Dow Jones Rallies As Tesla Stock Races Higher On Record China Sales
The Dow Jones Industrial Average rallied 80 points Tuesday, as Tesla stock raced higher on record China sales data. Tech giants Advanced Micro Devices, Microsoft and Salesforce eyed new buy points amid the current stock market weakness.
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Among the Dow Jones leaders, Apple (AAPL) rose 0.2% Tuesday, while Microsoft (MSFT) moved up 0.25% in today’s stock market. American Express (AXP), Merck (MRK) and Salesforce.com (CRM) eyed new buy points in the current stock market correction.
Tesla (TSLA) rallied 1.5% Tuesday on strong China sales data, moving further above the stock’s latest buy point.
Among the top stocks to watch, Advanced Micro Devices (AMD), Netflix (NFLX) and Palo Alto Networks (PANW) are in or near new buy zones, although the market, for now, remains in a correction.
Advanced Micro Devices, Microsoft and Tesla are IBD Leaderboard stocks. Palo Alto Networks is an IBD SwingTrader stock. Microsoft and Salesforce featured in this week’s Stocks Near A Buy Zone column.
Dow Jones Today
After the stock market open Tuesday, the Dow Jones Industrial Average moved up 0.1%, while S&P 500 gained 0.2%. The Nasdaq composite rallied 0.3% in morning trade.
Among exchange traded funds, Innovator IBD 50 (FFTY) gained 0.5% Tuesday. Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.4%. And the SPDR S&P 500 ETF (SPY) ascended 0.2%.
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Stock Market Rally Attempt
The Nasdaq and S&P 500 continue to hold above last week’s correction lows, but both extended Friday’s weakness with moderate losses Monday. Meanwhile, the Dow Jones Industrial Average again found resistance at its 50-day moving average. Still, the current rally attempt continues.
On Monday, The Big Picture commented, “Monday marked the seventh day of a rally attempt for the Dow Jones industrials. As long as its Oct. 1 low holds, the rally will be intact. Monday was the fifth day of a rally attempt for the Nasdaq and S&P 500. As long as the Oct. 4 low holds for those indexes, their rallies will stay intact.”
Dow Jones leaders American Express, Merck and Salesforce are blue chip stocks to watch in today’s stock market action.
IBD SwingTrader stock American Express is approaching a 179.77 buy point in a cup with handle, according to IBD MarketSmith chart analysis. Shares were unchanged Tuesday and are about 3% away from the new buy point.
Merck reversed lower Tuesday, on pace to add to Monday’s nearly 1% fall. The company and partner Ridgeback Biotherapeutics asked the FDA on Monday to approve their experimental Covid pill.
On Oct. 1, Merck stock broke out past a 79.33 buy point in a flat base after the company said the Covid drug reduced the risk of hospitalization by half in a final-phase study. Shares remain in buy range, but breakout gains are fading.
Dow Jones software leader Salesforce is trying to retake a 275.32 buy point in a cup with handle following a Sept. 23 breakout move. Shares rallied 1% Tuesday, as they look to…
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