The Dow Jones Industrial Average briefly rallied more than 100 points after strong corporate earnings results from Goldman Sachs early Wednesday, amid a continuing stock market rally. Tech giants Amazon.com, Apple, Netflix and Tesla are in or near new buy zones. Tesla rival Nio soared as much as 19% on an analyst upgrade.
Stocks on the move early Wednesday include Amazon.com (AMZN) and Tesla (TSLA). Amazon rallied 0.3%, as Amazon Prime Day continued. Tesla gained 2.5% in morning trade. Tesla rival Nio (NIO) soared 19% after an analyst upgrade.
Stocks in or near buy zones in the stock market rally are FANG stocks Amazon and Netflix (NFLX). Netflix is breaking out today amid a 2.5% advance.
Microsoft and Tesla are both IBD Leaderboard stocks.
Dow Jones Today
The Dow Jones Industrial Average rose 0.3%, while the S&P 500 gained 0.3%. The Nasdaq moved up 0.4% in morning trade.
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 8.09 million on Wednesday. Total virus-related deaths topped 220,000.
The cumulative total of Covid-19 cases confirmed since the start of the outbreak worldwide topped 38.4 million Wednesday, with more than 1.09 million virus-related deaths.
Coronavirus Stock Market Rally
According to IBD’s The Big Picture, the coronavirus stock market rally continues after the recent stock market correction ended on Sept. 30.
Tuesday’s Big Picture reported that “A 0.1% decline for the Nasdaq, just a day after it marked a new follow-through day of its own on Monday, painted a bullish picture in more than a few ways. First, that tiny drop came after the tech-driven composite index ramped up as much as 7.2% over a four-day stretch of gains. Second, the Nasdaq etched an inside day on its daily chart.”
After the Dow’s bullish signal on Sept. 30, investors are cleared to start buying new breakout stocks. The best candidates are those that proved most resilient during the recent stock market weakness. Keep a close eye on stocks with strong relative strength lines. These 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: Salesforce
Among the Dow Jones stocks, Salesforce trimmed gains to 0.3% after UBS initiated coverage with a buy rating and a 325 price target.
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: Goldman, UnitedHealth
UnitedHealth, the nation’s largest health insurer, reported before the stock market open. The company’s adjusted EPS measured $3.51 on revenue of $65.1 billion, topping estimates.
Shares fell 0.5% in morning trade and are just above a 323.92 buy point in a double bottom after a recent breakout.
Early Wednesday, banking giant Goldman Sachs reported strong earnings and sales, sparking a nearly 1% gain. The company earned $9.68 per share on revenue of $10.78 billion.
Tesla Rival Nio Soars
Tesla rival Nio soared 19% after JPMorgan upgraded the stock from neutral to overweight with a 40 price target.
Shares hit an all-time high in morning trade and are sharply extended from a 15.55 buy point in a cup with handle.
Stocks In Or Near Buy Zones: Amazon, Netflix, Tesla
Amazon gained 0.2% Wednesday, as Amazon Prime Day continued. The online retailer’s biggest sales event of the year runs through Wednesday.
Netflix again topped a 557.49 entry in a double bottom amid Wednesday’s 2.5% advance. NFLX stock is in the 5% buy zone.
Tesla stock advanced 2.5% Wednesday, on pace to extend a win streak to six sessions. Shares are just 10% off their 52-week high, as they form a new base with a 502.59 buy point.
According to IBD Leaderboard commentary, “Tesla is now forming an awkwardly shaped base. Shares are extended from the 50-day line. It is a half position on Leaderboard.”
Dow Jones Leaders: Apple, Microsoft
Among the top Dow Jones stocks, Apple rallied 1.3% early Wednesday. On Tuesday, Apple tumbled 2.65% after the company unveiled its first 5G-enabled smartphones, the highly anticipated iPhone 12 series. The iPhone 12 series comes with a starting price of $699. Apple also unveiled HomePod Mini, a $99 smart speaker.
Shares are moving up the right side of a new cup base, showing a 138.08 buy point, according to MarketSmith chart analysis.
Apple stock is about 68% 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 65% advance through Tuesday’s close. Recent Dow Jones 30 addition Salesforce is the No. 2 performer with a 64% year-to-date advance.
Software leader Microsoft added 0.4% early Wednesday, on pace to extend a win streak to six days. Shares are forming a new cup base with a 232.96 buy point. Be on the lookout for a potential handle to create a more risk-optimal entry.
Year to date, Microsoft is one of the top Dow Jones stocks, advancing 41.3% through Tuesday’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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