Dow Jones Futures: What To Do In New Stock Market Rally; Tesla Sales Up Next

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

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Late Monday, Dow Jones stock Nike (NKE) reported better-than-expected earnings results. Nike shares climbed more than 2% in extended trade before turning 3% lower on weaker-than-expected revenue guidance. The stock ended Monday about 38% off its 52-week high.

Up next, Tesla (TSLA) is expected to announce Q2 sales late this week. Analysts polled by FactSet expect Tesla to have delivered 273,000 vehicles in the second quarter, with the range between 249,000 and 323,000. Tesla delivered 310,048 vehicles in Q1.

Dow Jones Futures Today: Treasury Yields, Oil Prices

After Monday’s close, Dow Jones futures rose 0.25% vs. fair value, and S&P 500 futures gained 0.3%. Nasdaq 100 futures climbed 0.4% 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.

The 10-year Treasury yield ticked higher to 3.19% Monday following Friday’s rise to 3.12%. The 10-year Treasury yield is looking to rebound after a sharp pullback. In mid-June, it hit its highest level since April 2011 at 3.48%.

Meanwhile, U.S. oil prices are trying to rebound after recent losses, with West Texas Intermediate trading near $110 a barrel. In early March, WTI briefly topped out above $130.

Stock Market Today

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

Tesla stock dropped 0.3% Monday. Among Dow Jones leaders, Apple (AAPL) was unchanged and Microsoft (MSFT) traded 1.05% lower in today’s stock market.

In the early stages of a new stock market rally, Dow Jones leaders Johnson & Johnson (JNJ) and Merck (MRK), as well as AutoZone (AZO), Bristol Myers Squibb (BMY), Eli Lilly (LLY) and Quanta Services (PWR), are among IBD’s top stocks to buy and watch for Tuesday.

Quanta is an IBD Leaderboard watchlist stock. Eli Lilly is an IBD SwingTrader stock. Bristol was Friday’s IBD Stock Of The Day. And AutoZone featured in this week’s Stocks Near A Buy Zone column.

What To Do In A New Stock Market Rally

Amid a fledgling stock market rally, investors have the green light to start buying leading stocks breaking out past correct buy points. It should put your portfolio and mindset in sync with the stock market action by gradually committing capital to leading stocks.

Use each purchase as feedback on the current strength of the market rally. Don’t panic if you miss the first couple of breakouts. If the stock market uptrend is real, there will be plenty of time to buy stocks and make money. This is an important strategy because prior follow-throughs have failed this year.

For more leading stocks and stocks approaching buy points, check out these IBD Stock Lists, like the Stocks Near Buy Zones.

Monday’s The Big Picture column commented, “The days after a follow-through are just as important as the follow-through day itself, which means the stock market is now in the proving grounds of a new uptrend. Like any good test pilot, investors should proceed with caution this week.”

If you’re new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one key to the investment guidelines. IBD offers a broad range of growth stock lists, such as Leaderboard and SwingTrader.

Investors also can create watchlists, find companies nearing 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 buy range past a double bottom’s 181.84 buy point in the wake of Friday’s 1.5% breakout move, according to IBD MarketSmith chart analysis. JNJ shares were slightly lower Monday.

JNJ stock shows a solid 95 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. Investors can use the IBD Composite Rating to easily gauge the quality of a stock’s fundamental and technical metrics.

Drug giant Merck broke out past a flat base’s 95.02 buy point Monday, but finished just below the entry after the session’s 1.4% rise. The 5% buy area goes up to 99.77.

4 Top Growth Stocks To Watch In The Current Stock Market Rally

Top Stocks To Buy And Watch: AutoZone, Bristol, Eli Lilly, Quanta

AutoZone rose 0.5% Monday after Goldman Sachs upgraded the stock from neutral to buy with a 2,296 price target, saying the company is “defensively positioned” in the current environment. AZO shares broke out past a cup with handle’s 2,130.60 buy point Friday and are in the buy range that tops out at 2,237.13.

Friday’s IBD Stock Of The Day, Bristol Myers, is moving further above a flat base’s 78.72 buy point after Monday’s 1.3% advance. The 5% buy zone runs up to 82.66.

IBD SwingTrader stock Eli Lilly is back at new highs after bullishly reclaiming its 50-day line last week. Shares are in the 5% buy area that goes up to 329.81. Eli Lilly shares were up 0.5% Monday.

IBD Leaderboard watchlist stock Quanta Services is tracing a cup with handle that has a 138.56 buy point, according to IBD MarketSmith chart analysis. Shares are back above their 50-day line, which is a key level to watch. Quanta stock moved up 1.5% Monday.

Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live

Tesla Stock

Tesla stock lost 0.3% Monday, giving back a small part of Friday’s 4.5% advance. The stock is still sharply below its 50- and 200-day moving averages.

Tesla stock traded as high as 1,243.49 on Nov. 4. Shares are about 40% off that record high.

Dow Jones Leaders: Apple, Microsoft

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

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

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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