The Dow Jones Industrial Average sold off 300 points Tuesday, as Apple stock hit a new high. Tesla stock raced higher in morning trade, while DocuSign, Palantir, Semrush, and Shopify are stocks to buy and watch in today’s stock market.
Apple (AAPL) traded up nearly 1% among the Dow Jones leaders, while Microsoft (MSFT) moved down 0.7% Tuesday. American Express (AXP) is tracing a new base but is below a critical technical level.
Tesla (TSLA) looked to add to Friday’s gains, rallying about 3% Tuesday morning. The EV leader is past its buy range. PayPal (PYPL) traded slightly higher Tuesday as it approached a new buy point.
Among the top stocks to buy and watch, DocuSign (DOCU), Palantir Technologies (PLTR), Semrush (SEMR), and Shopify (SHOP) are in or near new buy zones.
DocuSign, Microsoft, and Tesla are IBD Leaderboard stocks. Semrush is an IBD IPO Leader. DocuSign was Friday’s IBD Stock Of The Day. Shopify is an IBD SwingTrader stock.
Dow Jones Today
The Dow Jones Industrial Average dropped 0.8% early Tuesday. The S&P 500 moved down 0.4%. The tech-heavy Nasdaq traded flat in midday trade.
The Innovator IBD 50 (FFTY) reversed opening losses and climbed 0.2% Tuesday among exchange-traded funds. Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) moved down 0.2%. Meanwhile, the SPDR S&P 500 ETF (SPY) lost 0.5%.
Stock Market Rally Continues
The Nasdaq and S&P 500 are just off last week’s record highs, while the Dow Jones Industrial Average threatened to slide after Friday’s modest gains.
Friday’s The Big Picture column commented, “Essentially, after big news on the previous Friday, in which Federal Reserve Chairman Jerome Powell said a future tapering of monthly bond buys does not immediately spell interest rate hikes, the stock market spent the past week generally padding late-summer gains.
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Dow Jones Stocks To Buy And Watch: American Express
According to IBD MarketSmith chart analysis, Dow Jones leader American Express is tracing a flat base with a 179.77 buy point. But shares are below their critical 50-day moving average line. Retaking support at that crucial level would be bullish for the stock’s immediate prospects. Shares were up 0.1% Tuesday.
American Express was the No. 2 performer on the Dow Jones Industrial Average through the end of August, advancing more than 37%. Goldman Sachs (GS) was the top performer with a 56.9% climb through Aug. 31.
Stocks To Buy And Watch: DocuSign, Palantir, Semrush, Shopify
IBD Leaderboard stock DocuSign declined nearly 3% Tuesday and is trading below a flat-base buy point of 310.61 following Friday’s breakout. The company reported strong earnings results late Thursday, sparking Friday’s 5.3% advance.
Palantir Technologies is just above a cup-with-handle’s 26.04 buy point, according to IBD MarketSmith chart analysis. Shares lost 0.8% Tuesday and are in the 5% buy area that tops out at 27.34. The stock’s relative strength line remains far from its old highs. Ideally, the RS line should hit a new high on the breakout day.
IPO Leader Semrush is trading just past the buy range above a 26.41 buy point in a cup-base following last week’s breakout move. The SEO leader tacked on about 1% Tuesday. The 5% buy zone tops out at 27.73. Semrush was featured in last week’s IPO Leaders column.
IBD SwingTrader stock Shopify continues to trace a flat base that shows a 1,650.10 buy point. According to IBD Stock Checkup, SHOP stock boasts a 98 out of a perfect 99 IBD Composite Rating. The IBD Composite Rating identifies stocks with a blend of fundamental solid and technical SHOP stock declined 1.5% early Tuesday.
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PayPal stock rose 0.1% Tuesday, looking to add to Friday’s 1.3% gain. The top store is level with its 50-day moving average line.
Shares of the payment processor are tracing a flat base with a 310.26 buy point. The stock is about 7% away from the new entry.
Tesla stock climbed about 3% Tuesday, on pace to add to Friday’s slight gain. In recent weeks, shares regained their 700.10 aggressive buy point deep inside a correction and are now out of the buy range that runs up to 735.11. Meanwhile, a deep, large base continues to take shape.
On Jan. 25, Tesla stock hit a record high of 900.40, after climbing as much as 93% from a 466 buy point in a cup-with-handle.
Dow Jones Leaders: Apple, Microsoft
Apple moved up 0.8% Tuesday among the top Dow Jones stocks, hitting a new high and trading as high as 155.61. Apple shares are nearly out of the buy range above a 148 trendline buy point.
Software giant Microsoft dropped 0.7% Tuesday. Shares are about 15% above a cup base’s 263.29 buy point and near new highs.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.