Dow Jones Futures Rise As Apple Nears New Buy Point; 4 Top Stocks In Or Near Buy Zones
Dow Jones futures, along with S&P 500 and Nasdaq 100 futures, were slightly higher early Wednesday, as the United Kingdom began to roll out Pfizer’s coronavirus vaccine. Dow Jones leader Apple is approaching another early buy point, while Tesla raced to all-time highs despite a $5 billion share offering.
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Stock leaders Chipotle Mexican Grill, DraftKings, PayPal and Twilio are in or near new buy zones in the current stock market rally.
The Dow Jones Industrial Average advanced 0.35%, or 104 points. The S&P 500 rallied 0.3%, while the tech-heavy Nasdaq composite moved up 0.5%. The Dow Jones Industrial Average, Nasdaq and S&P 500 notched all-time highs.
Among the Dow Jones leaders, Apple (AAPL) rose 0.5% and Microsoft (MSFT) advanced 0.8%. Tesla (TSLA) reversed from early losses to rally 1.3%, setting a record high. The electric-car maker announced a plan to raise $5 billion in a share offering.
Stocks in or near buy zones in the stock market rally are Chipotle Mexican Grill (CMG), DraftKings (DKNG), PayPal (PYPL) and Twilio (TWLO)
Apple, Microsoft and Tesla are IBD Leaderboard stocks. DraftKings is a new IBD SwingTrader idea. Chipotle was Monday’s IBD Stock Of The Day, while PayPal and Twilio are featured in this week’s Stocks Near A Buy Zone column.
Dow Jones Futures Today: Coronavirus Vaccine
Early Wednesday, Dow Jones futures moved up 0.35% vs. fair value, while S&P 500 futures rose 0.25%. Nasdaq 100 futures rallied 0.15% vs. fair value. Remember that trading in Dow Jones futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
On Tuesday, the U.K. began its rollout of Pfizer (PFE)’s coronavirus vaccine. The vaccine will be prioritized to front-line health workers, nursing-home workers and those age 80 or older. Then it will be available to the remainder of the U.K. population.
Early Tuesday, the Food and Drug Administration said Pfizer’s coronavirus vaccine did not raise any specific safety concerns, noting the vaccine was “highly effective in reducing the risk of Covid-19 and severe Covid-19 after Dose 1.” The comments came in documents posted on the FDA website. The advisory meeting will be held Thursday to review Pfizer’s coronavirus vaccine.
Pfizer shares rallied more than 3% Tuesday.
Among exchange traded funds, Innovator IBD 50 (FFTY) rose 0.8% Tuesday. The Nasdaq 100-linked Invesco QQQ Trust ETF (QQQ) traded up 0.3%. Meanwhile, the SPDR S&P 500 ETF (SPY) climbed 0.3%.
Amid the coronavirus stock market rally, the tech-heavy Nasdaq is up 40.2% for the year through Tuesday’s close. The S&P 500 is up 14.6%, while the DJIA is up 5.7% year to date, through the Dec. 8 close.
U.S. Stock Market Today Overview |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 30174.40 | +104.61 | +0.35 |
| S&P 500 | (0S&P5) | 3702.20 | +10.24 | +0.28 |
| Nasdaq | (0NDQC ) | 12582.77 | +62.82 | +0.50 |
| Russell 2000 | (IWM) | 190.78 | +2.40 | +1.27 |
| IBD 50 | (FFTY) | 40.19 | +0.31 | +0.78 |
Last Update: 4:38 PM ET 12/8/2020 |
||||
Coronavirus Updates
According to the Worldometer data tracker, the cumulative number of confirmed coronavirus cases in the U.S. topped 15.5 million on Tuesday. Total virus-related deaths rose past 292,000.
The cumulative total of worldwide Covid-19 cases confirmed since the start of the outbreak topped 68.4 million Tuesday, with more than 1.55 million virus-related deaths.
Coronavirus Stock Market Rally
November was a key month for the stock market, after IBD’s The Big Picture flagged a new uptrend following the market’s bullish follow-through day on Nov. 4. Meanwhile, December shows more all-time highs from the major stock indexes.
