Dow Jones Futures Rise; Drug Giant Pfizer Slides On Earnings

Dow Jones futures turned higher Tuesday, following another round of volatile stock market action on Monday. Dow Jones biotech Amgen, along Alpha & Omega Semiconductor and Take-Two Interactive Software, are key earnings movers Tuesday. Financials propped early trade as bond yields bounced. And drug giant Pfizer slid on earnings.

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Among the Dow Jones leaders, Apple (AAPL) lost 0.1% premarket Tuesday, while Microsoft (MSFT) edged lower in today’s stock market. American Express (AXP), a Dow Jones stock to watch, is nearing a new buy point.

Electric-vehicle leader Tesla (TSLA) declined 0.5% premarket Tuesday, threatening to extend Monday’s loss.

Amid a volatile stock market rally, Alphabet (GOOGL), Blackstone (BX), CF Industries (CF) and Cheniere Energy (LNG) are among Tuesday’s top stocks to buy and watch. All four are in or near new buy zones.

Cheniere, Microsoft and Tesla are IBD Leaderboard stocks. American Express and Blackstone were featured in this week’s Stocks Near A Buy Zone column.

Dow Jones Today

Ahead of the stock market open Tuesday, Dow Jones futures edged up into narrow gains. S&P 500 futures faded 0.1% below fair value, while Nasdaq 100 futures lost 0.2%. Among exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) dropped 0.5%, and the SPDR S&P 500 ETF (SPY) lost 0.3% before Tuesday’s open.

The 10-year Treasury yield topped 1.94% Tuesday morning, threatening to overtake a high from December 2019. On Monday, the 10-year Treasury yield ticked down below 1.92%. Meanwhile, U.S. oil prices declined around 2%, as West Texas Intermediate crude slipped back below $90 a barrel. WTI briefly topped $93 a barrel last week.

Goldman Sachs (GS) and J.P. Morgan (JPM) led the early trade on the Dow. Banks and financials packed the top of the S&P 500, while the SPDR S&P Bank ETF (KBE) rose 0.6% in premarket action.

Stock Market Rally

The major stock indexes posted mixed action Monday, as the Nasdaq and S&P 500 ended with solid losses. Amid the recent volatility, now is an important time to read IBD’s The Big Picture column.

Monday’s The Big Picture commented, “The Nasdaq composite was all over the place: It opened higher, reversed lower, then rebounded into the black. But late selling brought down the Nasdaq to a loss of 0.6%.”

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.

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 Earnings: Amgen

After the close Monday, Dow Jones biotech stock Amgen (AMGN) reported fourth-quarter earnings and sales results. The stock declined less than 1% in premarket trade.

AMGN shares ended Monday about 15% off their 52-week high.

Stock Market Earnings: AOSL, Take-Two, Pfizer, TransDigm

Other earnings Monday included Alpha & Omega Semiconductor (AOSL) and Take-Two Interactive Software (TTWO). Alpha & Omega Semiconductor edged lower in premarket trade after reporting better-than-expected results for its fiscal third quarter. Take-Two slid around 3% early after missing sales estimates.

Early Tuesday, drug giant Pfizer (PFE) and TransDigm (TDG) released their quarterly results.

Pfizer reported mixed results, sending more than 4% lower in premarket trade. PFE shares finished Monday below their 50-day moving average. In recent weeks, the stock triggered a round-trip sell signal from a 51.96 cup-base entry.

Meanwhile, TransDigm stock fell 0.5% early after the company’s earnings results. TDG shares are building a cup-with-handle base with a 669.13 buy point.

Dow Jones Stocks To Watch: American Express

American Express decisively regained its 10-week moving average in recent weeks and continues to move up the right side of a new base with a 189.13 buy point, according to IBD MarketSmith chart analysis. Shares are just under a new buy point after Monday’s 1.1% gain. AXP stock moved 0.4% higher premarket Tuesday.

Bullishly, the stock’s relative strength line is at new highs, indicating significant stock market outperformance.

Four Top Growth Stocks To Watch In The Current Stock Market Rally

Stocks To Buy And Watch: Alphabet, Blackstone, CF Industries, Cheniere

Outside the 30-stock Dow Jones industrials, Google-parent Alphabet attempted a breakout past a 3,019.43 buy point following strong earnings results last week, but fell more than 7% below the new entry following recent losses. GOOGL shares fell almost 3% Monday, triggering the 7%-8% loss-cutting rule. Shares were down 0.3% premarket Tuesday.

Despite the sell signal, last week’s strong earnings reaction was a big positive. Keep an eye on the search giant; it could be adding a handle to its current formation which could potentially result in a new and lower entry.

Top financial stock Blackstone is trying to break out past a double bottom’s 136.56 buy point, but the stock is about 4% below the entry following three straight days of losses. Wait for the stock to stage another decisive move past the entry before considering a purchase of shares. Shares rose 0.3% premarket Tuesday.

Fertilizer producer CF Industries undercut its ascending base’s 74.87 buy point during Monday’s 3.5% fall. However, the breakout attempt remains in play, with the pullback stopping at the stock’s short-term 10-day moving average. CF stock boasts a perfect 99 IBD Composite Rating, per IBD Stock Checkup. Shares traded unchanged premarket Tuesday.

IBD Leaderboard stock Cheniere Energy is squarely above a 113.50 buy point in a flat base after Monday’s 2.15% climb, and following its recovery from a post-breakout slide. Its RS line hit another new high Monday. Shares were flat premarket Tuesday.

Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live

Tesla Stock

Tesla stock dropped 0.5% premarket Tuesday, on pace to add to Monday’s skid of nearly 2%. The stock found much-needed support at its long-term, 200-day moving average in recent sessions. But Tesla shares remain sharply below their 50-day line and there is no proper entry in sight.

The stock traded as high as 1,243.49 on Nov. 4, but ended Monday about 27% off that 52-week high.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple stock dropped 0.4% Monday, falling for a third-straight session and ending right at its 50-day moving average. Shares are again about 12% past a 153.27 buy point out of a cup-with-handle base, according to IBD MarketSmith chart analysis. Shares inched lower premarket Tuesday.

A new base is likely forming, but it is slightly too early for a proper buy point. However, a decisive move past Thursday’s high of 176.24 could be used as an early entry for aggressive investors.

Software leader Microsoft dropped 1.6% Monday, setting up another potential test of the 200-day line. The top Dow Jones stock continues to build a new base but is below the 50-day line. Shares edged up 0.2% Monday. MSFT stock was slightly lower premarket Tuesday.

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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