The Dow Jones Industrial Average rallied 300 points Monday, as Apple stock looked to snap back from Friday’s sell-off. Tesla stock sold off, while Palantir, Shopify, Under Armour and Yeti are top growth stocks to buy and watch in today’s stock market.
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Among the Dow Jones leaders, Apple (AAPL) rebounded almost 1%, while Microsoft (MSFT) moved up 0.3% Monday. Nike (NKE) is tracing a new base, but is below a key technical level.
Tesla (TSLA) threatened to add to Friday’s weakness, skidding more than 2% Monday morning. The EV leader fell below a new entry. PayPal (PYPL) traded over 1% lower Monday, as it continues to offer a new buy point.
Among the top stocks to buy and watch, Palantir Technologies (PLTR), Shopify (SHOP), Under Armour (UAA) and Yeti (YETI) are in or near new buy zones.
Microsoft and Tesla are IBD Leaderboard stocks. Yeti is an IBD IPO Leader. Under Armour is an IBD SwingTrader stock.
Dow Jones Today
The Dow Jones Industrial Average rallied 0.9% Monday morning. The S&P 500 moved up 0.3%, while the tech-heavy Nasdaq reversed less than 0.1% lower in morning trade after giving up opening gains.
Among exchange traded funds, the Innovator IBD 50 (FFTY) tumbled to a 4.2% loss Monday. Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) moved 0.4% lower. Meanwhile, the SPDR S&P 500 ETF (SPY) defended a 0.1% advance.
Stock Market Rally Continues
The major stock indexes looked to rebound from Friday’s sharp losses, as the Nasdaq and S&P 500 hoped to snap losing streaks. The Dow Jones Industrial Average gave up its key 50-day line last week.
Friday’s The Big Picture column commented, “After two weeks of gains, the S&P 500 and Nasdaq fell 1.6% and 1.7% for the past week. In all, the losses did not knock indexes out of their longer-term uptrend. But that uptrend has seen its share of pullbacks, and another downward phase appears to be unfolding.”
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Dow Jones Stocks To Buy And Watch: Nike
Dow Jones leader Nike is tracing a flat base with a 174.48 buy point, according to IBD MarketSmith chart analysis. But shares are below their key 50-day moving average line. Retaking support at that critical level would be bullish for the stock’s immediate prospects. Shares were down more than 2% Monday after analyst firm BTIG downgraded the stock from buy to neutral.
Through Sept. 10, Nike was the No. 8 performer on the Dow Jones Industrial Average, advancing more than 15%. Goldman Sachs (GS) was the top Dow Jones stock with a year-to-date gain of 53% through Sept. 10.
Stocks To Buy And Watch: Palantir, Shopify, Under Armour, Yeti
Palantir Technologies is back below its cup-with-handle’s 26.04 buy point, according to IBD MarketSmith chart analysis, amid Monday morning’s 2.5% decline. The 5% buy area tops out at 27.34.
Shopify continues to trace a flat base that shows a 1,650.10 buy point. According to IBD Stock Checkup, SHOP stock boasts a 98 out of a perfect 99 IBD Composite Rating. The IBD Composite Rating identifies stocks with a blend of strong fundamental and technical characteristics.
SHOP stock lost more than 3% Monday and is falling further below its 50-day line that it gave up last week.
IBD SwingTrader stock Under Armour continues to build a cup-with-handle that shows a 26.12 buy point, according to IBD MarketSmith chart analysis. The stock also is rising from support at the 50-day moving average. Shares dropped nearly 3% Monday morning.
IPO Leader Yeti is approaching a flat base’s 105.72 buy point, but fell over 2% Monday morning. Bullishly, the stock’s relative strength line is near new highs, indicating strong stock market outperformance. The RS line should hit a new high on the breakout day, confirming the stock as a market leader.
Yeti was featured in last week’s IPO Leaders column.
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PayPal Stock
PayPal stock dropped over 2% Monday, threatening to add to Friday’s nearly 1% loss. The top stock is right at its 50-day moving average line.
PayPal is trading about 7% away from a flat base’s 310.26 buy point. Meanwhile, an aggressive entry looms at 296.80, or a dime above Wednesday’s high.
Tesla Stock
IBD Leaderboard stock Tesla stock skidded more than 3% early Monday, extending Friday’s 2.5% sell-off. Tesla stock is below an alternate entry at 730. In recent weeks, shares regained their 700.10 aggressive buy point deep inside a correction. Meanwhile, a deep, large base continues to take shape.
On Jan. 25, Tesla stock hit a record high 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 moved up 0.3% Monday, rallying from its key 50-day support level. On Friday, Apple shares sold off 3.3% Friday in the wake of a negative court ruling. Apple stock is still in buy range above a 148 trendline buy point.
Apple is holding an online event titled “California Streaming” starting at 10 a.m. Pacific time on Tuesday. Analysts widely expect the company to introduce its 15th-generation smartphones, the iPhone 13 series, as well as Apple Watch Series 7 wearables.
Software giant Microsoft gained 0.3% Monday. Shares are about 15% above a cup base’s 263.29 buy point and near new highs.
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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