Dow Jones futures reversed from overnight losses Tuesday morning, as Tesla stock raced higher on record China sales data. Tech giants Advanced Micro Devices, Microsoft and Salesforce eyed new buy points amid the current stock market weakness.
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Among the Dow Jones leaders, Apple (AAPL) rose 0.2% premarket Tuesday, while Microsoft (MSFT) moved up 0.25% in today’s stock market. American Express (AXP), Merck (MRK) and Salesforce.com (CRM) eyed new buy points in the current stock market correction.
Tesla (TSLA) rallied more than 1% premarket Tuesday on strong China sales data, moving further above the stock’s latest buy point.
Among the top stocks to watch, Advanced Micro Devices (AMD), Netflix (NFLX) and Palo Alto Networks (PANW) are in or near new buy zones, although the market, for now, remains in a correction.
Advanced Micro Devices, Microsoft and Tesla are IBD Leaderboard stocks. Palo Alto Networks is an IBD SwingTrader stock. Microsoft and Salesforce featured in this week’s Stocks Near A Buy Zone column.
Dow Jones Futures Today
Ahead of the stock market open Tuesday, Dow Jones futures moved up 0.1% vs. fair value, while S&P 500 futures gained 0.15%. Nasdaq 100 futures rallied 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, Innovator IBD 50 (FFTY) had yet to start trading premarket Tuesday. Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.2%. And the SPDR S&P 500 ETF (SPY) ascended 0.1%.
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Stock Market Rally Attempt
The Nasdaq and S&P 500 continue to hold above last week’s correction lows, but both extended Friday’s weakness with moderate losses Monday. Meanwhile, the Dow Jones Industrial Average again found resistance at its 50-day moving average. Still, the current rally attempt continues.
On Monday, The Big Picture commented, „Monday marked the seventh day of a rally attempt for the Dow Jones industrials. As long as its Oct. 1 low holds, the rally will be intact. Monday was the fifth day of a rally attempt for the Nasdaq and S&P 500. As long as the Oct. 4 low holds for those indexes, their rallies will stay intact.“
Dow Jones leaders American Express, Merck and Salesforce are blue chip stocks to watch in today’s stock market action.
IBD SwingTrader stock American Express is approaching a 179.77 buy point in a cup with handle, according to IBD MarketSmith chart analysis. Shares were unchanged premarket Tuesday and are about 3% away from the new buy point.
Merck rallied more than 1% premarket Tuesday, on pace to recover from Monday’s nearly 1% fall. The company and partner Ridgeback Biotherapeutics asked the FDA on Monday to approve their experimental Covid pill.
On Oct. 1, Merck stock broke out past a 79.33 buy point in a flat base after the company said the Covid drug reduced the risk of hospitalization by half in a final-phase study. Shares remain in buy range, but breakout gains are fading.
Dow Jones software leader Salesforce is trying to retake a 275.32 buy point in a cup with handle following a Sept. 23 breakout move. Shares rallied 0.5% premarket Tuesday, as they look to regain the entry.
American Express and Salesforce both have a strong relative strength line. Strong relative strength lines during weak general market conditions are indicative of potential market leaders.
Stocks To Watch: AMD, Netflix, Palo Alto
IBD Leaderboard stock Advanced Micro Devices is falling further below its 50-day line, but rallied 0.6% premarket Tuesday. Shares tried to regain that key benchmark on Thursday, but are finding stout resistance. AMD is also forming a cup-type base.
According to IBD Stock Checkup, AMD stock boasts a perfect 99 IBD Composite Rating. The IBD Composite Rating identifies stocks with a blend of strong fundamental and technical characteristics.
FANG stock leader Netflix rallied 0.5% premarket Tuesday and remains just off new highs. NFLX stock is outside the 5% buy zone past a 593.39 entry point in a consolidation amid the recent global success of its series „Squid Game.“
IBD SwingTrader stock Palo Alto Networks is trying to clear a 496.02 entry in a short consolidation. Shares gained 0.4% premarket Tuesday, and are just above the new buy trigger. Bullishly, the stock’s relative strength line hit a new high Monday, reaffirming the stock’s leadership status.
Join IBD experts as they analyze leading stocks in the stock market correction on IBD Live
Tesla Stock
Tesla stock rallied more than 1% premarket Tuesday, adding to Monday’s solid gain. TSLA shares are above a 764.55 buy point in a cup with handle.
Ahead of the market open Tuesday, the China Passenger Car Association said Tesla sold 56,006 China-made vehicles in September, the highest amount since the company began production in Shanghai about two years ago.
TSLA shares closed Friday about 12% away from record highs. On Jan. 25, Tesla stock hit a record high of 900.40, after climbing as much as 93% from a 466 buy point in a cup-with-handle pattern.
Dow Jones Leaders: Apple, Microsoft
Among the top Dow Jones stocks, Apple moved up 0.2% premarket Tuesday, on pace to snap a two-day losing streak. The stock is still below the 50-day line, but above its recent lows.
Software giant Microsoft rose 0.2% premarket Tuesday, as the stock battles to retake the 50-day line. A new flat base is forming with a 305.94 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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