Dow Jones futures rose 100 points early Tuesday after the stock market kicked off 2022 with strong gains as Treasury yields surged Monday. Tesla stock soared past a new buy point after strong deliveries, while Apple hit a new high and the $3 trillion market cap.
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On Monday, the Dow Jones Industrial Average climbed 0.7%. The S&P 500 rose 0.6%, while the tech-heavy Nasdaq composite advanced 1.2%.
Among the Dow Jones leaders, Apple (AAPL) rose 2.5% Monday, while Microsoft (MSFT) moved down 0.5% in today’s stock market. Also among the Dow 30, Home Depot (HD) faltered, while Nike (NKE) fell further below a key level.
Electric-vehicle leader Tesla (TSLA) traded up 13.5% Monday. Its rival, Rivian (RIVN), was down almost 1%. Lucid Group (LCID) climbed 7.6%. And Chinese EV leaders Li Auto (LI), Nio (NIO) and Xpeng Motors (XPEV) ended sharply mixed after their December sales reports over the weekend.
Among Monday’s top stocks to buy and watch, Applied Materials (AMAT), Huntsman (HUN), Goldman Sachs (GS) and Wells Fargo (WFC) are in or near new buy zones.
Microsoft and Tesla are IBD Leaderboard stocks. Tesla was featured in this week’s Stocks Near A Buy Zone column, while Applied Materials is an IBD SwingTrader stock.
Dow Jones Futures Today
Ahead of the stock market open Tuesday, Dow Jones futures rose 0.3% vs. fair value, while S&P 500 futures rose 0.25%. Nasdaq 100 futures gained 0.15% vs. fair value. Remember that trading in Dow Jones futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
U.S. Stock Market Today Overview | ||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 36585.13 | +246.83 | +0.68 |
| S&P 500 | (0S&P5) | 4796.59 | +30.41 | +0.64 |
| Nasdaq | (0NDQC ) | 15832.80 | +187.83 | +1.20 |
| Russell 2000 | (IWM) | 225.35 | +2.90 | +1.30 |
| IBD 50 | (FFTY) | 45.54 | -0.30 | -0.65 |
Last Update: 4:28 PM ET 1/3/2022 | ||||
Among exchange traded funds, Innovator IBD 50 (FFTY) dropped 0.7%, as top growth stocks came under selling pressure. Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 1%. And the SPDR S&P 500 ETF (SPY) ascended 0.6%.
Elsewhere, the 10-year Treasury yield soared to its highest level since Nov. 24, closing near 1.63%. The 10-year Treasury yield ended Friday around 1.51%.
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Stock Market Rally
The stock market kicked off 2022 with solid gains Monday, as the tech-heavy Nasdaq composite snapped a four-day losing streak. The Dow Jones Industrial Average and S&P 500 ended two-day skids.
The market outlook remains in a “confirmed uptrend,” so investors have the green light to buy top-rated growth stocks breaking out past correct buy points.
Friday’s The Big Picture commented: “Investors should show prudence going into the new year, but there is reason for optimism. History shows that when the S&P 500 gains 20% or more in a calendar year it averages a gain of 7.7% the next, according to Dow Jones market data. In addition, the median return in the following year is a gain of 10.2%.”
For daily stock market commentary, check out IBD’s The Big Picture.
Five Best Dow Jones Stocks To Watch Now
Dow Jones Stocks To Buy And Watch: Home Depot, Nike
Home Depot stock slid 1.5% Monday but remains above its 50-day support level. Shares are in a buy zone on a rebound from support.
Dow Jones retail leader Nike is tracing a new flat base that has a buy point at 179.20, according to IBD MarketSmith chart analysis. Shares fell further below their 50-day line during Monday’s 1.2% decline.
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Stocks To Buy And Watch: Applied Materials, Huntsman, Goldman Sachs, Wells Fargo
IBD SwingTrader stock Applied Materials regained a 159.10 buy point in a flat base during Monday’s 1.6% gain, according to IBD MarketSmith chart analysis. The initial breakout occurred in weak volume but remains in play. Volume, a key factor of successful breakouts, has been absent from the stock’s upside moves. The 5% buy area runs up to 167.06.
Wednesday’s IBD Stock of the Day, Huntsman, remains in buy range past a 34.57 flat-base entry following Monday’s 1.5% gain. The 5% buy range goes up to 36.30. HUN stock shows an 89 out of a perfect 99 IBD Composite Rating, according to the IBD Stock Checkup.
Dow Jones member Goldman Sachs advanced 3.3%, closing just below its 50-day line. Shares are tracing a flat base with a 426.26 buy point. A decisive move above the 50-day line would be bullish for the stock’s prospects.
Wells Fargo gapped up 5.7%, moving above its 50-day moving average and breaking out over a trendline. The banking giant is tracing a flat base with a 52.67 buy point.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
EV Stocks: Li Auto, Nio, Xpeng, Lucid Motors, Rivian
Over the weekend, Chinese EV leaders Li Auto, Nio and Xpeng Motors reported their December deliveries.
Li Auto stock continues to work on a new base after it reclaimed its 50-day moving average last week. Shares climbed 0.75% Monday.
Nio stock jumped 5.65% Monday, moving further off its recent lows. Shares closed Monday about 50% off their 52-week high and sharply below their 50- and 200-day moving averages.
Xpeng Motors ended a volatile session with a 0.1% loss Monday. There is no valid buy point yet, as shares form the right side of a new base, but recent action is certainly constructive.
Among U.S.-based EV stocks, Lucid Motors shares surged 7.6% higher Monday, recovering from Friday’s 1.8% decline. LCID stock remains extended past a 28.49 buy point in a cup-with-handle base, but huge gains have faded. Shares are setting up for another try to retake the 50-day line, which would be a positive for the stock’s consolidation.
Recent initial public offering Rivian was down 0.9% Monday, reversing lower after early gains. RIVN shares closed Monday about 43% off their post-IPO highs. Continue to wait for an IPO base to form before considering a purchase. Recent sharp losses are a significant setback in the stock’s basing process and there is no new buy point in sight.
Tesla Stock
Tesla stock surged 13.5% Monday, snapping a four-day losing streak. On Sunday, Tesla deliveries totaled 308,600 deliveries in Q4. That included 296,850 Model 3 and Y vehicles and 11,750 Model S and X luxury EVs. For the full year, Tesla said annual vehicle deliveries surged 97% in 2021, delivering 936,172 vehicles.
On Monday, Tesla shares broke out past a 1,119.10 buy point, which is a result of a daily chart trendline and a handle. That buy zone extended to 1,175,06. Meanwhile, the stock is within striking distance of a double-bottom buy point at 1,202.05.
Shares traded as high as 1,243.49 on Nov. 4, and the stock ended Monday just 4% off that 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock ended Monday up 2.5%, nearly hitting the 20%-25% profit-taking level past a 153.27 buy point out of a cup-with-handle base, according to IBD MarketSmith chart analysis. Apple shares hit a new high Monday and became the first company to hit a $3 trillion market capitalization.
Software leader Microsoft again found support around its 50-day moving average during Monday’s 0.5% decline. The top Dow Jones stock is approaching a flat base’s 349.77 buy point with an early entry at 344.40.
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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