Dow Jones Rallies On Earnings From Home Depot, Walmart; S&P 500 Hits Record High, While Amazon, Tesla Jump

The Dow Jones Industrial Average reversed lower to fall more than 30 points early Tuesday after Dow Jones leaders Home Depot and Walmart reported strong earnings results. The S&P 500 hit an all-time high. Tesla stock jumped 4% to set another record high, while JD.com is breaking out today.

Blue chip leaders Apple (AAPL) and Microsoft (MSFT) were mixed in today's stock market. Dow Jones stocks Home Depot (HD) and Walmart (WMT) reported strong earnings results early Tuesday.

Other stocks on the move early Tuesday include JD.com (JD) and hot electric-auto stock Tesla (TSLA). JD.com is breaking out past a new buy point, while Tesla hit an all-time high.

Stocks approaching new buy points are IBD Leaderboard stocks Amazon.com (AMZN) and Adobe (ADBE).

Dow Jones Today

The Dow Jones industrials moved down 0.15%, while S&P 500 rallied 0.2%. The Nasdaq advanced 0.3% to hit another all-time high. The S&P 500 also hit an all-time high.

Amid the coronavirus stock market rally, the tech-heavy Nasdaq is up 24% for the year through Monday's close. Meanwhile, the S&P 500 is up 4.7%, while the DJIA is down 2.4% year to date, through the Aug. 17 close.

Coronavirus News

According to the Worldometer data tracker, the cumulative number of confirmed U.S. cases topped 5.6 million on Tuesday. On Sunday, daily new cases measured about 36,800, the lowest number since June 23. While daily new cases remain elevated, the recent surge has abated, and there hasn't been a sustained 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 22 million Tuesday, with more than 776,000 virus-related deaths.

According to IBD's The Big Picture, the coronavirus stock market rally remains in an uptrend after rebounding from lows nearly five 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 stock market has sailed through earnings season, the coronavirus pandemic, trade tensions and other worries. It's often said that the market climbs a wall of worry. If so, this market is doing it like Spiderman."

Stocks to watch include the top stocks on IBD Long-Term Leaders, which focuses on companies with stable earnings growth and price performance.

Dow Jones Earnings: Home Depot, Walmart

Dow Jones stocks Home Depot and Walmart reported strong earnings ahead of the stock market open on Tuesday.

Home Depot earned $4.02 per share on revenue of $38.05 billion, topping estimates. Meanwhile, comparable sales surged 23.4%. The company was projected to see its earnings rise 17% to $3.71 a share as revenue grows 11.6% to $34.42 billion. The company is seeing strong demand from consumers investing more in their homes due to the coronavirus outbreak.

Home Depot shares reversed from early gains to fall nearly 1% in morning trade after hitting another all-time high.

The stock is one of the top performers in the Dow Jones Industrial Average this year. For 2020, shares are up 32.1%. Shares are sharply extended from a 259.39 buy point in a flat base after a breakout on July 15.

Meanwhile, Dow Jones retail giant Walmart reported adjusted earnings of $1.56 a share on sales of $137.7 billion, easily topping expectations for $1.22 a share on revenue of $133.97 billion, according to the IBD Investing Action Plan. Shares lost about 0.5% in morning trade.

Shares ended Monday in the buy range above a 132.09 buy point in a double bottom after retaking the entry on Friday. The 5% buy zone runs up to 138.69.

Stocks Near Buy Zones: Adobe, Amazon

Adobe is tracing a flat base with a 470.71 buy point. Shares are about 4% away from the new buy point after Monday's 0.9% rise. Shares moved up 1.25% early Tuesday.

According to the IBD Stock Checkup, Adobe boasts a best-possible 99 IBD Composite Rating, placing it in the top tier of growth stocks. The IBD Composite Rating is designed to help investors easily gauge the fundamental and technical strengths of a stock.

Amazon stock is approaching a new buy point at 3,344.39. The stock is about 5% away from the entry amid Monday's 1.1% gain. Amazon shares rallied 3% in morning trade Tuesday.

According to IBD Leaderboard commentary, "The stock has reached a 25% gain from the breakout, so taking profits is an option. But the new base, which is second stage, offers a new opportunity."

The FANG stock leader was featured in this week's Stocks Near A Buy Zone column. It was also Monday's IBD Stock Of The Day.

Stocks On The Move: JD.com, Tesla

JD.com is breaking out above a 69.28 buy point in a flat base Tuesday. Before the open, Susquehanna upped its price target from 55 to 70, sparking a 5% gain Tuesday morning.

On Monday, JD stock surged 7.9% on strong earnings results. 

Hot electric-auto stock Tesla surged another 4% early Tuesday to hit another all-time high before cutting gains.

Shares are more than 100% up from an 869.92 buy point in a cup with handle after a June 1 breakout.

Dow Jones Leaders: Apple, Microsoft

Among the top Dow Jones stocks, Apple stock fell 0.1% after setting an all-time high on Monday. Apple's market cap is approaching $2 trillion, now standing at more than $1.96 trillion.

Apple is about 60% 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 56.1% advance through Monday's close. It is also an IBD Leaderboard stock idea.

Software leader Microsoft continues to rebound from another test of its 50-day support level. Shares moved up 0.1% Tuesday morning.

For 2020, Microsoft shares are up 33.3% through Aug. 17.

Reprinted from yahoofinance, the copyright all reserved by the original author.

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