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Dow Jones Futures: Market Rally Clears Key Level On Fed Chief Powell; Microsoft Stock

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Dow Jones futures was little changed Tuesday night, along with S&P 500 futures and Nasdaq futures. The Nasdaq hit a record high, leading a solid stock market rally Tuesday, getting a boost from Federal Reserve chief Jerome Powell.


Meanwhile, Bitcoin rebounded after plunging Tuesday to a 2021 low in a key test.

Microsoft (MSFT) cleared a buy point to a record high, on the cusp of joining Apple (AAPL) with a $2 trillion market cap. Upwork (UPWK) broke out in strong volume. ServiceNow (NOW), Twilio (TWLO) and American Eagle Outfitters (AEO) offered various early entries.

Microsoft and ServiceNow stock are on IBD Leaderboard and IBD Long-Term Leaders. UPWK stock and American Eagle were added to SwingTrader on Tuesday.

Time The Market With IBD’s ETF Market Strategy

Fed Chief Powell

Fed chief Powell gave a rather dovish stance on monetary policy before Congress on Tuesday. He expects a lot of economic improvement in the coming months while recent inflation spikes should be short-lived. Fed chief Powell largely echoed his comments following the latest Fed meeting on June 16, but it served as a counterpoint to Friday’s quasi-hawkish comments from St. Louis Fed President James Bullard on Friday.

Powell’s comments turned a mixed market rally in mid-afternoon trading into a solid session by the close.

The 10-year Treasury yield edged lower on Tuesday, but so did the two-year yield.

Dow Jones Futures Today

Dow Jones futures climbed 0.1% vs. fair value. S&P 500 futures were roughly flat. Nasdaq 100 futures rose 0.1%.

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

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

Stock Market Rally Tuesday

The stock market rally rose modestly, closing near the day’s best levels after Fed chief Powell spoke.

The Dow Jones Industrial Average edged up 0.2% in Tuesday’s stock market trading. The S&P 500 index gained 0.5%. The Nasdaq composite rose 0.8%. The Russell 2000 climbed 0.4%.

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) popped nearly 1%, while the Innovator IBD Breakout Opportunities ETF (BOUT) advanced 0.5%. The iShares Expanded Tech-Software Sector ETF (IGV) rallied 1.1%. MSFT stock is a major IGV holding. The VanEck Vectors Semiconductor ETF (SMH) increased 0.65%.

SPDR S&P Metals & Mining ETF (XME) rose 0.6% and Global X U.S. Infrastructure Development ETF (PAVE) inched up 0.2%. U.S. Global Jets ETF (JETS) slid 0.9%, as concerns about the Delta variant of the coronavirus weighed on travel-related names. SPDR S&P Homebuilders ETF (XHB) advanced 0.4%.

Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) rose 1.3% and ARK Genomics ETF (ARKG) 0.3%.

Bitcoin Price

The Bitcoin price plunged as low as $28,814.75 Tuesday morning, cracking the $30,000 level for the first time in 2021. But it rebounded to $33,297.97 intraday, before fading to above $32,000 late Tuesday.

Bitcoin has fallen sharply since nearly hitting $41,000 on June 15, right at the top of a recent range.

The latest China crackdowns on cryptocurrency transactions and mining helped spur the heavy selling over the past several days in Bitcoin and rival digital assets such as Ethereum and Dogecoin.

Bitcoin peaked at $64,829.14 in mid-April.

Five Best Chinese Stocks To Buy And Watch Now

Microsoft Stock At $2 Trillion

Microsoft stock rose 1.1% to 265.51, nudging past a 263.29 buy point from a shallow cup base, part of a base-on-base formation. At 4.4% above its 10-week line, investors could still buy MSFT stock as a Long-Term Leader. Buying Long-Term Leaders near their 50-day or 10-week lines is often a smart strategy.

The relative strength line for Microsoft stock is at consolidation highs, and close to its best levels of 2021. The RS line has been moving sideways since last July, but that follows a long ascent, reflecting MSFT stock’s outperformance vs. the S&P 500 index.

Microsoft stock now has a market capitalization of $1.9997 trillion after edging past $2 trillion intraday. The only member of the $2 trillion club is Apple, currently at $2.24 trillion.

Apple stock climbed 1.3% to 133.98%, closing in on its own cup-base buy point of 137.17. That base is next to a failed cup-with-handle pattern. The RS line for AAPL stock is showing some signs of life. But it’s below its mid-April peak and still significantly below its late January high and last September’s record levels.

UPWK Stock

Upwork stock leapt 11% to 54.41, clearing a 51.97 double-bottom buy point. UPWK stock had met resistance just below 52 on three occasions in its base, including earlier this month. Shares also cleared a handle Tuesday that was slightly too low in the base to be proper.

The RS line for Upwork stock hit a three-month high, above its mid-April peak.

Upwork’s online platform connects freelancers with businesses, letting them collaborate remotely.

UPWK stock was Tuesday’s IBD Stock Of The Day.

ServiceNow Stock

ServiceNow stock rose 2.1% to 546.03, just clearing a downward-sloping trend line from the early February peak. That offers an aggressive early entry for NOW stock, perhaps a place to start a position.  The official buy point for ServiceNow stock is 565.39 from a double-bottom base, according to MarketSmith analysis.

While NOW stock is a Long-Term Leader, it’s not ideal to buy it as a Long-Term Leader right now, with shares 9.5% above their 10-week line.

Twilio Stock

TWLO stock popped nearly 4% to 377.53, also moving above a trend line from its…

Read More: Dow Jones Futures: Market Rally Clears Key Level On Fed Chief Powell; Microsoft Stock

2021-06-22 23:15:00

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