The Dow Jones Industrial Average rallied 150 points Tuesday, as the U.S. Senate is expected to pass a roughly $1 trillion infrastructure package. Tesla stock dropped following July China sales data.
Tesla (TSLA) threatened to fall after Monday’s 2.1% gain, dropping over 1% Tuesday morning.
Dow Jones Today: $1 Trillion Infrastructure Package
The Dow Jones Industrial Average rallied 0.4% Tuesday, while the S&P 500 traded up 0.1%. The tech-heavy Nasdaq composite reversed 0.55% lower in morning trade.
U.S. Stock Market Today Overview
Last Update: 10:36 AM ET 8/10/2021
The Senate was set to pass a roughly $1 trillion infrastructure package with broad bipartisan support Tuesday. The bill includes $550 billion for transportation, broadband and utilities. The Senate is expected to vote on the bill’s passage at about 11 a.m. ET.
Among exchange traded funds, the Innovator IBD 50 (FFTY) traded up 0.3% Tuesday. Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) moved less than 0.1% higher. Meanwhile, the SPDR S&P 500 ETF (SPY) rose 0.2%.
Stock Market Rally
The Dow Jones industrials and the S&P 500 remain just off Friday’s record highs, while the Nasdaq recovered more of Friday’s modest losses.
Monday’s Big Picture commented, “Meanwhile, the astute IBD reader no doubt is keeping a close eye on the elevated distribution day count on both the Nasdaq and S&P 500. Indeed, a large number of institutional sell-offs should never be ignored. Yet few of the current distribution days in the rolling 25-trading-day account showed real bite. For instance, out of the five seen in the Nasdaq lately, just the July 19 decline (1.1%) exceeded 1%.”
For more stock market commentary, check out IBD’s The Big Picture.
Dow Jones Stocks To Buy And Watch: Home Depot
Dow Jones leader Home Depot is trying to break out past a cup with handle’s 333.55 buy point, according to IBD MarketSmith chart analysis. The 5% buy area goes up to 350.23.
Shares gained 0.1% Tuesday morning.
Stocks To Buy And Watch: MercadoLibre, Snap, Square
IBD Leaderboard stock MercadoLibre is trading above a 1,755.05 buy point following Tuesday’s nearly 5% jump. Per Leaderboard analysis, the stock’s first 5 minutes of trading notched a high of 1,755.05, setting an alternate entry for aggressive investors. A trend line within the base may also offer another early entry point.
The stock is also building the right side of a cup base, according to IBD MarketSmith chart analysis. Another possible entry looms at 2020.10. And be on the lookout for a potential handle to offer a more risk-optimal buy point.
On July 23, Snap surged almost 24% following a second-quarter earnings report that toppled estimates with revenue more than doubling, and an outlook that also beat views.
IBD SwingTrader stock Square is back in buy range past a 267.87 buy point in a cup-with-handle base amid Tuesday’s 0.5% loss. The 5% buy zone goes up to 281.26.
According to the IBD Stock Checkup, SQ stock shows a 96 out of a perfect 99 IBD Composite Rating. The IBD Composite Rating identifies stocks with a blend of strong fundamental and technical characteristics.
Tesla stock dropped over 1% Tuesday, giving back a piece of Monday’s 2.1% gain. Early Tuesday, the China Passenger Car Association (CPCA) said that Tesla sold 32,968 China-made vehicles in July, including 24,347 for export.
Shares are still above a 700.10 aggressive buy point deep inside a correction. Meanwhile, a deep, large base continues to take shape.
On Jan. 25, Tesla stock hit a record high at 900.40, after climbing as much as 93% from a 466 buy point in a cup with handle.
Dow Jones Leaders: Apple, Microsoft
Among the top Dow Jones stocks, Apple moved up 1% Tuesday, on pace to snap a two-day losing streak. The stock hit an all-time high on July 15 at 150. Apple stock remains out of the 5% buy zone from a 137.17 entry in a cup base. On a weekly chart, IBD MarketSmith chart analysis also places a buy point at 145.19 in a consolidation, which would put Apple in a buy range through 152.45.
Software giant Microsoft rose 0.1% early Tuesday, but remains just off record highs. Microsoft continues to trade solidly above a cup base’s 263.29 buy point. The stock is extended above the 5% buy zone, which goes up to 276.45.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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