Dow Jones Futures: Stock market rally retains gains as square, marine and chipotle buy signals; Tesla faces key test

Dow Jones futures were up on Tuesday, along with the S&P 500 and Nasdaq futures. The stock market recovery took a break on Tuesday, falling after strong gains in the last few sessions.


Royal Caribbean (RCL), Carnival (CCL) and Norwegian Cruise Line (NCLH) met at the end of a Bloomberg report that the Centers for Disease Control and Prevention recommended that cruises could be resumed this summer with certain restrictions. This followed reports indicating that cruise operators would not have to require vaccinations for travelers.

Carnival, NCLH and RCL shares rose 2% overnight, increasing gains on Tuesday and the last few sessions. All three stocks are approaching possible points of purchase.

Breakouts Hold, New Buy Signals

Microsoft (MSFT), Facebook (FB) and father of Google Alphabet (GOOGL) continued to remain in the buying range on Tuesday after Monday’s breaks.

Micron technology (MU), square (SQ), Sea Limited (SE), Chipotle Mexican Grill (CMG) and Yeti Holdings (YETI) all the buying signals shone, at least during the day.

Tesla (TSLA) is reaching endurance after a recent race. But Tesla shares and other highly valued growth names are showing signs of life.

Microsoft and Google shares are on the IBD Leaderboard. GOOGL’s shares are on SwingTrader. Microsoft’s shares are in the IBD Long-Term Leaders. The stock of Yeti is on the IBD 50 list. The shares of Google and Micron are in Big Cap 20.

Dow Jones Futures Today

Dow Jones futures rose a fraction from fair value. The S&P 500 futures have gone up. Nasdaq 100 futures were up 0.1%.

Keep in mind that overnight action on Dow futures and elsewhere does not necessarily translate into real trading in the next regular stock market session.

Join IBD experts as they analyze actionable stocks at the stock market’s high on IBD Live.

Coronavirus News

Coronavirus cases worldwide reached 132.97 million. Deaths from Covid-19 reached 2.88 million.

Coronavirus cases in the USA reached 31.55 million, with deaths above 570,000.

California plans to lift most restrictions on the coronavirus until June 15, but maintain its masked mandate.

Stock market rally

The stock market rebound had a slightly bearish session, which did not change the upward trend.

The Dow Jones Industrial Average fell 0.3% in Tuesday’s stock market trading. The S&P 500 index lost 0.1%. The Nasdaq compound dropped less than 0.1%.

The 10-year Treasury yield fell 6 basis points to 1.66%.

Read The Big Picture every day to stay in sync with the direction of the market and leading stocks and sectors.

Tech Titans Hold Up

Microsoft shares fell 0.5% to 247.86. On Monday, MSFT’s shares rose 2.8% to 249.07, freeing a 246.23 flat base purchase point, according to MarketSmith’s analysis.

Google shares fell 0.4% to 2,209.26. GOOGL’s shares on Monday jumped 4.2% to 2,218.96, also releasing a flat base, with an entry of 2,145.24. The shares of Microsoft and Google showed their first entries last week.

Facebook shares fell 0.9% to 306.26. FB’s shares on Monday rose 3.4% to 308.91, up from a 299.81 handling purchase point from a six-month consolidation.

Tesla Stock

Tesla’s shares rose 0.1% to 691.92. On Monday, TSLA’s stock rose 4.4% to 691.05, following record delivery numbers. But that was close to the session lows, after reaching 708.16 during the day, hitting resistance at its 10-week moving average. Tesla’s shares also need to stay above their March short-term highs and its 50-day line before investors pay close attention to the big winner in 2020.

Top ETFs

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) was up 0.2%, while the Innovator IBD Breakout Opportunities ETF (BOUT) was down 0.5%. The iShares Expanded Tech-Software Sector (IGV) ETF advanced 0.6%, with MSFT’s shares at the top. VanEck Vectors Semiconductor ETF (SMH) sank 1.4% after several strong gains.

SPDR S&P Metals & Mining ETF (XME) fell 1% and Global X US Infrastructure Development ETF (PAVE) lost 0.8%. US Global Jets’ ETF (JETS) rose 0.8%.

Reflecting more speculative story stocks, ARK Innovation ETF (ARKK) shot up 1.8% and ARK Genomics ETF (ARKG) was stable. Tesla’s shares are the largest share of ARK Investments’ ETFs. Although TSLA’s shares were quiet on Tuesday, they have recovered in the past few days, while many other ARK stakes are also recovering, including Roku (ROKU), Baidu (BIDU) and Square stock.

Some of Tuesday’s gains in ARK-type stocks may reflect the decline in Treasury yields. The 10-year increase in Treasury yield has weighed heavily on the highly valued growth stocks in recent months.

Stock in the purchase range

Yeti shares rose 3% to 75.06, reaching 78.40 during the day. This briefly opened a buying point of 76.87. YETI closed to the right on a downward trend line, offering a more aggressive entry. The maker of refrigerators, glasses and now premium luggage reclaimed its 50-day line last week. The Yeti stock was the IBD stock of the day on Tuesday.

Square’s shares rose 2.85% to 236.50, resuming its 50-day line and breaking the bearish trend. This could offer an early entry to the SQ stock. The official point of purchase is 283.29.

Micron’s shares fell 0.3% to 93.49 after reaching 96.10 intraday, briefly eliminating 95.85 entries from a short consolidation. MU’s shares have been actionable from the 10-week line, following the earnings and guidance of the memory chip giant last week. Micron’s shares are just 4.7% above its 10-week line.

SE’s shares jumped 5.2% to 247.03, resuming its 50-day line. Depending on where you draw, Sea Ltd.’s shares also surpassed a declining trend line. It may be an early entry into the SE’s stock, which has an official purchase point of 285.10.

Chipotle’s shares rose 2.4% to 1,487.48, rebounding from its 50-day line and breaking a bearish trend. This is offering early entry, with the official point of purchase at 1,565.01. The CMG stock had its best close since February 12, but it needs to rise a bit more to stay above the peaks of March. Investors should note that Chipotle’s earnings are in two weeks.

Market Rally Analysis

The stock market recovery closed with little change on Tuesday after trading in a narrow range. After consecutive S&P 500 gains of more than 1% for record highs and Nasdaq jumping more than 1.5% for three consecutive sessions to overcome key levels – with a series of strong disruptions – a quiet session is fine.

A few days’ break from the stock market rally would allow more loops to form at the bottom, while the recent disruptions could consolidate gains. As long as the Nasdaq remains above recent highs, and especially the 50-day line, the upward trend remains intact.

The leadership in the stock market rally remains broad, with some tech titans, chips, commodities, industrial travel and some retail names doing well.

Some highly valued growth names, such as 10X Genomics (TXG), Sea Ltd. or Square Stock are getting ready. Others are like Tesla’s stock, still below the 50-day lines, but at least the first repairs are in progress. Of course, just as some home renovation projects are unfinished, there is no guarantee that the next chapter of story stocks will be a happy one.

Investors must be participating in this market recovery. Don’t expect a repeat run from April to September, but there are reasons to be confident now. As you expand your holdings and review your watch lists, try to have diversity in your core actions. This will help you avoid major movements in the group sales portfolio, while keeping you in step with the market and leading stocks.

Follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.


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