Investors.com:
The Dow Jones Industrial Average rallied 100 points Tuesday, as the first Bitcoin exchange-traded fund debuted. Tesla stock is approaching all-time highs, while tech stocks to buy and watch are Alphabet, AMD, Microsoft and Nvidia. X
Among the Dow Jones leaders, Apple (AAPL) rallied 0.3% Tuesday, while Microsoft (MSFT) moved up 0.1% in today’s stock market. American Express (AXP), Goldman Sachs (GS) and JPMorgan Chase (JPM) eyed new buy points in the current rally.
Dow Jones stocks Johnson & Johnson (JNJ), Procter & Gamble (PG) and Travelers Companies (TRV) reported earnings Tuesday morning.
Tesla (TSLA) gained 0.5% Tuesday, on pace to extend a win streak to seven sessions. The electric vehicle giant is approaching record highs.
Among the top stocks to buy and watch, Advanced Micro Devices (AMD), Alphabet (GOOGL), CrowdStrike (CRWD) and Nvidia (NVDA) are in or near new buy zones.
Advanced Micro Devices, Microsoft and Tesla are IBD Leaderboard stocks. AMD featured in this week’s Stocks Near A Buy Zone story. CrowdStrike was featured in last week’s IPO Leaders column. Nvidia is an IBD SwingTrader stock.
Dow Jones Today: Bitcoin ETF Debuts
After the stock market open Tuesday, the Dow Jones Industrial Average rallied 0.3%, while S&P 500 moved up 0.35%. The Nasdaq composite rose 0.2%. Remember that pricing in Dow Jones futures and elsewhere doesn’t necessarily follow suit in the next regular stock market session.
Bitcoin traded around $62,200 early Tuesday, rising about 2% over the last 24 hours, according to CoinDesk. On Tuesday, the ProShares Bitcoin Strategy ETF (BITO) — which is linked to Bitcoin futures — began trading on the New York Stock Exchange under the ticker ‘BITO’, according to the company.
“BITO will open up exposure to Bitcoin to a large segment of investors who have a brokerage account and are comfortable buying stocks and ETFs, but do not desire to go through the hassle and learning curve of establishing another account with a cryptocurrency provider,” ProShares Chief Executive Michael Sapir said in a written statement.
The Securities and Exchange Commission hasn’t formally approved the ProShares Bitcoin Strategy ETF. The SEC may never officially do so. But BITO can begin trading if the SEC doesn’t object.
Among exchange-traded funds, Innovator IBD 50 (FFTY) rose 0.2% Tuesday. Nasdaq 100 tracker Invesco QQQ Trust (QQQ) gained 0.3%. And the SPDR S&P 500 ETF (SPY) ascended 0.3%.
Stock Market Rally
The stock market rally added to Friday’s gains with mostly positive action Monday, though the Dow 30 did close slightly lower. All three major stock indexes — the Nasdaq, the Dow Jones Industrial Average and S&P 500 — are above their key 50-day benchmarks.
This is an important time to read The Big Picture.
On Monday, The Big Picture commented, “The stock market came off its October lows, thanks mainly to strength in energy, financials and commodity-related stocks. But now, multiple measuring sticks show that growth stocks are playing a role in the new uptrend, which was initiated with Thursday’s follow-through on the Nasdaq.”
Dow Jones Stocks To Buy And Watch: Amex, Goldman, JPMorgan
American Express is just 1% away from a 178.90 buy point in a cup with handle, according to IBD MarketSmith chart analysis. Shares rallied 0.6% early Tuesday.
Goldman Sachs gained 0.2% Tuesday, rising closer to a 420.86 buy point in a flat base. Meanwhile, JPMorgan is in the 5% buy zone past a 163.93 entry in a cup with handle following last week’s test of the 50-day moving average. The 5% buy area tops out at 172.13. JPM shares rallied 0.35% Tuesday.
American Express and Goldman Sachs both have a strong relative strength lines. Strong relative strength lines at the start of new uptrends are indicative of potential market leaders.
Dow Jones Earnings: J&J, Procter & Gamble, Travelers
Johnson & Johnson, Procter & Gamble and Travelers reported earnings ahead of Tuesday’s market open.
J&J topped earnings estimates, but fell short of revenue targets Tuesday morning. The company reported an adjusted $2.60 per share on sales of $23.3 billion. Shares rose over 1% in early morning trade, but remain sharply below their 50- and 200-day lines.
Procter & Gamble topped earnings and sales estimates. Earnings were at $1.61 per share on sales of $20.3 billion. P&G stock dropped about 2% in morning trade, as it fights for support around its 50-day line.
Travelers jumped almost 3% Tuesday after beating the Street’s earnings and sales targets. Shares are tracing a flat base that has a 163.39 buy point.
Stocks To Buy And Watch: AMD, Alphabet, CrowdStrike, Nvidia
IBD Leaderboard stock Advanced Micro Devices is breaking out past a 114.59 buy point out of a double-bottom base and is in buy range. AMD stock lost 0.8% Tuesday following Monday’s nearly 4% advance.
According to IBD Stock Checkup, AMD boasts a perfect 99 IBD Composite Rating. The IBD Composite Rating identifies stocks with a blend of strong fundamental and technical characteristics.
FANG stock leader Alphabet looked to extend a win streak to five sessions Tuesday, rallying 0.4%. The stock is back above its 50-day line and above a short trend line. Meanwhile, shares are approaching a 2,925.17 buy point in a flat base, according to IBD MarketSmith chart analysis.
Cybersecurity leader CrowdStrike is nearing a 289.34 buy point in a cup base after last week’s bullish retake of the 50-day line. Shares were down 1.7% Tuesday. The stock is an IPO Leader.
IBD SwingTrader stock Nvidia handily reclaimed its 50-day line during Thursday’s nearly 4% advance, placing the chip giant in a new buy area. NVDA stock is tracing a consolidation with an official buy point at 230.53. The stock dropped 0.1% Tuesday. Bullishly, the stock’s relative strength line is nearing a new high, reaffirming its leadership status.
Netflix Earnings
Netflix (NFLX) earnings are due out Tuesday after the close. The FANG leader’s earnings are expected to grow 48% vs. the year-ago period to $2.57 per share. Sales are estimated to rise 16% to about $7.4 billion, according to IBD data.
Netflix stock ended Monday out of the 5% buy area past a 593.39 buy point in a consolidation. Shares are just off all-time highs amid Tuesday’s loss of 0.5%.
Tesla Stock
Tesla stock rose 0.5% Tuesday to about 877, on pace to extend a win streak to seven sessions and moving closer to record highs. TSLA shares are now comfortably above a 764.55 buy point in a cup with handle, as well as earlier entries at 700.10 and 730.
The stock closed Monday about 3% below record highs. On Jan. 25, Tesla stock hit a record high of 900.40, after climbing as much as 93% from a 466 buy point in a cup-with-handle pattern.
Dow Jones Leaders: Apple, Microsoft
Among the top Dow Jones stocks, Apple rose 0.3% Tuesday. On Monday, the company unveiled new MacBook Pro notebooks, new AirPods wireless earbuds and a lower-priced tier for its Apple Music service.
Apple shares closed Monday below their 50-day line, about 7% off their 52-week high. A new flat base is forming that has a 157.36 buy point, according to IBD MarketSmith chart analysis.
Software giant Microsoft rose 0.1% Tuesday, as the stock trades just above its new buy point. A new flat base shows a 305.94 buy point.
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