Stocks Climb But Nike Slides On Weak Guidance

The Dow Jones Industrial Average rallied 400 points Tuesday, looking to rebound from Monday’s losses. But Nike stock dropped on weak sales guidance.

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Late Monday, Dow Jones stock Nike (NKE) reported better-than-expected earnings results. But Nike shares briefly dropped more than 3% in early trade after weaker-than-expected revenue guidance. Shares traded down 0.6% in morning trade after paring losses. The stock ended Monday about 38% off its 52-week high.

Tesla (TSLA) traded up 1% early Tuesday, as Deutsche Bank cut its price target from 1,250 to 1,125. Elsewhere, Dow Jones tech leaders Apple (AAPL) and Microsoft (MSFT) were slightly higher ahead of today’s stock market open.

In the early stages of the new stock market rally, Dow Jones leaders Johnson & Johnson (JNJ) and Merck (MRK), as well as AutoZone (AZO), Bristol Myers Squibb (BMY), Eli Lilly (LLY) and Quanta Services (PWR), are among the stocks to buy and watch.

Quanta is an IBD Leaderboard watchlist stock. Eli Lilly is an IBD SwingTrader stock. And Bristol was IBD Stock Of The Day on June 22. AutoZone is featured in this week’s Stocks Near A Buy Zone column.

Dow Jones Today: Treasury Yields, Oil Prices

After Tuesday’s open, the Dow Jones Industrial Average rose 1.2%, and the S&P 500 moved up 1.1%. The tech-heavy Nasdaq composite climbed 0.9% in morning trade.

Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) moved up 0.9%. The SPDR S&P 500 ETF (SPY) gained 1.1% in early trade.

The 10-year Treasury yield ticked higher to 3.21% Tuesday following Monday’s rise to 3.19%. The 10-year Treasury yield is rebounding after a sharp pullback. In mid-June, it hit its highest level since April 2011 at 3.48%.

Meanwhile, U.S. oil prices are also trying to rebound after recent losses, with West Texas Intermediate trading just above $111 a barrel. In early March, WTI briefly topped out above $130.

Stock Market Rally

The stock market posted moderate losses Monday, as the Nasdaq declined 0.7% to give back part of last week’s 7.5% advance.

Monday’s The Big Picture column commented, “The days after a follow-through are just as important as the follow-through day itself, which means the stock market is now in the proving grounds of a new uptrend. Like any good test pilot, investors should proceed with caution this week.”

If you’re new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one key to the investment guidelines. IBD offers a broad range of growth stock lists, such as Leaderboard and SwingTrader.

Investors also can create watchlists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.

Four Dow Jones Stocks To Watch Now

Dow Jones Stocks To Buy And Watch: Johnson & Johnson, Merck

Dow Jones leader Johnson & Johnson is in buy range past a double bottom’s 181.84 buy point in the wake of Friday’s 1.5% breakout move, according to IBD MarketSmith chart analysis. JNJ shares were flat Tuesday morning.

JNJ stock shows a solid 95 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. Investors can use the IBD Composite Rating to easily gauge the quality of a stock’s fundamental and technical metrics.

Drug giant Merck broke out past a flat base’s 95.02 buy point Monday, but finished just below the entry after the session’s 1.4% rise. The 5% buy area goes up to 99.77. Early Tuesday, the stock fell 0.4%.

4 Top Growth Stocks To Watch In The Current Stock Market Rally

Top Stocks To Buy And Watch: AutoZone, Bristol, Eli Lilly, Quanta

AutoZone shares broke out past a cup with handle’s 2,130.60 buy point Friday and are in the 5% chase zone that tops out at 2,237.13. Shares were down 0.1% Tuesday.

Bristol Myers is moving further above a flat base’s 78.72 buy point after Monday’s 1.3% advance. The 5% buy zone runs up to 82.66. Shares inched higher Tuesday.

SwingTrader stock Eli Lilly is back at new highs after bullishly reclaiming its 50-day line last week. Shares are in the 5% buy area that goes up to 329.81. Eli Lilly shares edged lower early Tuesday.

Leaderboard watchlist stock Quanta Services is tracing a cup with handle that has a 138.56 buy point, according to IBD MarketSmith chart analysis. Shares are back above their 50-day line, which is a key level to watch. Quanta stock were up more than 1% Tuesday morning.

Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live

Tesla Stock

Tesla stock lost 0.3% Monday, giving back a small part of Friday’s 4.5% advance. Shares looked to rebound from those losses Tuesday morning, rising 1%. The stock is still sharply below its 50- and 200-day moving averages.

Tesla is likely to announce second-quarter sales late this week. Analysts polled by FactSet expect Tesla to have delivered 273,000 vehicles in the second quarter, with the range between 249,000 and 323,000. Tesla delivered 310,048 vehicles in the first quarter.

The stock is still sharply below its 50- and 200-day moving averages. Tesla stock traded as high as 1,243.49 on Nov. 4. Shares are about 40% off that record high.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares traded unchanged Monday, but are still at their highest level since June 9. Still, the stock is far below its long-term 200-day line and is about 23% off its 52-week high. Apple shares moved up 1% Tuesday morning.

Software leader Microsoft lost 1.05% Monday, as it tests resistance around its key 50-day line. The stock closed about 24% off its 52-week high. Microsoft shares gained 0.6% early Tuesday.

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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