Dow Jones futures rose 25 points Monday, as Tesla stock surged to record highs on a price-target boost. Former President Donald Trump-linked SPAC Digital World Acquisition (DWAC) looked to add to Friday’s surge. And Facebook (FB) earnings are due out after the close.
Among the Dow Jones leaders, Apple (AAPL) fell 0.2% premarket Monday, while Microsoft (MSFT) moved up 0.1% 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% premarket Monday following Friday’s advance to new highs. Shares are set to hit more new highs at the market open.
Dow Jones Today
Ahead of the stock market open, Dow Jones futures rose 0.1% vs. fair value, while S&P 500 futures gained 0.2%. Nasdaq 100 futures rallied 0.3% 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.
Among exchange-traded funds, Innovator IBD 50 (FFTY) hadn’t started trading yet premarket Monday. The Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose nearly 0.2%. And the SPDR S&P 500 ETF (SPY) ascended 0.1%.
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.”
Dow Jones Stocks To Watch: Amex, Goldman, JPMorgan
Goldman Sachs is just 2% away from a 420.86 buy point in a flat base following Friday’s 1.65% rise. Goldman shares inched higher in premarket 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 flat 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% premarket Monday.
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 buy range after Friday’s 0.4% gain. AMD stock rose 0.4% premarket Monday. Earnings are due out Tuesday after the close.
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 0.5% premarket 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 2% premarket Monday.
Donald Trump SPAC Rallies
Digital World Acquisition — a special-purpose acquisition company, or SPAC, merging with Trump Media & Technology Group — climbed 13% premarket Monday, looking to add to Friday’s 107% surge. 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 about 4% to 950 premarket 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 Q3 report.
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 lost 0.2% premarket Monday, 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 rose 0.1% premarket 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.
YOU MAY ALSO LIKE: