Dow Jones futures, along with S&P 500 futures were lower Monday, while Nasdaq 100 futures were higher, as Virgin Galactic rose nearly 6% on its first fully crewed flight. Tesla stock was set to rally ahead of the stock market open.
Among the Dow Jones leaders, Apple (AAPL) rallied 0.7% premarket Monday, while Microsoft (MSFT) moved up 0.4% in today’s stock market. McDonald’s (MCD) traded flat ahead of the open and is just below a new buy point.
Tesla (TSLA) moved up nearly 1% premarket Monday, as it continues to rebound from its key support levels.
Among the top stocks to buy and watch, Amazon.com (AMZN), Roku (ROKU) and Shopify (SHOP) are in or near new buy zones.
Microsoft and Shopify are IBD Leaderboard stocks. Roku is an IBD SwingTrader stock.
Dow Jones Futures Today
Ahead of the stock market open Monday, Dow Jones futures fell 0.4% vs. fair value, while S&P 500 futures traded down 0.1%. Nasdaq 100 futures gained 0.3% vs. fair value. Remember that trading 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 Innovator IBD 50 (FFTY) traded unchanged premarket Monday. Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) gained 0.25% ahead of the open Monday. Meanwhile, the SPDR S&P 500 ETF (SPY) lost 0.2% in premarket trade.
Stock Market Rally
The S&P 500 hit more record highs Friday, while the Nasdaq is just shy of its own all-time highs following Friday’s solid gain. The Dow Jones Industrial Average is rebounding from support at its 50-day moving average line and could set more highs.
Friday’s Big Picture column commented, “The S&P 500 marked a distribution day Thursday, but Thursday’s rally off lows for the major stock indexes and more gains on Friday show that buyers are still around. The uptrend is still very much intact. The Nasdaq composite only shows two distribution days. One was a mild stalling session on Wednesday. The other was on June 15 when the index fell 0.7% in higher volume.”
For more stock market commentary, check out IBD’s The Big Picture.
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Dow Jones Stocks: McDonald’s
Dow Jones restaurant giant McDonald’s is trading below a 238.28 buy point in a flat base, according to IBD MarketSmith chart analysis, following Friday’s 1.2% advance. Shares were flat premarket Monday.
McDonald’s was featured in Friday’s IBD Industry Themes column, along with Chipotle Mexican Grill
Virgin Galactic’s Test Flight
Virgin Galactic (SPCE) conducted its first fully crewed flight on Sunday, sending Richard Branson into space. The Eve mother ship took off from Spaceport America in New Mexico on Sunday morning, carrying SpaceShipTwo.
After reaching 45,000 feet, Eve released SpaceShipTwo at about 11:25 a.m. ET, allowing the space plane to fire its rocket engines and soar to about 56 miles above the earth. Once there, the crew experienced weightlessness for about a few minutes. By 11:30 a.m., the space plane began its descent, and landed at 11:40 a.m.
SPCE stock jumped as much as 10% in response Monday morning before paring gains to about 4%. Shares are building a deep cup with handle with a 57.61 buy point.
Stocks To Buy And Watch: Amazon, Roku, Shopify
Tech giant Amazon.com remains just past buy range from a cup-with-handle’s 3,524.96 buy point following last week’s strong breakout move. The buy zone topped out at 3,701.21. Shares rallied 0.5% premarket Monday.
According to IBD Stock Checkup, AMZN stock shows a solid 93 out of a perfect 99 IBD Composite Rating. The IBD Composite Rating easily identifies stocks with a blend of strong fundamental and technical characteristics.
IBD 50 stock Roku added a handle to a cup base, moving the buy point from 486.82 to 463.09. Shares moved up 0.5% Monday morning and are about 7% away from the new entry.
Roku is an IBD SwingTrader stock.
IBD Leaderboard stock Shopify is still just below a 1,552.33 buy point in a cup with handle, according to IBD MarketSmith chart analysis. Shares looked to add to Friday’s 2.2% rise, rallying 0.5% premarket Monday.
Per Leaderboard analysis, “The handle formed after the stock formed a long cup-base pattern over the space of 18 weeks. The relative strength line has been moving sideways during the handle consolidation. An upward spike will be constructive going forward.”
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Tesla stock rallied nearly 1% premarket Monday, looking to add to Friday’s 0.6% gain and extend a win streak to three sessions. The EV giant continues to rebound from key support at its key 50- and 200-day moving averages. A strong show of support at these levels would be bullish for the stock’s prospects.
On Jan. 25, Tesla stock hit a record high at 900.40, after climbing as much as 93% from a 466 buy point in a cup with handle.
Dow Jones Leaders: Apple, Microsoft
Among the top Dow Jones stocks, Dow Jones leader Apple moved up 0.3% Monday morning, on pace to add to Friday’s 1.3% gain. Apple stock is now extended past the 5% buy zone from a 137.17 entry in a cup base, according to IBD MarketSmith chart analysis.
Microsoft continues to trade solidly above a cup base’s 263.29 buy point. Shares rose 0.2% Monday and are extended. The 5% buy zone goes up to 276.45.
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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