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Dow Jones futures, along with the Nasdaq 100 and S&P 500 futures, were slightly higher on Tuesday night as the volatile stock market rotation continues. Tech giants Alibaba, Advanced Micro Devices, JD.com, Microsoft, Nvidia and Tesla all sold out on Tuesday.
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The Dow Jones Industrial Average led Tuesday’s stock action with a 0.9% lead, or 262 points. The S&P 500 fell 0.1%, while the high-tech Nasdaq composite sold for 1.4%.
Among the leaders of the Dow Jones, Apple (AAPL) fell 0.3%, while Microsoft (MSFT) slipped 3.4%. Meanwhile, Salesforce.com (CRM) fell below its 50-day line on Tuesday.
Technological leaders Ali Baba (BABA), Advanced micro-systems (AMD), JD.com (JD), Nvidia (NVDA) and You’re here (TSLA) fell. Alibaba, JD.com and Nvidia have triggered key sell signals.
Stocks in or near buy zones in the stock rally are Berry Global (BERY) and Intuitive surgery (ISRG).
Datadog (DDOG) briefly plunged more than 10% after the company’s results on Tuesday night.
JD.com, Microsoft, Nvidia, and Tesla are all IBD ranking titles.
Dow Jones Futures today
Late Tuesday, Dow Jones futures traded 0.15% higher than fair value. S&P 500 futures gained 0.1%, while Nasdaq 100 futures were barely higher. Remember that trading Dow Jones futures and elsewhere does not necessarily translate into actual trading during the next regular trading session.
Among exchange-traded funds, the Innovator IBD 50 (FFTY) fell 1.4% on Tuesday. The Invesco QQQ Trust ETF (QQQ) linked to the Nasdaq 100 traded down 1.8%. Meanwhile, the SPDR S&P 500 ETF (SPY) lost 0.1%.
Amid the coronavirus stock rally, the highly technological Nasdaq is up 28.8% for the year through Tuesday’s close. Meanwhile, the S&P 500 is up 9.8%, while the Dow Jones is up 3.1% since the start of the year, through to the close on November 10.
Snapshot of the US Stock Market Today |
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|---|---|---|---|---|
| Index | symbol | Price | Loss of profit | % Change |
| Dow jones | (0DJIA) | 29420.46 | +262.49 | +0.90 |
| S&P 500 | (0S and P5) | 3545.44 | -5.06 | -0.14 |
| Nasdaq | (0NDQC) | 11553.86 | -159.92 | -1.37 |
| Russell 2000 | (Etc.) | 172.62 | +3.07 | +1.81 |
| IBD 50 | (FFTY) | 36.39 | -0.50 | -1.36 |
Last updated: 4:26 PM ET 11/10/2020 |
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Coronavirus Updates
According to Worldometer’s data tracking, the cumulative number of confirmed coronavirus cases in the United States exceeded 10.4 million on Tuesday. The total number of virus-related deaths has exceeded 244,000.
The cumulative total of Covid-19 cases worldwide confirmed since the start of the epidemic topped 51.3 million on Tuesday, with more than 1.27 million deaths linked to the virus.
Coronavirus stock market rotation
According to IBD’s The Big Picture, the stock market is back in a new uptrend after last week’s bullish price action. However, the Nasdaq fell sharply for a second straight day on Tuesday.
Monday’s Big Picture warned of a potential market rotation, saying, “The dichotomy between US stocks was striking and largely the result of news about the coronavirus. This new development certainly deserves close monitoring. “
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Dow Jones stocks: Salesforce tries to break through
Dow Jones leader Salesforce.com is trying to break above a 270.26 buy point in a double bottom, according to MarketSmith chart analysis. On Monday, stocks briefly passed the new buy point before closing 0.3% lower. Stocks fell 4.5% on Tuesday to drop their key 50-day line.
Salesforce.com is No.1 on the Dow Jones Industrial Average with a 59.4% lead year-to-date through Monday’s close.
According to the IBD Stock Checkup, the Salesforce.com stock has a composite score of 98 out of 99 perfect IBDs. Composite rating – an easy way to identify top growth stocks – is a mix of key fundamental and technical metrics to help investors assess a stock’s strengths.
The Dow Jones top was featured in this week’s Stocks Near A Buy Zone column.
Stocks close to purchasing areas: Berry Global, Intuitive Surgical
Tuesday’s IBD 50 stock watch pick Berry Global ended Tuesday in the 5% buy zone above a 51.77 buy point in a double bottom, according to the Graphical analysis from MarketSmith. The buy zone tops out at 54.36.
Monday’s IBD stock Intuitive Surgical is trading just below a 771.72 buy point in a handle cup. Shares fell more than 3% on Tuesday to retreat below the new entry.
Damaged tech giants
The stock market rotation continues to have a big impact on major tech stocks, including Alibaba, Advanced Micro Devices, JD.com and Nvidia.
Alibaba plunged 8.3% after Chinese regulators released draft rules aimed at preventing monopoly practices by internet companies. The stocks fell decisively below their 50-day moving average line and more than 7% below the 299.10 fixed-base entry. Investors should cut their losses if a stock falls more than 7% below the correct buy point.
Advanced micro-devices fell 6.2% on Tuesday. Stocks are building a double bottom with a buy point of 88.82, according to MarketSmith chart analysis.
JD.com fell more than 8% below a buy point of 85.49 in a handle cup on Tuesday. Shares slipped as low as 7.8% before closing with a loss of 5.6%. The stock could try to find support for its 50 day line.
Nvidia triggered a sell signal from the 574.04 buy point of a handle cup after the day’s 6.3% drop. Nvidia stock fell more than 7% below the new entry.
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Tesla stock
Tesla stock slid 2.6% on Tuesday, adding to Monday’s 2% decline and extending a three-session losing streak.
Stocks fell further below their 50 day moving average line as the stock continues to build base with a new buy point at 466. Stocks are around 13% below the entry.
According to the IBD ranking commentary, “The stock forms an awkwardly shaped cup with a handle. We took it down from a half position to a quarter position on October 30, as it closed decisively below the 10 week line for the first time since April 9. After a rally last week, it has now fallen below that benchmark. “
Dow Jones Executives: Apple, Microsoft
Among the major stocks in the Dow Jones, Apple fell 0.3% on Tuesday. Stocks are attempting to hold above their 50 day line after recovering this key level last week.
The blue chip giant is the second Dow Jones title for 2020, with a 58.5% lead through Monday’s close.
Software giant Microsoft fell 3.4% on Tuesday, adding to Monday’s 2.4% drop. Shares fell back below their 50-day threshold after hitting key levels last week.
Since the start of the year, Microsoft has been one of the main stocks in the Dow Jones, rising 38.5% through Monday’s close.
Stock market rally: what to do next
During market corrections, investors should establish watchlists of potential leaders. Now is the time to put those watchlists to work.
Investors should use the recent strength as a green light to buy further breakouts. Start slowly with new purchases and see how they work. After raising cash in the recent correction, don’t rush to get all invested all at once. Try new purchases. If they work, you can add to them; otherwise, you can go back.
In particular, focus on actions with strong relative strength. Find them using the line of relative force. The RS line measures the price performance of a stock relative to the S&P 500. If the stock is outperforming the market as a whole, the RS line is oriented upward. If a stock is performing worse than the overall market, the line will point lower.
Stocks to watch include IBD Long-Term Leaders, companies with stable earnings growth and price performance.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen to learn more about growth stocks and Dow Jones futures.
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