Dow Jones futures were trading at session highs late Tuesday, along with S&P 500 futures and Nasdaq futures after Tuesday’s upward session fueled by the optimism of the coronavirus vaccine. Tuesday’s Alphabet and Apple breakout stocks top five top stocks in or near shopping areas in the Coronavirus stock market rally.
The stock market rally triggered the news about coronavirus vaccines on Tuesday. FANG camp alphabet (TogetL) and Dow Jones leaders Apple (AAPL) broke out on Tuesday after buying new points. Intel (INTC) is in the buying area after last week’s breakout, while the top growth stocks Snap (SNAP) and Tesla (TSLA) are approaching new buying points.
Meanwhile, Keysight (KEYS) reported weak quarterly results after close of trading. The manufacturer’s share of electronic measuring devices and systems fell by more than 7% to 96 in the after-hours session. The Keysight share ended Tuesday in the 5% buy zone after entering 102.33 in a mug with a handle.
Dow Jones futures today
Late Tuesday, around 11 p.m. ET, Dow Jones futures rose 0.6% fair value, while S&P 500 futures rose 0.6%. After closing, the Nasdaq 100 futures rose 0.75% compared to the fair value. Remember that night actions in Dow Jones futures and elsewhere do not necessarily lead to actual trading in the next regular trading session.
Innovator IBD 50 (FFTY) lost 1% in exchange-traded funds on Tuesday after returning from strong gains. The ETF of the top growth stocks is around 16% below its 52-week high.
The Invesco QQQ Trust (QQQ) ETF linked to Nasdaq 100 declined 0.3% to close at 229.04. The SPDR S & P 500 ETF (SPY) rose 1.2% to 299.08.
On Tuesday, the Dow Jones Industrial Average rose up to 711 points before closing 529 points or 2.7% and closing just below the price level of 25,000. The S&P 500 gained 1.2%, but was unable to regain the 3000 price level. The tech-heavy Nasdaq composite lagged slightly by 0.2% after giving up strong gains.
As part of the corona virus stock market rally, the tech-heavy Nasdaq is again positive for 2020 and rose by 2.5% by the close of trading on Tuesday. The S&P 500 and the Dow Jones Industrial Average fell 7.4% and 12.4%, respectively, through May 26.
Coronavirus vaccine news
On Monday biotech company Novavax (NVAX) announced that it has started a phase 1 clinical trial for a coronavirus vaccine. The company expects results from the trial in July. Novavax rose up to 18% before closing 4.5% higher.
Meanwhile, Gilead Sciences‘(GILD) Remdesivir has been found to be effective in helping coronavirus patients recover faster. According to data published in the New England Journal of Medicine late Friday, “Remdesivir placebo was superior because it reduced the time to recovery in adults admitted to hospital with Covid-19 and gave evidence of lower respiratory infection” .
The outbreak of the corona virus continues to spread in the United States. According to the Worldometer data tracker, the cumulative number of confirmed US cases on Tuesday was over 1.7 million. Despite the growing total, the daily number of new cases tends to be lower given the surge in tests.
Confirmed Covid 19 cases worldwide rose to over 5.6 million, with approximately 348,000 virus-related deaths. With the number of new cases declining daily, US investors are drawing attention to the economic impact of the Corona virus outbreak and how quickly the country is reopening for business.
Coronavirus Stock Market Rally
According to IBD’s The Big Picture, the upward trend in equity markets remains solid after hitting lows almost two months ago on March 23. The main stock indices confirmed a new upward trend on April 2.
Per Tuesday’s big picture: “Regardless of this, the real market stars came on Tuesday from the so-called ‘SMID-Cap’ area or from small and mid-cap stocks. The SPDR S&P Mid Cap 400 (MDY) ETF ended the day with an increase of 3.5% and a very high value within its true daily price range. “
The stocks to be observed include the top stocks of the IBD Long-Term Leaders. The IBD Long-Term Leaders list focuses on companies with stable profit growth and stable price development.
Coronavirus stock market ETF strategy and how to invest in the new uptrend
Stocks near buying zones: Alphabet, Apple, Snap, Tesla
In the rally of the coronavirus stock markets, Alphabet, Apple, Snap and Tesla are among the top four stocks in or near shopping areas.
According to MarketSmith chart analysis, the FANG stock alphabet broke out above a buy point of 1,415.63 in a cup with a handle on Tuesday. The shares of the parent Google alphabet rose on Tuesday by 0.6% and are in the buying area. The 5% buy zone is up to 1,486.41.
According to the IBD Stock Checkup, the Alphabet share has a 96 out of the highest possible 99 IBD composite rating and is therefore in the top group of growth stocks. The composite rating is a mixture of important fundamental and technical indicators with the help of which investors can easily assess the strengths of a share.
Among the top stocks in Dow Jones, Apple tried to cross the buying point of a handle of 319.79, which offers an additional entry. The shares fell 0.7% after reversing solid earnings.
The entry offers investors an opportunity to improve their positions, according to the MarketSmith chart analysis, while the breakout extends beyond the purchase point of a cup-with-handle of 288.35.
The shares are only 3% below their all-time highs, completing a remarkable recovery after the Coronavirus stock market crash.
Apple shares have a 93 out of a maximum of 99 IBD composite ratings.
Social media share Snap is within striking distance of the 18:56 entry of a deep mug with a handle. The shares fell 1.5% on Tuesday.
On April 22, shares on the right side of the new formation rose 36% after the company’s quarterly results. The results exceeded the street’s estimates, but the company withdrew its guidelines due to the effects of the coronavirus.
According to the IBD Stock Checkup, the Snap share has a 93 out of the highest possible 99 IBD composite rating and is therefore in the upper class of growth stocks. The composite rating is a mixture of important fundamental and technical indicators with the help of which investors can easily assess the strengths of a share.
The RS line of the share has reached a new high in the past few weeks and underlined the outperformance of the Snap share compared to the broad market.
Top growth stocks to buy and watch
IBD Leaderboard Watchlist Stock Tesla extends a deep cup base with a new grip and offers a new buy point at 869.92. The shares are approx. 5% away from the potential market entry. The share gained 0.2% on Tuesday.
According to the IBD leaderboard’s comment, “Tesla triggered the 7-8% sell-off signal after stocks fell three weeks ago after the first quarter results. But a new handle for the extra deep cup is forming.”
Dow Jones Leaders: Intel, Microsoft
Dow Jones’ Intel stock is in the 5% buying zone after a buy point of 62.23 in a mug with handle, rising 0.1% on Tuesday, according to the MarketSmith chart analysis. The 5% purchase margin increases to 65.34.
Intel shares have the best possible 99 IBD composite rating.
Meanwhile, technology giant Microsoft fell 1.1% on Tuesday, above the 180.10 purchase point of a cup-with-handle. The buying zone runs until 189.11. Microsoft is also an IBD leaderboard stock idea and an IBD long-term leader.
According to MarketSmith chart analysis, stocks broke in double bottom above a correct buy point of 175.10 on April 16.
Follow Scott Lehtonen on Twitter at @IBD_SLehtonen Learn more about growth stocks and the Dow Jones futures.
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