The Dow Jones Industrial Average fell more than 100 points early Tuesday before cutting losses, as the coronavirus stock market rally continues. Dow Jones stock Apple reversed higher despite expected weakness in 2020, while Boeing tumbled as much as 7% on an order cancellation.
XOn Monday, the Dow Jones Industrial Average soared 580 points, or 2.3%. The index was boosted by a 14.4% surge in Boeing (BA) shares on positive 737 Max jet news. The S&P 500 and Nasdaq composite followed up with gains of 1.5% and 1.2%, respectively.
Blue chip stocks Visa (V) and Microsoft (MSFT) were higher in today's stock market. Dow Jones stock Apple (AAPL) stock reversed higher despite word that 5G iPhone shipments in 2020 may be much weaker than expected. Boeing tumbled 7% after Norwegian Air canceled its Boeing 737 Max and 787 orders.
Stocks on the move early Tuesday include Lululemon (LULU) and Micron Technology (MU). LULU stock jumped 7% on its acquisition of at-home fitness company Mirror, while Micron stock rallied 5% on strong earnings results.
Stocks to watch include IBD Leaderboard stocks Atlassian (TEAM) and Netflix (NFLX). Both found support at the key 50-day line on Monday. Meanwhile, supermarket stocks Kroger (KR) and Sprouts Farmers Market (SFM) are approaching new buy points.
Dow Jones Today
The Dow Jones industrials fell 0.1% in morning trade Tuesday after briefly turning higher, while the S&P 500 rose 0.4%. The Nasdaq composite rallied 0.7%.
Overnight, China's parliament officially passed the Hong Kong national security bill.
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 2.7 million Tuesday. On Monday, daily new cases again exceeded 44.000. However, while daily new cases continue to surge, there still hasn't been a corresponding rise in the number of daily deaths, a key metric to monitor.
The cumulative total of Covid-19 cases confirmed since the start of the outbreak worldwide topped 10.4 million Tuesday, with more than 508,000 virus-related deaths.
Within the coronavirus stock market rally, the tech-heavy Nasdaq is up 10% for the year through Monday's close. Meanwhile, the S&P 500 and DJIA are down 5.5% and 10.3%, year to date, through the June 29 close.
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Coronavirus Stock Market Rally
According to IBD's The Big Picture, the coronavirus stock market rally remains in an uptrend after rebounding from lows over three months ago on March 23. The major stock indexes confirmed the rebound as a new uptrend on April 2.
Per Monday's The Big Picture, "The S&P 500 closed slightly below its 200-day moving average Friday but held above the psychologically important 3000 level. It hit an intraday low Monday of 2999.90. The Nasdaq composite rallied 1.2%, and small caps outperformed, with the Russell 2000 up 3.1%."
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.
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Dow Jones News: Apple, Boeing
Among the Dow Jones stocks, Apple moved up 0.6% early Tuesday after reversing from losses, as the stock continues its pullback from its record highs set on June 23. Shares briefly fell on word that new estimates put 2020 5G iPhone shipments at 15 million to 20 million units this year. Prior forecasts called for 30 million to 40 million units.
Shares are well extended past a handle's 319.79 buy point, which offered an opportunity for investors to add to their positions. Meanwhile, shares are still in the 20%-25% profit-taking zone from a cup-with-handle's 288.35 buy point.
Boeing tumbled as much as 7% after Norwegian Air canceled its Boeing 737 Max and 787 orders. The Oslo-based budget carrier said it canceled 92 737 Max jets and five widebody 787 Dreamliners. The cancellation also included the service agreements with the aircraft.
Boeing shares gave up a portion of Monday's 14.4% surge, but are still about 50% off their 52-week high.
Stocks On The Move: Lululemon, Micron
Top retailer Lululemon jumped about 5% Tuesday after the company announced it was acquiring Mirror for $500 million. The startup sells an "immersive mirror" through which customers can participate in fitness classes and personal training sessions.
Lululemon stock is well-extended from a 226.52 buy point in a cup with handle. Shares are about 5% off their 52-week high amid the current pullback. A new base could be forming, but it is too early for a new entry. Lululemon is an IBD SwingTrader stock.
Memory-chip maker Micron Technology jumped 6% early Tuesday after the company's strong earnings results late Monday.
Micron stock is retaking its 50.24 buy point in a cup with handle, according to MarketSmith chart analysis. Meanwhile, there is a new entry at 54.92.
Top Stocks Near Buy Zones: Atlassian, Kroger, Sprouts, Netflix
IBD Leaderboard stock Atlassian is just above its 50-day support level Tuesday. Look for a strong rebound from this level to indicate institutions are supporting the stock. Shares recently hit the 20%-25% profit-taking zone from a 149.80 buy point in a cup with handle after a breakout on April 16.
Shares moved up 1.3% early Tuesday.
According to IBD Leaderboard commentary, "Atlassian is testing support again at the 10-week moving average after finding support during the week ended June 26. It was raised to a three-quarter position on Leaderboard June 22."
Monday's IBD 50 Stocks To Watch pick, Kroger, is approaching a 34.60 buy point in a cup with handle. Shares are just 1% away from the new entry amid Monday's 4.4% gain. Kroger moved up 0.1% Tuesday morning.
Kroger stock ranks No. 32 in the IBD 50. (The IBD 50 is a list of leading growth stocks with strong relative price strength and top-notch fundamentals.) Kroger was added to the IBD 50 list on June 25.
IBD Stock Checkup shows that Kroger stock has a solid 93 out of a highest-possible 99 IBD Composite Rating, making it one of the top-ranked stocks in the supermarket industry. The Composite Rating — an easy way to identify top growth stocks — is a blend of key fundamental and technical metrics to help investors gauge a stock's strengths.
Fellow supermarket leader Sprouts Farmers Market is near a 26.15 buy point in a seven-week double bottom. Shares are about 2% away from the new entry after Monday's 4.8% rise. Sprouts stock fell 0.85%.
FANG member and IBD Leaderboard stock Netflix is again finding support at its 50-day line. Shares briefly touched that support level in Monday trade before sharply rebounding to close up 0.9%. On Tuesday morning, Netflix stock moved up 0.6%.
According to IBD Stock Checkup, Netflix stock has a 97 out of a highest-possible 99 IBD Composite Rating. Netflix is also an IBD Leaderboard stock.
Dow Jones Leaders: Visa, Microsoft
Among the top Dow Jones stocks, Visa is approaching a 202.28 buy point in a cup with handle, as it finds support near its 50-day line. Shares rose 0.1% Tuesday morning.
Shares are still in the 5% buy zone past a previous 182.35 entry in a cup with handle after a breakout on May 18. The stock's RS line is near new highs, a bullish signal.
Software leader Microsoft rose 0.8% Tuesday morning. Shares are again extended above a cup-with-handle buy point of 187.61 after Monday's 1.1% gain. The 5% buy range goes up to 197.
Bullishly, the stock's RS line is again at new highs despite the current pullback, indicating sharp stock market outperformance. The RS line measures a stock's price performance vs. the broad market.
The blue-chip giant is an IBD Leaderboard stock idea and an IBD Long-Term Leader.
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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