Dow Jones futures, along with S&P 500 futures and especially Nasdaq 100 futures, were higher early Monday amid stalled coronavirus stimulus talks, as the current stock market rally continues. Tech giants Amazon, Apple and Tesla jumped ahead of the stock market open.
Chipotle, Microsoft and Tesla are all IBD Leaderboard stocks.
Dow Jones Futures Today: Coronavirus Stimulus Talks
Dow Jones futures rose 0.3% vs. fair value, while S&P 500 futures gained 0.7%. Nasdaq 100 futures advanced 1.7% vs. fair value. Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
On Sunday, Speaker Pelosi said that stimulus talks have stalled. She said in a letter to House Democrats that the White House’s proposal is “wholly insufficient” on funding for coronavirus track and tracing.
In a letter to lawmakers Sunday, Treasury Secretary Steven Mnuchin and White House Chief of State Mark Meadows said they would continue to negotiate with Senate Democratic leader Chuck Schumer and Pelosi on a comprehensive bill.
Amid the coronavirus stock market rally, the tech-heavy Nasdaq is up 27.2% for the year through Friday’s close. Meanwhile, the S&P 500 is up 6.6%, while the Dow is down 0.4% year to date, through the Oct. 8 close.
According to the Worldometer data tracker, the cumulative number of confirmed coronavirus cases in the U.S. topped 7.9 million on Monday. Total virus-related deaths topped 219,000.
The cumulative total of Covid-19 cases confirmed since the start of the outbreak worldwide topped 37.7 million Monday, 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.
Friday’s Big Picture reported that, “Marking a three-day win streak, the Nasdaq is methodically advancing after the previous week’s positive action. Bullishly, the Nasdaq took the lead Friday, easily beating the other major stock indexes.”
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: UnitedHealth In New Buy Zone
Among the Dow Jones stocks, UnitedHealth ended in a new buy zone Friday. Shares recently broke out past a 323.92 buy point in a double bottom. The 5% buy zone goes up to 340.12.
According to the IBD Stock Checkup, UNH stock has a mild 86 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.
Stocks On The Move: Amazon, Tesla
Amazon rallied 2% in premarket trade ahead of the company’s Amazon Prime Day, which runs from Oct. 13-14.
Amazon shares are moving up the right side of a cup base, which shows a 3,552.35 buy point.
Tesla stock moved up 2% in premarket trade Monday, on pace to extend a win streak to four sessions.
Shares looked to add to Friday’s nearly 2% gain and are about 14% off their 52-week high.
Stocks Near Buy Zones: Chipotle, Netflix, Salesforce
Chipotle is tracing a 1,384.56 buy point in a flat base, according to MarketSmith chart analysis. Shares are about 7% 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.
Salesforce offers a 284.60 buy point in a six-week cup base. Shares are 7% from the new entry, as they continue to rebound from their 10-week line.
The cloud software giant is a recent addition to the Dow Jones Industrial Average.
Dow Jones Leaders: Apple, Microsoft
Among the top Dow Jones stocks, Apple rose 3% early Monday, as the stock continues to rebound from its key 50-day support level, according to MarketSmith chart analysis. The company will unveil its 5G iPhone on Tuesday.
Apple stock is about 60% above a 72.15 buy point in a cup-with-handle base. The blue-chip giant is the No. 2-performing Dow Jones stock for 2020, with a 59.3% advance through Friday’s close. Recent Dow Jones 30 addition Salesforce is the No. 1 performer with a 63.5% year-to-date advance.
Software leader Microsoft decisively reclaimed its 50-day line Friday amid a 2.5% advance. Shares are moving up the right side of a new base. For now, the new buy point is 232.96. Shares added 1.6% in premarket trade Monday.
Year to date, Microsoft is one of the top Dow Jones stocks, advancing 36.9% through Friday’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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