Dow Jones futures rose; four major growth stocks led the stock market
Dow Jones futures closed higher on Monday, as did S&P 500 futures and Nasdaq futures. On Monday, the stock market reached a new high in negotiations on stimulus measures for the new crown virus. Apple and Microsoft are the main stocks of the Dow Jones on Monday, while Netflix, Shopify, Tesla, and Zoom Video have increased significantly.
The Nasdaq index, which is dominated by technology stocks, rose 1.5% on Monday, and the S&P 500 index rose 0.7%. The Dow Jones Industrial Average price index rose 0.9% or 236 points.
The sharp rises of Apple and Microsoft pushed the Nasdaq Index to a record high. At the same time, growth stocks Netflix, Shopify, Tesla, and Zoom Video outperformed the major stock indexes on Monday.
The Dow Jones media giant Disney will announce its quarterly
After the stock market closes on Tuesday, the Dow Jones media giant Disney will announce its quarterly earnings report. In addition, the fastest-growing stocks Paycom Software (PAYC) and Twilio (TWLO) will also announce their results.
Late Monday, IBD leader Chegg (CHGG) released a strong earnings report. After rising 6% on Monday, the stock rose about 2% in after-hours trading.
Dow Jones Futures Today: Talks on Coronavirus Stimulus
Late Monday, Dow Jones futures rose about 0.2% from fair value, and S&P 500 futures rose 0.15%. The Nasdaq 100 index futures also rose 0.2% relative to fair value. Remember, overnight movements in Dow Jones futures and other markets do not necessarily translate into actual transactions on the next ordinary stock market trading day.
Coronavirus stimulus discussion plan White House
The White House and Congressional Democrats continue to discuss a coronavirus stimulus plan, but there are differences over the federal government’s increase in unemployment assistance. At the same time, the two sides agreed to pay another $1,200 in cash to most Americans.
The talks resumed at 1 pm on Monday. House Speaker Nancy Pelosi, Senate Minority Leader Chuck Schumer, Treasury Secretary Steven Mnuchin, and White House Chief of Staff Mark Meadows attended the meeting. After the meeting, Pelosi told reporters that the discussion was “productive,” but no agreement was reached.
Among the exchange-traded funds, the innovative company IBD 50 (FFTY) rose 2.1% on Monday. The ETF prices of top growth stocks have repeatedly hit record highs.
Invesco QQQ Trust Fund (QQQ), which is linked to the Nasdaq 100 Index, rose 1.35% to close at 269.38 points. At the same time, the Standard & Poor’s 500 Index rose 0.7% to 328.79 points.
In the stock market rally triggered by the coronavirus, Nasdaq, which is dominated by technology stocks, has gained 15.9% this year as of the close of last Friday. At the same time, as of the close of August 3, the Standard & Poor’s 500 Index fell 0.4%, and the Dow Jones Industrial Index fell 7.6% this year.
The coronavirus epidemic continues to spread in the United States. According to Worldometer data tracking agency statistics, the total number of confirmed cases in the United States on Monday exceeded 4.8 million. On Sunday, the number of new cases was 49,000, the lowest level since July 5. Although the number of new cases per day is still increasing, the number of deaths per day has not risen accordingly. This is a key indicator that needs to be monitored.
On Monday, since the outbreak of the epidemic, there have been more than 18.3 million confirmed cases of new coronary pneumonia worldwide and more than 693,000 deaths related to the virus.
Coronavirus stock market rebounds
According to IBD’s The Big Picture, the coronavirus stock market is still on an upward trend after rebounding from a four-month low on March 23. On April 2, the major stock indexes confirmed this rebound as a new upward trend.
The Nasdaq Composite Index
In Friday’s “The Big Picture”, “The Nasdaq Composite Index rose 1.5%, which was mainly driven by the release of the earnings reports of the technology giants. Apple, Amazon, and Facebook together accounted for the Nasdaq Index. With a weight of more than 20%, their share price rose 3.7% to 10.5%.”
Dow Jones Earnings: Disney
Dow Jones media giant Disney will announce its earnings after the stock market closes on Tuesday. Analysts expect the company to lose 43 cents per share, compared with earnings per share of $1.35 a year ago. Revenue is expected to decline 38%, to 12.65 billion US dollars.
Investors will pay attention to the impact of the limited reopening of some Disney parks after a prolonged closure due to the coronavirus. At the same time, Hong Kong Disneyland reopened. Finally, the Disney+ streaming service, which exceeded 50 million users in April this year, should continue to be a bright spot.
Disney’s stock price is down more than 20% from its 52-week high. Currently, the company’s stock price is below the 50-day and 200-day moving averages.
It is bearish that the relative strength of the stock is approaching a new low. The RS line measures the price performance of stocks compared to the broader market, based on the Standard & Poor’s 500 Index. Investors should usually pay attention to stocks that lead the stock market higher, such as Netflix, Shopify, and Tesla. All three companies are stocks on the IBD rankings.
Stock market leader
In the stock market rebound triggered by the coronavirus, the stock prices of popular companies such as Netflix, Shopify, Tesla, and Zoom Video rose sharply on Monday, easily surpassing the performance of the major stock indexes.
The company’s share price rose 2%, the highest level since July 21, and rose for three consecutive trading days. Fangling stocks are rebounding from the 50-day moving average, which is a key support level.
An IBD stock check revealed that Netflix stock has a 98 best possible 99 IBD composite rating. Comprehensive rating is a simple method to identify the most growth stocks. It integrates key fundamental indicators and technical indicators to help investors judge the strength of a stock.
The stock price rose nearly 6%, only 1% below the all-time high set on July 29. Last week, the stock found support at the 10-week line.
It is a long-term ranking stock of IBD and a new member of IBD SwingTrader.
Tesla rose nearly 4% on Monday. The stock price is still more than 15% below its historical high.
Tesla’s competitor Nio (Nio) said that its deliveries increased by more than 300% in July, and 3533 electric SUVs were delivered in China.
It rebounded sharply from the 10-week line on Monday, with an increase of more than 5.5%.
The Zoom video was feature as the day of Monday’s IBD stock.
Stock market earnings
Earnings per share are expected to be 61 cents, a decrease of 18.7%, while revenues increase by 7% to $181 million. The stock price is on the basis of consolidation, and the buy point is 336.96 points.
Compared with 3 cents per share in the same period last year. Twilio expects a loss of 9 cents per share and revenue growth of 33.6% to 367.6 million US dollars. Twilio’s stock has drastically moved from the 133.10 buy-in point to the cup base, so investors can take at least some profit before the earnings report.
Dow Jones’ leading companies: Apple, Microsoft
Among the constituent stocks of the Dow Jones Index, Apple’s share price rose 5.1%, reaching its highest level in history, to 446.55 points. After the company released strong third-quarter results last Friday, its share price soared 10.5%.
Apple stock is currently about 50% higher than the company’s 288.35 buy point. Investors should turn at least part of their profits into strong ones to help avoid any decline.
The blue-chip giant is the best-performing Dow Jones stock of 2020, up 49.5% as of Monday’s close. This is also a stock idea on IBD’s ranking, and it also appears on IBD’s long-term leader list.
The software industry leader Microsoft’s (Microsoft) stock price rose 5.6% on Monday, breaking away from another test of the critical 50-day support level. On Sunday, Microsoft confirmed that it had negotiated with the Chinese company ByteDance to acquire TikTok from the US