Dow Jones futures were higher Monday morning in the wake of the last week’s strong stock market gains, which kicked off a new stock market rally. Six top stocks to buy and watch include AutoZone and Johnson & Johnson, both of which finished Friday above new buy points.
Tesla (TSLA) rose nearly 2% early Monday despite a price-target cut at Mizuho. Elsewhere, Dow Jones tech leaders Apple (AAPL) and Microsoft (MSFT) were both squarely higher ahead of today’s stock market open.
In a new stock market rally, Dow Jones leaders Johnson & Johnson (JNJ) and Merck (MRK), as well as AutoZone (AZO), Bristol Myers Squibb (BMY), Eli Lilly (LLY) and Quanta Services (PWR), are among the stocks to buy and watch.
Quanta is an IBD Leaderboard watchlist stock. Eli Lilly is an IBD SwingTrader stock. And Bristol was Friday’s IBD Stock Of The Day.
Dow Jones Today: Treasury Yields, Oil Prices
Ahead of Monday’s open, Dow Jones futures rose 0.2% vs. fair value, and S&P 500 futures moved up 0.3%. Nasdaq 100 futures advanced 0.5% in morning trade. 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) moved up 0.6%. The SPDR S&P 500 ETF (SPY) gained 0.5% in early trade.
The 10-year Treasury yield ticked higher to 3.18% Monday morning following Friday’s rise to 3.12%. The 10-year Treasury yield is pulling back after hitting its highest level since April 2011 in mid-June. Meanwhile, U.S. oil prices are trying to rebound after recent losses, with West Texas Intermediate trading just above $108 a barrel. In early March, WTI briefly topped out above $130.
Stock Market Rally
The stock market finished with strong gains Friday, as the Nasdaq led the way with a 3.3% surge, ending up the week up 7.5%.
Friday’s The Big Picture column commented, “Investors should note that volume had been running lower prior to the final minutes of trading, when index changes caused trading to soar. This is a reason to exercise extra caution, and get back into stocks carefully. Indexes also remains near lows for the year, and many stocks remain badly damaged.”
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: Johnson & Johnson, Merck
Dow Jones leader Johnson & Johnson is in buy range past a double bottom’s 181.84 buy point in the wake of Friday’s 1.5% breakout move, according to IBD MarketSmith chart analysis. JNJ shares were flat Monday morning.
JNJ stock shows a solid 95 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. Investors can use the IBD Composite Rating to easily gauge the quality of a stock’s fundamental and technical metrics.
Drug giant Merck is back above its 50-day line amid a four-day win streak. Merck shares are closing in on a flat base’s 95.02 buy point. The stock was unchanged early Monday.
Top Stocks To Buy And Watch: AutoZone, Bristol, Eli Lilly, Quanta
AutoZone gained 0.5% Monday morning after Goldman Sachs upgraded the stock from neutral to buy with a 2,296 price target, saying the company is “defensively positioned” in the current environment. AZO shares broke out past a cup with handle’s 2,130.60 buy point Friday and are in buy range.
Monday’s IBD Stock Of The Day, Bristol Myers, is just above a flat base’s 78.72 buy point after Friday’s 1.6% advance. Bristol shares traded unchanged Monday morning.
IBD SwingTrader stock Eli Lilly is back at new highs after bullishly reclaiming its 50-day line last week. Shares are in the 5% buy area that goes up to 329.81. Eli Lilly shares were flat Monday.
IBD Leaderboard watchlist stock Quanta Services is tracing a cup with handle that has a 138.56 buy point, according to IBD MarketSmith chart analysis. Shares are back above their 50-day line, which is a key level to watch. Quanta shares were quiet early Monday.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla stock raced 4.5% higher Friday, snapping a two-day losing streak. Shares looked to add to those gains, trading up nearly 2% Monday morning.
Tesla is likely to announce Q2 sales late this week. Analysts polled by FactSet expect Tesla to have delivered 273,000 vehicles in the second quarter, with the range between 249,000 and 323,000. Tesla delivered 310,048 vehicles in Q1.
The stock is still sharply below its 50- and 200-day moving averages. Tesla stock traded as high as 1,243.49 on Nov. 4. Shares are about 40% off that record high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares rose 2.45% Friday, and are at their highest level since June 9. Still, the stock is far below its long-term 200-day line and is about 23% off its 52-week high. AAPL stock traded up nearly 1% Monday.
Software leader Microsoft gained 3.4% Friday, and is right at its 50-day line. The stock hit a 52-week low on June 14, but has rebounded since. Shares are about 23% off its 52-week high. MSFT shares rose 0.5% Monday.
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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