Dow Jones futures climbed 125 points early Monday, as Bitcoin briefly surged above $66,000 to near record highs. Nasdaq 100 futures lagged in early action as Tesla stock stumbled on a potential Elon Musk stock sale.
Among the Dow Jones leaders, Apple (AAPL) rose a fraction premarket Monday, while Microsoft (MSFT) gained 0.2% in today’s stock market. American Express (AXP), JPMorgan Chase (JPM) and Nike (NKE) continue to trade near new buy points in the current rally.
Tesla (TSLA) briefly skidded over 5% premarket Monday after Musk, the company’s chief executive, proposed a potential sale of his shares on Twitter over the weekend.
Microsoft and Tesla are IBD Leaderboard stocks. Academy Sports is an IBD SwingTrader stock. Goldman was featured in last week’s Stocks Near A Buy Zone story. Li Auto was Friday’s IBD Stock Of The Day.
Dow Jones Futures Today: Bitcoin Surges
Ahead of the stock market open Monday, Dow Jones futures rose 0.4% vs. fair value, while S&P 500 futures moved up 0.2%. Nasdaq 100 futures inched higher. Remember that premarket trading in Dow Jones futures and elsewhere doesn’t necessarily project how the market will perform during regular stock market session.
Among exchange-traded funds, Innovator IBD 50 (FFTY) had yet to start trading premarket Monday. Nasdaq 100 tracker Invesco QQQ Trust (QQQ) inched lower premarket Monday. And the SPDR S&P 500 ETF (SPY) added less than 0.1%.
The price of Bitcoin surged 5.5% over the last 24 hours, trading around $65,300 early Monday, according to Coindesk. Bitcoin traded as high as $66,411 before paring some gains. Proshares Bitcoin Strategy (BITO) jumped 8% premarket Monday. On Oct. 20, Bitcoin hit a record high at $66,974.77.
Stock Market Rally
The stock market rally gained further strength on Friday, as the Nasdaq and S&P 500 notched more all-time highs.
On Friday, The Big Picture cautioned, “But consider this: The Nasdaq is now about 6% above its 50-day moving average, while the S&P 500 is about 5% above this key level. This suggests both are getting extended. While it might seem like the bears have gone into hibernation early this fall, they could easily be getting ready to ambush overconfident investors.”
With the Nasdaq at all-time highs and a limited amount of distribution, investors should remain bullish on the positive trend in the market, but be disciplined about your purchases. Don’t chase extended stocks and be sure to cut losses after sell signals. And it’s also OK to take some profits into strength to help avoid some potential downside.
For daily stock market commentary, be sure to check out IBD’s The Big Picture.
Dow Jones Stocks To Buy And Watch: Amex, JPMorgan, Nike
American Express ended Friday about 1% below a 178.90 buy point in a cup with handle, according to IBD MarketSmith chart analysis. Shares rose 0.3% premarket Monday, but remain just below the recent entry.
Meanwhile, JPMorgan remains in the 5% buy zone past a 163.93 entry in a cup with handle after a recent bounce off its 50-day moving average. The 5% buy area tops out at 172.13. JPM stock was up 0.2% premarket Monday.
Dow Jones retail leader Nike is in buy range past its cup base with a 174.48 buy point following last week’s breakout. Shares inched lower premarket Monday, threatening to snap a four-day win streak.
Stocks On The Move
Infrastructure stocks, like Caterpillar (CAT), Deere (DE) and Vulcan Materials (VMC) were poised to rally this morning on passage of the $1 trillion infrastructure plan. CAT stock jumped 5%. Deere rallied nearly 3%. Vulcan Materials advanced 4.6% in premarket trade after ending Friday in buy range past a 194.27 buy point.
Meanwhile, the U.S. lifted travel restriction from a long list of countries including Mexico, Canada and most of Europe. Travel stocks, like United Airlines (UAL), were set to climb. UAL shares gained 2.5% premarket Monday.
Stock Market Earnings: PayPal, Roblox
PayPal and Roblox will report earnings after the close Monday.
Top payment processor PayPal is expected to earn $1.07 per share on sales of $6.23 billion, according to IBD data. PayPal shares rallied 1% premarket Monday.
PayPal stock have been under pressure since Oct. 20 when Bloomberg reported that PayPal had discussed acquiring Pinterest (PINS) for a potential price of around $70 a share. Later, PayPal said it is no longer pursuing that acquisition. Shares closed Friday about 27% off their 52-week high and sharply below their 200-day moving average.
Former hot IPO stock Roblox is expected to lose an adjusted 8 cents a share on revenue of $636.5 million. The kid-friendly gaming and social platform is forming a double-bottom base with a 91.05 buy point, but is currently below its 50-day moving average. Shares rallied 1.5% premarket Monday.
Stocks To Buy And Watch: Academy, Adobe, Goldman, Li Auto
IBD SwingTrader stock Academy Sports & Outdoors ended Friday in the buy range past a cup-with-handle’s 45.53 buy point following last week’s breakout move. The 5% buy range goes up to 47.81. Academy shares were unchanged premarket Monday.
The IBD Stock Checkup shows that Academy stock has 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.
IBD Leaderboard stock Adobe is in buy range, going past its 659.29 entry in a cup with handle, according to IBD MarketSmith chart analysis. Shares were flat premarket Monday. Per Leaderboard analysis, the new base is a third-stage pattern. Later-stage bases have less upside and are more likely to fail than earlier-stage patterns.
Goldman Sachs remains squarely below a 420.86 buy point in a flat base amid a three-day losing streak. Shares inched higher premarket Monday. The year’s fastest moving Dow Jones stock, Goldman was featured in last week’s Stocks Near A Buy Zone column.
Friday’s IBD Stock Of The Day, Li Auto, is closing in on a cup with handle’s 34.93 buy point. Li Auto shares were unchanged early Monday after Friday’s 3% skid.
Tesla stock slid over 5% premarket Monday after CEO Musk proposed “selling 10% of my Tesla stock” in a Twitter poll over the weekend. The results showed nearly 58% of Twitter respondents supported the sale.
The stock traded as high as 1,243.49 Thursday. TSLA shares are sharply above a 764.55 buy point in a cup with handle, as well as earlier entries at 700.10 and 730. An alternate entry at 900.50 also could be identified.
Dow Jones Leaders: Apple, Microsoft
Among the top Dow Jones stocks, Apple has formed a new cup-with-handle base with a 153.26 buy point, according to IBD MarketSmith chart analysis. Shares traded flat premarket Monday and are just shy of the new buy point.
Software giant Microsoft moved up 0.3% premarket Monday. On Oct. 18, Microsoft broke out past a flat base‘s 305.94 buy point. The 5% buy zone tops out at 321.24, so the stock is now extended. Shares are at record highs.
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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