Popular Stories

Dow Jones Rallies As AMC Stock Soars 40%; Tesla Skids On Recall, Zoom Video Reverses On Earnings

The Dow Jones Industrial Average rallied 100 points Wednesday, as AMC stock soared as much as 40% in midday trade. Tesla stock skidded on recall news, while Zoom Video reversed lower after reporting strong earnings results.




X



Among the Dow Jones leaders, Apple (AAPL) gained 0.5% Wednesday, while Microsoft (MSFT) moved up 0.4% in today’s stock market. Caterpillar (CAT) and JPMorgan (JPM) are above recent buy points.

Tesla (TSLA) declined 3% Wednesday, on pace to extend a losing streak to three sessions. Zoom Video (ZM) reported earnings late Tuesday.

Among the top stocks to buy and watch, Applied Materials (AMAT), Nvidia (NVDA) and TransDigm (TDG) are in or near buy zones.

Microsoft and TransDigm are IBD Leaderboard stocks. Nvidia was featured in this week’s Stocks Near A Buy Zone column, while Applied Materials is an IBD SwingTrader stock.

Dow Jones Today

The Dow Jones Industrial Average traded up 0.2% Wednesday, while the S&P 500 rose 0.3%. The tech-heavy Nasdaq composite gained 0.3% in morning trade.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 34652.38 +77.07 +0.22
S&P 500 (0S&P5) 4213.12 +11.08 +0.26
Nasdaq (0NDQC ) 13767.73 +31.25 +0.23
Russell 2000 (IWM) 227.24 -0.82 -0.36
IBD 50 (FFTY) 45.25 -0.44 -0.96
Last Update: 10:44 AM ET 6/2/2021

Among exchange traded funds, the Innovator IBD 50 (FFTY) moved down 1.2% Wednesday. Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) traded up 0.25%. Meanwhile, the SPDR S&P 500 ETF (SPY) rose 0.2%.

Stock Market Rally

The Dow Jones Industrial Average looked to extend its win streak to five sessions Wednesday, as it eyes its May 10 record high. Meanwhile, the tech-heavy Nasdaq remains above its 50-day moving average following last week’s bullish retake. Potential resistance looms around 14,000.

Tuesday’s Big Picture column commented, “The Nasdaq composite closed 0.1% lower, making it five straight sessions of dull price performance. On the plus side, the Nasdaq is holding above its 50-day moving average and has some room before it hits a potential resistance level at 14,000.”

For more stock market commentary, check out IBD’s The Big Picture.


Stock Market ETF Strategy And How To Invest


Dow Jones Stocks: Caterpillar, JPMorgan

Dow Jones financial leader JPMorgan is trading in buy range above a 161.79 buy point in a flat base, according to IBD MarketSmith chart analysis. Shares slipped 0.1% Wednesday morning.

Meanwhile, Caterpillar is in the 5% buy zone past a 237.88 buy point in a flat base. The 5% buy range goes up to 249.77. Shares dropped 0.3% Wednesday morning.

Stocks To Buy And Watch: Applied Materials, Nvidia, TransDigm

Applied Materials moved up nearly 1% Wednesday and is trading about 4% away from a 146.10 buy point in a consolidation. Meanwhile, shares are trying to clear an early entry at 138.77.

According to IBD Stock CheckupAMAT stock boasts a strong 97 out of a perfect 99 IBD Composite Rating. The Composite Rating helps investors easily measure a stock’s fundamental and technical metrics.

Nvidia is trying to hold above its 648.67 buy point in a cup base following Friday’s breakout move, according to IBD MarketSmith chart analysis. Shares are just above the entry Wednesday amid the morning’s 2% advance. The 5% buy zone goes up to 681.10.

New IBD Leaderboard stock TransDigm broke out past a 633.14 buy point in a flat base last week. The 5% buy zone goes up to 664.80. As noted in Leaderboard, TransDigm’s relative strength line rose to the highest level since the start of the base’s formation in early April. That’s a positive sign.

The stock rallied 0.5% Wednesday and is trading at the top of the 5% buy zone.

AMC Stock

AMC Entertainment (AMC) soared as much as 40% Wednesday midday, topping out at 45 and looking to add to Tuesday’s 22.7% surge.

AMC stock is above its January high of 20.36 when the Reddit short-squeeze mania sent heavily-shorted stocks soaring. The stock rallied 116% last week amid a fresh round of social media buzz.

Zoom Video Earnings

Zoom Video reported strong earnings results late Tuesday. The company said April-quarter earnings jumped 560% to $1.32 a share on an adjusted basis from a year earlier. Revenue soared 191% to $956.2 million, the company said.

The stock reversed 0.3% lower Wednesday morning. Shares remain more than 40% off their 52-week high.


IBD Live: A New Tool For Daily Stock Market Analysis


Tesla Stock

Tesla stock dropped 3% Wednesday morning, threatening to extend a losing streak to three sessions. Tesla will recall close to 6,000 Model 3 and Model Y cars in the US because brake caliper bolts could be loose and could reduce tire pressure, Reuters reported, citing a filing with the National Highway Traffic Safety Administration.

The stock reclaimed its long-term 200-day moving average last week and is still above that key level. A new base could be forming, but the stock is far away from any new buy point.

On Jan. 25, Tesla stock hit a record high at 900.40, after climbing as much as 93% from a 466 buy point in a cup with handle.

Dow Jones Leaders: Apple, Microsoft

Among the top Dow Jones stocks, Apple rose 0.5% Wednesday, as the stock struggles to retake the 50-day line. A decisive retake of the 50-day line would be bullish for the stock’s prospects; however, the stock’s lagging RS line indicates significant stock market underperformance.

Earlier this month, the stock triggered the 7%-8% loss-cutting sell rule from a 135.63 buy point.

Software giant Microsoft moved up 0.55% Wednesday, and remains in buy range above a flat base’s 246.23 buy point, according to IBD MarketSmith chart analysis. The buy zone goes up to 258.54.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.

YOU MAY ALSO LIKE:

Top Growth Stocks To Buy And Watch

Learn How To Time The Market With IBD’s ETF Market Strategy

Find The Best Long-Term Investments With IBD Long-Term Leaders

MarketSmith: Research, Charts, Data And Coaching All In One Place

How To Research Growth Stocks: Why This IBD Tool Simplifies The Search For Top Stocks

View Article Origin Here

Related Articles

Back to top button