Dow Jones futures dropped on coronavirus vaccine news Tuesday, while S&P 500 futures were modestly higher. Nasdaq 100 futures jumped, as the current stock market rally continues. Dow leader Apple (AAPL) surged as much as 2.4% ahead of its new iPhone debut.
Among other Dow Jones stocks, Microsoft (MSFT) advanced 1.2% in today’s stock market in premarket trade. Salesforce.com (CRM) is approaching a new buy point. Meanwhile, Johnson & Johnson (JNJ) fell sharply on coronavirus vaccine news.
Dow Jones banking giant JPMorgan (JPM) rallied 1% after reporting strong earnings results before the open. Meanwhile, Walt Disney (DIS) jumped 4% after announcing a major reorganization to focus on streaming.
Microsoft and Tesla are both IBD Leaderboard stocks.
Dow Jones Futures Today: Coronavirus Vaccine News
Dow Jones futures fell 0.2% vs. fair value, while S&P 500 futures rose 0.1%. Nasdaq 100 futures jumped 1% vs. fair value. Remember that premarket action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
Late Monday, Johnson & Johnson confirmed that it halted its late-stage coronavirus vaccine trial due to “an unexplained illness in a study participant.” Johnson & Johnson also reported better-than-expected third-quarter earnings and sales before Tuesday’s open.
JNJ stock declined 2% in premarket trade. Shares ended Monday about 2% away from a 155.57 buy point in a cup with handle.
Amid the coronavirus stock market rally, the tech-heavy Nasdaq is up 32.4% for the year through Monday’s close. Meanwhile, the S&P 500 is up 9.4%, while the Dow is up 1% year to date, through the Oct. 12 close.
According to the Worldometer data tracker, the cumulative number of confirmed coronavirus cases in the U.S. topped 8.03 million on Tuesday. Total virus-related deaths topped 220,000.
The cumulative total of Covid-19 cases confirmed since the start of the outbreak worldwide topped 38 million Tuesday, with more than 1.08 million virus-related deaths.
Coronavirus Stock Market Rally
According to IBD’s The Big Picture, the coronavirus stock market rally continues to rebound after the recent stock market correction ended on Sept. 30.
Monday’s Big Picture reported that “In the most significant step, volume rose on the Nasdaq. That gave the Nasdaq a follow-through rally confirmation. It is fresh evidence that the stock market is on an upward trajectory. NYSE volume appeared to be lower, so no follow-through for the S&P 500.”
After the Dow’s bullish signal on Sept. 30, 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: Disney, Salesforce
Among the Dow Jones stocks, Disney jumped 4% after announcing a major reorganization to focus primarily on its streaming business. Under the new structure, Disney will prioritize developing and producing original content for its streaming services and legacy platforms, the company said in a press release.
Disney stock is trying to regain its 50-day moving average line.
Salesforce is approaching a new buy point. Shares are moving up the right side of a cup base with a 284.60 buy point.
According to the IBD Stock Checkup, CRM stock has 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.
Dow Jones Earnings: JPMorgan
JPMorgan rallied 1% after reporting strong earnings and sales results early Tuesday. The investment bank earned $2.92 per share on sales of $29.94 billion.
Wall Street expected JPMorgan to earn $2.35 a share in the quarter, off 12%, with revenue down 2% to $28.63 billion.
The stock remains more than 25% off its 52-week high.
Stocks On The Move: Amazon, Tesla
Amazon rallied 1.5% premarket Tuesday, as Amazon Prime Day kicked off. The online retailer’s biggest sales event of the year runs through Wednesday.
Shares are approaching a 3,552.35 buy point in a cup base.
Tesla stock moved up about 1% in morning trade Tuesday, on pace to extend a win streak to five sessions. Shares looked to add to Monday’s nearly 2% gain and are about 12% off their 52-week high.
Stocks Near Buy Zones: Lam Research, Netflix, Shift4
Monday’s IBD 50 Stocks To Watch Pick, Lam Research, is approaching a 387.80 buy point in a cup base, according to MarketSmith chart analysis. Shares are about 5% away from the new buy point amid a four-day win streak.
Netflix is approaching a 557.49 entry in a double bottom. NFLX stock is about 3% away from the entry.
Monday’s IBD Stock Of The Day, Shift4 Payments, surged past a 56.30 buy point in a cup base amid a nearly 8% advance. The 5% buy range goes up to 59.12, so the stock ended just out of the new buy area.
Dow Jones Leaders: Apple, Microsoft
Among the top Dow Jones stocks, Apple rose more than 2% before paring gains early Tuesday, as the stock approaches a new buy point at 138.08, according to MarketSmith chart analysis. The company will unveil its 5G iPhone today.
Apple stock is about 73% 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 69.5% advance through Monday’s close. Recent Dow Jones 30 addition Salesforce is the No. 2 performer with a 64.2% year-to-date advance.
Software leader Microsoft is forming a new cup base with a 232.96 buy point amid a four-day win streak. Be on the lookout for a potential handle to create a more risk-optimal entry. Shares tacked on another 1% early Tuesday.
Year to date, Microsoft is one of the top Dow Jones stocks, advancing 40.4% through Monday’s close.
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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