Dow Jones Rallies After Stock Market Sell-Off; Apple, Microsoft

On Oct 5, 2021

The Dow Jones Industrial Average rallied more than 250 points Tuesday following Monday’s stock market sell-off. Apple and Microsoft looked to bounce after their own sharp losses Monday, while Tesla stock climbed.

Among the Dow Jones leaders, Apple (AAPL) rose 0.5% Tuesday, while Microsoft (MSFT) moved up 1% in today’s stock market. American Express (AXP) and Merck (MRK) are near new buy points Tuesday morning.

Tesla (TSLA) rallied 1.5% Tuesday, on pace to add to Monday’s 0.8% rise. The stock is just above its latest buy point.

Among the top stocks to watch, Netflix (NFLX) and ServiceNow (NOW) are in or near new buy zones despite the current stock market weakness.

Microsoft, ServiceNow and Tesla are IBD Leaderboard stocks. American Express is an IBD SwingTrader stock. Netflix featured in this week’s Stocks Near A Buy Zone column.

Dow Jones Today

Early Tuesday, the Dow Jones Industrial Average rallied 0.8%, while S&P 500 moved up 0.9%. The tech-heavy Nasdaq composite climbed 1.1% in the first 40 minutes of trade.

Among exchange traded funds, Innovator IBD 50 (FFTY) rose 1.7%. Nasdaq 100 tracker Invesco QQQ Trust (QQQ) gained 1.1%. And the SPDR S&P 500 ETF (SPY) moved up 0.6%.

Stock Market Weakness

The Nasdaq and S&P 500 tumbled to new recent lows Monday, as the current stock market correction worsened. The Nasdaq closed at its lowest level since June 22 and could be headed for a test of its long-term 200-day moving average. Meanwhile, the Dow Jones Industrial Average almost gave back the entirety of Friday’s 1.4% advance, but held above its recent lows.

On Monday, The Big Picture commented, “Top-performing growth stocks were under pressure again, fueling a 2.1% decline for the Nasdaq composite. The index undercut Friday’s low, killing the nascent rally attempt. So did the S&P 500, which fell 1.3%.”

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Dow Jones Stocks To Watch: American Express, Merck

Dow Jones leaders American Express and Merck are blue chip stocks to watch in today’s stock market action.

IBD SwingTrader stock American Express is approaching a 178.90 buy point in a cup with handle, according to IBD MarketSmith chart analysis. Shares rallied more than 1% early Tuesday, and are about 2% away from the new entry.

Merck threatened to snap a four-day win streak Tuesday, falling 0.2%. On Friday, Merck said its Covid pill reduced the risk of hospitalization by half in a final-phase study, sparking an 8.4% surge and a breakout past a 79.33 buy point in a flat base.

Stocks To Watch: Netflix, ServiceNow

FANG stock leader Netflix continues to hold inside a new buy zone despite Monday’s 1.6% bearish reversal. The stock moved up 3.2% Tuesday morning. Shares are at the top of the 5% buy zone past a 593.39 entry point in a consolidation amid the recent global success of its series “Squid Game.”

According to IBD Stock Checkup, NFLX stock shows a strong 97 out of a perfect 99 IBD Composite Rating. The IBD Composite Rating…