The Dow Jones Industrial Average jumped 325 points early Tuesday on coronavirus vaccine news before trimming gains in midday trade, as the stock market rally continues. Russian President Vladimir Putin claimed that Russia has developed the first coronavirus vaccine. Tesla rival Nio reported earnings before the open.
Blue chip leader Apple fell 1%, while Microsoft declined 0.6% in today's stock market. Dow Jones stock and new IBD Leaderboard member Nike rose 0.5%, and is still in a new buy zone in the current stock market rally. Meanwhile, Visa is approaching a new buy point midday Tuesday.
Tesla rival Nio and marijuana stock Tilray reported earnings results ahead of the stock market open to poor reactions. Tesla slid 3% before paring losses amid strong July electric car sales in China.
Stocks in or near buy zones include Grocery Outlet. The discount grocer reported strong earnings results late Monday.
Dow Jones Today: Russian Coronavirus Vaccine
The Dow Jones industrials rose 0.9% in midday trade, while the S&P 500 rallied 0.4%. The tech-heavy Nasdaq composite sharply underperformed, falling 0.1%, but well off the morning's lows.
Early Tuesday, Putin spoke at a government meeting on state television, saying, "As far as I know, a vaccine against a new coronavirus infection has been registered this morning, for the first time in the world." Putin also said, "I know that it works quite effectively, forms strong immunity, and I repeat, it has passed all the needed checks."
According to Reuters, the vaccine has been approved after less than two months of human testing.
Among exchange traded funds, Innovator IBD 50 fell 0.8% Tuesday morning. The Nasdaq 100-linked Invesco QQQ Trust ETF moved down 0.1%. Meanwhile, the SPDR S&P 500 ETF moved up 0.5%.
The tech-heavy Nasdaq is up 22.2% for the year through Monday's close. Meanwhile, the S&P 500 is up 4.0%, while the DJIA is down 2.6% year to date, through the Aug. 10 close.
Coronavirus News
The coronavirus outbreak continues to spread across the U.S. According to the Worldometer data tracker, the cumulative number of confirmed U.S. cases topped 5.25 million Tuesday. On Sunday, daily new cases measured about 47,800, the lowest number since July 5. While daily new cases remain elevated, the recent surge has abated and there hasn't been a significant 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 20.2 million Tuesday, with more than 739,000 virus-related deaths.
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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 four 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, "Just last week investors were marveling at the Nasdaq's seven-day win streak. But the composite has already had its turn at the top. Today, it's the S&P 500 that's outperforming as the market rotates away from technology and into cyclicals."
Stocks to watch include the top stocks on IBD Long-Term Leaders, which focuses on companies with stable earnings growth and price performance.
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Dow Jones Stocks To Watch: Nike, Visa
IBD Stock Of The Day, Nike, sprinted past a 104.79 buy point in a cup with handle Monday and is still in the 5% buy zone early Tuesday amid a sight gain. The 5% buy zone runs up to 110.03. Nike was added to the IBD Leaderboard service.
According to Leaderboard commentary, "Nike broke out powerfully Monday, helped by bullish earnings and sales guidance from Foot Locker. It's a quarter-size position on Leaderboard."
Nike holds a 70 out of a best-possible 99 IBD Composite Rating, according to the IBD Stock Checkup. The Composite Rating is an easy way for investors to identify top growth stocks.
Elsewhere in the Dow 30, Visa is approaching a 202.28 buy point in a flat base. Shares jumped 2.5% and are within striking distance of the entry.
Stocks In Or Near Buy Zones: Grocery Outlet
Grocery Outlet fell further below a 44.79 buy point in a cup with handle despite Monday's strong earnings results. Shares are about 1% below the new entry amid Tuesday's 0.5% fall.
Late Monday, the discount grocery retailer reported EPS of 42 cents on revenue of $803.4 million. Same-store sales increased 16.7%.
Grocery Outlet was featured in this week's Stocks Near A Buy Zone column.
Stock Market Earnings: Nio, Tilray
Early Tuesday, the so-called Tesla of China — Nio — reported strong earnings and sales results, sparking an 8.7% advance. But shares reversed lower in morning trade to fall 3%. The company lost a net 15 cents a share, or 16 cents adjusted. Revenue leapt 146.5% to $526.4 million.
Nio stock is about 10% of its 52-week high after peaking at 16.44 per share on July 13. The stock is up more than 250% in 2020.
Meanwhile, China electric car sales rose 7.9% in July year over year, according to the China Passenger Car Association. Tesla stock sold off 3% in morning trade before cutting losses, as the electric-auto maker sets up for test of its 50-day moving average line. Tesla shares are more than 20% off their all-time high set on July 13.
Late Monday, marijuana stock Tilray reported a loss of 66 cents a share on revenue of $50.4 million, badly missing targets. Analysts had expected a loss of 27 cents per share on revenue of $55.32 million.
Tilray stock dove 12% in morning trade. Shares are more than 85% off their 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among the top Dow Jones stocks, Apple stock fell 1% early Tuesday, as the tech leader trades about 2% off its 52-week high.
Apple is more than 55% above a cup-with-handle's 288.35 buy point. Investors should take at least some profits, selling into strength to help avoid any downswing.
The blue-chip giant is the No. 1-performing Dow Jones stock in 2020, with a 53.6% advance through Monday's close. As a result, Apple's market cap is approaching $2 trillion, at more than $1.92 trillion. It is also an IBD Leaderboard stock idea.
Software leader Microsoft moved down 0.6% Tuesday morning, as the stock looks to again test its key 50-day support level.
For 2020, Microsoft shares are up 32.1% through Aug. 10.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
