The Dow Jones futures were higher Monday evening after a big coronavirus stock market rally Monday. Amazon stock has a new buy point.
Dow Jones futures were modestly higher in Monday evening’s trading session, along with S&P 500 futures and Nasdaq futures, after Monday’s big coronavirus stock market rally.
XGlobal coronavirus cases ascended past 784,000, while U.S. cases topped 163,000 with more than 66,000 in New York state alone. On Monday, coronavirus stock Johnson & Johnson (JNJ) rallied 8% on coronavirus vaccine news, while Abbott Laboratories (ABT) surged 6.4% after FDA authorization for a five-minute coronavirus test.
Top stocks to watch in the current coronavirus stock market rally include Amazon.com (AMZN), DocuSign (DOCU), Domino’s Pizza (DPZ) and Netflix (NFLX).
Dow Jones futures were up 0.15% vs. fair value, while S&P 500 futures traded up 0.2%. The Nasdaq 100 futures rose 0.15% vs. fair value.
Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
Among exchange traded funds, the Nasdaq 100-linked Invesco QQQ Trust (QQQ) ETF edged 0.2% higher in the after-hours session to about 192.34. The ETF ended Monday’s session at 192.04, up 3.6%. Meanwhile, the SPDR S&P 500 (SPY) ETF moved up 0.25% to about 262.30 after the stock market close. The SPY ETF closed at 261.65. The QQQ and SPY ETFs are among several that trade 24 hours a day on the TD Ameritrade (AMTD) brokerage platform.
Coronavirus News Updates
The coronavirus outbreak continues to rapidly spread across the U.S. According to the Worldometer data tracker, the number of confirmed U.S. cases rose above 163,000. New York state continues to be the epicenter of the outbreak in the U.S. with more than 66,000 total cases, or about 41% of the country’s confirmed total.
The climbing coronavirus count led President Donald Trump to extend distancing guidelines through April 30. At Sunday evening’s news conference, Trump said, “Nothing would be worse than declaring victory before the victory has been won.”
On Monday night, Trump called a nationwide stay-at-home order “pretty unlikely.”
Meanwhile, confirmed Covid-19 cases worldwide climbed above 784,000, with more than 37,000 deaths.
In coronavirus stock news, Abbott Laboratories and Dow Jones stock Johnson & Johnson both surged higher Monday. Abbott Laboratories jumped 6.4% on FDA authorization for a five-minute coronavirus test, as the stock builds a base with a 92.55 buy point. Dow Jones stock Johnson & Johnson rallied 9% after CEO Alex Gorsky told NBC’s Today show that the company’s vaccine candidate has “a high degree of probability of being successful.”
Coronavirus Stock Market Rally
According to the IBD Big Picture, the stock market outlook remains in a correction. Per Monday’s Big Picture, “Index gains were certainly big enough for a follow-through bottoming signal. But lower volume Monday negated that opportunity. Still, it was a productive day for the market, which has now gone a week without a serious setback.”
A follow-through day potentially gives investors the green light to begin buying top growth stocks breaking out past proper buy points. Keep in mind that not all follow-through days work, and it is not the go-ahead to buy any stock at any time. Check out the Stock Market ETF Strategy guide to help you get invested.
Stocks to watch include the top stocks on the IBD Long-Term Leaders watchlist. IBD Long-Term Leaders focuses on companies with stable earnings growth and price performance. Meanwhile, potential stock market leader Amazon offers a new buy point.
Coronavirus Stock Market ETF Strategy And What To Do Next
Amazon Stock’s New Buy Point
FANG stock Amazon shows a new buy point at 2,186.05, as a result of a six-week cup base. Be on the lookout for a potential handle to form, offering a lower risk-optimal entry. Shares rallied 3.4% Monday to regain the key 50-day moving average line. The 50-day line had been a potent resistance level in recent trading sessions.
Bullishly, the stock’s RS line soared to new highs last week, indicating that Amazon’s stock price is sharply outperforming the major indexes during the coronavirus stock market crash.
According to the IBD Stock Checkup, Amazon stock boasts a best-possible 99 IBD Composite Rating. The Composite Rating helps investors easily measure the quality of a stock’s fundamental and technical metrics. In other IBD ratings, Amazon has a 78 out of a highest-possible 99 EPS Rating and a highest-possible A SMR Rating.
The EPS Rating measures the quality of the company’s earnings growth in recent quarters and the latest year, while the SMR Rating measures the sales, margins and return on equity.
Stocks To Watch: DocuSign, Domino’s, Netflix
Among the top growth stocks to watch, IPO stock leader DocuSign advanced nearly 7% Monday, as it approaches a new buy point at 92.65. The buy point is a result of a V-shaped six-week cup base.
E-signature leader DocuSign was featured in this week’s Stocks Near A Buy Zone column. The IPO Leader is just 5% off its 52-week high after a fierce rally since March 12.
Domino’s Pizza rallied nearly 2% Monday, as it continues to move up the right side of a new base formation. According to IBD Leaderboard commentary, Domino’s Pizza stock “is taking the shape of a new base and short-term resistance near 350 has created an aggressive buy point.” The pizza delivery giant was added to IBD Leaderboard Monday.
FANG leader Netflix received an analyst boost Monday, propelling shares almost 4% higher. BMO Capital Markets upped its price target from 440 to 450. BMO Capital Markets Analyst Daniel Salmon said in a report to clients, “With an extensive content library, well-established infrastructure, and a widely known brand, Netflix is set to benefit from the limited out-of-home entertainment options available to global consumers during the shutdown.”
Netflix stock is above its 50-day moving average line, and just 6% off its 52-week high.
Stock Market News: RH, Amarin
In stock market earnings, RH reported fiscal-Q4 earnings after the close Monday. Late Monday, RH stock plunged 11% to about 105 per share. During the regular trading session, RH closed at 118, up 6.4%.
RH stock dove as much as 71% on March 23 from its 52-week high before its recent rally. On March 17, the retailer closed its North America stores through March 27, but hasn’t provided any updates on those store closings.
Meanwhile, Amarin (AMRN) crashed 66%, near 4.60, after the company reportedly lost a key patent battle. A Nevada judge reportedly ruled generic drugmakers can knock off the biotech company’s high triglycerides treatment, Vascepa.
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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