Dow Jones Today Shoots For 4 As Futures Rise; ASML Holding, Intel Pace Chip Rally

Stock futures stacked up moderate early gains Tuesday, as the Dow Jones Industrial Average pushed for a fourth straight advance and the Nasdaq leaned to confirm its newfound support. ASML Holding and 360 Digitech jumped near buy points. Chips were again showing strength, as Intel headed the Dow Jones today.


Dow Jones futures scrambled ahead 0.3%, S&P 500 futures swung 3.5% above fair value. Nasdaq 100 futures climbed 0.6%.

Chip stocks were front and center, with Intel (INTC) leading the Dow industrials and the iShares PHLX Semiconductor ETF (SOXX) rallying 1% in premarket trade.

Chip equipment maker ASML Holding (ASML) topped the Nasdaq 100, up more than 2%. The IBD 50 and Leaderboard stock is in a buy range as it rebounds from support at its 10-week moving average. Shares are also in the fifth week of a possible flat base pattern.

America’s Car-Mart (CRMT) jumped 4% after reporting fiscal fourth-quarter results late Monday. The stock, the top-ranked name in the auto retailers industry group, ended Monday below a 165.10 buy point in an 11-week flat base.

IBD 50 stock 360 Digital (QFIN) leapt 3% ahead of its first-quarter report on Thursday. The China-based listing ended Monday just below a 28.61 buy point in a double-bottom base.

Dow Jones Today: Intel

Chip giant Intel headed the Dow Jones today, advancing 1.2% as it attempts to extend its winning run to five days. The stock is a whisker from retaking support at its 21-day exponential moving average, above which it has not traded since mi-April.

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Intel Chief Executive Pat Gelsinger, speaking at an investor conference on Monday, noted that the first quarter marked a bottom for the company’s data-center business, and that the company’s client market was “on fire.”

Vital Signs: Bitcoin, Oil, Bond Yields

Bitcoin hovered around the $37,000 level, according to Coindesk, after diving below $32,000 Sunday. That briefly narrowed the cryptocurrency’s gain for the year to less than 10%. Bitcoin had run up to a record high above $64,800 on April 14.

Oil prices and copper prices, strong factors in the market’s recent volatility, both declined modestly early Monday. West Texas Intermediate oil price futures dipped a fraction but held above $66 a barrel after a big jump on Monday. It remains well below the 33-month high at $67.98 posted on March 8.

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Bond yields continued to back off, with the 10-year yield trading at 1.59%, down from its settle at just below 1.61% on Monday, according to CBOE data. Yields had skirted pre-pandemic levels late in March, climbing to almost 1.76%, the highest level since January 2020.

Nasdaq, S&P 500, Dow Jones Today

The Nasdaq played another round of incremental catch up on Monday, outpacing gains of both S&P 500 and the Dow industrials. For the year, the Nasdaq Composite is now up 5.3%, vs. an 11.7% gain for the S&P 500 and the 12.4% year-to-date advance for the Dow Jones today.

The Dow’s three largest advances so far this year have come from Goldman Sachs (GS) (up 39.7%), Walgreens Boots Alliance (WBA) (up 37.5%) and Caterpillar (CAT) (up 31.3%).

For more detailed analysis of the current stock market and its status, study the Big Picture.

The Nasdaq 100 is running only slightly ahead of the composite in 2021, with a 5.8% advance vs. the composite’s 5.4% gain through Monday.

The market remains in an uptrend, although the status is “Uptrend Under Pressure.” That status suggests three courses of action for investors: Be very careful about making any new buys. Make a defensive game plan for each stock you own. Stay disciplined and flexible.

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Most investors at this point will have either taken profits or cut losses short and rotated into cash, while maybe holding on to a few big winners. It’s a good time to build a watchlist of stocks that have consolidated and build breakout-ready chart patterns, in order to be ready when the market finds its groove.

Minding The Nasdaq 100’s Big 6

The six biggest names on the Nasdaq 100 make up more than 40% of the index’s weighting. Two of the index’s heaviest weighted names, Apple (AAPL) and Microsoft (MSFT), are also Dow industrial listings. Microsoft has a 12.8% gain so far this year. Apple is down 4.2%.

While the Nasdaq Composite clawed back above its 50-day moving average on Monday, Apple — which represents almost 11% of the Index — continues struggling to break resistance at its 50-day line.

Microsoft’s big 2.3% gain on Monday was notable, lifting the IBD Leaderboard stock back above support at its converged 50-day and 21-day moving averages. The gain occurred in weak trade, but was still sufficient to send shares into a buy zone above the stock’s 50-day/10-week moving average.

As for the other Nasdaq 100 heavyweights, (AMZN) (8.4% of the Nasdaq 100) ended Monday a fraction below its 50-day level. Amazon has declined for the past three weeks. Year-to-date, it is down 3.7%.

Tesla (TSLA) remains deep below its 50-day 10-week line, however it did on Monday punch back above its 200-day level on a modest rise in volume. Tesla stock, which represents 3.6% of the Nasdaq 100, is worth watching to see whether this marks a turning point in the 39% deep consolidation.

Alphabet (GOOGL) has a 34.8% gain since Dec. 31.  Combined with the stock’s non-voting shares (GOOG) the company represents a full 7.7% of the Nasdaq 100. Also an IBD Leaderboard stock, Alphabet is in two buy zones. The first, on a rebound from support at its 10-week moving average, runs to 2,425,50. The second, on a three-weeks tight pattern, extends to 2,421.47.

Facebook (FB) is also rebounding from 50-day/10-week support, following an early April breakout. Its buy range runs roughly through 331.

Find Alan R. Elliott on Twitter @IBD_Aelliott


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