Dow Jones futures were little changed late Monday after the stock market rally saw Tesla stock surge to all-time highs to hit the $1 trillion milestone. The Former President Donald Trump SPAC dived. And Facebook earnings topped estimates after the close.
On Monday, the Dow Jones Industrial Average moved up 0.2%. The S&P 500 rose 0.5%, while the Nasdaq led the way, rising 0.9%.
Among the Dow Jones leaders, Apple (AAPL) fell less than 0.1% in today’s stock market, while American Express (AXP), Goldman Sachs (GS) and JPMorgan Chase (JPM) eyed new buy points in the current rally.
Tesla (TSLA) surged nearly 13% Monday to hit more record highs.
Dow Jones Futures Today
After the stock market close Monday, Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, were little changed 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.
U.S. Stock Market Today Overview
Last Update: 4:42 PM ET 10/25/2021
Stock Market Rally
The stock market rally strengthened Monday, as the Dow 30 and S&P 500 notched all-time highs, while the Nasdaq recovered from Friday’s moderate loss.
For daily stock market commentary, be sure to check out IBD’s The Big Picture.
On Friday, The Big Picture commented, “The Nasdaq and S&P 500 made it three straight weekly gains. In the past week, the Nasdaq added 1.3% and the S&P 500 rose nearly 1.7%. For the month of October, the Nasdaq is up 4.4% and the S&P 500 up 5.5%. Friday’s distribution day was a stumble for the stock market, but nothing to throw it off its new uptrend.”
Dow Jones Stocks To Buy And Watch: Amex, Goldman, JPMorgan
Goldman Sachs is within striking distance of a 420.86 buy point in a flat base following Monday’s 0.1% rise. Meanwhile, JPMorgan remains at the top 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 down 0.5% Monday.
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.
Dow Jones Earnings: Microsoft
Software giant Microsoft fell 0.3% ahead of Tuesday’s earnings results. Shares remain 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.
The blue chip will report earnings late Tuesday. Analysts expect the company to earn $2.08 per share on revenue of about $44 billion.
Late Monday, social media giant Facebook reported its quarterly earnings results. The company earned $3.22 per share on sales of $29 billion, topping earnings forecasts but missing top-line estimates. Facebook shares jumped about 3% in extended trade.
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 reversed from early losses to rally 1.3% Monday, ending the session just above its long-term 200-day line.
Stocks To Buy And Watch: AMD, Cleveland-Cliffs, Nvidia, 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 now extended following Monday’s 2.1% rise. Earnings are due out Tuesday after the close.
Friday’s IBD Stock Of The Day, Cleveland-Cliffs, is rapidly nearing a 26.61 buy point in a cup base amid Monday’s 6.6% climb. 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.”
IBD SwingTrader stock Nvidia is trying to break out past a cup-base’s 230.53 buy point for a second straight session. NVDA shares briefly topped the entry Friday before closing beneath it. The stock rallied nearly 2% Monday, closing just above the buy point. Positively, the stock’s relative strength line is near new highs, reaffirming the stock’s leadership status.
IBD Leaderboard stock Olaplex closed Monday in the 5% buy area past an IPO base entry at 27.84. Shares reversed nearly 3% lower Monday, but remain above the entry. The buy area tops out at 29.23. Per Leaderboard analysis, it also cleared an aggressive trendline entry near 27.
Donald Trump SPAC Dives
Digital World Acquisition — a special-purpose acquisition company, or SPAC, merging with Trump Media & Technology Group — dived 11% Monday, reversing lower and giving back a part of Friday’s 107% surge. DWAC stock rallied about 5% in extended 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 surged 12.7% Monday, hitting a $1 trillion valuation after car rental giant Hertz ordered 100,000 Tesla vehicles for its fleet. Meanwhile, Morgan Stanley boosted its price target on Tesla from 900 to 1,200, citing higher volume expectations after the company’s third-quarter report.
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 Monday, trading as high as 1,045.02. TSLA shares are sharply 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
Among the top Dow Jones stocks, Apple fell 0.1%, adding 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. Be on the lookout for a potential handle to offer a more risk-optimal entry.
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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