earnings down around 5 % right now. But retook the 50-day line here today. But any thoughts here? Yeah, mixed results missed on EPS. It looks like the bigger news maybe is that they are buying some fintech that specializes in tech for credit cards and rewards and stuff. So that's a$5 billion deal. They just bought Discover. So they're still doing a lot of digesting. That's one reason why their revenue growth has been so amazing. That's because they bought Discover, not because they have such jaw-dropping, you know, organic growth. But so stock is down on that.

17:09It had sort of fallen back to the 50-day buy point, you know. So, you know, that's going to come under some pressure, it looks like. All right. How about we take a look at ticker CSX? This one up about 5 % after hours with earnings. Had a little bit of an ugly downside reversal today, closing right around that 50-day line. Yeah, I mean, barring earnings, I think yesterday would have looked like an early entry. And obviously, that would have been disappointing heading into earnings. But nice move here. Looks like it's going to come right up to the buy point. Let's look at a weekly, though, because this is like a base next to a base.

17:41And really, honestly, that hasn't gone anywhere for a couple of years. And if you go to a monthly, you can see that it really hasn't gone anywhere for almost four years. So that is one issue. You can see how the relative strength line has just weakened through that whole time period, because obviously the stock market has gone up. So there was mixed results today. I don't know about the EPS. I think the EPS may have beat, but the revenue slightly missed. Transport's are doing well. This one is making a move, but it hasn't shown performance over time and the results haven't been great. So that is one reason to be cautious.

18:15And how about we just check in on one more? That's Alcoa, ticker AA. This up almost 3 % after hours today, Ed. Yeah, it looks like it beat solidly on EPS and revenue. I don't know how the guidance was, but obviously it looks pretty good. Stocks at three-year highs, 50 % tariffs on aluminum. Yeah, that does hit them in some ways, but it generally helps them. So, you know, that one has been doing very well, but, you know, it's pretty extended right now. Right. All right, Ed. Well, thanks so much for your insights today. We appreciate it. Thank you, Lexi. All right. Well, that wraps it up for this episode of Stock Market Today.

18:52If you want even more market analysis, be sure to tune in tomorrow morning for IBD Live. Get out on over to investors.com slash IBD Live for all the details there. And as always, on Friday, we'll have Justin Nielsen and Mike Webster give their extended take on the market. So they'll be back here tomorrow after the close. Thanks so much for watching. We'll see you then.

19:22Thank you.

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