The Dow Jones Industrial Average rallied 100 points before erasing gains Tuesday, as tech giants Nvidia and Tesla stock reversed early gains to turn negative. Hot IPO stocks Roblox and UiPath were in focus following Monday’s breakout moves.
Dow Jones Today
The Dow Jones Industrial Average traded effectively flat after giving up early gains Tuesday, while the S&P 500 edged up 0.1%. The tech-heavy Nasdaq composite cut gains to 0.3% in morning trade.
Among exchange traded funds, the Innovator IBD 50 (FFTY) moved up 0.1% Tuesday. Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) traded up 0.2%. Meanwhile, the SPDR S&P 500 ETF (SPY) gained almost 0.1%.
Stock Market Rally At Key Levels
The Dow Jones Industrial Average and S&P 500 continue to rebound from their 50-day support levels, on pace to extend win streaks to four sessions Tuesday. Meanwhile, the tech-heavy Nasdaq moved further above the 50-day line after retaking that level Monday.
Monday’s Big Picture column commented, “The stock market took another positive step Monday, and the question now is whether indexes can sustain their rebound. The Nasdaq composite’s 1.4% advance was enough to take the index back above its 50-day moving average. “
For more stock market commentary, check out IBD’s The Big Picture.
Dow Jones Stocks: Goldman, JPMorgan
Dow Jones financial leader JPMorgan is in the 5% buy zone past a 161.79 buy point in a flat base, according to IBD MarketSmith chart analysis. Shares are about 2% above the entry amid a 0.7% rise in Tuesday’s action.
Goldman Sachs is in the 5% buy range past a 356.95 buy point that goes up to 374.80. Shares were up 0.7% Tuesday.
Stocks To Buy And Watch: Applied Materials, Commvault, Roblox, UiPath
Chip giant Applied Materials climbed almost 2% Tuesday, moving further above the 50-day line. Shares are building a consolidation with a 146.10 buy point. Meanwhile, an early entry at 138.77 is also in play.
Commvault is at the top of the 5% buy zone past a 71.82 buy point in a cup with handle following Monday’s breakout. The 5% buy area goes up to 75.41. Shares added nearly 2% Tuesday morning.
According to IBD Stock Checkup, CVLT stock boasts a strong 97 out of a perfect 99 IBD Composite Rating. The IBD Composite Rating helps investors easily measure the quality of a stock’s fundamental and technical metrics.
IBD Leaderboard stock Roblox added to Monday’s breakout move past an 83.51 buy point in a short consolidation. Shares moved down almost 3% Tuesday morning. The buy area runs up to 87.69, so the stock is back in buy range.
Per Leaderboard commentary, “Roblox cleared a short consolidation, and has now pulled just out of buy zone. The RS line is hitting new highs.” A RS line at new highs confirms Roblox as a market leader.
Nvidia Stock Turns Down
Graphics-chip maker Nvidia looked to snap a four-day win streak Tuesday, reversing 0.7% lower in morning trade. The stock remains above its 50-day moving average support level.
Nvidia earnings are due out late Wednesday.
Tesla stock reversed from early gains Tuesday morning, on pace to fall after Monday’s 4.4% advance. Shares are at their highest level since May 11.
The stock reclaimed its long-term 200-day moving average on Monday. 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 lost 0.1% following Monday’s 1.3% gain. Shares are trying to retake their 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.
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: