Dow Jones Futures Rally As Tesla Stock Nears New Buy Point – Investor's Business Daily

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Dow Jones futures rose 50 points Monday, as the stock market rally sought to extend its three-day win streak. Tesla stock climbed early Monday, as it approaches an early buy point.

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Among the Dow Jones leaders, Apple (AAPL) rose 0.3% premarket Monday, while Microsoft (MSFT) gained 0.4% in today’s stock market. Also on the Dow 30, Home Depot (HD) continues to rebound from support, while Nike (NKE) battled to retake a key level.

Electric-vehicle leader Tesla (TSLA) traded up 1% premarket Monday. Its rival, Rivian (RIVN), dipped 0.5%. Lucid Group (LCID) was down around 2%. And Chinese EV leaders Li Auto (LI) and Xpeng Motors (XPEV) were mixed ahead of Monday’s open.

Among Monday’s top stocks to buy and watch, Icon (ICLR), Mosaic (MOS) and West Pharmaceutical Services (WST) are in or near new buy zones. Following Thursday’s bullish market signal, investors have the green light to purchase new breakouts.

Icon, Microsoft and Tesla are IBD Leaderboard stocks. West Pharmaceutical was featured in last week’s Stocks Near A Buy Zone column. Mosaic is an IBD SwingTrader stock.

Dow Jones Today

Ahead of the stock market open Monday, Dow Jones futures rose 0.2% vs. fair value, while S&P 500 futures gained 0.3%. Nasdaq 100 futures moved up 0.4% vs. fair value. Remember that premarket action in Dow Jones futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

Among exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.45% premarket Monday, while the SPDR S&P 500 ETF (SPY) traded up 0.3%.

Elsewhere, the 10-year Treasury yield traded around 1.5% Monday morning, following its close at just above 1.49% Thursday.

U.S. markets will operate on a normal schedule this week, ahead of the New Year.


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Stock Market Rally

The stock market posted more strong gains Thursday, as the major stock indexes extended their win streak to three sessions. The tech-heavy Nasdaq decisively regained its 50-day moving average, a significant signal for the market outlook. Meanwhile, the S&P 500 set a record closing high.

Following Thursday’s strength, the market outlook is back in a “confirmed uptrend,” which means investors can buy top-rated growth stocks breaking out past correct buy points.

But Thursday’s the Big Picture cautioned: “For investors, this means sharpening your watchlist and raising exposure back into stocks. But do so carefully. The stock market remains volatile, and many top-rated stocks suffer from choppy chart action. After a period of relative calm, December has been the most volatile month since September 2020.”

For daily stock market commentary, check out IBD’s The Big Picture.

Stocks On The Move: Airlines

U.S. airlines canceled hundreds of flights over the Christmas holiday due to staffing shortages caused by Covid-19. United Airlines (UAL) and Delta Air Lines (DAL) slid about 2% each ahead of Monday’s open.

Dow Jones Stocks To Watch: Home Depot, Nike

Home Depot stock rallied 0.4% Thursday, rising for a third straight day, as the home improvement chain continues to rebound from its 50-day support level. Shares are in a buy zone on a rebound from support. After recent losses, Home Depot is the No. 2 Dow Jones performer in 2021, up 49.5% year-to-date through Thursday’s close. (The top Dow Jones stock is Microsoft with a 50.5% advance.) HD shares were unchanged premarket Monday.

Dow Jones retail leader Nike is tracing a new flat base that has a buy point at 179.20, according to IBD MarketSmith chart analysis. Shares are fighting to retake their 50-day line following Thursday’s 0.1% gain, but are finding stout resistance so far. NKE stock moved up 0.25% premarket Monday. It has a year-to-date gain of just over 17%.


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Stocks To Buy And Watch: Icon, Mosaic, West Pharmaceutical

IBD Leaderboard stock Icon is in buy range past a 301.82 buy point in a consolidation, according to IBD MarketSmith chart analysis. Shares inched 0.2% higher Thursday, closing in the 5% buy area, which runs to 316.91. Per Leaderboard commentary, Icon also cleared resistance around 290, which served as an early entry. Icon stock was flat premarket Monday.

IBD SwingTrader stock Mosaic bullishly reclaimed its 50-day moving average during last week’s strong advance. The stock is forming the right side of a cup base with a 43.34 buy point. Be on the lookout for a handle to offer a more risk-optimal entry. MOS stock shows a strong 98 out of a perfect 99 IBD Composite Rating, according to the IBD Stock Checkup. Shares inched higher premarket Monday.

West Pharmaceutical Services is breaking out past a cup with handle’s 458.09 buy point amid Thursday’s 1.4% gain. Shares closed just above the entry and in the 5% buy area that tops out at 480.99. The stock tacked on slight gains premarket Monday.


Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live


EV Stocks: Li Auto, Xpeng, Lucid Motors, Rivian

Li Auto continues to work on the early stages of a new base, after triggering the 7%-8% loss-cutting sell rule below a cup-with-handle base’s 34.93 buy point. Shares are below their 50-day line after finding support around the long-term 200-day moving average. The stock moved up 0.3% premarket Monday.

Xpeng Motors activated a round-trip sell signal from a 48.08 buy point during early December’s sharp sell-off. XPEV shares continued to rebound from their 200-day line Thursday, closing just below the key 50-day moving average, which will be a key test of strength. Wait for the stock to form a new base, which would offer a new entry. Shares were slightly lower Monday morning.

Lucid Motors shares threatened to add to Thursday’s 2.7% loss, moving down almost 2% Monday morning. LCID stock remains extended past a 28.49 buy point in a cup-with-handle base, but huge gains have faded. Shares are trying to find support at their 50-day line, but are having trouble getting back above that level.

Recent initial public offering Rivian dipped 0.5% premarket Monday, easing after Thursday’s 0.5% gain. RIVN shares closed Thursday about 46% off their post-IPO highs. Continue to wait for an IPO base to form before considering a purchase. Recent sharp losses are a significant setback in the stock’s basing process and there is no new buy point in sight.


Five Best Dow Jones Stocks To Watch Now


Tesla Stock

Tesla stock rallied 1% premarket Monday, looking to add to Thursday’s 5.8% advance. Shares are approaching a new buy point after bullishly reclaiming their 50-day moving average on Thursday. Now, the stock is nearing a downward-sloping trendline that offers an early entry around 1,115. Meanwhile, a double bottom with a 1,202.05 buy point continues to take shape.

Shares traded as high as 1,243.49 on Nov. 4, but the stock ended Thursday about 14% off its 52-week high.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple stock made it three straight up days Thursday with a 0.4% gain. The stock is about 15% above a 153.27 buy point out of a cup-with-handle base, according to IBD MarketSmith chart analysis. Shares rose 0.3% premarket Monday.

Software leader Microsoft decisively regained its 50-day line last week, placing the top Dow Jones stock in a new buy area. Meanwhile, MSFT shares are forming a flat base with a 349.77 buy point with an early entry at 343.89. Shares moved up 0.4% premarket Monday.

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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