Dow Jones futures and S&P 500 futures were lower, while Nasdaq 100 futures rallied early Tuesday, as earnings season kicked off. SPCE stock plunged 17% Monday on a stock offering, while Tesla stock surged.
On Monday, the Dow Jones Industrial Average rallied 0.4%, closing just below 35,000. The S&P 500 moved up 0.3%, while the Nasdaq rose 0.2%. Dow Jones investment banks Goldman Sachs (GS) and JPMorgan (JPM) kicked off earnings season Tuesday with earnings ahead of the open.
Among the Dow Jones leaders, Apple (AAPL) lost 0.4% Monday, while Microsoft (MSFT) moved down 0.2% in today’s stock market. McDonald’s (MCD) moved down less than 0.1% and is just below a new buy point.
Tesla (TSLA) raced 4.35% higher Monday, as it continues to rebound from its key support levels. Virgin Galactic (SPCE) plunged over 17% after the company announced a $500 million stock offering.
Among the top stocks to buy and watch, PayPal (PYPL), Roku (ROKU), Shopify (SHOP) and Square (SQ) are in or near new buy zones.
Microsoft and Shopify are IBD Leaderboard stocks. Roku is an IBD SwingTrader stock. PayPal and Square 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 fell 0.1% vs. fair value, while S&P 500 futures were flat. Nasdaq 100 futures rallied 0.35% 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: 5:30 PM ET 7/12/2021
Among exchange traded funds, the Innovator IBD 50 (FFTY) gained 0.8% Monday. Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) rose 0.4% Monday. Meanwhile, the SPDR S&P 500 ETF (SPY) climbed 0.4%.
Stock Market Rally
The Nasdaq, S&P 500 hit record highs Monday, and the Dow Jones industrials are trading just below the all-time high set in early May.
Friday’s Big Picture column commented, “The S&P 500 marked a distribution day Thursday, but Thursday’s rally off lows for the major stock indexes and more gains on Friday show that buyers are still around. The uptrend is still very much intact. The Nasdaq composite only shows two distribution days. One was a mild stalling session on Wednesday. The other was on June 15 when the index fell 0.7% in higher volume.”
For more stock market commentary, check out IBD’s The Big Picture.
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Dow Jones Stocks To Buy And Watch: McDonald’s
Dow Jones restaurant giant McDonald’s is trading below a 238.28 buy point in a flat base, according to IBD MarketSmith chart analysis, following Friday’s 1.2% advance. Shares were slightly lower Monday.
McDonald’s was featured in Friday’s IBD Industry Themes column, along with Chipotle Mexican Grill (CMG). Chipotle stock is in a new buy range.
Dow Jones Earnings: Goldman Sachs, JPMorgan
Investment banks Goldman Sachs and JPMorgan reported earnings ahead of the stock market open Tuesday.
Goldman Sachs earned $15.02 per share on revenue of $15.39 billion, easily beating analyst targets. GS stock reversed from initial losses to rally 0.5% in early morning trade Tuesday. The stock closed up 2.7% Monday, just 3% off a new 52-week high.
JPMorgan reported strong Q2 results with EPS of $3.78 on revenue of $30.5 billion. Despite the earnings beat, shares slipped 1% premarket Tuesday. On Monday, the stock failed to regain its key 50-day line Monday and is forming a flat base with a 167.54 buy point.
Virgin Galactic’s Test Flight
SPCE stock plunged over 17% Monday in response to the company’s planned stock offering. The company disclosed in a regulatory notice that it plans to sell up to $500 million in stock. Shares are building a deep cup with handle with a 57.61 buy point.
On Sunday, Virgin Galactic conducted its first fully crewed flight, sending founder Richard Branson into space. Virgin’s Eve mother ship took off from Spaceport America in New Mexico on Sunday morning, carrying the company’s SpaceShipTwo.
Stocks To Buy And Watch: PayPal, Roku, Shopify, Square
IBD Leaderboard stock PayPal is in the 5% buy zone past a cup with handle’s 296.11 buy point following last week’s breakout. The 5% buy area goes up to 310.92. Shares rallied 0.9% Monday and are squarely in buy range.
On June 17, the top payments processor broke out above a 277.96 entry in a cup base and is comfortably above that level. Leaderboard noted the stock’s rising relative strength line is a positive attribute even though it remains off its 2021 high.
According to the IBD Stock Checkup, PayPal stock shows a solid 95 out of a perfect 99 IBD Composite Rating. The IBD Composite Rating identifies stocks with a blend of strong fundamental and technical characteristics.
Square continues to build the right side of a cup base that offers a 278.23 buy point. Meanwhile, a potential handle is close to forming, but requires one more day to complete. A handle would offer a new buy point at 254.88. The stock gained 0.6% Monday.
IBD 50 stock Roku added a handle to a cup base, moving the buy point from 486.82 to 463.09. Shares climbed 0.4% Monday, trading about 7% away from the new entry.
Roku is an IBD SwingTrader stock.
Shopify is still below a 1,552.33 buy point in a cup with handle, according to IBD MarketSmith chart analysis. Shares inched lower Monday following Friday’s 2.2% rise. Shopify is about 5% away from the buy point after last week’s brief breakout attempt.
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Tesla stock surged 4.35% Monday, adding to Friday’s 0.6% gain and extending a win streak to three sessions. The electric-vehicle giant continues to rebound from key support at its key 50- and 200-day moving averages. A strong show of support at these levels is bullish for the stock’s prospects.
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, Dow Jones leader Apple moved down 0.4% Monday morning, giving back a portion of Friday’s 1.3% gain. Apple stock is now extended past the 5% buy zone from a 137.17 entry in a cup base, according to IBD MarketSmith chart analysis.
Microsoft continues to trade solidly above a cup base’s 263.29 buy point. Shares lost 0.2% Monday and are extended. The 5% buy zone 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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