The Dow Jones Industrial Average rallied 420 points Tuesday, as IBM jumped on earnings results. Apple stock looked to move higher in morning trade. And tech giant Netflix is set to report earnings after the close Tuesday.
Among the Dow Jones leaders, Apple (AAPL) rallied 1% Tuesday, while Microsoft (MSFT) moved up 0.2% in today’s stock market. Coca-Cola (KO) and McDonald’s (MCD) are near buy points. IBM (IBM) beat earnings estimates late Monday.
Microsoft and Tesla are IBD Leaderboard stocks. BioNTech is an IBD SwingTrader stock. AMD was featured in this week’s Stocks Near A Buy Zone column, while AutoNation was Monday’s IBD Stock Of The Day.
Dow Jones Today
The Dow Jones Industrial Average rallied 1.3% Tuesday, while the S&P 500 gained 0.8%. The tech-heavy Nasdaq lagged, rising 0.3% in morning trade.
Among exchange traded funds, the Innovator IBD 50 (FFTY) rallied 0.6% Tuesday. Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) moved up a fraction Tuesday. Meanwhile, the SPDR S&P 500 ETF (SPY) ascended 0.7%.
Stock Market Rally Weakens
The S&P 500 remains off its record highs, while the Nasdaq looked to snap a five-day losing streak Tuesday. The Dow Jones industrials pierced their 50-day moving average with sharp losses Monday and remain below it.
Monday’s Big Picture column noted, “It was a harsh day of selling Monday, but the selling shouldn’t have come as a big surprise because yellow flags have been out there for a while.”
For more stock market commentary, check out IBD’s The Big Picture.
Dow Jones Stocks To Buy And Watch: Coca-Cola, McDonald’s
Dow Jones stocks Coca-Cola and McDonald’s are near new buy points following Monday’s stock market sell-off. Coca-Cola is trading about 1% away from a 56.58 buy point in a flat base following Tuesday’s 0.5% gain.
McDonald’s is trading below a 238.28 buy point in a flat base, according to IBD MarketSmith chart analysis, after Tuesday’s 0.7% rise. The stock gave up its key 50-day moving average during Monday’s sell-off.
Dow Jones Earnings: IBM
Dow Jones stock IBM reported strong Q2 results after the close Monday. The company reported adjusted EPS of $2.33 on sales of $18.7 billion.
Shares jumped over 4% Tuesday. IBM stock is tracing a flat base with a 152.94 buy point.
After the stock market close Tuesday, Netflix earnings are due out. The FANG stock leader is expected to earn $3.18 a share on sales of $7.3 billion, representing increases of 100% and 19%, respectively, vs. the year-ago period.
Last quarter, earnings soared 139% on revenue of $7.1 billion.
Netflix stock continues to build a double-bottom base with a 563.66 buy point. Shares slipped 1.5% Tuesday morning and are about 7% away from the buy point.
So far, the stock hasn’t participated in this year’s stock market rally. Year to date, Netflix stock is down 1.5%, while the Nasdaq is up more than 10% through Monday’s close.
Stocks To Buy And Watch: AMD, BioNTech, AutoNation
Chip giant Advanced Micro Devices is tracing a cup-with- handle base that shows a 95.54 buy point, according to IBD MarketSmith chart analysis. Shares lost about 1% Tuesday.
According to the IBD Stock Checkup, AMD stock shows a solid 95 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 BioNTech is rebounding from its 50-day moving average, but the Covid-19 vaccine stock is now out of a new buy area following Monday’s 4.8% rally. Per Leaderboard analysis, BioNTech cleared a trend line following a pullback near 222, offering a new entry at a similar price level as the 50-day line. Shares tacked on nearly 2% Tuesday morning.
BioNTech is also an IBD SwingTrader stock.
Monday’s IBD Stock Of The Day, AutoNation, is trying to break out past a 107.07 buy point after the company’s strong Q2 earnings results ahead of the open. Shares closed just below the buy point amid Monday’s 3.65% advance. The stock rallied almost 4% Tuesday morning, moving back into buy range.
Bullishly, the stock’s RS line is just off new highs, indicating substantial stock market outperformance vs. the broad market. The RS line should hit a new high on the breakout day or shortly thereafter.
Tesla stock slid 0.5% Tuesday, on pace to fall after Monday’s 0.3% rise. The electric-vehicle giant is again testing support around its long-term 200-day moving average. Another strong show of support at these levels would be bullish for the stock’s prospects.
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
Among the top Dow Jones stocks, Apple rallied 1% Tuesday, on pace to snap a three-day losing streak. The stock hit an all-time high last week at 150.00.
Apple stock is back in the 5% buy zone from a 137.17 entry in a cup base, according to IBD MarketSmith chart analysis.
Microsoft continues to trade solidly above a cup base’s 263.29 buy point. Shares gained 1.5% Tuesday. The stock is extended above the 5% buy zone, which goes up to 276.45.
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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