The Dow Jones Industrial Average briefly hit all-time highs Thursday before reversing lower, as Apple stock jumped 3%. Tesla is just off all-time highs, while Netflix is in buy range past a new buy point. Hot IPO stocks Airbnb and DoorDash slid in morning trade.
Among the Dow Jones leaders, Apple (AAPL) moved up 3.1%, while Microsoft (MSFT) fell 0.65% in today’s stock market. Intel (INTC) will report earnings after the close.
Tesla (TSLA) threatened to snap a two-day win streak Thursday, falling 0.5%. Hot IPO stocks Airbnb (ABNB) and DoorDash (DASH) are trying to rebound from weak performances on Wednesday.
In stock market earnings news, Intuitive Surgical (ISRG) will report after the close. The stock is right at a new buy point.
Stocks in or near a buy zone in the current stock market rally are DocuSign (DOCU) and Netflix (NFLX).
Apple, Microsoft, and Tesla are IBD Leaderboard stocks. Netflix was Wednesday’s IBD Stock Of The Day, while DocuSign was featured in this week’s Stocks Near A Buy Zone column.
Dow Jones Today
On Thursday, the Dow Jones Industrial Average traded down 0.1%, while the S&P 500 moved up less than 0.1%. The tech-heavy Nasdaq composite rallied 0.5% in midday trade.
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Among exchange traded funds, Innovator IBD 50 (FFTY) traded 0.7% higher Thursday. The Nasdaq 100-linked Invesco QQQ Trust ETF (QQQ) moved up 0.3%. Meanwhile, the SPDR S&P 500 ETF (SPY) fell less than 0.1%.
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According to the Worldometer data tracker, the cumulative number of confirmed coronavirus cases in the U.S. topped 25.0 million on Thursday. Total virus-related deaths rose past 415,000.
The cumulative total of worldwide Covid-19 cases confirmed since the start of the outbreak topped 97.4 million Thursday, with more than 2.08 million virus-related deaths.
Stock Market Rally
Looking back at the current uptrend, November was a key month for the stock market. IBD’s The Big Picture flagged the new uptrend following the market’s bullish follow-through day on Nov. 4. Meanwhile, more than halfway through January, the Nasdaq and S&P 500 are at record highs, while the Dow Jones Industrial Average is just off all-time highs.
Wednesday’s Big Picture commented, “The FANG trade was back in fashion Wednesday, as the technology heavyweights that have colored much of the stock market were among the most noteworthy movers. FANG stocks have been consolidating for months, and Wednesday’s moves were an indication they could be reasserting their role as the tip of the technology spear.”
Investors should continue to use the stock market’s strength to buy breakouts. Be patient and wait for powerful breakouts instead of chasing extended stocks. If the new breakouts work, then add more exposure. But if breakouts start to fail, then you can back away.
In particular, focus on stocks with strong relative strength. Find them by using the relative strength line. The RS line measures a stock’s price performance vs. the S&P 500. If the stock is outperforming the broader market, then the RS line angles upward. If a stock is performing worse than the broad market, then the line will point lower.
Stocks To Watch: IBD Long-Term Leaders
Stocks to watch include IBD Long-Term Leaders, companies with stable earnings growth and price performance. Veeva Systems (VEEV) is the latest addition to the list, as it tries to hold above its 10-week line. Shares are moving closer to an early entry at 292.90, while the conventional buy point remains at 314.09.
Elsewhere in the IBD Long-Term Leaders, Thermo Fisher Scientific (TMO) is approaching a 519.10 buy point in a cup with handle.
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Dow Jones Earnings: Intel
Dow Jones stock Intel fell 0.25% ahead of the company’s earnings after the close Thursday. Analysts expect the chipmaker to earn $1.10 per share on sales of $17.4 billion.
Intel stock is tracing a cup base with a 65.21 buy point, according to IBD MarketSmith chart analysis.
Stocks In Or Near Buy Zones: DocuSign, Netflix
DocuSign is trading just above a 256.10 buy point in a choppy cup with handle. Shares inched lower Thursday and are just below the new buy point.
According to IBD Stock Checkup, DocuSign stock shows a strong 97 out of a perfect 99 IBD Composite Rating. The Composite Rating — an easy way to identify top growth stocks — is a blend of key fundamental and technical metrics to help investors gauge a stock’s strengths.
Wednesday’s IBD Stock Of The Day, Netflix, ended Wednesday in the 5% buy area past a 575.47 buy point in a consolidation base following a nearly 17% earnings surge. Shares slipped almost 1% early Thursday.
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IPO Stocks To Watch: Airbnb, DoorDash
Hot IPO stocks Airbnb and DoorDash continued lower Thursday morning after falling below their buy points amid Wednesday’s weakness.
Airbnb triggered the 7%-8% loss-cutting sell rule from a 175.07 buy point in an IPO base after Wednesday’s 6.8% tumble. Shares slid nearly 4% in morning trade.
DoorDash gave up its 195.60 entry in an IPO base following Wednesday’s 4.7% drop. The IPO stock moved down 1.5% Thursday morning and is about 3% below the entry.
Stock Market Earnings: Intuitive Surgical
Late Thursday, Intuitive Surgical will release its Q4 earnings results. Analysts expect the robotic surgery leader to earn $3.12 a share on revenue of $1.2 billion.
Shares are just below the 792.64 flat-base entry after reclaiming the buy point on Wednesday. The stock fell 1.6% Thursday morning.
Tesla Stock In Climax Top?
IBD Leaderboard stock Tesla looked to snap a two-day win streak Thursday, falling 0.5% in morning trade. Shares are about 4% off their all-time high.
The Jan. 8 IBD Stock Of The Day signaled that Tesla was flashing several signs of a climax top amid a sharply vertical run over the past few weeks.
On Jan. 8, Tesla stock hit a record high at 884.49. Shares had climbed as much as 88% from a 466 buy point in a cup with handle.
Dow Jones Leaders: Apple, Microsoft
Among the top Dow Jones stocks, Apple jumped over 3% Thursday. Shares are forming a handle with a new buy point at 138.89, according to IBD MarketSmith chart analysis. Apple stock is rebounding from its 10-week support level.
In recent weeks, Apple shares have moved above aggressive entries at 125.49 and 122.09.
Software giant Microsoft moved down 0.65% Thursday, as it remains above its 50-day line. Shares continue to trace a new base with a 228.22 buy point. An early entry exists at 227.28.
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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