Among the leaders of the Dow Jones, Apple (AAPL) jumped 2.5%, while Microsoft (MSFT) rose 1.1% in the current stock market. Meanwhile, Tesla (TSLA) briefly rose over 1% just after the stock market opened.Stocks moving early Thursday include Pinterest (PINS) et Dow Jones Visa (V). Both reported better than expected earnings.
In a busy earnings day for tech stocks, Alphabet (GOOGL), Amazone (AMZN), Apple and Facebook (FB) will publish its quarterly results after the close.
Stocks in or near buy zones in the stock rally are JD.com (JD) and Soft (YOU).
JD.com, Microsoft and Tesla are all IBD ranking titles.
Dow Jones today: GDP exceeds estimates
The Dow Jones Industrial Average rose 0.2% after reversing, while the S&P 500 was up 0.6%. The highly technological Nasdaq composite rose 1.1% in morning trading.
The Commerce Department released its GDP report at 8:30 a.m. ET, reporting that GDP grew 33.1 percent in the third quarter, better than estimates, after a record-breaking 31.4 percent drop in the second quarter as l economy was rebounding after coronavirus lockdowns.
Among exchange-traded funds, Innovator IBD 50 (FFTY) rose 1.2% on Thursday. The Invesco QQQ Trust ETF (QQQ) linked to the Nasdaq 100 traded up 1.2%. Meanwhile, the SPDR S&P 500 ETF (SPY) rose 0.4%.
Amid the coronavirus stock rally, the high-tech Nasdaq rose 22.6% for the year through Wednesday’s close. Meanwhile, the S&P 500 is up 1.2%, while the Dow Jones is down 7.1% year-to-date, through to the October 28 close.
According to Worldometer’s data tracking, the cumulative number of confirmed coronavirus cases in the United States exceeded 9.1 million on Thursday. The total number of deaths linked to the virus has exceeded 233,000.
The cumulative total of Covid-19 cases worldwide confirmed since the start of the epidemic topped 44.8 million on Thursday, with more than 1.18 million deaths linked to the virus.
Coronavirus stock rally
According to IBD’s The Big Picture, the coronavirus stock rally is starting to falter amid massive institutional sales.
Big Picture on Wednesday warned that “the stock market faced a tough run of selling on Wednesday, a day after the Dow Jones Industrial Average closed below its September 30 tracking day low. That, in itself, was another bad sign. for a stock market that has seen more and more of it lately. The sale really picked up the pace at the end of the session. ”
An uptrend under pressure means investors need to be much more careful, but not just about cash. Watch closely for sell signals. Make sure to sell any stocks that fall 7% or 8% of your purchase price, and maybe even 3% or 4% if you want to raise cash.
Avoid buying stocks for now, unless the breakout is exceptionally good. The best candidates are those who have proven to be the most resilient during the recent market weakness. Keep a close eye on stocks with strong lines of relative strength. These ideas could become stock market leaders.
Use MarketSmith features like RS Line Blue Dot to easily spot these candidates for action. The RS line blue point is assigned to stocks whose RS lines reach new highs as the action is basing or bursting.
Stocks to watch include IBD Long-Term Leaders, companies with stable earnings growth and price performance.
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Dow Jones Income: Visa
Visa reported better than expected fourth quarter financial results on Wednesday evening. The company earned $ 1.12 per share, as revenue fell 17% to $ 5.1 billion. The volume of payments increased by 4%.
Payment processor stocks rose more than 1% in morning trading, but remain around 17% below their 52-week high.
Dow Jones leader Apple gained 2.5% ahead of the company’s results after the close. Wall Street forecasts EPS of 69 cents, down 9% from the same quarter last year, on sales of $ 63.39 billion, down 1%, in the fiscal fourth quarter.
Apple fell 4.6% on Wednesday, ending a two-day winning streak. Stocks fell further below their 50-day moving average line, according to MarketSmith chart analysis.
The blue chip giant is number one in performing Dow Jones stocks for 2020, up 51.5% through Wednesday’s close. Recent addition of the Dow Jones 30 Salesforce.com (CRM) is number 2 with a 46.6% lead since the start of the year.
Wall Street expects Amazon profits to rise 72.6% to $ 7.30 a share as revenues climb 32.8% to $ 92.92 billion. Amazon has seen strong growth this year as the pandemic has fueled a rush for online shopping.
Amazon’s stock plots a cup with a handle with a buy point of 3,496.34.
Alphabet, Facebook ready to report
Alphabet and Facebook are expected to report after the close on Thursday, according to IBD’s investment action plan.
The search giant is expected to see BPA rise 12.7% to $ 11.40 as revenues rise 7% to $ 35.36 billion. The stocks are on the verge of a cup with a handle with a buy point of 1,634.22, but are below their 50 day limit.
Social media giant Facebook is expected to earn $ 1.93 per share, down 9%, on revenue of $ 19.87 billion, up 12.6%. Wall Street expects Facebook to benefit from a better environment for digital ad spending, recovering from headwinds linked to the pandemic.
Facebook action is fighting for support around its 50-day line after Wednesday’s sharp drop.
Stock market profits: Pinterest
Pinterest skyrocketed to 39% after the company released third-quarter results Wednesday night that topped Wall Street estimates, fueled in part by strong user growth. The company reported adjusted earnings of 13 cents per share on revenue of $ 443 million.
Shares hit record highs on Thursday.
Stocks near purchasing areas: Chewy, JD.com
Chewy is in the 5% buy zone above a buy point of 70.82 in a handle cup after Wednesday’s sharp breakout. The buy area rises to 74.36.
According to the IBD Stock Checkup, the CHWY stock has an 86 out of an IBD best composite rating of 99. The composite rating – an easy way to identify major growth stocks – is a mix of key fundamental and technical metrics to help investors to assess the strengths of a stock.
Chewy was the IBD title for Wednesday.
JD.com is approaching a cup with a buy point of 85.49 for the handle. The headline is around 6% of the new entry after Wednesday’s 3.5% drop.
According to the IBD ranking commentary, “JD.com’s base has turned into a mug with a handle. It’s a half position on the standings. The relative strength line has already hit new highs, a bullish sign for the next breakout. ”
JD.com was featured in this week’s Near A Buy Zone Stocks column.
IBD Live: a new tool for daily stock market analysis
Stock de Tesla
Tesla stock dropped support around its 50-day line amid Wednesday’s 4.4% drop. Stocks are near 20% of their 52-week high as they form new base with a buy point of 466. Tesla rose more than 1% early Thursday.
According to the IBD ranking commentary, “The new base is a later stage, following the advancements of the goblet bases with handle and a high and tight flag that also counted as a base. Thus, the latter model presents a higher risk. “
Dow Jones Executives: Microsoft
Among the main stocks in the Dow Jones, software giant Microsoft has sought to bounce back from Wednesday’s 5% drop. Stocks rose 1.1% in morning trading, but remain squarely below their 50-day line.
Since the start of the year, Microsoft has been one of the main stocks in the Dow Jones, rising 35.2% through Tuesday’s close.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen to learn more about growth stocks and Dow Jones futures.
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