Dow Jones futures hit new overnight lows late Monday, along with S&P 500 futures and Nasdaq futures. Dow Jones leaders Intel and Microsoft headline these five top stocks in or near buy zones in the coronavirus stock market rally.
XThe coronavirus stock market rally extended gains Monday with solid advances in the tech-heavy Nasdaq composite. Meanwhile, Dow Jones leaders Intel (INTC) and Microsoft (MSFT) are in or near buy zones. Top growth stocks Chipotle Mexican Grill (CMG) and Lululemon Athletica (LULU) are in new buy areas, while chip giant Advanced Micro Devices (AMD) is approaching a new buy point. Late Monday, IPO stock leader Datadog (DDOG) reported strong earnings results, sparking a mild advance after the close.
Dow Jones Futures Today
Late Monday — at around 11 p.m. ET — Dow Jones futures fell 0.8% vs. fair value, while S&P 500 futures also traded down 0.8%. Nasdaq 100 futures were down 0.5% vs. fair value after the stock market close. Remember that overnight action in Dow Jones futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
Among exchange traded funds, Innovator IBD 50 (FFTY) gained 1.7% Monday, extending a win streak to three sessions. The ETF of top growth stocks remains about 14% off its 52-week high.
The Nasdaq 100-linked Invesco QQQ Trust (QQQ) ETF moved up 0.9% to close at 226.87. Meanwhile, the SPDR S&P 500 ETF (SPY) rallied less than 0.1% to 292.62.
On Monday, the Dow Jones Industrial Average pared losses to 109 points after falling more than 250 points at the stock market open. The S&P 500 inched higher, while the Nasdaq outperformed with a 0.8% advance.
Within the coronavirus stock market rally, the tech-heavy Nasdaq is once again positive for 2020 and is up 2.5% through Monday's close. Meanwhile, the S&P 500 and Dow Jones Industrial Average are down 9.3% and 15.1%, respectively, through May 11.
Coronavirus News: Global Covid-19 Cases Top 4.2 Million
The coronavirus outbreak continues to spread across the U.S. According to the Worldometer data tracker, the cumulative number of confirmed U.S. cases is approaching 1.4 million Monday. Despite the rising total, the daily number of new cases is steady, not rising, amid the sharp increase in testing. On Sunday, there were about 20,000 new confirmed cases, the lowest daily increase since March 29.
Confirmed Covid-19 cases worldwide climbed above 4.2 million, with more than 280,000 virus-related deaths. With the daily number of new cases steady, investors in the U.S. are turning attention to the economic impact of the coronavirus outbreak and how fast the country reopens for business.
Coronavirus Stock Market Rally
According to IBD's The Big Picture, the stock market continues to strengthen after hitting lows over a month ago on March 23. The major stock indexes confirmed a new uptrend on April 2.
According to Friday's Big Picture, "There's been growing talk lately of a disconnect between the stock market and the economy. This is true, but keep in mind that the stock market is always looking ahead. The strong rally off lows is the market's way of saying the market sees better times ahead for the U.S. economy."
Stocks to watch include the top stocks on IBD Long-Term Leaders. The IBD Long-Term Leaders list focuses on companies with stable earnings growth and price performance.
Coronavirus Stock Market ETF Strategy And How To Invest In The New Uptrend
Stocks Near Buy Zones: AMD, Chipotle, Lululemon
In the coronavirus stock market rally, five leading stocks in or near buy zones include Advanced Micro Devices, Chipotle, Lululemon and Dow Jones leaders Intel and Microsoft.
AMD Stock
AMD stock was a big winner ahead of the coronavirus stock market crash. Shares advanced more than 66% from a cup base's 35.65 buy point after a breakout on Nov. 4. Now, in the coronavirus stock market rally, AMD could be another potential winner, as it approaches a new buy point.
Shares are rapidly approaching a 58.73 buy point in a cup with handle, according to MarketSmith chart analysis, amid Monday's near-5% gain. The stock found support near its 50-day line in early May.
The stock's relative strength line is nearing a new high, a bullish indicator.
Chipotle Stock
Chipotle Mexican Grill stock broke out above a deep cup-with-handle's 909.98 buy point on Friday and remains in the 5% buy range amid Monday's 0.9% rally.
The burrito maker's RS line is at new highs, confirming the stock's leadership potential.
Chipotle is an IBD SwingTrader stock idea.
Lululemon Stock
IBD Leaderboard member Lululemon is in the 5% buy zone above a cup-with-handle's 237.59 buy point. Shares rallied 3.2% Monday.
According to IBD Leaderboard commentary, "Retaking the 50-day line is one bullish element lately. Plus, the RS line is near its highs. But volume was weak on the breakout. The base is deep and V-shaped, but that's typical of bases formed during the coronavirus bear market. The base count has reset."
Per the IBD Stock Checkup, Lululemon stock has a 95 out of a highest-possible 99 IBD Composite Rating. The Composite Rating is a blend of key fundamental and technical metrics to help investors easily gauge a stock's strengths.
Dow Jones Leaders: Intel, Microsoft
Dow Jones leader Intel advanced nearly 1% Monday after the Wall Street Journal reported the chip giant and Taiwan Semiconductor (TSM) are in talks with the White House to build new chip plants in the U.S.
Shares are within 3% of a 62.23 buy point in a cup with handle, according to MarketSmith chart analysis. A previous breakout above a 61.59 buy point failed, resulting in a sell signal.
The IBD Stock Checkup indicates that Intel stock boasts a highest-possible 99 IBD Composite Rating, placing it in the top echelon of growth stocks.
Meanwhile, tech giant Microsoft moved up 0.5% Monday, extending a win streak to six sessions. Shares are still in the buy range past a cup-with-handle's 180.10 buy point. The buy zone runs up to 189.11. Microsoft is also an IBD Leaderboard stock idea and an IBD Long-Term Leader.
Bullishly, the RS line is just off a new high Monday, indicating strong relative performance.
Stock Market Earnings: Datadog
On Monday, Datadog stock soared 7.7% ahead of the company's earnings results after the close. Late Monday, the software leader reported better-than-expected Q1 results, sparking an over-2% gain to 57 after the stock market close.
The IPO Leader surged past a 50.22 buy point in a cup base on May 7, ending the session in the 5% buy zone. But shares quickly became extended during Monday trade.
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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