The Dow Jones Industrial Average rallied 100 points Tuesday, following another round of volatile stock market action on Monday. Dow Jones biotech Amgen, along Alpha & Omega Semiconductor and Take-Two Interactive Software, are key earnings movers Tuesday. Financials propped early trade as bond yields bounced. And drug giant Pfizer slid on earnings.
Among the Dow Jones leaders, Apple rose 0.3% Tuesday, while Microsoft gained 0.4% in today's stock market. American Express, a Dow Jones stock to watch, is nearing a new buy point.
Electric-vehicle leader Tesla slid more than 1% Tuesday, threatening to add to Monday's loss.
Amid a volatile stock market rally, Alphabet, Blackstone, CF Industries and Cheniere Energy are among Tuesday's top stocks to buy and watch. All four are in or near new buy zones.
Cheniere, Microsoft and Tesla are IBD Leaderboard stocks. American Express and Blackstone were featured in this week's Stocks Near A Buy Zone column.
Dow Jones Today
After the stock market open Tuesday, the Dow Jones Industrial Average rallied 0.3%, while the S&P 500 edged higher. The Nasdaq inched lower in morning trade. Among exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust dropped 0.1%, and the SPDR S&P 500 ETF rose 0.1% after Tuesday's open.
The 10-year Treasury yield topped 1.95% Tuesday morning, threatening to overtake a high from December 2019. On Monday, the 10-year Treasury yield ticked down below 1.92%. Meanwhile, U.S. oil prices declined around 2%, as West Texas Intermediate crude slipped back below $90 a barrel. WTI briefly topped $93 a barrel last week.
Goldman Sachs and J.P. Morgan led the early trade on the Dow. Banks and financials packed the top of the S&P 500, while the SPDR S&P Bank ETF rose 1.1% in morning action.
Stock Market Rally
The major stock indexes posted mixed action Monday, as the Nasdaq and S&P 500 ended with solid losses. Amid the recent volatility, now is an important time to read IBD's The Big Picture column.
Monday's The Big Picture commented, "The Nasdaq composite was all over the place: It opened higher, reversed lower, then rebounded into the black. But late selling brought down the Nasdaq to a loss of 0.6%."
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.
Investors also can create watchlists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.
Five Dow Jones Stocks To Watch Now
Dow Jones Earnings: Amgen
After the close Monday, Dow Jones biotech stock Amgen reported fourth-quarter earnings and sales results. The stock rallied nearly 5% in morning trade.
AMGN shares ended Monday about 15% off their 52-week high.
Stock Market Earnings: AOSL, Take-Two, Pfizer, TransDigm
Other earnings Monday included Alpha & Omega Semiconductor and Take-Two Interactive Software. Alpha & Omega Semiconductor rose around 1% after reporting better-than-expected results for its fiscal third quarter. Take-Two slid more than 1% early after missing sales estimates.
Early Tuesday, drug giant Pfizer and TransDigm released their quarterly results.
Pfizer reported mixed results, sending shares more than 4% lower in early trade. PFE shares finished Monday below their 50-day moving average. In recent weeks, the stock triggered a round-trip sell signal from a 51.96 cup-base entry.
Meanwhile, TransDigm stock fell 2.3% early after the company's earnings results. TDG shares are building a cup-with-handle base with a 669.13 buy point.
Dow Jones Stocks To Watch: American Express
American Express decisively regained its 10-week moving average in recent weeks and continues to move up the right side of a new base with a 189.13 buy point, according to IBD MarketSmith chart analysis. Shares are just above a new buy point after AXP stock moved almost 1% higher Tuesday.
Bullishly, the stock's relative strength line is at new highs, indicating significant stock market outperformance.
Four Top Growth Stocks To Watch In The Current Stock Market Rally
Stocks To Buy And Watch: Alphabet, Blackstone, CF Industries, Cheniere
Outside the 30-stock Dow Jones industrials, Google-parent Alphabet attempted a breakout past a 3,019.43 buy point following strong earnings results last week, but fell more than 7% below the new entry following recent losses. GOOGL shares fell almost 3% Monday, triggering the 7%-8% loss-cutting rule. Shares were up 0.3% Tuesday.
Despite the sell signal, last week's strong earnings reaction was a big positive. Keep an eye on the search giant; it could be adding a handle to its current formation which could potentially result in a new and lower entry.
Top financial stock Blackstone is trying to break out past a double bottom's 136.56 buy point, but the stock is about 4% below the entry following three straight days of losses. Wait for the stock to stage another decisive move past the entry before considering a purchase of shares. Shares fell more than 1% Tuesday.
Fertilizer producer CF Industries undercut its ascending base's 74.87 buy point during Monday's 3.5% fall. However, the breakout attempt remains in play, with the pullback stopping at the stock's short-term 10-day moving average. CF stock boasts a perfect 99 IBD Composite Rating, per IBD Stock Checkup. Shares traded up 0.4% Tuesday.
IBD Leaderboard stock Cheniere Energy is squarely above a 113.50 buy point in a flat base after Monday's 2.15% climb, and following its recovery from a post-breakout slide. Its RS line hit another new high Monday. Shares were up 0.2% Tuesday.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock slid more than 1% Tuesday, on pace to add to Monday's skid of nearly 2%. The stock found much-needed support at its long-term, 200-day moving average in recent sessions. But Tesla shares remain sharply below their 50-day line and there is no proper entry in sight.
The stock traded as high as 1,243.49 on Nov. 4, but ended Monday about 27% off that 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock dropped 0.4% Monday, falling for a third-straight session and ending right at its 50-day moving average. Shares are again about 12% past a 153.27 buy point out of a cup-with-handle base, according to IBD MarketSmith chart analysis. Shares rose 0.3% Tuesday.
A new base is likely forming, but it is slightly too early for a proper buy point. However, a decisive move past Thursday's high of 176.24 could be used as an early entry for aggressive investors.
Software leader Microsoft dropped 1.6% Monday, setting up another potential test of the 200-day line. The top Dow Jones stock continues to build a new base but is below the 50-day line. Shares edged up 0.2% Monday. MSFT stock was up 0.4% Tuesday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
