Dow Jones futures, along with Nasdaq 100 futures and S&P 500 futures, turned higher late Tuesday, as the volatile stock market rotation continues. Tech giants Alibaba, Advanced Micro Devices, JD.com, Microsoft, Nvidia and Tesla all sold off Tuesday.
XThe Dow Jones Industrial Average led Tuesday's stock market action with a 0.9% advance, or 262 points. The S&P 500 fell 0.1%, while the tech-heavy Nasdaq composite sold off 1.4%.
Among the Dow Jones leaders, Apple (AAPL) fell 0.3%, while Microsoft (MSFT) slid 3.4%. Meanwhile, Salesforce.com (CRM) broke down below its 50-day line Tuesday.
Tech leaders Alibaba (BABA), Advanced Micro Devices (AMD), JD.com (JD), Nvidia (NVDA) and Tesla (TSLA) tumbled. Alibaba, JD.com and Nvidia triggered key sell signals.
Stocks in or near buy zones in the stock market rally are Berry Global (BERY) and Intuitive Surgical (ISRG).
Datadog (DDOG) briefly plunged more than 10% after the company's earnings results late Tuesday.
JD.com, Microsoft, Nvidia and Tesla are all IBD Leaderboard stocks.
Dow Jones Futures Today
Late Tuesday, Dow Jones futures traded up 0.3% vs. fair value. S&P 500 futures rose 0.2%, while Nasdaq 100 futures rallied 0.3%. Remember that trading 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) fell 1.4% Tuesday. The Nasdaq 100-linked Invesco QQQ Trust (QQQ) ETF traded down 1.8%. Meanwhile, the SPDR S&P 500 ETF (SPY) lost 0.1%.
Amid the coronavirus stock market rally, the tech-heavy Nasdaq is up 28.8% for the year through Tuesday's close. Meanwhile, the S&P 500 is up 9.8%, while the Dow is up 3.1% year to date, through the Nov. 10 close.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 29420.46 | +262.49 | +0.90 |
| S&P 500 | (0S&P5) | 3545.44 | -5.06 | -0.14 |
| Nasdaq | (0NDQC ) | 11553.86 | -159.92 | -1.37 |
| Russell 2000 | (IWM) | 172.62 | +3.07 | +1.81 |
| IBD 50 | (FFTY) | 36.39 | -0.50 | -1.36 |
Last Update: 4:26 PM ET 11/10/2020 |
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Coronavirus Updates
According to the Worldometer data tracker, the cumulative number of confirmed coronavirus cases in the U.S. topped 10.4 million on Tuesday. Total virus-related deaths rose past 244,000.
The cumulative total of worldwide Covid-19 cases confirmed since the start of the outbreak topped 51.3 million Tuesday, with more than 1.27 million virus-related deaths.
Coronavirus Stock Market Rotation
According to IBD's The Big Picture, the stock market is back in a new uptrend after last week's bullish price action. However, the Nasdaq fell sharply for a second straight day Tuesday.
Monday's Big Picture warned of potential market rotation saying, "The dichotomy in U.S. stocks was stark and largely the result of the coronavirus news. The whole Covid-19 trade that made work-from-home and social distancing stocks the leaders suddenly went out of favor. Surely, this new development deserves close watch."
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Dow Jones Stocks: Salesforce Attempts Breakout
Dow Jones leader Salesforce.com is trying to break out above a 270.26 buy point in a double bottom, according to MarketSmith chart analysis. On Monday, shares briefly topped the new buy point before closing 0.3% lower. Shares fell 4.5% Tuesday to give up their key 50-day line.
Salesforce.com is the No. 1 performer on the Dow Jones Industrial Average with a 59.4% year-to-date advance through Monday's close.
According to the IBD Stock Checkup, Salesforce.com stock has a 98 out of a perfect 99 IBD Composite Rating. The Composite Rating — an easy way to identify top growth stocks — is a blend of key fundamental and technical metrics to help investors gauge a stock's strengths.
The top Dow Jones stock was featured in this week's Stocks Near A Buy Zone column.
Stocks Near Buy Zones: Berry Global, Intuitive Surgical
Tuesday's IBD 50 Stocks To Watch pick, Berry Global, ended Tuesday in the 5% buy zone above a 51.77 buy point in a double bottom, according to MarketSmith chart analysis. The buy zone tops out at 54.36.
Monday's IBD Stock Of The Day, Intuitive Surgical, is trading just below a 771.72 buy point in a cup with handle. Shares fell over 3% Tuesday to fall back under the new entry.
Tech Giants Damaged
Stock market rotation continues to heavily impact leading technology stocks, including Alibaba, Advanced Micro Devices, JD.com and Nvidia.
Alibaba plunged 8.3% after China regulators issued draft rules aimed at preventing monopolistic practices by internet companies. Shares fell decisively below their 50-day moving average line and more than 7% below the 299.10 flat-base entry. Investors should cut their losses short if a stock falls more than 7% below the correct buy point.
Advanced Micro Devices faltered 6.2% Tuesday. Shares are building a double bottom with an 88.82 buy point, according to MarketSmith chart analysis.
JD.com tumbled more than 8% below an 85.49 buy point in a cup with handle Tuesday. Shares slid as much as 7.8% before closing with a 5.6% loss. The stock could be trying to find support at its 50-day line.
Nvidia triggered a sell signal from a cup-with-handle's 574.04 buy point after the day's 6.3% descent. Nvidia stock dropped more than 7% below the new entry.
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Tesla Stock
Tesla stock skidded 2.6% Tuesday, adding to Monday's 2% decline and extending a losing streak to three sessions.
Shares fell further below their 50-day moving average line, as the stock continues to build a base with a new buy point at 466. Shares are about 13% below the entry.
According to IBD Leaderboard commentary, "The stock is forming an awkwardly-shaped cup with handle. We brought it from a half position down to a quarter position on Oct. 30 as it closed decisively below the 10-week line for the first time since April 9. After rallying last week, it has now fallen back below this benchmark."
Dow Jones Leaders: Apple, Microsoft
Among the top Dow Jones stocks, Apple moved down 0.3% Tuesday. Shares are trying to hold above their 50-day line after retaking that key level last week.
The blue-chip giant is the No. 2-performing Dow Jones stock for 2020, with a 58.5% advance through Monday's close.
Software giant Microsoft moved down 3.4% Tuesday, adding to Monday's 2.4% decline. Shares fell back below their 50-day line after regaining the key level last week.
Year to date, Microsoft is one of the top Dow Jones stocks, advancing 38.5% through Monday's close.
Stock Market Rally: What To Do Next
During market corrections, investors should be building watchlists of potential leaders. Now it's time to put those watchlists to work.
Investors should use the recent strength as a go-ahead to buy new breakouts. Start slowly with new purchases and see how they perform. After raising cash during the recent correction, don't rush to be fully invested all at once. Try some new buys. If they work, you can add to them; if not, you can back away.
In particular, focus on stocks with strong relative strength. Find them by using the relative strength line. The RS line measures a stock's price performance vs. the S&P 500. If the stock is outperforming the broader market, then the RS line angles upward. If a stock is performing worse than the broad market, then the line will point lower.
Stocks to watch include IBD Long-Term Leaders, companies with stable earnings growth and price performance.
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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