Dow Jones futures climbed ahead of Monday’s opening bell, looking to kickstart the week with more gains. The price of Bitcoin rallied Monday, topping $22,000 for the first time since Aug. 19.
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Electric-vehicle leader Tesla (TSLA) rose 0.5% Monday. Among the Dow Jones industrials, tech titans Apple (AAPL) and Microsoft (MSFT) were both higher ahead of today’s stock market open.
In the market’s current volatility, Arista Networks (ANET), DoubleVerify (DV), Pure Storage (PSTG) and Restaurant Brands (QSR) — as well as Dow Jones stock Chevron (CVX) — are among the top stocks to buy and watch. Keep in mind the market’s increased volatility is a good reason for investors to be more defensive, although last week’s gains were constructive.
DoubleVerify is a new IBD Leaderboard stock, while Pure Storage is an IBD SwingTrader stock. Apple stock and Restaurant Brands were featured in last week’s Stocks Near A Buy Zone column.
Dow Jones Today: Treasury Yields, Oil Prices, Bitcoin
Before the opening bell Monday, Dow Jones futures rose 0.1% above fair value, while S&P 500 futures gained 0.3%. Nasdaq 100 futures traded up 0.35% in morning trade. Remember that overnight action in Dow Jones futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.4%, and the SPDR S&P 500 ETF (SPY) gained 0.3% in early trade.
The 10-year Treasury yield ticked lower to 3.28% early Monday. Last week, the 10-year Treasury yield notched its highest closing level since June 15.
U.S. oil prices looked to add to last week’s late gains, climbing almost 1% Monday morning. West Texas Intermediate futures traded back above $87 a barrel.
The price of Bitcoin rallied more than 3% over the last 24 hours, according to CoinDesk. Bitcoin traded around $22,400 in morning trade.
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Stock Market Rally Under Pressure
On Friday, the Dow Jones Industrial Average rose 1.2%, while the S&P 500 closed 1.5% higher. The Nasdaq composite moved up 2.1%.
Friday’s The Big Picture column commented, “The bullish session might’ve been enough to resume the uptrend, but volume has been lackluster behind the Nasdaq’s three-session win streak, and the distribution day count remains high for the Nasdaq and S&P 500. That’s even after the Sept. 6 distribution day got nixed due to a 5% rise from that day’s close.”
The best way to find emerging stock market leadership is by using the relative strength line. The RS line measures a stock’s price performance vs. the S&P 500. If the stock is outperforming the broader market, the RS line angles upward. If a stock lags the broad market, the line will point lower.
The RS line is plotted on all IBD and MarketSmith charts. In addition, the IBD Stock Screener includes a list of top-rated stocks with relative strength lines at new highs. MarketSmith also has the “RS Blue Line Dot” list, which screens for RS lines at new highs. (Starting Monday, IBD MarketSmith is providing free access for a full 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.
Five Dow Jones Stocks To Watch Now
Dow Jones Stocks To Watch: Chevron
Dow Jones stock Chevron rose 2.6% Friday, continuing to rebound from support at the key 50-day line. The stock added a handle to a cup base, moving the correct buy point to 166.93 — according to IBD MarketSmith chart analysis — amid a strong performance by energy stocks so far this year. The stock tacked on 0.5% early Monday.
CVX stock shows a strong 97 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.
4 Top Growth Stocks To Buy And Watch In The Current Stock Market Rally
Top Stocks To Watch: Arista, Costco, DoubleVerify, Restaurant Brands
Arista Networks has added a handle to a double-bottom base, placing the correct entry at 132.97, according to IBD MarketSmith chart analysis. Arista’s relative strength line is close to highs, as the stock has retaken its 200-day and 21-day lines. ANET shares were up 0.3% early Monday.
IBD Leaderboard stock DoubleVerify is breaking out past a 28.07 buy point in a bottoming base. Shares are in the 5% buy zone that goes up to 29.47, though it’s getting extended from moving averages. DV shares gained 0.5% Monday morning. The company specializes in platforms to help advertisers get a better view on the effectiveness of their ad spending and campaigns.
IBD SwingTrader stock Pure Storage is approaching a 31.62 buy point in a cup with handle. Meanwhile, an early entry is also in play after the stock moved above a downtrend line within that handle. Shares moved up 0.5% Monday.
Restaurant Brands rallied 0.5% Friday, ending just below a cup with handle’s 61.19 buy point. Restaurant Brands franchises and operates 29,000 Burger King and Tim Hortons restaurants globally. It’s planning a big upgrade of Burger King locations. The stock inched higher early Monday.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock rallied 3.6% Friday, extending a win streak to four sessions and continuing its rebound from the 50-day line. Shares of the electric-vehicle giant rose another 0.5% Monday morning.
Tesla stock found resistance at its 200-day line in recent months, but is now back above that level. Shares remain about 28% of their 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares rose 1.9% Friday, finishing the week just below their 50-day line. The stock is about 11% away from a buy point at 176.25 off a cup with handle. Shares gained 1.2% Monday, signaling a move back above the 50-day line but slight below the 200-day.
Microsoft moved up 2.3% Friday, rising for a third straight day. The software giant remains sharply below below its 50- and 200-day lines. Shares are about 24% off their 52-week high. The stock moved up 0.3% early Monday.
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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