Dow Jones futures scrambled 100 points higher early Tuesday, as global markets rallied and Treasury yields added to Monday’s surge. Apple eyed new record highs, while Tesla stock set up for another breakout in early morning trade.
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Among the Dow Jones leaders, Apple (AAPL) rose 0.3% premarket Tuesday, while Microsoft (MSFT) moved a fraction higher in today’s stock market. Also among the Dow 30, Home Depot (HD) remains in a buy zone, while Nike (NKE) fell further below a key level on Monday.
Electric-vehicle leader Tesla (TSLA) traded up 0.2% premarket Tuesday. Its rival, Rivian (RIVN), was up 0.4%. Lucid Group (LCID) climbed nearly 0.2%. And Chinese EV leaders Li Auto (LI), Nio (NIO) and Xpeng Motors (XPEV) each fell 0.7% Tuesday morning.
Among Tuesday’s top stocks to buy and watch, Applied Materials (AMAT), Huntsman (HUN), Goldman Sachs (GS) and Wells Fargo (WFC) are in or near new buy zones.
Microsoft and Tesla are IBD Leaderboard stocks. Tesla was featured in this week’s Stocks Near A Buy Zone column, while Applied Materials is an IBD SwingTrader stock.
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Dow Jones Today: Treasury Yields
Ahead of the stock market open Tuesday, Dow Jones futures rallied 0.3% vs. fair value, while S&P 500 futures moved up 0.2%. Nasdaq 100 futures climbed narrowly above fair value. Remember that premarket action in Dow Jones futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
Among exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) gained 0.2% premarket Tuesday, and the SPDR S&P 500 ETF (SPY) traded up 0.3%. Meanwhile, the VanEck Semiconductor ETF (SMH) climbed 0.7%, following a 2.2% jump on Monday.
Elsewhere, the 10-year Treasury yield ticked above 1.66% Tuesday morning. On Monday, the 10-year Treasury yield soared to its highest level since Nov. 24, closing near 1.63%.
Markets in Europe traded firmly higher, with the London Stock Exchange up 1.4% near midday as it reopened following its holiday break. In Japan, Tokyo’s Nikkei 225 closed with a 1.8% gain, as the dollar briefly struck a five-year high vs. the yen.
The ISM manufacturing index for December is set to be released at 10 a.m. ET. Meanwhile, the Labor Department will release a survey on job openings and turnover for November, also at 10 a.m. ET.
Stock Market ETF Strategy And How To Invest
Stock Market Rally
The stock market kicked off 2022 with solid gains Monday, as the tech-heavy Nasdaq composite snapped a four-day losing streak. The Dow Jones Industrial Average and S&P 500 ended two-day skids.
The market outlook remains in a “confirmed uptrend,” so investors have the green light to buy top-rated growth stocks breaking out past correct buy points.
Monday’s The Big Picture commented: “To start the new year on a bullish note? Painful only for short sellers. Yet as this column repeatedly advises, it’s always good to look closely under the hood.”
For daily stock market commentary, check out IBD’s The Big Picture.
IBD’s 2022 Stock Market Forecast
Dow Jones Stocks To Watch: Home Depot, Nike
Home Depot stock slid 1.5% Monday but remains above its 50-day support level. Shares are in a buy zone on a rebound from support. HD shares were up 0.2% premarket Tuesday.
Dow Jones retail leader Nike is tracing a new flat base that has a buy point at 179.20, according to IBD MarketSmith chart analysis. Shares fell further below their 50-day line during Monday’s 1.2% decline. Nike shares gained 0.4% premarket Tuesday.
Four Top Growth Stocks To Watch In The Current Stock Market Rally
Stocks To Buy And Watch: Applied Materials, Huntsman, Goldman, Wells Fargo
IBD SwingTrader stock Applied Materials regained a 159.10 buy point in a flat base during Monday’s 1.6% gain, according to IBD MarketSmith chart analysis. The initial breakout occurred in weak volume but remains in play. Volume, a key factor of successful breakouts, has been absent from the stock’s upside moves. The 5% buy area runs up to 167.06. AMAT shares gained 0.5% premarket Tuesday.
Wednesday’s IBD Stock of the Day, Huntsman, remains in buy range past a 34.57 flat-base entry following Monday’s 1.5% rise. The 5% buy range goes up to 36.30. HUN stock shows an 89 out of a perfect 99 IBD Composite Rating, according to the IBD Stock Checkup. Huntsman stock was flat premarket Tuesday.
Dow Jones member Goldman Sachs advanced 3.3%, closing just below its 50-day line. Shares are tracing a flat base with a 426.26 buy point. A decisive move above the 50-day line would be bullish for the stock’s prospects. GS stock was up 0.5% premarket Tuesday.
Wells Fargo gapped up 5.7% Monday, moving above its 50-day moving average and breaking out over a trendline. The banking giant is tracing a flat base with a 52.67 buy point. Shares rose 0.6% premarket Tuesday.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
EV Stocks: Li Auto, Nio, Xpeng, Lucid Motors, Rivian
Li Auto stock continues to work on a new base after it reclaimed its 50-day moving average last week. Shares climbed 0.75% Monday. The stock dipped 0.6% early Tuesday.
Nio stock jumped 5.65% Monday, moving further off its recent lows. Shares closed Monday about 50% off their 52-week high and sharply below their 50- and 200-day moving averages. Shares shed 0.2% premarket Tuesday.
Xpeng Motors ended a volatile session with a 0.1% loss Monday. There is no valid buy point yet, as shares form the right side of a new base, but recent action is certainly constructive. The stock dumped 0.9% premarket Tuesday.
Among U.S.-based EV stocks, Lucid Motors shares added nearly 0.4% premarket Tuesday, looking to amend Monday’s 7.6% surge. LCID stock remains extended past a 28.49 buy point in a cup-with-handle base, but huge gains have faded. Shares are setting up for another try to retake the 50-day line, which would be a positive for the stock’s consolidation.
Recent initial public offering Rivian was up 0.5% premarket Tuesday, looking to rebound from Monday’s 0.9% loss. RIVN shares closed Monday about 43% off their post-IPO highs. Continue to wait for an IPO base to form before considering a purchase. Recent sharp losses are a significant setback in the stock’s basing process and there is no new buy point in sight.
Five Best Dow Jones Stocks To Watch Now
Tesla Stock
Tesla stock moved up 0.5% premarket Tuesday, on pace to add to Monday’s 13.5% surge. On Monday, Tesla shares broke out past a 1,119.10 buy point, which is a result of a daily-chart trendline and/or a weekly-chart handle. The stock climbed past that buy zone, which extended to 1,175,06. Meanwhile, the stock is set to break out past a double-bottom buy point at 1,202.05 if Tuesday’s early gains carry over into the regular trading session.
Shares traded as high as 1,243.49 on Nov. 4, and the stock ended Monday just 4% off that 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock ended Monday up 2.5%, nearly hitting the 20%-25% profit-taking level past a 153.27 buy point out of a cup-with-handle base, according to IBD MarketSmith chart analysis. Apple shares hit a new high Monday and became the first company to hit a $3 trillion market capitalization. Shares rose 0.6% premarket Tuesday.
Software leader Microsoft again found support around its 50-day moving average during Monday’s 0.5% decline. The top Dow Jones stock is approaching a flat base’s 349.77 buy point with an early entry at 344.40. Shares rose 0.2% premarket Tuesday.
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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The post Dow Jones Futures Rally As Yields Rise; Apple Eyes New High; Tesla Hits Another Buy Point appeared first on Investor’s Business Daily.
