Dow Jones futures fell again Tuesday night, along with S&P 500 and Nasdaq futures, after the recovery in the coronavirus stock market on Tuesday was triggered by trade news between the United States and China. StoneCo and Netflix, backed by Warren Buffett, are leading these top six stocks in or near buy zones.
The recovery in the coronavirus stock market continued its record on Tuesday as the Nasdaq compound reached another record high. Nasdaq, powered by technology, increased an incredible 19 in the last 22 trading sessions. Meanwhile, the Dow Jones Industrial Average gained 131 points.
Advanced micro devices (AMD) Netflix (NFLX), backed by Warren Buffett StoneCo (STNE) Taiwan Semiconductor (TSM), Vertex Pharmaceutical Products (VRTX) and Wingstop (ALA) are in or near new shopping areas. Dow Jones Stock Leaders Apple (AAPL) and Microsoft (MSFT) advanced to record levels on Tuesday.
Apple, Microsoft, Netflix, and Vertex are shares of the IBD leaderboard.
Dow Jones Futures Today
Dow Jones futures lost 0.15% against fair value after the stock market closed on Tuesday, while S&P 500 futures also fell 0.15%. Nasdaq 100 futures did not change against fair value. Remember that overnight action on Dow Jones futures and elsewhere does not necessarily translate into real trading in the next regular stock market session.
On Tuesday, the Nasdaq Composite advanced 0.7%. The S&P 500 rose 0.4%, while Dow Jones industrials recovered 0.5%. The major stock indices were boosted by China’s trade news and a tweet from President Trump.
On Monday night, White House trade official Peter Navarro told Fox News that the trade agreement between the United States and China had “ended.” Navarro later told the media that his comment was not about China’s first-phase trade deal, which is still in effect. He said his statement was “totally out of context” and that it referred to a loss of “confidence” with Beijing.
Then President Donald Trump tweeted: “The China Trade Agreement is completely intact. Hopefully they will continue to abide by the terms of the Agreement!”
Among exchange-traded funds, Innovator IBD 50 (FFTY) was unchanged on Tuesday. The fastest growing ETF is roughly 7% off its 52-week high.
The Invesco QQQ Trust (QQQ) ETF linked to the Nasdaq 100 rose 0.85% to close at 248.84. Meanwhile, the SPDR S&P 500 ETF (SPY) rose 0.5% to 312.05.
Within the recovery of the coronavirus stock market, the technology-rich Nasdaq reached record levels and rose 12.9% during the year to Tuesday’s close. Meanwhile, the S&P 500 and DJIA fell 3.1% and 8.4%, to date, through the close of June 23.
The coronavirus outbreak continues to spread throughout the United States. USA According to the Worldometer data tracker, the cumulative number of confirmed cases in the US. USA It exceeded 2.4 million on Tuesday. Although new daily cases increase in the short term, the increase in deaths continues to decrease.
The cumulative total of confirmed Covid-19 cases since the start of the outbreak worldwide approaches 9.3 million on Tuesday, with more than 477,000 deaths related to the virus.
Coronavirus Stock Market Rally
According to IBD’s The Big Picture, the recovery in the coronavirus stock market continues to trend higher after recovering from the lows three months ago on March 23. The major stock indices confirmed the rebound as a new uptrend on April 2.
According to Monday’s The Big Picture, “The Nasdaq compound rose 1.1% and closed above 10,000 for the second time this month. The previous time was on June 10, just before the compound fell 5.3%. on concerns about the coronavirus. At the close of 10,056 Monday, the Nasdaq is inches from the record of 10,086 “.
Actions to watch include the main actions of IBD’s long-term leaders. IBD’s list of long-term Leaders focuses on companies with stable earnings growth and price performance.
Coronavirus Stock Market ETF Strategy and How to Invest in the New Uptrend
Stock in or near purchase areas
In the coronavirus stock market recovery, six major stocks in or near buying zones include AMD, Netflix, StoneCo, Taiwan Semiconductor, Vertex Pharmaceuticals and Wingstop.
One of last week’s IBD 50 Stocks to Watch picks, Advanced Micro Devices, is roughly 8% below a new point of purchase in a mug with a handle at 59.10 after a June 10 breakdown failed , based on MarketSmith chart analysis.
But the stock is still testing its 50-day moving average line, a key support level. Shares fell 1.4% on Tuesday.
AMD’s shares rank No. 7 on the IBD 50. (The IBD 50 is a list of leading growth stocks with strong relative price strength and top notch fundamentals).
FANG share leader Netflix is in the 5% buy zone above a buy point of 459.07 on a flat basis after Monday’s breakout. The 5% buy range goes up to 482.02. On Tuesday, shares fell 0.4%.
Netflix is a member of the IBD leaderboard. According to the commentary on the leaderboard, “Netflix is in the buying range after exiting a flat base in active trading. It rose from half to 3/4 position on Wednesday and to full position on Monday” .
Warren Buffett endorses StoneCo
Tuesday’s IBD Day Stock StoneCo exploded above a buy point of 40.27 in a mug with a handle amid a 4.7% advance. The shares are in the 5% buy zone which extends to 42.28.
Warren Buffett is a prominent sponsor. His sign Berkshire Hathaway (BRKB) owns 14.17 million shares, representing 8% of all StoneCo shares.
Tuesday’s IBD 50 stock pick, chip leader Taiwan Semiconductor, also known as TSMC, is a surprising distance from a break above a new buying point at 58.14, according to MarketSmith chart analysis. Shares are roughly 2% below the new point of purchase amid Tuesday’s 1.4% gain.
IBD Stock Checkup shows that TSMC’s shares are rated 96 out of the highest possible 99 IBD composite rating, making it one of the highest-rated stocks in the chip manufacturing industry. Composite rating, an easy way to identify the fastest growing stocks, is a combination of fundamental metrics and key techniques to help investors assess a stock’s strengths.
Vertex Pharmaceuticals exploded past a buy point of 295.65 on a flat basis, according to MarketSmith’s graphical analysis. Shares ended 0.9% Tuesday to close just above the point of purchase.
The top biotech stocks appeared in the IBD industry leaders column on Friday and are other stocks on the IBD leaderboard.
The chicken wing Wingstop chain is still in the buying range beyond a 131.09 buying point in a consolidation after a strong breakout on Friday. Shares fell 0.3% on Tuesday and are still in the 5% buy zone, which stands at 137.64.
Wingstop was featured as Friday’s IBD Day Action.
The main growth stocks to buy and see
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones’ top stocks, Apple rose as much as 3.8% on Tuesday after multiple hikes in the target price before slashing earnings to 2.1%. The shares reached all-time highs, reaching 372.38 per share.
UBS increased its target price from 325 to 400. Deutsche Bank increased it from 350 to 380. Baird increased its target price from 320 to 390.
The shares are well spread beyond the 319.79 buy point, which offered additional entry. The entry was an opportunity for investors to increase their positions. Meanwhile, stocks are above the 20% -25% profit-taking zone from the 288.35-cup-with-handle purchase point.
Software leader Microsoft hit a record Tuesday with a 0.7% gain. Stocks extend beyond the 187.61 point of purchase of a cup with a handle. The 5% buy range goes up to 197.
Bullish, the RS stock line is at new highs after a strong rally in the last trading sessions. The RS line measures the performance of a share price against the general market.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more information on Dow Jones growth stocks and futures.
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