Dow Jones futures slumped Tuesday, as the stock market paused after Monday’s tech-fueled rally. U.S. oil prices tracked higher, trading near $105 a barrel. And the 10-year Treasury yield also continued its advance on Tuesday morning.
Among the Dow Jones leaders, Apple (AAPL) slipped 0.3% and Microsoft (MSFT) traded down 0.1% in today’s stock market.
Coal stocks bolted higher as Reuters reported the European Union was set to propose new sanctions against Russia that would ban imports of coal, lumber and other goods. Peabody (BTU), Console Energy (CEIX) and Arch Resources (ARCH) rose more than 6%.
Electric vehicle giant Tesla (TSLA) dropped 0.5% early Tuesday, on pace to give a part of Monday’s strong gains.
Amid the stock market’s uptrend, Dow Jones financial leader American Express (AXP) — along with Arista Networks (ANET), Broadcom (AVGO), IBD Leaderboard stock Darling Ingredients (DAR), Regeneron Pharmaceuticals (REGN) and Shell (SHEL) — are Tuesday’s top stocks to buy and watch.
Arista, Microsoft and Tesla are IBD Leaderboard stocks. Darling Ingredients and Tesla stock were featured in this week’s Stocks Near A Buy Zone column.
Dow Jones Today: Treasury Yields, Oil Prices
Before Tuesday’s open, Dow Jones futures traded down 0.25% vs. fair value, while S&P 500 futures fell 0.3%. Nasdaq 100 futures moved 0.4% lower in early morning trade. Futures for the Russell 2000 small cap gauge traded narrowly above fair value.
Remember that overnight action in Dow 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) lost 0.2%, and the SPDR S&P 500 ETF (SPY) was down 0.2% before Tuesday’s open.
The 10-year U.S. Treasury yield jumped to 2.47% Tuesday after closing at 2.41% Monday. Meanwhile, U.S. oil prices continued higher Tuesday morning following Monday’s sharp rebound. West Texas Intermediate crude rose 1%, moving back above $104 a barrel.
Stock Market Rally
On Monday, stock market put in a positive performance with the tech-heavy Nasdaq charging higher.
The Big Picture column commented, “Indeed, the Nasdaq has been the leading index since the market follow-through rally confirmation in the third week of March. It is up 15.6% from the March 14 low, outperforming the S&P 500, which is up about 10% in the same period.”
If you’re new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one key to the investment guidelines. IBD offers a broad range of growth stock lists, such as Leaderboard and SwingTrader.
Investors also can create watchlists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.
Four Dow Jones Stocks To Watch Now
Dow Jones Stocks To Buy And Watch: American Express
Dow Jones financial stock American Express is tracing a cup with handle with a 194.45 buy point. Shares rose 0.3% Monday, ending about 3% away from the latest entry. AXP shares were flat Tuesday morning.
Keep an eye on the stock’s relative strength line. Amid its recent ascent, the RS line is nearing its old highs, but does have some work cut out for it ahead of a potential breakout. The RS line measures a stock’s price performance vs. the S&P 500. The RS line should hit a new high on the breakout day or shortly thereafter to confirm the strength of stock’s breakout.
Four Top Growth Stocks To Buy And Watch In The Current Stock Market Rally
Stocks To Buy And Watch: Arista, Broadcom, Darling, Regeneron, Shell
Arista Networks moved out of buy range past a double bottom’s 133.97 buy point after rising 2.3% Monday, according to IBD MarketSmith charts. The stock was unchanged early Tuesday.
Chip giant Broadcom gained 1.25% Monday, snapping a three-day losing streak. The stock continues to hold above an early entry at 614.74. Shares continue to rally up the right side of a 13-week cup base. The cup base’s proper buy point is 677.86. AVGO shares were slightly lower Tuesday morning.
IBD Leaderboard stock Darling Ingredients finished Monday in buy range past a 80.31 cup-with-handle buy point. Shares were unchanged Tuesday morning.
Biotech leader Regeneron Pharmaceuticals remains in buy range above a 673.96 flat-base entry in the wake of a March 16 breakout move. REGN shares tested the buy point on March 23 before regaining the buy point on March 24. The 5% buy zone tops out at 707.66. The stock was flat early Tuesday.
Oil-and-gas producer and Friday’s IBD Stock Of The Day, Shell, is within striking distance of a flat base’s 56.23 buy point. Shares dropped more than 1% Tuesday morning.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla stock slid 0.5% early Tuesday, threatening to give up a part of Monday’s 5.6% surge. Shares of the EV giant are closing in on a cup base’s 1,208.10 buy point and are about 5% away from the latest entry. Be on the lookout for a potential handle to offer a more risk-optimal entry.
The stock traded as high as 1,243.49 on Nov. 4. and ended Monday just 8% away from that all-time high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares jumped 2.4% Monday, retaking a double bottom’s 176.75 buy point and closing in the 5% buy area that goes up to 185.59. AAPL stock fell 0.3% early Tuesday.
Software leader Microsoft rallied 1.8% Monday, as shares continue to build the right side of a new base formation. Microsoft shares inched lower Tuesday morning.
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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