Banking

Dow Jones Rallies After Market Sell-Off; Apple, Microsoft Bounce

The Dow Jones Industrial Average rallied more than 250 points Tuesday following Monday’s stock market sell-off. Apple and Microsoft looked to bounce after their own sharp losses Monday, while Tesla stock climbed.




X



Among the Dow Jones leaders, Apple (AAPL) rose 0.5% Tuesday, while Microsoft (MSFT) moved up 1% in today’s stock market. American Express (AXP) and Merck (MRK) are near new buy points Tuesday morning.

Tesla (TSLA) rallied 1.5% Tuesday, on pace to add to Monday’s 0.8% rise. The stock is just above its latest buy point.

Among the top stocks to watch, Netflix (NFLX) and ServiceNow (NOW) are in or near new buy zones despite the current stock market weakness.

Microsoft, ServiceNow and Tesla are IBD Leaderboard stocks. American Express is an IBD SwingTrader stock. Netflix featured in this week’s Stocks Near A Buy Zone column.

Dow Jones Today

Early Tuesday, the Dow Jones Industrial Average rallied 0.8%, while S&P 500 moved up 0.9%. The tech-heavy Nasdaq composite climbed 1.1% in the first 40 minutes of trade.

Among exchange traded funds, Innovator IBD 50 (FFTY) rose 1.7%. Nasdaq 100 tracker Invesco QQQ Trust (QQQ) gained 1.1%. And the SPDR S&P 500 ETF (SPY) moved up 0.6%.

Stock Market Weakness

The Nasdaq and S&P 500 tumbled to new recent lows Monday, as the current stock market correction worsened. The Nasdaq closed at its lowest level since June 22 and could be headed for a test of its long-term 200-day moving average. Meanwhile, the Dow Jones Industrial Average almost gave back the entirety of Friday’s 1.4% advance, but held above its recent lows.

On Monday, The Big Picture commented, “Top-performing growth stocks were under pressure again, fueling a 2.1% decline for the Nasdaq composite. The index undercut Friday’s low, killing the nascent rally attempt. So did the S&P 500, which fell 1.3%.”


Stock Market ETF Strategy And How To Invest


Dow Jones Stocks To Watch: American Express, Merck

Dow Jones leaders American Express and Merck are blue chip stocks to watch in today’s stock market action.

IBD SwingTrader stock American Express is approaching a 178.90 buy point in a cup with handle, according to IBD MarketSmith chart analysis. Shares rallied more than 1% early Tuesday, and are about 2% away from the new entry.

Merck threatened to snap a four-day win streak Tuesday, falling 0.2%. On Friday, Merck said its Covid pill reduced the risk of hospitalization by half in a final-phase study, sparking an 8.4% surge and a breakout past a 79.33 buy point in a flat base.

Stocks To Watch: Netflix, ServiceNow

FANG stock leader Netflix continues to hold inside a new buy zone despite Monday’s 1.6% bearish reversal. The stock moved up 3.2% Tuesday morning. Shares are at the top of the 5% buy zone past a 593.39 entry point in a consolidation amid the recent global success of its series “Squid Game.”

According to IBD Stock CheckupNFLX stock shows a strong 97 out of a perfect 99 IBD Composite Rating. The IBD Composite Rating identifies stocks with a blend of strong fundamental and technical characteristics.

IBD Leaderboard stock ServiceNow is trying to find support around its key 50-day moving average despite a weak overall market. But shares declined over 2% Monday, closing below that key benchmark. Early Tuesday, the stock looked to regain that level, rising 2.2%.

Bullishly, the stock’s relative strength line hit a high in late September, indicating shares are holding up well amid the current stock market volatility. But now the stock is under pressure again. During weak markets, look for stocks that are holding up the best. When the market rebounds, these names can be some of the next top stocks to watch.


IBD Live: A New Tool For Daily Stock Market Analysis


Tesla Stock

Tesla stock rallied 1.5%, looking to add to Monday’s 0.8% gain. TSLA shares are above a 764.55 buy point in a cup with handle.

The stock closed Monday about 13% away from record highs. On Jan. 25, Tesla stock hit a record high of 900.40, after climbing as much as 93% from a 466 buy point in a cup-with-handle pattern.

Dow Jones Leaders: Apple, Microsoft

Among the top Dow Jones stocks, Apple moved up 0.5% Tuesday, looking to bounce after Monday’s 2.5% sell-off. The stock is still well below the 50-day line.

Software giant Microsoft rose 1%, as the stock continues its trade beneath the 50-day line. A new flat base is forming with a 305.94 buy point.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.

YOU MAY ALSO LIKE:

Top Growth Stocks To Buy And Watch

Learn How To Time The Market With IBD’s ETF Market Strategy

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

MarketSmith: Research, Charts, Data And Coaching All In One Place

How To Research Growth Stocks: Why This IBD Tool Simplifies The Search For Top Stocks



Most Related Links :
newsbinding Governmental News Finance News

Source link

Back to top button