Dow Jones futures were lower after the stock market rally hit new highs Monday. Tesla stock briefly topped an early buy point, while leading growth stocks Applied Materials, ArcBest and Fortinet broke out past new entries.
On Monday, the Dow Jones Industrial Average advanced 1%. The S&P 500 and Nasdaq climbed 1.4% apiece.
Among the Dow Jones leaders, Apple (AAPL) moved up 2.3% Monday, while Microsoft (MSFT) also rose 2.3% in today’s stock market. Home Depot (HD) continues to rebound from a key level, while Nike battles to rise above a critical resistance level.
Electric-vehicle leader Tesla (TSLA) pared gains to 2.5% after briefly topping an early buy point. Its rival, Rivian (RIVN), surged over 10%. Lucid Group (LCID) reversed from early losses to rally nearly 3%. But Chinese EV leaders Li Auto (LI) and Xpeng Motors (XPEV) posted losses Monday ahead of next weekend’s December sales numbers.
Among Monday’s top stocks to buy and watch, Applied Materials (AMAT), ArcBest (ARCB), Fortinet (FTNT), Icon (ICLR) and Mosaic (MOS) are in or near new buy zones. Following Thursday’s bullish market signal, investors have the green light to purchase new breakouts.
Dow Jones Futures Today
After the stock market close Monday, Dow Jones futures lost 0.15% vs. fair value, while S&P 500 futures also fell 0.15%. Nasdaq 100 futures moved down 0.1% 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.
Stock Market Rally Continues To Strengthen
The stock market posted more strong gains Monday, as the major stock indexes extended their win streak to four sessions. The tech-heavy Nasdaq closed at its highest level since Nov. 19. Meanwhile, the S&P 500 set a record high.
Following Thursday’s strength, the market outlook is back in a “confirmed uptrend,” which means investors can buy top-rated growth stocks breaking out past correct buy points.
Monday’s The Big Picture cautioned: “There’s also the risk of the market getting overextended. The S&P 500’s 4.9% rally from Tuesday’s close is the hottest four-day gain since November 2020, according to Dow Jones Market Data. The S&P is also about 3% above its 50-day average, which is getting above its current trend.”
For daily stock market commentary, check out IBD’s The Big Picture.
Dow Jones Stocks To Watch: Home Depot, Nike
Home Depot stock rallied 1.8% Monday, rising for a fourth straight day, as the home improvement chain continues to rebound from its 50-day support level. Shares are in a buy zone on a rebound from support. Amid the current win streak, Home Depot is the No. 2 Dow Jones performer in 2021, up 52% year to date through Monday’s close. (The top Dow Jones stock is Microsoft with a 53.7% advance.)
Dow Jones retail leader Nike is tracing a new flat base that has a buy point at 179.20, according to IBD MarketSmith chart analysis. Shares are fighting to retake their 50-day line following Monday’s 1.1% gain, but are finding stout resistance so far. It has a year-to-date gain of 18.3%.
Stocks To Buy And Watch: Applied Materials, ArcBest, Fortinet, Icon, Mosaic
Trucker ArcBest surged 9.1% Monday, breaking out past a 116.89 buy point in a shallow consolidation. The buy range ends at 122.73.
Cybersecurity leader Fortinet topped a 355.45 buy point in a consolidation Monday, rallying more than 5%. The buy area tops out at 373.22. Bullishly, the stock’s relative strength line hit a new high Monday on the breakout, confirming the stock as a market leader. The RS line measures a stock’s price performance vs. the S&P 500.
IBD Leaderboard stock Icon is in buy range past a 301.82 buy point in a consolidation, according to IBD MarketSmith chart analysis. Shares edged 0.1% lower Monday, closing in the 5% buy area, which runs to 316.91. Per Leaderboard commentary, Icon also cleared resistance around 290, which served as an early entry.
IBD SwingTrader stock Mosaic bullishly reclaimed its 50-day moving average during last week’s strong advance. The stock is forming the right side of a cup base with a 43.34 buy point. Be on the lookout for a handle to offer a more risk-optimal entry. MOS stock shows a strong 98 out of a perfect 99 IBD Composite Rating, according to the IBD Stock Checkup. Mosaic stock rose 2.1% Monday.
EV Stocks: Li Auto, Xpeng, Lucid Motors, Rivian
Li Auto continues to work on the early stages of a new base, after triggering the 7%-8% loss-cutting sell rule below a cup-with-handle base’s 34.93 buy point. Shares are below their 50-day line after finding support around the long-term 200-day moving average. The stock slid nearly 2% Monday.
Xpeng Motors activated a round-trip sell signal from a 48.08 buy point during early December’s sharp sell-off. XPEV shares continue to rebound from their 200-day line, closing just below the key 50-day moving average, which will be a test of strength. Wait for the stock to form a new base, which would offer a fresh entry. Its shares lost less than 0.1% Monday.
Lucid Motors shares essentially recovered from Thursday’s 2.7% loss, moving up 2.7% Monday. LCID stock remains extended past a 28.49 buy point in a cup-with-handle base, but huge gains have faded. Shares are trying to find support at their 50-day line, but are having trouble getting back above that level.
Recent initial public offering Rivian surged 10.6% Monday, adding to Thursday’s 0.5% gain. RIVN shares closed Monday about 40% off their post-IPO highs. Continue to wait for an IPO base to form before considering a purchase. Recent sharp losses are a significant setback in the stock’s basing process and there is no new buy point in sight.
Tesla stock rallied 2.5% Monday, adding to Thursday’s 5.8% advance. Shares briefly topped a downward-sloping trendline buy point around 1,115 before closing beneath it. Getting above Monday’s intraday high could serve as a trigger. Meanwhile, a double bottom with a 1,202.05 buy point continues to take shape.
Shares traded as high as 1,243.49 on Nov. 4, but the stock ended Monday about 12% off its 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock made it four straight up days Monday with a 2.3% gain. The stock is about 18% above a 153.27 buy point out of a cup-with-handle base, according to IBD MarketSmith chart analysis.
Software leader Microsoft decisively regained its 50-day line last week, placing the top Dow Jones stock in a new buy area. Meanwhile, MSFT shares are forming a flat base with a 349.77 buy point with an early entry at 343.89. Shares moved up 2.3% 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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