Dow Jones Futures Fall: What to Do in New Stock Market Rally; Tesla sales up next
Dow Jones futures were lower after Monday’s stock market crash. Nevertheless, the new stock market rise and six top shares continue to buy and see include AutoZone and Merck.
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Late Monday, the Dow Jones stock Nike (NKE) reported better-than-expected results. Nike shares climbed more than 2% in expanded trading before turning 3% lower due to weaker-than-expected revenue guidance. The stock ended Monday with about 38% of its 52-week high.
Next, Tesla (TSLA) is expected to announce second quarter sales later this week. Analysts asked by FactSet expect Tesla to deliver 273,000 vehicles in the second quarter, with a range between 249,000 and 323,000. Tesla delivered 310,048 cars in the first quarter.
Dow Jones Futures Today: Treasury Yields, Oil Prices
After Monday’s close, Dow Jones futures fell 0.25% against fair value, and S&P 500 futures lost 0.3%. Nasdaq 100 futures fell 0.4% relative to fair value. Keep in mind that overnight trading in Dow futures and elsewhere does not necessarily translate into actual trading in the next regular trading session.
The 10-year government interest rate ticked up to 3.19% on Monday after Friday’s rise to 3.12%. The 10-year government interest rate appears to be picking up again after a sharp decline. In mid-June, it reached its highest level since April 2011 at 3.48%.
Meanwhile, US oil prices are trying to pick up after recent losses, with West Texas Intermediate trading close to $ 110 a barrel. In early March, the WTI briefly topped $ 130.
The stock market today
On Monday, the Dow Jones Industrial Average fell 0.2%, while the S&P 500 fell 0.3%. The technology-heavy Nasdaq composite lost 0.7%. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 0.7% and the SPDR S&P 500 ETF (SPY) fell 0.4%.
Tesla shares fell 0.3 percent on Monday. Among Dow Jones executives, apple (AAPL) was unchanged and Microsoft (MSFT) traded 1.05% lower in today’s stock market.
In the early stages of a new stock market rally, Dow Jones is leading Johnson & Johnson (JNJ) and Merck (MRK), as well AutoZone (AZO), Bristol Myers Squibb (BMY), Eli Lilly (LLY) and Quanta services (PWR), is among IBD’s best stocks to buy and watch on Tuesday.
Quanta is an IBD Leaderboard watch list. Eli Lilly is an IBD SwingTrader stock. Bristol was Friday’s IBD Stock Of The Day. And AutoZone featured in this week’s Stocks near a buy zone column.
What to do in a new stock exchange rally
In the midst of a new stock market rally, investors have the green light to start buying leading stocks that break out previously correct buy points. It should put your portfolio and mindset in sync with the stock market by gradually committing capital to leading stocks.
Use each purchase as feedback on the current strength of the market rally. Do not panic if you miss the first few outbreaks. If the upswing in the stock market is real, it will be a good time to buy stocks and make money. This is an important strategy because previous follow-up has failed this year.
For more leading stocks and stocks approaching buy points, check out these IBD stock lists, as Stocks Near Buy Zones.
Monday’s The Big Picture column commented: “The days following a follow-up are as important as the follow-up day itself, which means the stock market is now in evidence for a new trend. Like any good test pilot, investors should proceed with caution this week.”
If you are new to IBD, consider taking a look at the stock trading system and the basics of CAN SLIM. Recognizing chart patterns is a key to the investment guidelines. IBD offers a wide range of growth charts, such as Leaderboard and SwingTrader.
Investors can also create watch lists, find companies approaching a point of purchase, or develop custom monitors at IBD MarketSmith.
Four Dow Jones shares to see now
Dow Jones shares to see: Johnson & Johnson, Merck
Dow Jones leader Johnson & Johnson is in the buying area past a double-bottom 181.84 buy point in the wake of Friday’s 1.5% breakout move, according to IBD MarketSmith chart analysis. JNJ shares were slightly lower on Monday.
The JNJ stock shows a solid 95 of a perfect 99 IBD Composite Rating, according to the IBD Stock Checkup. Investors can use the IBD Composite Rating to easily measure the quality of a stock’s basic and technical calculations.
Drug giant Merck broke past a flat base’s 95.02 buy points on Monday, but ended just below the entrance after the session’s 1.4% rise. The purchase area of 5% goes up to 99.77.
4 top growth stocks to see in timera stock market rally
Top stocks to buy and look at: AutoZone, Bristol, Eli Lilly, Quanta
AutoZone rose 0.5% on Monday after Goldman Sachs upgraded the stock from neutral to buy with a price target of 2296, saying the company is “defensively positioned” in the current environment. AZO shares erupted past a cup with the handle’s 2,130.60 buy points on Friday and are in the buying range which peaks at 2,237.13.
Friday’s IBD Stock Of The Day, Bristol Myers, moves further above a flat base’s 78.72 buying point after Monday’s gain of 1.3%. The buying zone of 5% goes up to 82.66.
IBD SwingTrader stock Eli Lilly is back on new heights after regaining its 50-day line last week. Shares are in the 5% buying area which goes up to 329.81. Eli Lilly shares rose 0.5 percent on Monday.
IBD Leaderboard Watchlist stock Quanta Services tracks a cup with handles that have a buying point of 138.56, according to IBD MarketSmith chart analysis. The stock is back above the 50-day limit, which is a key level to see. Quanta shares rose 1.5 percent on Monday.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla shares
The Tesla share lost 0.3% on Monday, giving back a small part of Friday’s progress of 4.5%. The stock is still strong below its 50- and 200-day moving averages.
The Tesla stock traded as high as 1,243.49 on November 4. The shares are about 40% of the record.
Dow Jones executives: Apple, Microsoft
Among Dow Jones shares, Apple shares traded unchanged on Monday, but are still at their highest level since June 9. The stock is still well below its long-term 200-day line and is about 23% lower than 52 weeks high.
Software leader Microsoft lost 1.05% on Monday as it tests resistance around its main 50-day line. The stock closed about 24% of its 52-week high.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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