Dow Jones futures traded at session highs late Tuesday, along with S&P 500 futures and Nasdaq futures, following Tuesday’s up session fueled by coronavirus vaccine optimism. Tuesday’s breakout stocks Alphabet and Apple headline these five top stocks in or near buy zones in the coronavirus stock market rally.
The stock market rally powered up Tuesday on coronavirus vaccine news. FANG stock Alphabet (GOOGL) and Dow Jones leader Apple (AAPL) broke out past new buy points Tuesday. Intel (INTC) is in buy range after last week’s breakout, while top growth stocks Snap (SNAP) and Tesla (TSLA) are approaching new buy points.
Meanwhile, Keysight (KEYS) reported weak quarterly results after the stock market close. Shares of the electronic measurement equipment and systems maker dove more than 7% to 96 in the after-hours session. Keysight stock ended Tuesday in the 5% buy zone past a 102.33 entry in a cup with handle.
Dow Jones Futures Today
Late Tuesday — at around 11 p.m. ET — Dow Jones futures gained 0.6% vs. fair value, while S&P 500 futures were up 0.6%. Nasdaq 100 futures rallied 0.75% vs. fair value after the stock market close. Remember that overnight action in Dow Jones futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
Among exchange traded funds, Innovator IBD 50 (FFTY) lost 1% Tuesday after reversing from sharp gains. The ETF of top growth stocks is about 16% off its 52-week high.
On Tuesday, the Dow Jones Industrial Average surged as much as 711 points before closing up 529 points, or 2.7%, to close just below the 25,000 price level. The S&P 500 rallied 1.2%, but was unable to reclaim the 3000 price level. The tech-heavy Nasdaq composite lagged with a mild 0.2% gain after giving up sharp gains.
Within the coronavirus stock market rally, the tech-heavy Nasdaq is once again positive for 2020, up 2.5% through Tuesday’s close. Meanwhile, the S&P 500 and Dow Jones Industrial Average are down 7.4% and 12.4%, respectively, through May 26.
Coronavirus Vaccine News
On Monday, biotech company Novavax (NVAX) said it started a Phase 1 clinical trial for a coronavirus vaccine. The company said it expects results from the trial in July. Novavax soared as much as 18% before closing with a 4.5% gain.
Meanwhile, Gilead Sciences‘ (GILD) remdesivir was seen as effective at helping coronavirus patients recover more quickly. According to the data published in The New England Journal of Medicine late Friday, “remdesivir was superior to placebo in shortening the time to recovery in adults hospitalized with Covid-19 and evidence of lower respiratory tract infection.”
The coronavirus outbreak continues to spread across the U.S. According to the Worldometer data tracker, the cumulative number of confirmed U.S. cases topped 1.7 million Tuesday. Despite the rising total, the daily number of new cases is trending lower amid the sharp increase in testing.
Confirmed Covid-19 cases worldwide climbed above 5.6 million, with about 348,000 virus-related deaths. With the daily number of new cases falling, investors in the U.S. are turning attention to the economic impact of the coronavirus outbreak and how fast the country reopens for business.
Coronavirus Stock Market Rally
According to IBD’s The Big Picture, the stock market uptrend remains solid after hitting lows nearly two months ago on March 23. The major stock indexes confirmed a new uptrend on April 2.
Per Tuesday’s Big Picture, “Regardless, Tuesday’s real market stars came from the so-called ‘SMID-cap’ territory, or small and midcap stocks. The SPDR S&P Mid Cap 400 (MDY) ETF finished the day up 3.5% and very high up within its true daily price range.”
Stocks to watch include the top stocks on IBD Long-Term Leaders. The IBD Long-Term Leaders list focuses on companies with stable earnings growth and price performance.
Stocks Near Buy Zones: Alphabet, Apple, Snap, Tesla
In the coronavirus stock market rally, four top stocks in or near buy zones include Alphabet, Apple, Snap and Tesla.
FANG stock Alphabet broke out above a 1,415.63 buy point in a cup with handle Tuesday, according to MarketSmith chart analysis. Shares of Google parent Alphabet rallied 0.6% Tuesday and are in buy range. The 5% buy zone runs up to 1,486.41.
According to the IBD Stock Checkup, Alphabet stock shows a 96 out of a highest-possible 99 IBD Composite Rating, placing it in the top echelon of growth stocks. The Composite Rating is a blend of key fundamental and technical metrics to help investors easily gauge a stock’s strengths.
Among the top Dow Jones stocks, Apple tried to break out past a handle’s 319.79 buy point, which offers an add-on entry. Shares fell 0.7% after reversing from solid gains.
Shares are just 3% off their all-time highs, nearly completing a remarkable recovery from the coronavirus stock market crash.
Social media stock Snap is within striking distance of a deep cup-with-handle’s 18.56 entry. Shares fell 1.5% Tuesday.
Shares blasted 36% up the right side of the new formation on April 22 after the company’s quarterly results. Results topped the Street’s estimates, but the company pulled its guidance due to the impact of coronavirus.
According to the IBD Stock Checkup, Snap stock shows a 93 out of a highest-possible 99 IBD Composite Rating, placing it in the upper tier of growth stocks. The Composite Rating is a blend of key fundamental and technical metrics to help investors easily gauge a stock’s strengths.
Bullishly, the stock’s RS line hit a new high the past few weeks, underscoring Snap stock’s outperformance vs. the broad market.
According to IBD Leaderboard commentary, “Tesla triggered the 7%-8% sell signal after shares skidded lower three weeks ago following Q1 results. But a new handle on the extra-deep cup is forming.”
Dow Jones Leaders: Intel, Microsoft
Dow Jones leader Intel stock is in the 5% buy zone past a 62.23 buy point in a cup with handle amid Tuesday’s 0.1% advance, according to MarketSmith chart analysis. The 5% buy range goes up to 65.34.
Intel stock has a best-possible 99 IBD Composite Rating.
Meanwhile, tech giant Microsoft moved down 1.1% Tuesday and is holding above a recent cup-with-handle’s 180.10 buy point. The buy zone runs up to 189.11. Microsoft is also an IBD Leaderboard stock idea and an IBD Long-Term Leader.
Shares also broke out on April 16 above a 175.10 correct buy point in a double bottom, according to MarketSmith chart analysis.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones futures.
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