Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, were slightly lower Monday, with the first Bitcoin ETF set to debut Tuesday. Tesla stock is approaching all-time highs, while tech titans Alphabet, AMD and Nvidia are in new buy areas.
On Monday, the Dow Jones Industrial Average moved down 0.1%. The S&P 500 rose 0.3%, while the Nasdaq led the way, rising 0.8% to end at session highs.
Among the Dow Jones leaders, Apple (AAPL) rallied 1.2% Monday, while Microsoft (MSFT) moved up 1% in today’s stock market. American Express (AXP), Goldman Sachs (GS) and JPMorgan Chase (JPM) eyed new buy points in the current rally.
Tesla (TSLA) gained 3.2% Monday, extending a win streak to six sessions. The EV giant is approaching record highs.
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 Futures Today: Bitcoin ETF To Debut
After the stock market close Monday, Dow Jones futures lost 0.1% vs. fair value, while S&P 500 futures inched lower. Nasdaq 100 futures edged lower vs. fair value. Remember that trading in Dow Jones futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
U.S. Stock Market Today Overview
Last Update: 4:24 PM ET 10/18/2021
Bitcoin traded around $61,300 late Monday, rising 2.5% over the last 24 hours, according to CoinDesk. On Tuesday, the ProShares Bitcoin Strategy ETF (BITO) — which is linked to Bitcoin futures — will begin trading on the NYSE 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 CEO Michael Sapir said in a 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.
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 Friday, The Big Picture advised, “After Thursday’s follow-through, investors should add stocks in measured steps, at least while the market builds on the initial push. Remember, the growth-heavy Nasdaq 100 is still below the 50-day line. Now the question is, where to start investing? The market leadership has been shifting all year. It currently favors commodities, trucking, energy, financials and a few other sectors.”
Dow Jones Stocks To Buy And Watch: Amex, Goldman, JPMorgan
Goldman Sachs gained 1.9% Monday, 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.
Dow Jones Earnings: J&J, Procter & Gamble, Travelers
Johnson & Johnson, Procter & Gamble and Travelers will report earnings ahead of Tuesday’s market open.
J&J is expected to earn $2.36 per share on sales of $23.7 billion, according to Benzinga. The stock closed Monday sharply below its 50- and 200-day moving averages.
Procter & Gamble’s earnings are expected to dip 2% to $1.59 a share vs. the year-ago period. Revenues are expected to measure $19.8 billion. P&G stock is fighting for support around its 50-day line.
Travelers is expected to earn $1.90 per share on sales of $8.1 billion. 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 jumped nearly 4% Monday.
FANG stock leader Alphabet extended a win streak to four sessions Monday, rallying 1%. 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 up 4.5% Monday. 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 rallied 1.65% Monday. Bullishly, the stock’s relative strength line is nearing a new high, reaffirming its leadership status.
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.
Tesla stock rose over 3% Monday to 870.11, extending a win streak to six sessions and nearing 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 1.2% Monday after the company’s “Unleashed” product launch. 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 1% Monday, as the stock moves closer to its new buy point. A new flat base shows a 305.94 buy point.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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