Futures Rally As Stocks Look To Rebound

Dow Jones futures rallied 300 points Monday, as the stock market looks to rebound from last week’s sharp losses. VMware (VMW) surged 23% early Monday after Bloomberg said Broadcom (AVGO) is in talks to acquire the cloud service provider. Broadcom shares tumbled 5% in response.


Electric-vehicle giant Tesla (TSLA) traded down more than 1% Monday morning. Elsewhere, Dow Jones tech leaders Apple and Microsoft rose slightly in today’s stock market.

Amid a young and struggling stock market rally, Dow Jones leaders Chevron (CVX) and Merck (MRK) — along with Northrop Grumman (NOC), Eli Lilly (LLY), Exxon Mobil (XOM) and World Wrestling Entertainment (WWE) — are among IBD’s top stocks to watch for Monday.

Microsoft is an IBD Leaderboard stock. Merck is on IBD SwingTrader. And Eli Lilly and Merck were featured in last week’s Stocks Near A Buy Zone column.

Dow Jones Today: Treasury Yields, Oil Prices

Ahead of Monday’s open, Dow Jones futures moved up 1% vs. fair value, and S&P 500 futures gained 0.95%. Nasdaq 100 futures rose 0.5% in morning trade.

Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.5%. The SPDR S&P 500 ETF (SPY) gained 0.9%.

The 10-year Treasury yield ticked higher to 2.82% Monday morning after ending Friday at 2.78%. Following a second straight week of losses, the 10-year Treasury yield closed at its lowest level since April 26.  Meanwhile, U.S. oil prices climbed less than 1%, with West Texas Intermediate crude trading at $111 a barrel.

Struggling Stock Market Rally

The major stock indexes posted mixed action Friday, as the Dow Jones industrials and S&P 500 managed small gains, while the Nasdaq closed modestly lower.

Friday’s The Big Picture column commented, “The Dow Jones Industrial Average waged a bullish reversal in the final hour of trading Friday to eke out a tiny gain. The Nasdaq composite almost did the same but closed with a 0.3% loss. Regardless, heavy selling damage marketwide led to the early death of yet another confirmed uptrend.”

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 and SwingTrader.

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 Stocks To Watch: Chevron, Merck

Dow Jones leader and energy giant Chevron continues to build a flat base that has a 174.86 buy point, according to IBD MarketSmith chart analysis. Shares stemmed their slide Friday around their 50-day line. CVX shares traded up 0.8% Monday.

CVX stock boasts a perfect 99 IBD Composite Rating, per IBD Stock Checkup. Investors can use the IBD Composite Rating to easily gauge the quality of a stock’s fundamental and technical metrics.

Merck, a Dow Jones and IBD SwingTrader stock, is trading towards the top of a buy range above a cup-with-handle’s 89.58 buy point, as shares rallied 1.6% Friday. The 5% buy area goes up to 94.06. MRK shares were up 0.6% Monday morning.

The stock’s relative strength line hit more new highs Friday, a strong indicator of stock market outperformance during the current stock market correction.

Four Top Growth Stocks To Watch In The Current Stock Market Rally

Stocks To Watch: Northrop Grumman, Exxon, Eli Lilly, WWE

Wednesday’s IBD Stock Of The Day, Northrop Grumman, is building a cup with handle with a 477.36 buy point, according to IBD MarketSmith chart analysis. The stock is falling further below its 50-day line amid a three-day losing streak. NOC stock was flat Monday morning.

Energy giant Exxon Mobil is in buy range above a cup-with-handle’s 89.90 buy point, rising 0.8% Friday. Shares are squarely in the the 5% buy area that goes up to 94.40. XOM shares rose 1% Monday.

Pharmaceutical giant Eli Lilly rose 0.7% Friday. Shares of the IBD Leaderboard stock are finding support around their 50-day moving average line and are approaching a flat base’s 314.10 buy point. An early buy trigger at 309.54 is also in play. Eli Lilly shares were up more than 1% Monday after SVB Securities started the stock with an outperform rating and a 341 price target.

World Wrestling Entertainment is one of the top stocks to watch after closing Friday on a four-day win streak. WWE shares are back above their 50-day line and approaching a flat base’s 63.81 buy point. Shares were unchanged early Monday.

Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live

Tesla Stock

Tesla stock tumbled more than 6% Friday, finishing down 13.7% for the week and hitting its lowest level since late July. Shares threatened to add to those losses Monday morning, trading down 1%. Shares remain sharply below their 50- and 200-day moving averages.

Tesla reportedly aims to resume full production of 2,600 vehicles per day at its Shanghai plant as of Tuesday, Reuters reported Monday, citing a company memo. That’s up from 1,000 as of Monday.

The stock traded as high as 1,243.49 on Nov. 4 and is about 47% away from that all-time high.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares reversed 0.2% higher Friday. The stock is far below its long-term 200-day line and about 25% off its 52-week high. Apple shares moved up 0.3% Monday.

Software leader Microsoft declined 0.2% Friday, falling for a third straight day. MSFT shares are sharply below their 50- and 200-day lines. The stock closed around 28% off its 52-week high. Microsoft stock gained 0.4% 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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