Dow Jones Futures: Stock Market Rally Needs This With Presidential Debate On Tap; 7 Leaders In Buy Zones - Investor's Business Daily

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Dow Jones futures were little changed Tuesday morning, along with S&P 500 futures and Nasdaq futures, after another solid session Monday for the new stock market rally attempt had another solid session on Monday The first 2020 presidential debate between President Donald Trump and Democratic nominee Joe Biden is Tuesday night.


On Monday, the Nasdaq reclaimed key support and leading stocks showed bullish action. But there was one piece missing for the new market rally.

Top Stocks In Buy Zones

Target stock and Seattle Genetics (SGEN) broke out Monday. Adobe (ADBE) and Marvell Technology (MRVL) continued rebounding from their 50-day lines, moving higher within or back into prior buy zones. Nvidia (NVDA), Veeva Systems (VEEV) and Entegris (ENTG) were among those offering early entries.

Meanwhile, Apple (AAPL) extended Friday's big gain while Advanced Micro Devices (AMD) and PayPal (PYPL) retook their 50-day moving averages. (AMZN) raced up to just below that key level.

President Trump Debates Joe Biden

The first presidential debate will take place tonight in Cleveland, Ohio. Most polls show former Vice President Biden with a modest-to-solid lead over President Trump, though the polls have narrowed somewhat in the past few weeks. Tuesday night could be a chance for President Trump to close the gap, or for Biden to reinforce his lead.

Expect the coronavirus, the economy, protests in cities and election integrity to be in focus.

In addition to the White House, the U.S. Senate is up for grabs.

Stock Market Rally Still Missing This

Overall, Monday's stock market gains were broad-based, with homebuilders, software, chip, solar, e-commerce and transportation groups showing strength, as well as laggard airlines and financials.

The one thing that was missing Monday, once again, was volume. Nasdaq volume was modestly below Friday's level. A follow-through day must have strong price gain on one or more of the major indexes but also higher volume than in the prior session.

NYSE volume did rise slightly on Monday while the Dow Jones and S&P 500 both had strong price gains. But Monday was only day three of a stock market rally attempt for the Dow Jones and S&P 500 because they undercut their recent lows on Thursday morning before rebounding.

Adobe and Nvidia stock are on IBD LeaderboardTarget (TGT) and Veeva stock are on SwingTrader. Adobe and PayPal stock are on IBD Long-Term Leaders, with Veeva on the watchlist. Nvidia, AMD, Veeva, Adobe, PayPal, Entegris and Marvell stock are on the IBD 50.

Why This IBD Tool Simplifies The Search For Top Stocks

Dow Jones Futures Today

Dow Jones futures fell less than 0.1% vs. fair value. S&P 500 futures lost a fraction and Nasdaq 100 futures were slightly above fair value.

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

Coronavirus stimulus talks are still ongoing after House Democrats unveiled a new $2.2 trillion package. That's far higher than the White House and Senate Republicans want to go.

Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live.

Coronavirus News

Coronavirus cases worldwide reached 33.58 million. Covid-19 deaths have reached 1 million.

Coronavirus cases in the U.S. have hit 7.36 million, with deaths above 209,000.

Abbott Labs (ABT) rose early Tuesday after President Trump said late Monday that the U.S. government will begin distributing Abbott's rapid coronavirus test kits.

Stock Market Action Monday

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 27584.71 +410.75 +1.51
S&P 500 (0S&P5) 3351.76 +53.30 +1.62
Nasdaq (0NDQC ) 11117.53 +203.97 +1.87
Russell 2000 (IWM) 150.13 +3.72 +2.54
IBD 50 (FFTY) 37.00 +0.63 +1.73
Last Update: 4:04 PM ET 9/28/2020

The stock market rally attempt delivered strong gains for a second straight session without the whipsaw action common in recent weeks.

The Dow Jones Industrial Average rose 1.5% in Monday's stock market trading, just above its 50-day line. The S&P 500 index climbed 1.6%, closing slightly below that key level. The Nasdaq composite jumped 1.9%.

Leading Stocks

Apple stock climbed 2.4% after surging 3.75% on Friday to close just above its 50-day line. AMD climbed 1.8% and PayPal stock 2.55%, moving above their 50-day lines. Amazon also rallied 2.55%, closing near session highs just below that key level. On a less-positive note, Microsoft (MSFT) rose 0.8% but was turned back at its 50-day line.

Target stock rose 1.4% to 156.46, just getting above a 156.20 flat-base buy point, but the discounter showed real strength during the market retreat. Seattle Genetics rallied 3%, above its own buy point as the biotech has raced higher since Sept. 11.

Adobe rose 1.8%, moving higher in its old buy zone after Friday's 50-day rebound. Marvell stock leapt 4.8%, back above a buy point.

Nvidia rose 1.25%, continuing a rebound from near its 10-week line for a third straight day. Chip-equipment maker Entegris stock popped 3.15%, breaking a downward-sloping trend line after retaking its 50-day on Friday. Veeva rallied 2.9%, moving over short-term resistance and extending its 50-day bounce.

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) rose 1.7%. The iShares Expanded Tech-Software Sector ETF (IGV) advanced 1.1%, with Adobe stock a notable holding. The VanEck Vectors Semiconductor ETF (SMH) popped 2.5%, outpacing AMD stock and Nvidia, but not Marvell. The iShares U.S. Home Construction ETF (ITB) leapt 3.8%.

Stock Market Correction Not Finished

When IBD made its market correction call on Wednesday, Sept. 23, it was a judgment call. But if IBD had left the direction at "uptrend under pressure," in all likelihood there wouldn't be a return to a "confirmed uptrend" and a green light to buy until the Nasdaq was at least back above its 50-day line and perhaps its Sept. 10 intraday high.

So here we are. The Nasdaq is back above its 50-day moving average and getting close to its Sept 10 peak. That's a good first step. A strong price gain with higher volume would confirm the new stock market rally but also possible clear further resistance. More leading stocks that are setting up would clear various buy points or close in on breakouts.

Then again, the stock market could simply resume selling. This is still a stock market correction. A retreat from the 50-day line would not be a big surprise. In that case, the latest breakouts and buying opportunities would likely struggle or fail.

Starting Tuesday, the Dow Jones, S&P 500 and Nasdaq all could mark a follow-through day, though it's always good to see the Nasdaq take part. In the big coronavirus stock market rally, the S&P 500 index staged a FTD day on April 2, with the Nasdaq delivering a more-convincing FTD on April 6.

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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