The Dow Jones Industrial Average rallied 50 points Tuesday, as Tesla stock moved back into buy range. Best Buy and Palo Alto Networks surged on earnings results.
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Among the Dow Jones leaders, Apple (AAPL) gained 0.6% Tuesday, while Microsoft (MSFT) moved down 0.2% in today’s stock market. Home Depot (HD) remains below a new buy point after a recent breakout attempt.
Electric vehicle giant Tesla (TSLA) looked to add to Monday’s bullish gains, moving up 0.5% morning trade. The EV leader is back in buy range.
After the close Monday, cybersecurity leader Palo Alto Networks (PANW) reported strong fiscal fourth-quarter results. Shares surged over 16%. Best Buy (BBY) reported ahead of the market open Tuesday. Shares jumped 5%.
Among the top stocks to buy and watch, Mercado Libre (MELI), Nvidia (NVDA) and Snap (SNAP) are in or near new buy zones.
Microsoft, Nvidia and Tesla are IBD Leaderboard stocks. Nvidia is also an IBD SwingTrader stock. Nvidia and Snap were featured in this week’s Stocks Near A Buy Zone column. Snap was also Monday’s IBD Stock Of The Day.
Dow Jones Today: Fed Summit Looms
After the market open Tuesday, the Dow Jones Industrial Average rallied 0.2%, while the S&P 500 moved up 0.2%. The tech-heavy Nasdaq composite gained 0.35% in morning trade.
On Thursday, the Federal Reserve will meet virtually for an annual summit usually held in Jackson Hole, Wyo. On Friday, Fed Chairman Jerome Powell will speak and is expected to reveal details of how long the currently higher inflation is expected to last, and what the Fed should do about it.
Among exchange-traded funds, the Innovator IBD 50 (FFTY) was up 0.6% Tuesday. Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) gained 0.2% early Tuesday. Meanwhile, the SPDR S&P 500 ETF (SPY) rose 0.15%.
Stock Market Rally Continues
The three major stock indexes — the Dow Jones industrials, Nasdaq and S&P 500 — looked to continue their rebounds from the 50-day support level with modest gains Tuesday morning. The Nasdaq and S&P 500 looked to extend their win streaks to four sessions.
Monday’s Big Picture commented, „What was looking like a bad week for the stock market last week ended up being pretty good as the Nasdaq composite shaved a weekly loss of 2.7% to 0.7%. A bullish end to the week reminded investors about the importance of being nimble. Indeed, many investors raising cash early last week — when the Nasdaq was threatening a break of its 50-day moving average — were putting some money to work on Thursday and Friday, and maybe a little more on Monday.“
For more stock market commentary, check out IBD’s The Big Picture.
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Dow Jones Stocks To Buy And Watch: Home Depot
Dow Jones leader Home Depot is trying to break out past a cup-with-handle’s 333.55 entry, but currently sits below the buy point, according to IBD MarketSmith chart analysis. The 5% buy area goes up to 350.23.
Shares were down 0.3% Tuesday.
Stock Market Earnings: Best Buy, Palo Alto
Retailer Best Buy and cybersecurity leader Palo Alto Networks reported earnings ahead of the open Tuesday.
Best Buy jumped 5% in morning trade after the company reported strong second-quarter results. Shares are tracing a consolidation with a 128.68 buy point.
Palo Alto surged more than 16% early Tuesday following the company’s better-than-expected fiscal fourth-quarter results. The stock hit a new high Tuesday.
Stocks To Buy And Watch: Mercado Libre, Nvidia, Snap
Mercado Libre traded up 1.7% Tuesday, looking to add to Monday’s 1.3% gain. The largest e-commerce company in Latin America continues to trace a cup with handle with a 1,899.43 buy point. MELI stock is holding just above a 1,755.05 buy point created by the Aug. 5 gap-up on earnings.
Graphics-chip maker Nvidia broke out past a 208.85 buy point in a flat base and is extended, according to IBD MarketSmith chart analysis. Shares advanced 5.5% Monday and are just out of the 5% buy area that runs up to 219.29. On Friday, the stock climbed above an early entry at 207.43.
Nvidia shares lost 1% Tuesday. Nvidia is an IBD Leaderboard stock. Exposure to Nvidia has been raised by another quarter as it continues to make progress following its earnings beat last week.
The chip giant reported quarterly earnings last week that topped analyst estimates. The company earned an adjusted $1.04 a share on sales of $6.51 billion in the quarter ended Aug. 1. On a year-over-year basis, Nvidia earnings jumped 89% while sales surged 68%.
IBD SwingTrader stock Snap is back in buy range above a 73.69 buy point in a consolidation. Shares are also rebounding from their critical 50-day moving average line. The stock rallied 0.7% Tuesday morning. Snap was Monday’s IBD Stock Of The Day
The IBD Stock Checkup shows SNAP stock holds a solid 93 out of a perfect 99 IBD Composite Rating. The IBD Composite Rating identifies stocks with a blend of strong fundamental and technical characteristics.
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Tesla Stock
Tesla stock rallied 0.5% Tuesday, on pace to add to Monday’s 3.8% advance. Shares bullishly regained their 700.10 aggressive buy point deep inside a correction after last week’s weakness and are back in buy range. Meanwhile, a deep, large base continues to take shape.
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, Apple shares were up 0.6% Tuesday morning after Monday’s 1% gain extended a win streak to three sessions. Apple stock is back above a 148 trend line entry and in buy range. The stock hit an all-time high on Aug. 18 at 151.68 before reversing lower.
Software giant Microsoft lost 0.2% early Tuesday, and is just off Friday’s new highs. Microsoft is about 15% above a cup base’s 263.29 buy point.
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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