The Dow Jones Industrial Average rallied more than 100 points, as President Trump continues his coronavirus recovery. Dow Jones leaders Apple and Microsoft slid, while Tesla reversed lower in morning trade. Costco is approaching a new buy point on an analyst upgrade.
Beyond Meat, Microsoft, ServiceNow and Tesla are all IBD Leaderboard stocks.
Dow Jones Today: Trump Coronavirus Recovery
The Dow Jones Industrial Average rose 0.3% in morning trade after narrowing early gains. The S&P 500 opened lower, then firmed to flat trade. The Nasdaq composite reversed a 0.4% drop to narrow gains in morning trade.
President Trump left Walter Reed Medical Center Monday night, returning to the White House where he will continue his coronavirus treatment. President Trump will conclude his five-day course of remdesivir on Tuesday.
Amid the coronavirus stock market rally, the tech-heavy Nasdaq is up 26.3% for the year through Monday’s close. Meanwhile, the S&P 500 is up 5.5%, while the Dow is down 1.4% year to date, through the Oct. 5 close.
According to the Worldometer data tracker, the cumulative number of confirmed coronavirus cases in the U.S. topped 7.6 million on Tuesday. Total virus-related deaths topped 215,000.
The cumulative total of Covid-19 cases confirmed since the start of the outbreak worldwide topped 35.7 million Tuesday, with more than 1.04 million virus-related deaths.
Coronavirus Stock Market Trend
According to IBD’s The Big Picture, the coronavirus stock market rally is trying to shrug off the recent institutional selling, as the major stock indexes regain key levels.
Monday’s Big Picture reported that, “Higher volume Monday (or Thursday) would have been bullish. It would have marked a follow-through day on the Nasdaq, reinforcing last week’s bottoming signal in the Dow Jones Industrial Average. The S&P 500 would have registered its own follow-through day on Monday, but not on Thursday, in which its gain was limited to 0.5%.”
After the Dow’s bullish signal, investors are cleared to start buying new breakout stocks. The best candidates are those that held up the best during the recent stock market weakness. Keep a close eye on stocks with strong relative strength lines. These stock ideas could become stock market leaders.
Use MarketSmith features like the RS Line Blue Dot to easily spot such stock candidates. The RS Line Blue Dot is assigned to stocks whose RS lines are making new highs while the stock is basing or breaking out.
Stocks to watch include IBD Long-Term Leaders, companies with stable earnings growth and price performance.
Dow Jones News: Cisco Stock
Among the Dow Jones stocks, Cisco Systems stumbled at the stock market open after being ordered to pay $1.9 billion in a cybersecurity infringement trial. But shares reversed 0.6% higher in morning trade.
Shares are more than 20% off their 52-week high.
Stocks On The Move: Beyond Meat, Costco
Beyond Meat jumped 5% after Piper Sandler raised its price target from 130 to 178.
Beyond Meat is now extended beyond the 5% buy zone past a 167.26 entry in a cup base, following a breakout on Sept. 29.
Costco rallied 1% after Barclays upgraded the warehouse retailer from equal weight to overweight, and raised its price target from 330 to 400.
Costco stock is approaching a 363.77 buy point in a flat base.
Tesla stock reversed 1.3% lower in morning trade Tuesday, losing a portion of Monday’s 2.55% advance.
Shares remain squarely above their 50-day moving average line. The stock is about 15% off its 52-week high.
Stocks Near Buy Zones: Marvel, ServiceNow, Twilio
Monday’s IBD 50 Stocks To Watch pick, Marvell Technology, is breaking out above a 41.44 buy point in a flat base. Shares are in the 5% buy zone that runs up to 43.51. The stock tacked on 1% in morning trade.
According to the IBD Stock Checkup, MRVL stock shows a 98 out of a best-possible 99 IBD Composite Rating. The Composite Rating — an easy way to identify top growth stocks — is a blend of key fundamental and technical metrics to help investors gauge a stock’s strengths.
Friday’s IBD Stock Of The Day, Twilio, is just above a 283.44 buy point in a double bottom, according to MarketSmith chart analysis. Shares gained 2% in morning trade. The 5% buy range tops out at 297.61.
Dow Jones Leaders: Apple, Microsoft
Among the top Dow Jones stocks, Apple fell 0.9% Tuesday, giving back a bit of Monday’s 3.1% gain. Apple shares are again trying to retake their key 50-day support level, according to MarketSmith chart analysis.
Apple stock is about 62% above a 72.15 buy point in a cup-with-handle base. The blue-chip giant is the No. 1-performing Dow Jones stock for 2020, with a 58.7% advance through Monday’s close. Recent Dow Jones 30 addition Salesforce.com (CRM) is the No. 2 performer with a 54.7% year-to-date advance.
Software leader Microsoft fell 0.8% Tuesday, as the stock continues to find strong resistance around its 50-day line.
On Sept. 8, shares closed below their 50-day support level for the first time since the May 5 breakout above a cup-with-handle’s 180.10 buy point.
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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