The Dow Jones Industrial Average jumped as much as 236 points before cutting gains early Tuesday following President Trump’s comments, as civil unrest continued across the United States. Dow Jones stock Apple remains in a new buy area after Monday’s decisive move, as the current stock market rally continues.
Apple (AAPL) fell 0.5% after cutting iPhone prices in China, while Microsoft (MSFT) also lost 0.5% in today’s stock market. Breakout stocks to watch are Applied Materials (AMAT), Domino’s Pizza (DPZ) and Tesla (TSLA). Coronavirus stock leader Zoom Video (ZM) jumped as much as 4.2% before falling about 1% ahead of its earnings results after the close.
Dow Jones Today: Trump Comments On Civil Unrest
The Nasdaq composite moved down 0.3% Tuesday midday. At around 11:45 a.m. ET, the S&P 500 trimmed gains to 0.2%, while the Dow Jones industrials outperformed with a 0.6% gain.
Late Monday, President Trump promised an assertive response to the ongoing protests across the country, threatening potential military action. President Trump said, “I am mobilizing all federal and local resources, civilian and military, to protect the rights of law-abiding Americans. If a city or state refuses to take the actions necessary to defend the life and property of their residents, then I will deploy the United States military and quickly solve the problem for them.”
Among exchange traded funds, Innovator IBD 50 (FFTY) fell 0.8%. The ETF of top growth stocks is about 14% off its 52-week high. Meanwhile, the Nasdaq 100-linked Invesco QQQ Trust ETF (QQQ) traded down 0.45%, and the SPDR S&P 500 (SPY) ETF was up 0.2%.
Within the coronavirus stock market rally, the tech-heavy Nasdaq is once again positive for 2020, up 6.5% through Monday’s close. Meanwhile, the S&P 500 and Dow Jones Industrial Average are down 5.4% and 10.7%, respectively, through June 1.
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Coronavirus News: U.S. Cases Top 1.8 Million
The coronavirus outbreak continues to spread across the U.S. According to the Worldometer data tracker, the cumulative number of confirmed U.S. cases exceeded 1.8 million. Despite the rising total, the daily number of new cases is trending lower.
Confirmed Covid-19 cases worldwide climbed to near 6.4 million, with about 337,000 virus-related deaths. With the daily number of new cases still on the decline, investors in the U.S. are turning attention to the economic impact of the coronavirus outbreak and how fast the country reopens for business.
Current Stock Market Rally
According to IBD’s The Big Picture, the stock market uptrend remains solid after hitting lows more than two months ago on March 23. The major stock indexes confirmed a new uptrend on April 2.
Per Monday’s Big Picture, “The tech-heavy Nasdaq’s nearly 0.7% advance is quite impressive considering the negative headlines brewing in the U.S.-China relationship and amid the protests and uncontrolled looting gripping America’s biggest cities following the death of George Floyd in Minneapolis a week ago. Monday’s gain followed gains of 3.4% and 1.8% by the Nasdaq composite in the prior two weeks.”
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.
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Dow Jones News: Apple Cuts iPhone Prices
Among the Dow Jones stocks, Apple moved down 0.5% after cutting prices on its latest iPhones in China ahead of the country’s big online shopping event on June 18.
Apple stock is in buy range after decisively clearing a handle’s 319.79 buy point, which offers an add-on entry. Shares are still above the buy point. The entry is an opportunity for investors to add to their positions amid the breakout move past a cup-with-handle’s 288.35 buy point, according to MarketSmith chart analysis.
Shares are just 2% off their all-time highs, nearly completing a remarkable recovery from the coronavirus stock market crash.
Breakout Stocks To Watch: Applied Materials, Domino’s, Tesla
Monday’s IBD 50 Stocks To Watch pick, Applied Materials, is adding a handle to a cup base, making the new buy point 58.26. Shares are about 5% away from the correct entry amid Tuesday’s 0.9% fall.
According to the IBD Stock Checkup, AMAT stock shows a 94 out of a highest-possible 99 IBD Composite Rating, placing it in the upper echelon of growth stocks. The Composite Rating — an easy way to identify top growth stocks — is a blend of key fundamental and technical metrics to help investors easily gauge a stock’s strengths.
Applied Materials was also featured in this week’s Stocks Near A Buy Zone column.
IBD Leaderboard stock Domino’s Pizza broke out Monday past a 388.05 buy point in a new flat base, but failed to hold its gains. Shares were up 0.4% Tuesday morning and are below the buy point. The 5% buy zone tops out at 407.45.
On the downside, the stock’s RS line remains relatively far from its previous highs. Ideally, the stock’s RS line should hit a new high on the breakout day or shortly thereafter.
Tesla traded in the 5% buy zone early Tuesday above a 869.92 buy point in a cup with handle. The 5% buy zone tops out at 913.42. Shares moved down 1.4% in morning trade.
Tesla was added back to the IBD Leaderboard Leaders list Monday after the strong breakout. According to IBD Leaderboard commentary, “Tesla broke out above a handle on an extra-deep cup base. It is trading above a trend line within the handle that offers an aggressive entry near 828. It is a quarter position.”
Stock Market News: Zoom Earnings
Coronavirus stock leader Zoom Video will report its quarterly earnings results after the close Tuesday. Analysts see Zoom Video earnings soaring 200% to 9 cents a share, with revenue surging 81% to $202 million.
Zoom stock rallied as much as 4.2% early Tuesday to hit more all-time highs before falling about 1% in morning trade. On Monday, Zoom Video surged 13.75% to new highs. Shares rallied more than 94% above a 107.44 buy point in a cup base after three separate tests of their 50-day moving average line.
Dow Jones Leaders: Microsoft
Among the top Dow Jones stocks, tech giant Microsoft fell 0.5% Tuesday morning. The software leader is approaching a new 187.61 buy point amid a slow-going breakout move above a cup-with-handle’s 180.10 buy point.
Microsoft is also an IBD Leaderboard stock idea and an IBD Long-Term Leader.
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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