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Falling Dow Jones futures: what to do in a new stock market rally; Tesla sales on the way

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Dow Jones futures declined after the stock market fell on Monday. However, the new stock market rally continues and the top six stocks to keep an eye on include AutoZone and Merck.




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Late Monday, Dow Jones stock Nike (NKE) reported higher-than-expected earnings results. Nike shares rose more than 2% in extended trading before falling 3% on weaker-than-expected revenue guidance. The stock closed on Monday about 38% below its 52-week high.

Next, Tesla (TSLA) is expected to announce second quarter sales later this week. Analysts polled by FactSet expect Tesla to deliver 273,000 vehicles in the second quarter, ranging from 249,000 to 323,000. Tesla delivered 310,048 vehicles in the first quarter.

Dow Jones Futures Today: Treasury Bond Yields, Oil Prices

After Monday’s close, Dow Jones futures were down 0.25% from fair value, while S&P 500 futures were down 0.3%. Nasdaq 100 futures fell 0.4% from fair value. Remember that overnight action in Dow futures and elsewhere does not necessarily translate into real trading in the next regular stock market session.

The 10-year Treasury yield rose to 3.19% on Monday after rising to 3.12% on Friday. 10-year Treasury yields should bounce back after a sharp pullback. In mid-June, it reached its highest level since April 2011 at 3.48%.

Meanwhile, US oil prices are trying to recover from recent losses, with West Texas Intermediate oil trading near $110 a barrel. In early March, WTI briefly broke the $130 mark.

Stock market today

On Monday, the Dow Jones Industrial Average fell 0.2% and the S&P 500 fell 0.3%. The Nasdaq technology composite lost 0.7%. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 0.7%, while the SPDR S&P 500 ETF (SPY) was down 0.4%.

Tesla shares fell 0.3% on Monday. Among the leaders of the Dow Jones Apple (AAPL) has not changed and Microsoft (MSFT) traded on the stock market down 1.05% today.

In the early stages of a new stock market rally, the Dow Jones leaders Johnson and Johnson (JNJ) and Merck (MRK), as well as Autozone (AZO), Bristol Myers Squibb (BMI), Eli Lilly (LLI) and Quanta Services (PWR) are among the best IBD stocks to watch on Tuesday.

Quanta is on the IBD Leaderboard Watchlist. Eli Lilly – IBD SwingTrader shares. Bristol became the IBD Friday promotion. And AutoZone is featured in the “Stocks Near Buy Zone” column this week.

What to do during a new stock market rally

Amid an emerging stock market rally, investors have the green light to start buying leading stocks breaking through the right buy points. This should keep your portfolio and mindset in sync with the actions of the stock market, gradually investing in leading stocks.

Use every purchase as a feedback on the current strength of the market growth. Don’t panic if you miss the first couple of breakouts. If the uptrend of the stock market is real, there will be plenty of time to buy stocks and make money. This is an important strategy because previous revisions this year have failed.

For more leading promotions and promotions close to buy points, check out these lists of IBD stocks like close to buy zones.

On Monday, the Big Picture column noted: “The days after the close are as important as the day itself, which means the stock market is now in the testing ground for a new uptrend. Like any good test pilot, investors should proceed with caution this week.”

If you’re new to IBD, consider taking a look at its stock trading system and the basics of CAN SLIM. Recognizing chart patterns is one of the keys to investment guidance. IBD offers a wide range of growth stock listings such as Leaderboard and SwingTrader.

Investors can also create watchlists, find companies close to the point of purchase or design their own screens in IBD MarketSmith.


Four Dow Jones stocks to watch now


Dow Jones stocks to watch: Johnson & Johnson, Merck

According to IBD MarketSmith’s chart analysis, Dow Jones leader Johnson & Johnson is in a buying range after the 181.84 double bottom buy point following Friday’s 1.5% break. JNJ shares fell slightly on Monday.

JNJ shares post a solid 95 out of a perfect IBD composite rating of 99 on the IBD Stock Checkup. Investors can use the IBD Composite Rating to easily assess the quality of a stock’s fundamental and technical performance.

Pharmaceutical giant Merck broke through a basic buy point of 95.02 on Monday but closed just below its entry point after gaining 1.4% on the session. The 5% buy zone rises to 99.77.


The 4 Best Growth Stocks to Watch in the Current SituationRstock market rally


Best stocks to buy and watch: AutoZone, Bristol, Eli Lilly, Quanta

AutoZone shares rose 0.5% on Monday after Goldman Sachs upgraded the stock from neutral to Buy with a target price of 2296, saying the company is “protective” in the current environment. AZO shares broke the cup with a buy point of 2130.60 on Friday and are in a buying range that peaks at 2237.13.

Friday’s IBD stock, Bristol Myers, moves further above its fixed buy point of 78.72 after gaining 1.3% on Monday. The 5% buy zone reaches 82.66.

Shares of IBD SwingTrader Eli Lilly are back to new highs after a bullish recovery from their 50-day line last week. The stock is in a 5% buy zone that rises to 329.81. Eli Lilly shares rose 0.5% on Monday.

According to IBD MarketSmith’s chart analysis, Quanta Services shares on the IBD leaderboard are tracking cup and handle with a buy point of 138.56. The stock is back above its 50-day line, which is a key level to watch. Quanta shares rose 1.5% on Monday.


Join IBD experts as they analyze the leading stocks in the current stock market rally on IBD Live.


Tesla shares

Tesla shares lost 0.3% on Monday, retracing a small portion of Friday’s 4.5% gain. Stocks are still sharply below their 50- and 200-day moving averages.

Tesla shares traded at 1243.49 on November 4th. Shares are down about 40% from that all-time high.

Dow Jones leaders: Apple, Microsoft

Among Dow Jones stocks, Apple stock traded flat on Monday but is still at its highest level since June 9. However, the stock is well below its long-term 200-day line and about 23% below its 52-week high.

Software leader Microsoft shed 1.05% on Monday as it tests resistance around its key 50-day line. The stock closed about 24% below its 52-week high.

Don’t forget to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more information on growth stocks and the Dow Jones Industrial Average.

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