The Dow Jones Industrial Average again turned higher Monday, even as Tesla stock surged to record highs on a price-target boost. Former President Donald Trump-linked SPAC Digital World Acquisition (DWAC) surged as much as 29% at the open before slashing gains. And Facebook (FB) earnings are due out after the close.
Among the Dow Jones leaders, Apple (AAPL) fell 0.2% Monday, while Microsoft (MSFT) moved down 0.7% in today’s stock market. American Express (AXP), Goldman Sachs (GS) and JPMorgan Chase (JPM) eyed new buy points in the current rally.
Tesla (TSLA) rose over 4% Monday following Friday’s advance to new highs. Shares hit more new highs at the market open.
Among the top stocks to buy and watch, Advanced Micro Devices (AMD), Cleveland-Cliffs (CLF) and Olaplex (OLPX) are in or near new buy zones.
Microsoft, Olaplex and Tesla are IBD Leaderboard stocks. AMD was featured in last week’s Stocks Near A Buy Zone story, while Cleveland-Cliffs was Friday’s IBD Stock Of The Day.
Dow Jones Today
After the stock market open, the Dow Jones Industrial Average rose less than 0.1%, while the S&P 500 moved up 0.1%. The tech-heavy Nasdaq composite gained 0.3% in morning trade despite paring gains.
Among exchange-traded funds, Innovator IBD 50 (FFTY) rose 0.6% Monday. The Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.4%. And the SPDR S&P 500 ETF (SPY) ascended 0.2%.
Stock Market ETF Strategy And How To Invest
Stock Market Rally
The stock market rally put in a mixed performance Friday, as the Nasdaq closed with moderate losses, while the Dow Jones Industrial Average hit new highs.
For daily stock market commentary, be sure to check out IBD’s The Big Picture.
On Friday, The Big Picture commented, “After a solid initial move from the follow-through, the stock market could use a breather. After all, it is in the middle of earnings season. All the while, supply chain problems and rising costs are persistent headwinds. Fed Chairman Jerome Powell said Friday he is more concerned about supply bottlenecks and inflation.”
Five Best Dow Jones Stocks To Watch Now
Dow Jones Stocks To Watch: Amex, Goldman, JPMorgan
American Express ended Friday in the 5% buy area above a 178.90 buy point in a cup with handle, according to IBD MarketSmith chart analysis. Shares were down 0.1% Monday.
Goldman Sachs is just 2% away from a 420.86 buy point in a flat base following Friday’s 1.65% rise. Goldman shares rose nearly 1% in morning trade. Meanwhile, JPMorgan is nearly out of the 5% buy zone past a 163.93 entry in a cup with handle amid a recent bounce off the 50-day moving average. The 5% buy area tops out at 172.13. JPM stock was up 0.5% in early morning trade.
American Express and Goldman Sachs both have strong relative strength lines. A strong relative strength line at the start of a new uptrend is indicative of a potential market leader.
Late Monday, social media giant Facebook will report its quarterly earnings results. Analysts expect the company to earn $3.19 a share on sales of about $29.5 billion.
On Friday, Facebook shares tumbled more than 5% in the wake of disappointing revenue and guidance from rival Snap (SNAP). Facebook stock is testing its long-term 200-day moving average. Shares dropped 1% Monday.
PayPal Jumps On Pinterest News
PayPal stock jumped 5.5% Monday after the company said it is not pursuing an acquisition of Pinterest (PINS) at this time. According to Bloomberg, PayPal had discussed acquiring the company for a potential price of around $70 a share.
Pinterest shares crumbled 14% in early trade.
Stocks To Buy And Watch: AMD, Cleveland-Cliffs, Olaplex
Advanced Micro Devices broke out past a 114.59 buy point out of a double-bottom base last week — according to IBD MarketSmith chart analysis — and is at the top of a buy range after Friday’s 0.4% gain. AMD stock rose 0.5% Monday. Earnings are due out Tuesday after the close.
According to IBD Stock Checkup, AMD boasts a perfect 99 IBD Composite Rating. The IBD Composite Rating identifies stocks with a blend of strong fundamental and technical characteristics.
Friday’s IBD Stock Of The Day, Cleveland-Cliffs, is approaching a 26.61 buy point in a cup base. Meanwhile, the stock triggered a new entry during Friday’s sharp move back above its 50-day moving average. Per Stock Of The Day analysis, “The high-volume move past its 50-day line, along with a break above the downsloping trend line from CLF stock’s Aug. 13 intraday high of 26.51, offered investors an early entry point.” Shares rose 0.8% Monday.
IBD Leaderboard stock Olaplex closed Friday in the 5% buy area past an IPO base entry at 27.84. The buy area tops out at 29.23. Per Leaderboard analysis, it also cleared an aggressive trendline entry near 27. Shares were up about 1.5% Monday.
Join IBD experts as they analyze leading stocks in the new stock market uptrend on IBD Live
Donald Trump SPAC Surges
Digital World Acquisition — a special-purpose acquisition company, or SPAC, merging with Trump Media & Technology Group — soared as much as 29% Monday, looking to add to Friday’s 107% surge. Shares cut slashed gains to just 3% in morning trade. Last week, former President Trump announced plans to launch a social media company named Truth Social. There will also be a subscription-based video-on-demand service to be called TMTG+.
A SPAC, also known as a blank-check company, is an alternative to a traditional initial public offering. These blank-check companies have no assets beyond cash. They trade on stock exchanges and then merge with private companies, taking those companies public.
Tesla Stock Hits New Highs
Tesla stock surged over 4% Monday, looking to add to Friday’s nearly 2% rise to new highs. Ahead of the open, Morgan Stanley upped its price target from 900 to 1,200, citing higher volume expectations after the company’s third-quarter report. Meanwhile, Hertz ordered 100,000 Tesla vehicles for its fleet, the car rental giant said on Monday.
On Sunday, Tesla Chief Executive Elon Musk tweeted that the company’s full self-driving software, FSD Beta 10.3, was “seeing some issues,” so the company was rolling back to Beta 10.2. But then early Monday, he tweeted that FSD Beta 10.3.1 was “rolling out now.”
The stock hit new highs Friday, trading as high as 910.00. TSLA shares remain comfortably above a 764.55 buy point in a cup with handle, as well as earlier entries at 700.10 and 730.
Dow Jones Leaders: Apple, Microsoft
Among the top Dow Jones stocks, Apple fell 0.2%, threatening to add to Friday’s 0.5% loss. A new cup base is forming that has a 157.36 buy point, according to IBD MarketSmith chart analysis.
Software giant Microsoft fell 0.7% Monday, as the stock stays in buy range above its latest buy point. The flat base had a 305.94 buy point and the 5% buy zone tops out at 321.24.
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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