Dow Jones Futures: Apple Leads 5 Dow Stocks Near Buy Points For Coronavirus Vaccine Market


Dow Jones futures tilted higher late Monday, along with S&P 500 futures and Nasdaq futures. Moderna coronavirus vaccine news buoyed the stock market rally, with the Dow Jones Industrial Average hitting a record high while the S&P 500 and Nasdaq composite also had solid gains.




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Apple stock, Microsoft (MSFT), Visa (V), Walt Disney (DIS) and Nike (NKE) are Dow Jones components near buy points that could fare well in a coronavirus vaccine, post-pandemic market.

Dow Jones stocks Walmart (WMT) and Home Depot (HD) report earnings early Tuesday. Walmart stock rose 1.3% to 152.44 on Monday, hitting a new high, after the discount giant sold most of its take in its Japan unit Seiyu. WMT stock cleared an official buy point of 151.43, but the 146.70 might have been the better entry.

Home Depot stock edged up 0.9% to 279.57. The home improvement giant agreed to buy former unit HD Supply (HDS). Shares aren’t far from a 293.05 entry.

However, investors might prefer Target (TGT) and Lowe’s (LOW) to Walmart and Home Depot, respectively. These two big-box retailers also report earnings this week.


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Dow Jones Stocks For Vaccine Market

Apple (AAPL), Microsoft and Nike have done reasonably well during the coronavirus pandemic, and look set to keep doing well as the world gets back to normal. Visa and Disney have struggled but are due for a big rebound in growth as coronavirus vaccinations open up the economy and travel.

Apple and Microsoft are two tech giants that had strong runs during the April-September stock market rally, but have cooled off. Both are still close to the 10-week line, while both have traditional buy points not too far away. Nike stock also could offer a buying opportunity off the 10-week soon.

Visa stock briefly broke out on Nov. 9, on the Pfizer (PFE) and BioNTech (BNTX) coronavirus vaccine news, but pulled back and has now formed a handle. Investors also could start a position now. Disney stock gapped out of a consolidation Nov. 9 and has held those gains. Disney is a little extended from possible entries, but could slip back or set up a new entry..

Microsoft and Nike stock are on IBD Leaderboard. Apple stock is on the Leaderboard watchlist. Microsoft stock is on IBD Long-Term Leaders.

Warren Buffett

Warren Buffett trimmed stakes in a slew of big financials in the third quarter, according to a Berkshire Hathaway 13f filing with the SEC. Berkshire Hathaway (BRKB) sold 36 million shares of Apple, but that’s less than 4% of his holdings. Buffett started positions in AbbVieABBV and Dow giant Merck (MRK).

Dow Jones Futures Today

Dow Jones futures edged above fair value. S&P 500 futures added a fraction. Nasdaq 100 futures rose 0.3%.

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.


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Coronavirus News

Coronavirus cases worldwide reached 55.26 million. Covid-19 deaths topped 1.33 million.

Coronavirus cases in the U.S. have hit 11.50 million, with deaths above 252,000.

Early Monday, Moderna (MRNA) said its coronavirus vaccine was 94.5% effective. That came one week after Pfizer (PFE) and BioNTech (BNTX) announced that their Covid vaccine is over 90% effective. The Moderna coronavirus vaccine can be stored at normal refrigeration temperatures. The Pfizer/BioNTech vaccine must be kept at ultra-low temperatures.

In the coming days, Pfizer and BioNTech will report on safety data, quickly followed by Moderna. After that, both coronavirus vaccines may go to the FDA for emergency approval. In a best-case scenario, both Covid vaccines are approved with millions of Americans vaccinated by year-end.

Moderna stock jumped 9.6% to 97.95 on Monday. Shares spiked 23% last week on expectations that the Moderna vaccine would be as effective as Pfizer’s.

BioNTech stock plunged 13.7%, wiping out all of last week’s 15% jump.

Pfizer stock slid 3.3%. Shares rose 6% last week, but never closed above a buy point after briefly breaking out.

Stock Market Rally

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 29952.22 +472.41 +1.60
S&P 500 (0S&P5) 3627.13 +41.98 +1.17
Nasdaq (0NDQC ) 11924.13 +94.84 +0.80
Russell 2000 (IWM) 177.52 +4.02 +2.32
IBD 50 (FFTY) 37.96 +0.35 +0.93
Last Update: 4:04 PM ET 11/16/2020

The stock market rally had a solid, broad advance, with real economy names leading the way.

The Dow Jones Industrial Average jumped 1.6% in Monday’s stock market trading. The S&P 500 index popped 1.2%. The Nasdaq composite advanced 0.8%.

Growth stocks fared well overall.  Among the best ETFs, the Innovator IBD 50 ETF (FFTY) climbed 1%. The iShares Expanded Tech-Software Sector ETF (IGV) dipped 0.1% as stay-at-home plays continued to struggle. Microsoft stock is a major IGV holding. The VanEck Vectors Semiconductor ETF (SMH) jumped 2.8% as Apple chipmakers Taiwan Semiconductor (TSM) and Qualcomm (QCOM) led the way.

Apple stock rose 0.9% to 120.30.  Shares are 4.6% above the 10-week line, so investors could buy it now or wait until it tops last week’s high at 121.99. AAPL stock has a more-traditional buy point at 125.49 or 138.08.

Microsoft stock edged up 0.3% at 217.33. The tech titan tried to break out past an early entry on Nov. 9, but the downside reversal and other action led to a new, proper handle at 228.22. At 2.2% above the 10-week moving average, investors can start a position now in this Long-Term Leader.

Nike  stock climbed 1.4% to 130.11. Just 3.1% above their 10-week line, so investors could buy NKE stock now or wait until it clears its Nov. 5 high of 130.41. Aside from a brief Nov. 9 spike that fizzled, Nike stock has been trading tightly for the past several weeks.

Visa stock advanced just over 1% to 212.70. It’s 5.8 % above its 10-week line, so investors could start a position here in this quasi-Long-Term Leader. Or, investors could buy at a breakout, at either 217.45 (just above the left-hand side) or 217.75 (just above a newly formed handle).

Disney stock jumped 4.6% to 144.67, the best close in nine months., reflecting the entertainment giant’s potential upside from reopening theme parks and movie theaters. After gapping above a double-bottom base on Nov. 9 and then holding up, the DIS stock move Monday puts it 12.4% above its 10-week line, too extended to start a position. Shares could drift lower or set up a new consolidation. Disney stock also has a yearlong consolidation with a 153.51 buy point.

Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.

Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.

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