Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, were sharply higher Monday as the House passed the $1.9 trillion stimulus bill over the weekend. Tesla stock looked to rebound, while Nio and Zoom Video will report earnings after the close.
Among the Dow Jones leaders, Apple (AAPL) moved up 1.8% in premarket trade, while Microsoft (MSFT) rallied more than 1% in today’s stock market. Disney (DIS) is back in buy range past a recent buy point.
Tesla (TSLA) rose more than 2% in premarket trade Monday, looking to snap a two-day slide.
Dow Jones Futures Today
Ahead of the stock market open Monday, Dow Jones futures rallied 1.05%, while S&P 500 futures gained 1.1% vs. fair value. Nasdaq 100 futures jumped 1.2% 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.
On Saturday, the House passed the $1.9 trillion stimulus plan, including $1,400 stimulus checks for many Americans.
Stock Market Pullback
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, the start of March has the Dow Jones Industrial Average, Nasdaq and S&P 500 pulling back from record highs.
Friday’s Big Picture cautioned, “Friday’s mixed action comes on the heels of Thursday’s sell-off. On Thursday, the heavy losses marked a character shift for the stock market, and so IBD’s market outlook was downgraded to “uptrend under pressure.”
Amid the current stock market pullback, investors should continue to focus on defense. Avoid new breakouts, unless they’re exceptional, and make sure to sell any stock that falls more than 7% below your purchase price. Remember, you don’t have to wait for the 7%-8% loss if the stock is clearly not acting well.
Focus on stocks that show strong relative strength during the current weakness. They could be some of the market’s leaders if the indexes are able to get back to their record-setting ways.
Bitcoin rebounded Monday morning, briefly rallying above $48,000 before paring gains. The price of Bitcoin traded around $47,800 in morning trade, according to CoinDesk.
The price of Bitcoin hit an all-time high on Feb. 21, topping out at $58,332.
The Grayscale Bitcoin Trust (GBTC) ETF tumbled 23.8% last week, but is still holding above its 10-week support level.
Dow Jones Stocks: Disney
Disney stock moved up about 1% premarket Monday. The media giant is looking to snap a two-day losing streak that brought the stock back into buy range.
Stocks To Watch: RH, Target
Friday’s IBD Stock Of The Day, RH, is closing in on a 524.11 buy point in a flat base. Shares rallied nearly 4% Friday.
Per Leaderboard commentary, “Target is forming a flat base as it tests support at the 50-day moving average. The company reports Q4 results on Tuesday.”
Stock Market Earnings: Nio, Zoom Video
After the stock market close Monday, Nio and Zoom Video will report their quarterly earnings results.
Nio is expected to lose six cents per share on revenue of $1.02 billion, according to IBD data. Nio stock is more than 30% off its 52-week high following last week’s 16.8% tumble.
Zoom Video is expected to earn 79 cents per share on sales of $811.7 million, year-over-year increases of 427% and 331%, respectively. Zoom stock is trying to find support around its long-term 200-day line and is nearly 40% off its 52-week high.
Tesla stock rallied more than 2% premarket Monday, on pace to snap a two-day losing streak.
Last week, the electric-auto leader broke down through its key 10-week moving average line, a critical support level.
On Jan. 25, Tesla stock hit a record high at 900.40, after climbing as much as 93% from a 466 buy point in a cup with handle. Shares are about 25% off that all-time high.
Dow Jones Leaders: Apple, Microsoft
Among the top Dow Jones stocks, Apple moved up 1.8% premarket Monday. Apple stock is below its 10-week line, but a strong rebound back above the level would be bullish for the stock’s prospects.
On Feb. 18, the stock triggered the 7%-8% loss-cutting sell rule when it fell more than 7% below its 138.89 buy point in a cup with handle.
Meanwhile, Microsoft rose about 1% Monday morning. The stock is trying to find support at its 232.96 buy point, and is back above it in early morning trade.
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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