Dow Jones futures tumbled more than 300 points early Wednesday before cutting losses, along with S&P 500 futures and Nasdaq futures, after Tuesday’s coronavirus stock market rally jumped on U.S.-China trade news. Warren Buffett-backed StoneCo and Netflix headline these six top stocks in or near buy zones.
The coronavirus stock market rally continued its record-setting ways Tuesday, as the Nasdaq composite hit another all-time high. The tech-driven Nasdaq has risen an incredible 19 of the last 22 trading sessions. Meanwhile, the Dow Jones Industrial Average gained 131 points.
Advanced Micro Devices (AMD), Netflix (NFLX), Warren Buffett-backed StoneCo (STNE), Taiwan Semiconductor (TSM), Vertex Pharmaceuticals (VRTX) and Wingstop (WING) are in or near new buy zones. Dow Jones stock leaders Apple (AAPL) and Microsoft (MSFT) advanced to record highs Tuesday.
Apple, Microsoft, Netflix and Vertex are IBD Leaderboard stocks.
Dow Jones Futures Today
The Dow Jones futures fell 0.9% vs. fair value ahead of the stock market open Wednesday, while S&P 500 futures dropped 0.75%. Nasdaq 100 futures were down 0.4% vs. fair value. Remember that overnight action in Dow Jones futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
On Tuesday, the Nasdaq composite advanced 0.7%. The S&P 500 moved up 0.4%, while the Dow Jones industrials rallied 0.5%. The major stock indexes were boosted by China trade news and a tweet from President Trump.
Late Monday, White House trade official Peter Navarro told Fox News that the U.S.-China trade deal was “over.” Navarro later told the media that his comment was not about the phase-one China trade deal, which remains in place. He said his statement was “wildly out of context” and that he was referring to a loss of “trust” with Beijing.
Then, President Donald Trump tweeted, “The China Trade Deal is fully intact. Hopefully they will continue to live up to the terms of the Agreement!”
Among exchange traded funds, Innovator IBD 50 (FFTY) turned unchanged Tuesday. The ETF of top growth stocks is about 7% off its 52-week high.
The Nasdaq 100-linked Invesco QQQ Trust (QQQ) ETF moved up 0.85% to close at 248.84. Meanwhile, the SPDR S&P 500 ETF (SPY) moved up 0.5% to 312.05.
Within the coronavirus stock market rally, the tech-heavy Nasdaq hit more record highs and is up 12.9% for the year through Tuesday’s close. Meanwhile, the S&P 500 and DJIA are down 3.1% and 8.4%, year to date, through the June 23 close.