Dow Jones futures fell slightly overnight, along with S&P 500 futures and Nasdaq futures. The stock market rally attempt continued Tuesday, as Treasury yields and the dollar retreated, amid hopes that the Federal Reserve could slow rate hikes. TWTR stock skyrocketed as Tesla CEO Elon Musk agreed to go ahead with the $44 billion Twitter (TWTR) takeover.
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The major indexes are moving higher, but haven’t retaken key levels or confirmed the new rally attempt yet.
Megacaps Apple (AAPL), Microsoft (MSFT), Google parent Alphabet (GOOGL) and Amazon.com (AMZN) all made strong gains. But only Microsoft stock closed above its 21-day moving average.
Still, leading stocks are offering reasons to tiptoe into the market, or at least get ready.
Arista Networks (ANET), Enphase Energy (ENPH), Paylocity (PCTY), On Semiconductor (ON) and Devon Energy (DVN) are all at or approaching early buy points. If the market rally keeps gaining momentum, these stocks should be actionable. All have relative strength lines at or near highs.
Paylocity stock is on the IBD Leaderboard watchlist and was Tuesday’s IBD Stock Of The Day. Microsoft and Google stock are on the IBD Long-Term Leaders list. Enphase, On Semiconductor and DVN stock are on the IBD 50 list. ENPH stock, Onsemi and Arista Networks are on the IBD Big Cap 20.
The video embedded in this article highlighted Tuesday’s market action and analyzed PCTY stock, On Semiconductor and Neurocrine Biosciences (NBIX).
Elon Musk Says He’ll Go Ahead With Twitter Deal
Musk agreed to proceed with the $44 billion, $54.20-a-share Twitter deal. Lawyers for Musk and Twitter were set to meet in an emergency Delaware Court of Chancery hearing Tuesday night to discuss how to ensure a deal can be closed.
The Musk-Twitter saga isn’t quite over. Twitter has not accepted Musk’s latest terms, which don’t provide any real guarantees over that his professed intention to go ahead with the term. Still, Musk may officially own the social media site in a few days.
The Musk-Twitter trial had been set to begin on Oct. 17, with the Tesla CEO seen as highly likely to lose.
Twitter stock, which was halted for much of the session, skyrocketed 22% to 52 as Musk blinked. While TWTR stock had been trading well below the $54.20 takeover price, it had significantly outperformed Facebook parent Meta Platforms (META) and Snap (SNAP) in recent months.
Tesla (TSLA) rose 2.9% to 249.44, backing off from intraday highs of 256.89 following the latest Musk-Twitter news. Investors may wonder if Musk will sell TSLA stock to pay for the Twitter deal, though he has already sold shares with the Twitter deal as a reason. Longer term, Tesla stock investors may fear Musk’s attention will be further divided from the EV giant as he adds Twitter to his portfolio of companies. Still, TSLA investors may be happy to get the Musk-Twitter takeover saga in the past.
Twitter stock was little changed in active after-hours trading. TSLA stock tilted lower.
Read More: Stocks Jump Again, But Must Do This; TWTR Surges As Elon Musk Gives