Dow Jones futures were lower early Tuesday, while S&P 500 futures and Nasdaq 100 futures were higher ahead of the market open. Tesla stock regained a buy point following an analyst upgrade, while AMC stock surged as much as 10% on earnings after the close.
On Monday, the Dow Jones Industrial Average declined 0.3%, while the S&P 500 fell 0.1%. The Nasdaq rallied 0.2%.
Among the Dow Jones leaders, Apple (AAPL) lost less than 0.1% Monday, while Microsoft (MSFT) moved down 0.4% in today’s stock market. Home Depot (HD) is trying to break out above a new buy point, but remains below the entry after two straight days of losses.
Tesla (TSLA) climbed 2.1% following an analyst upgrade ahead of the market open. Tesla stock regained a recent buy point. After the close Monday, AMC Entertainment (AMC) reported better-than-expected earnings. AMC stock jumped as much as 10% in extended trade.
Among the top stocks to buy and watch, MercadoLibre (MELI), Snap (SNAP), Square (SQ) and Wells Fargo (WFC) are in or near new buy zones.
Apple was Monday’s IBD Stock Of The Day. MercadoLibre, Microsoft and Tesla are IBD Leaderboard stocks. Square is an IBD SwingTrader stock. Snap and Wells Fargo were featured in this week’s Stocks Near A Buy Zone column.
Dow Jones Futures Today
Ahead of the stock market open Tuesday, Dow Jones futures moved down less than 0.1% vs. fair value, while S&P 500 futures inched higher. Nasdaq 100 futures gained 0.1% 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.
U.S. Stock Market Today Overview
Last Update: 4:52 PM ET 8/9/2021
Among exchange traded funds, the Innovator IBD 50 (FFTY) rose 0.7% Monday. Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) gained 0.2% Monday. Meanwhile, the SPDR S&P 500 ETF (SPY) fell 0.1%.
Stock Market Rally Continues
The Dow Jones industrials and the S&P 500 eased from Friday’s record highs, while the Nasdaq recovered a part of Friday’s modest losses.
Friday’s Big Picture column commented, “The market trend remains in a confirmed uptrend. Leading growth stocks are mostly acting well, like Advanced Micro Devices (AMD), which triggered the eight-week hold rule the past week. But there are some recent losers. Roku (ROKU) triggered the 7%-8% loss-cutting sell rule from a 463.09 buy point last week.”
(Be sure to check out Thursday’s Big Picture for a detailed breakdown of how to manage exposure in the current stock market.)
For more stock market commentary, check out IBD’s The Big Picture.
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Bitcoin Price Spikes Above $46,000
The price of Bitcoin briefly spiked above $46,000 Monday before losing some gains. Bitcoin traded around $45,700 in Monday evening trade, according to Coindesk.
Grayscale Bitcoin Trust (GBTC) rallied over 7% Monday. The ETF is back above its 50-day moving average.
Dow Jones Stocks To Buy And Watch: Home Depot
Dow Jones leader Home Depot is trying to break out past a cup-with-handle’s 333.55 buy point, according to IBD MarketSmith chart analysis. The 5% buy area goes up to 350.23.
Shares dropped 0.3% Monday.
Stocks To Buy And Watch: MercadoLibre, Snap, Square, Wells Fargo
IBD Leaderboard stock MercadoLibre is trading right at a 1,755.05 buy point following Thursday’s nearly 14% surge. Shares dipped less than 0.1% Monday. Per Leaderboard analysis, the stock’s first 5 minutes of trading notched a high of 1,755.05, setting an alternate entry for aggressive investors. A trend line within the base may also offer another early entry point.
The stock is also building the right side of a cup base, according to IBD MarketSmith chart analysis. Another possible entry looms at 2020.10. And be on the lookout for a potential handle to offer a more risk-optimal buy point.
Snap is trading just past the 5% buy zone above a 73.69 buy point in a consolidation. The 5% buy area tops out at 77.37. Shares reversed from early losses to rally almost 3% Monday.
On July 23, Snap surged almost 24% following a second-quarter earnings report that toppled estimates with revenue more than doubling, and an outlook that also beat views.
IBD SwingTrader stock Square is back in buy range past a 267.87 buy point in a cup-with-handle base amid Monday’s 1.7% gain. The 5% buy zone goes up to 281.26.
According to the IBD Stock Checkup, SQ stock shows a 96 out of a perfect 99 IBD Composite Rating. The IBD Composite Rating identifies stocks with a blend of strong fundamental and technical characteristics.
Wells Fargo is in a buy range past a flat base’s 48.23 buy point following Friday’s breakout move. Shares reversed 0.25% lower Monday and are in the 5% buy zone that goes up to 50.64.
The banking giant was Friday’s IBD Stock Of The Day. Wells Fargo stock surged nearly 4% following Friday’s bullish jobs report.
AMC earnings topped Q2 estimates after the close Monday, as its CEO hailed a “transformational” quarter of capital raises. AMC lost 71 cents a share on revenue of $444.7 million.
AMC was seen reporting a loss of 94 cents per share vs. a loss of $5.38 in the year-ago quarter. Sales were seeing hitting $382 million, up from $19 million a year earlier.
AMC stock ended Monday more than 50% off its 72.62 high, which was set back on June 2. Shares closed the day below their 50-day moving average line.
Late Monday, AMC stock jumped as much as 10% in extended trade, trading as high as 37.20 before paring some gains.
AMC became a “meme stock” following a short-squeeze started by the Reddit group r/wallstreetbets earlier this year.
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Tesla stock rallied over 2% Monday, rebounding from Friday’s sell-off. Early Monday, Jefferies upgraded Tesla from hold to buy, raising the price target from 700 to 850. Early Tuesday, the China Passenger Car Association (CPCA) said that Tesla sold 32,968 China-made vehicles in July, including 24,347 for export.
Tesla stock dipped in early morning trade Tuesday.
The electric-vehicle giant is rebounding from support around its 50- and 200-day moving averages. Another strong show of support at these levels is bullish for the stock’s prospects. Shares are back above a 700.10 aggressive buy point deep inside a correction. Meanwhile, a deep, large base continues to take shape.
On Jan. 25, Tesla stock hit a record high at 900.40, after climbing as much as 93% from a 466 buy point in a cup with handle.
Dow Jones Leaders: Apple, Microsoft
Among the top Dow Jones stocks, Apple moved down less than 0.1% Monday, adding to Friday’s 0.6% loss. The stock hit an all-time high on July 15 at 150. Apple stock remains out of the 5% buy zone from a 137.17 entry in a cup base. On a weekly chart, IBD MarketSmith chart analysis also places a buy point at 145.19 in a consolidation, which would put Apple in a buy range through 152.45.
Software giant Microsoft fell 0.4% Monday, but remains just off record highs. Microsoft continues to trade solidly above a cup base’s 263.29 buy point. The stock is extended above the 5% buy zone, which goes up to 276.45.
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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