Dow Jones futures rose modestly points Monday, as the Dow Jones Industrial Average looked to snap a three-day losing streak. Tesla stock rallied over 2% early Monday after Chief Executive Elon Musk tweeted that the Model S Plaid could reach China “around March.”
Among the Dow Jones leaders, Apple (AAPL) rose 0.5% premarket Monday, while Microsoft (MSFT) moved up 0.3% in today’s stock market. Nike (NKE) is back above a new buy point after a recent breakout attempt.
Electric-vehicle leader Tesla (TSLA) gained over 2% premarket Monday. EV peer Rivian (RIVN) dropped about 4%, while Lucid Motors (LCID) was down about 3%. Chinese EV leaders Li Auto (LI) and Xpeng Motors (XPEV) are near buy points.
Alphabet, Microsoft and Tesla are IBD Leaderboard stocks. Xpeng Motors was featured in last week’s Stocks Near A Buy Zone story. Apple is an IBD SwingTrader stock and was Wednesday’s IBD Stock Of The Day.
Dow Jones Today
Ahead of the stock market open Monday, Dow Jones futures rose 0.1% vs. fair value, while S&P 500 futures moved up 0.2%. Nasdaq 100 futures climbed 0.35%. Remember that premarket action in Dow Jones futures and elsewhere doesn’t necessarily translate into actual trading performance in the next regular stock market session.
Stock Market Rally
The stock market rally showed a mixed performance Friday, as the Nasdaq hit a new high. The S&P 500 reversed from new highs to post modest losses.
On Friday, The Big Picture commented, “The stock market’s performance was mostly positive Friday, as the Nasdaq finally got past resistance at the 16,000 level. The S&P 500, which continues to hit resistance near 4,700, closed with a minor loss. But the Dow and the small-cap Russell 2000 fell about 0.8% each.”
For daily stock market commentary, be sure to check out IBD’s The Big Picture.
Dow Jones Stocks To Buy And Watch: Apple, Nike
IBD SwingTrader stock Apple is at the top of the 5% buy range past a 153.27 buy point out of a cup with handle, according to IBD MarketSmith chart analysis, following six straight up days. The 5% buy zone tops out at 160.93. Shares added 0.5% premarket Monday.
Dow Jones retail leader Nike bullishly regained its cup base’s 174.48 buy point amid Friday’s 2.1% rally. Shares inched higher premarket Monday and are in buy range.
Stocks On The Move: Nvidia
Chip giant Nvidia (NVDA) was set to hit more record highs Monday, rallying over 2% in premarket trade. Shares are up more than 40% from a 230.53 buy point in a consolidation.
Zoom Video Earnings
2020 stock market winner, Zoom Video Communications (ZM), will report after the close Monday. Analysts expect the company to earn $1.09 per share on sales of $1.018 billion, representing year-over-year increases of 10% and 31%, respectively.
Zoom stock closed Friday nearly 50% off its 52-week high and sharply below its long-term 200-day line. The stock is also below its 50-day moving average.
Stocks To Buy And Watch: Adobe, Alphabet, Amazon, Shopify
Adobe is nearly extended past a 659.29 buy point in a cup with handle following a Nov. 4 breakout move, as shares jumped 2.6% Friday. ADBE stock moved up about 1% premarket Monday. Early Monday, Atlantic Equities upgraded Adobe from neutral to overweight, setting an 820 price target.
IBD Leaderboard stock Alphabet remains just above a 2,925.18 buy point in a flat base, according to IBD MarketSmith chart analysis, following Friday’s 0.6% loss. The 5% buy area runs up to 3,071.44. Shares were up 0.25% premarket Monday. Leaderboard noted an additional buy point at 3,012.40 due to a new three-weeks tight.
Amazon remains above a 3,605.55 buy point in a cup with handle following Thursday’s breakout. Shares moved up 0.3% premarket Monday, looking to bounce back from Friday’s 0.5% decline after a negative reverseal The IBD Stock Checkup shows that AMZN stock has a mild 83 out of a perfect 99 IBD Composite Rating.
The stock’s relative strength line is coming sharply off recent lows after November’s gains, but it is well below its July high. That indicates underperformance vs. the S&P 500 over a longer time frame. Ideally, the RS line should hit a new high on the breakout day or shortly thereafter to confirm the stock as a market leader.
EV Stocks: Li Auto, Xpeng, Lucid Motors, Rivian
Li Auto continues to build a cup with handle that shows a 34.93 buy point, but is falling further away from the entry. Shares rose over 1% premarket Monday, looking to bounce after three straight days of losses.
Xpeng Motors is about 2% below a 48.08 buy point in a choppy cup base following Friday’s nearly 1% decline. Shares gained about 2% premarket Monday and could be set to regain the entry after the opening bell.
Hot initial public offering Rivian threatened to slide after Friday’s 4.2% bounce, moving down nearly 4% premarket Monday after Ford Motor (F) and Rivian decided to back away from a pact to build a specific electric vehicle.
RIVN shares closed Friday about 28% off their post-IPO highs. Remember that investors should be disciplined about buying new issues by waiting for an IPO base to form before considering a purchase. The recent weakness could be the start of its first base formation, but last week’s price action was not constructive given the huge downside reversal and high volatility.
Tesla stock rallied over 2% premarket Monday, looking to add to Friday’s 3.7% gain and extend a win streak to five sessions. Early Monday, CEO Elon Musk tweeted that the Model S Plaid — a 396-mile range luxury sedan that can reach top speeds of up to 200 miles per hour — could reach China “around March.”
Shares traded as high as 1,243.49 on Nov. 4, but the stock ended Friday about 9% off its 52-week high. TSLA shares remain sharply above a 764.55 buy point in a cup with handle, as well as earlier entries at 700.10 and 730. The chart also showed an alternate entry at 900.50.
Dow Jones Leaders: Microsoft
Among the top Dow Jones stocks, software giant Microsoft moved up 0.3% premarket Monday.
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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