The Dow Jones Industrial Average briefly rallied more than 100 points Monday, as Bitcoin surged above $54,000. Tesla stock raced higher ahead of earnings, due out after the close, while Coinbase jumped 4%.
Among the Dow Jones leaders, Apple (AAPL) dropped 0.2% Monday, while Microsoft (MSFT) moved up 0.1% in today’s stock market. Dow Jones stock Disney (DIS) is approaching a new buy point, but remains below a key level.
Dow Jones Today
The Dow Jones Industrial Average rose 0.2%, while the S&P 500 gained 0.3%. The tech-heavy Nasdaq composite extended gains to 0.4% in morning trade.
Stock Market Rally: Dow Jones Nears High
Amid the current stock market rally, the Dow Jones Industrial Average is nearing another record high, while the S&P 500 notched a new high amid Monday’s gain.
Meanwhile, the tech-heavy Nasdaq sits off its own all-time highs amid Monday’s slight rise.
Friday’s Big Picture commented, “The stock market finished the week strong, as the tech-heavy Nasdaq led the major stock indexes higher Friday. The Nasdaq, Dow Jones Industrial Average and S&P 500 ended near session highs.”
For more stock market commentary, check out IBD’s The Big Picture.
Bitcoin Surges Above $54,000; Coinbase Jumps
Bitcoin plunged as low as $47,079 Sunday night before surging higher to trade as high as $54,043 Monday morning before easing. Bitcoin traded around $53,800 in morning trade. On April 14, Bitcoin topped out at $64,829, according to Coindesk.
The Grayscale Bitcoin Trust (GBTC) jumped 6% Monday morning, on pace to add to Friday’s 2.6% rally. The Bitcoin-tracking ETF broke down below its key 50-day line last week.
Cryptocurrency exchange Coinbase jumped more than 4% Monday morning amid the strength in Bitcoin. Shares hit a post-IPO low Friday and are about 30% off their high of 429.54.
The stock’s weakness illustrates the importance of waiting for an IPO base to form before jumping into hot IPO stocks.
Dow Jones Stocks: Disney’s New Buy Point
Dow Jones media giant Disney is working on a new flat base with a 203.12 buy point, according to IBD MarketSmith chart analysis. Shares rallied almost 1% Monday morning, but remain below their key 50-day moving average.
A previous breakout above a 183.50 flat-base entry on Feb. 8 led to some immediate gains. But those gains have dissipated since early March.
Stocks To Buy And Watch: Nvidia, PayPal
Graphics-chip maker Nvidia is below its 615 buy point in a new cup base following last week’s weakness. The 5% buy zone goes up to 645.75. Shares declined almost 1% Monday morning.
According to IBD Stock Checkup, Nvidia stock shows a solid 93 out of a perfect 99 IBD Composite Rating. The IBD Composite Rating helps investors easily measure the quality of a stock’s fundamental and technical metrics.
IBD Leaderboard stock PayPal is building a cup with handle, offering a buy point at 277.96, according to IBD MarketSmith chart analysis. Shares moved up 1% Monday, and they remain above their 50-day line.
According to Leaderboard commentary, “Three up weeks in a row is encouraging. Yet it’s key to watch now how the stock holds those nice gains. The current base is third stage … The Relative Strength Rating is improving but has not reached 80 in a long while.”
EV giant Tesla will report its Q1 earnings results after the stock market close Monday. Analysts polled by Zacks Investment Research expect EPS of 79 cents, a 216% year-over-year surge. Sales are seen jumping 66% to $9.92 billion.
Tesla may also adjust its delivery forecast. In January, the company estimated 50% average annual growth in vehicle deliveries, with 2021 expected to be faster than that pace. In 2020, deliveries grew 36% to 499,647.
Tesla stock rallied more than 1% Monday morning, looking to add to Friday’s 1.35% gain. The EV giant is forming a new cup with handle, offering a 780.89 buy point. But it is a late-stage base.
On Jan. 25, Tesla stock hit a record high at 900.40, after climbing as much as 93% from a 466 buy point in a cup with handle.
Dow Jones Leaders: Apple, Microsoft
Software giant Microsoft traded 0.1% higher Monday. Microsoft is trading out of the 5% buy range past a flat base’s 246.23 buy point that tops out at 258.54.
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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