Monday’s Big Picture commented, “While the stock market is at record highs, complacency remains something to be guarded about. The put/call volume ratio keeps hovering below 0.6. Monday’s reading of 0.51 marked the 12th consecutive session in which it has been below a danger level of 0.6. That’s the longest streak since late August and early September. The ratio spent six straight days below 0.6, just as the stock market began its sharpest decline since the coronavirus bear market.”
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Dow Jones Stocks To Watch: Apple
Dow Jones stock leader Apple is approaching another aggressive entry at 125.49. Shares moved up 0.5% Tuesday to close at 124.38. The conventional buy point, for now, is 138.08, according to MarketSmith chart analysis.
The stock is already trading above an aggressive entry at 122.09 after last week’s breakout move.
The blue-chip giant is the No. 1-performing Dow Jones stock for 2020, with a 69.4% advance through Tuesday.
Stocks In Or Near Buy Zones: Chipotle, DraftKings, PayPal, Twilio
IBD Stock Of The Day Chipotle is rapidly approaching a 1,366.76 buy point in a double bottom. Shares dipped 0.1% and are trading just below an early entry at 1,346.10.
DraftKings is tracing a cup with handle with a 53.82 buy point. Shares advanced 6.1% Tuesday, finding support at the 50-day moving average line. The sports betting leader was added to IBD SwingTrader Tuesday.
A key flaw is the stock’s lagging relative strength line. The RS line remains far from its old highs. Ideally, it should be approaching new highs ahead of a potential breakout.
PayPal is just above its 215.93 buy point in a cup base after retaking the buy point last week, according to MarketSmith chart analysis. Shares moved down 0.45% Tuesday morning and are in the 5% buy range that goes up to 226.73.
PayPal ranks No. 7 on the IBD 50 and No. 3 on the Big Cap 20.
According to IBD Stock Checkup, PYPL stock boasts a perfect 99 IBD Composite Rating. The Composite Rating — an easy way to identify top growth stocks — is a blend of key fundamental and technical metrics to help investors gauge a stock’s strengths.
Top stock to watch Twilio is moving up the right side of a cup base, displaying a 341.80 buy point. A potential handle could be forming, but it is a bit too early to be certain. If it forms, the new handle entry will be 333.72.
Shares rallied 3.7% Tuesday.
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Tesla Stock
IBD Leaderboard stock Tesla reversed from sharp losses to rise 1.3% Tuesday, hitting another record high at 651.28. On Nov. 18, shares broke out above a 466 buy point in an awkward cup with handle and are more than 30% from the buy point.
Early Tuesday, the company announced a plan to raise $5 billion in a share offering. The additional shares will be sold “from time to time” and “at the market” prices, according to the SEC filing.
Meanwhile, November’s Tesla sales in China came in at 21,604, a big increase from 12,145 in October, according to the China Passenger Car Association.
Dow Jones Leaders: Microsoft
Among the top Dow Jones stocks, software giant Microsoft moved up 0.8% Tuesday. Shares are again rebounding from the 50-day support level.
Year to date, Microsoft is one of the top Dow Jones stocks, advancing 36.9% through the Dec. 8 close.
Stock Market Rally: What To Do Next
Investors should continue to use the stock market’s strength to buy breakouts. Be patient and wait for powerful breakouts instead of chasing extended stocks. If the new breakouts work, then add more exposure. But if breakouts start to fail, then you can back away.
In particular, focus on stocks with strong relative strength. Find them by using the relative strength line. The RS line measures a stock’s price performance vs. the S&P 500. If the stock is outperforming the broader market, then the RS line angles upward. If a stock is performing worse than the broad market, then the line will point lower.
Stocks to watch include IBD Long-Term Leaders, companies with stable earnings growth and price performance. Nice (NICE) and Intuit (INTU) are the two most recent additions to the list on Dec. 4.
Nice is finding support around it 10-week moving average and is just above a 238.45 buy point in a flat base. Meanwhile, Intuit is barely extended past the 5% buy zone above a 354.08 buy point in a cup with handle.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones futures.
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