Futures: Nike Earnings Beat; Giant EV sales on deck

Dow Jones futures were down after Monday’s stock market plunge. Still, the new stock market rally continues and the top six stocks to buy and watch include AutoZone and Merck.


Late Monday Dow Jones Stock Nike (NKE) announced better than expected results. Shares of Nike soared more than 2% in extended trade before falling 3% on weaker-than-expected earnings expectations. The stock ended Monday about 38% off its 52-week high.

Next, You’re here (TSLA) is expected to announce second quarter sales this weekend. Analysts polled by FactSet expect Tesla to have shipped 273,000 vehicles in the second quarter, with a range between 249,000 and 323,000. Tesla shipped 310,048 vehicles in the first quarter.

Dow Jones Futures Today: Treasury Yields, Oil Prices

After Monday’s close, Dow Jones futures fell 0.25% from fair value and S&P 500 futures lost 0.3%. Nasdaq 100 futures fell 0.4% from fair value. Remember that overnight action on futures contracts on Dow and elsewhere does not necessarily translate into actual trading in the next regular trading session.

The 10-year Treasury yield rose to 3.19% on Monday after Friday’s rise to 3.12%. The 10-year Treasury yield is looking to rebound after a sharp decline. In mid-June, it reached its highest level since April 2011 at 3.48%.

Meanwhile, US oil prices are trying to rebound from recent losses, with West Texas Intermediate trading near $110 a barrel. In early March, WTI briefly rose above $130.

stock market today

On Monday, the Dow Jones Industrial Average fell 0.2%, while the S&P 500 fell 0.3%. The tech-heavy Nasdaq composite lost 0.7%. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 0.7% and the SPDR S&P 500 ETF (SPY) fell 0.4%.

Tesla stock fell 0.3% on Monday. Among the leaders of the Dow Jones, Apple (AAPL) remained unchanged and Microsoft (MSFT) was trading down 1.05% in today’s stock market.

At the start of a new stock market rally, the leaders of the Dow Jones Johnson & Johnson (JNJ) and Merck (MRK), as well as Auto area (AZO), Bristol Myers Squibb (BMY), Eli Lily (LLY) and Quantum Services (PWR), are among the top IBD stocks to buy and watch on Tuesday.

Quanta is an IBD Leaderboard watchlist stock. Eli Lilly is an IBD SwingTrader stock. Bristol was the IBD stock of the day on Friday. And AutoZone featured in this week’s Stocks Near A Buy Zone column.

What to do in a new stock market rally

Amid an incipient stock market rally, investors have the green light to start buying top-tier stocks that are overshooting the correct buy points. It should synchronize your portfolio and mindset with the stock market action by gradually committing capital to leading stocks.

Use each buy as a feedback on the current strength of the market rally. Don’t panic if you miss the first pushes. If the uptrend in the stock market is real, you will have plenty of time to buy stocks and earn money. This is an important strategy as previous follow-ups have failed this year.

For more leading stocks and stocks approaching the buy points, check out these lists of IBD stocks, such as stocks near the buy zones.

Monday’s The Big Picture column commented: “The days following a trail are just as important as the trail day itself, which means the stock market is now on the testing ground for a new trend. Like any good test pilot, investors should proceed with caution this week.”

If you are new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one of the keys to investing guidelines. IBD offers a wide range of growth stock listings, such as Leaderboard and SwingTrader.

Investors can also create watchlists, find companies close to a buy point, or develop custom screens at IBD MarketSmith.

Four Dow Jones stocks to watch now

Dow Jones stocks to watch: Johnson & Johnson, Merck

Dow Jones leader Johnson & Johnson is in the buy range past the 181.84 buy point of the double bottom following Friday’s 1.5% breakout, analysis shows. chart from IBD MarketSmith. JNJ shares were slightly lower on Monday.

JNJ stock is posting a solid 95 out of a perfect IBD composite rating of 99, according to the IBD Stocks Balance Sheet. Investors can use the IBD Composite Rating to easily assess the quality of a stock’s fundamental and technical metrics.

Pharmaceutical giant Merck broke above the 95.02 buy point on a flat basis on Monday, but finished just below entry after the session’s 1.4% rise. The 5% buy zone rises to 99.77.

4 growth stocks to watch in the currentrStock market rally

Top stocks to buy and watch: AutoZone, Bristol, Eli Lilly, Quanta

AutoZone rose 0.5% on Monday after Goldman Sachs moved the stock from neutral to long with a price target of 2,296, saying the company is “defensively positioned” in the current environment. AZO shares broke above a cup with the 2,130.60 buy point of the handle on Friday and are in the buy range that peaks at 2,237.13.

Friday’s IBD stock Bristol Myers is still moving above the buy point of 78.72 on a flat basis after Monday’s 1.3% advance. The 5% buy zone is up to 82.66.

IBD SwingTrader Eli Lilly stock is back to new highs after recovering to the upside of its 50-day line last week. The shares are in the 5% buy zone which rises to 329.81. Shares of Eli Lilly rose 0.5% on Monday.

IBD Leaderboard Watch List Stock Quanta Services charts a cup with handle that has a buy point of 138.56, according to IBD MarketSmith’s chart analysis. Stocks are back above their 50-day line, which is a key level to watch. Quanta shares rose 1.5% on Monday.

Join IBD experts as they analyze the top stocks of the current stock market rally on IBD Live

Tesla Stock

Tesla stock lost 0.3% on Monday, returning a small portion of Friday’s 4.5% advance. The stock is still well below its 50 and 200 day moving averages.

Tesla stock traded as high as 1,243.49 on November 4. The shares are about 40% off that record.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares traded flat on Monday but are still at their highest level since June 9. Still, the stock is well below its long-term 200-day line and is about 23% off its 52-week high.

Software leader Microsoft lost 1.05% on Monday as it tests resistance around its key 50-day line. The stock closed around 24% off its 52-week high.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen to learn more about growth stocks and the Dow Jones Industrial Average.


Top growth stocks to buy and watch

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