The Dow Jones Industrial Average rallied 50 points Monday, as the Nasdaq and S&P 500 hit more record highs. Apple stock hit all-time highs, while Tesla raced higher in morning trade. And Zoom earnings are due after the market close.
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Among the Dow Jones leaders, Apple (AAPL) rose 2.2% Monday, while Microsoft ((MSFT)) moved up 1.4% in today’s stock market. Home Depot (HD) remains below a new buy point after a recent breakout attempt.
Shares of electric-vehicle giant Tesla ((TSLA)) were on pace to add to Friday’s 1.5% gain, rising over 1% in Monday morning trade. The EV leader remains just above a recent buy point and in buy range after bullishly retaking an entry last week.
Among the top stocks to buy and watch, Academy Sports + Outdoors (ASO), Airbnb (ABNB), Mercado Libre (MELI) and Palantir Technologies (PLTR) are in or near new buy zones.
U.S. Stock Market Today Overview
Last Update: 10:32 AM ET 8/30/2021
Among exchange traded funds, the Innovator IBD 50 (FFTY) was up 0.7% Monday. Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) moved up 0.8% Monday. Meanwhile, the SPDR S&P 500 ETF (SPY) rose 0.3%.
Stock Market Rally Continues
The Nasdaq and S&P 500 eyed more highs Monday following Friday’s record highs.
Friday’s Big Picture commented, “The stock market’s action reaffirmed the current uptrend and was in stark contrast to Thursday’s moderate losses. The buying Friday was broad-based, though two sectors did edge lower — SPDR Health Care (XLV) (down 0.2%) and SPDR Utilities (XLU) (down less than 0.1%). Winners led losers by 5-to-1 on the NYSE and by more than 3-to-1 on the Nasdaq.”
For more stock market commentary, check out IBD’s The Big Picture.
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Dow Jones leader Home Depot is trying to break out past a cup-with-handle’s 333.55 entry, but currently sits just below the buy point, according to IBD MarketSmith chart analysis. The 5% buy area goes up to 350.23.
Shares were up 1.3% Monday.
Zoom Earnings Due
After the close Monday, Zoom Video (ZM) will report its quarterly results. Zoom earnings are expected to rise 26% to $1.16 a share vs. the year-ago period. Revenue is expected to jump 49% to $991.2 million.
Zoom stock rallied 0.5% Monday morning, but remains more than 40% off its all-time high, which was set back on Oct. 19, 2020 at 588.84. Shares are building a cup-with-handle with a 406.58 buy point, but are far away from that new entry. The stock is also sharply below its 50-day moving average.
Stocks To Buy And Watch: Academy Sports, Airbnb, Mercado Libre, Palantir
IPO Leader Academy Sports is trying to break out past a 42.85 buy point in a cup base. Shares briefly topped the entry last week before settling below the buy point. The top retail stock moved up 0.6% Monday and is just below the entry.
Academy Sports featured in last week’s IPO Leaders column.
IBD Leaderboard stock Airbnb is back above its 152.86 buy point after falling beneath it in a sharp move Thursday. Leaderboard’s analysis noted the stock’s breakout Wednesday came with conviction and strong volume, a positive sign. Shares lost nearly 1% Monday morning.
According to IBD Stock Checkup, ABNB stock shows a modest 28 out of a perfect 99 IBD Composite Rating. Newer issues rarely have a sustained earnings track record — which is a key component of the Composite Rating — so a weak rating is normal. The IBD Composite Rating identifies stocks with a blend of strong fundamental and technical characteristics.
Airbnb was Tuesday’s IBD Stock Of The Day.
Mercado Libre traded up 0.5% Monday, as it trades about 1% away from a cup-with-handle’s 1,899.43 buy point. MELI stock is also above a 1,755.05 buy point created by the Aug. 5 gap-up on earnings.
Palantir Technologies is again breaking out past a cup-with-handle’s 26.04 buy point, according to IBD MarketSmith chart analysis. Shares rallied over 2% Monday, moving back into the 5% buy range that runs up to 27.34. The stock’s relative strength line remains far from its old highs. Ideally, the RS line should hit a new high on the breakout day.
On Aug. 12, Palantir reported second-quarter adjusted earnings that met expectations, while revenue growth came in above Wall Street targets. Palantir featured in last week’s Stocks Near A Buy Zone column.
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Tesla stock rose over 1% Monday, looking to add to Friday 1.5% rise and move further above a recent buy point. Last week, shares bullishly regained their 700.10 aggressive buy point deep inside a correction after last week’s weakness and are back in buy range. Meanwhile, a deep, large base continues to take shape.
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 base.
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