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Tuesday, August 9, 2022

Dow Jones Rallies As Tesla Stock Climbs After AI Day; This Chip Giant Nears Buy Point

The Dow Jones Industrial Average rallied 200 points Friday, as Tesla stock raced higher after its AI Day. And Mercado Libre and Nvidia are near new buy points despite this week’s stock market volatility.


Among Dow Jones leaders, Apple (AAPL) rose 0.5% Friday, while Microsoft (MSFT) moved up 1.5% in today’s stock market. Home Depot (HD) remains below a recent buy point, as it battles for support at a key level.

Tesla (TSLA) raced about 2% higher Friday morning, looking to rebound from Thursday’s 2.25% sell-off. The EV giant remains squarely below a recent buy point. Tesla hosted its AI Day on Thursday.

Among the top stocks to buy and watch, Mercado Libre (MELI), Nvidia (NVDA) and Shopify (SHOP) are in or near new buy zones.

Mercado Libre, Microsoft and Tesla are IBD Leaderboard stocks. Nvidia is an IBD SwingTrader stock. Shopify featured in this week’s Stocks Near A Buy Zone column.

Dow Jones Today

The Dow Jones Industrial Average rose 0.6% Friday morning, while the S&P 500 traded up 0.7%. The tech-heavy Nasdaq composite gained 1.05% in morning trade.

Among exchange traded funds, the Innovator IBD 50 (FFTY) rallied 0.8% Friday. Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) advanced 0.9%. Meanwhile, the SPDR S&P 500 ETF (SPY) climbed 0.6%.

Stock Market Rally

The Dow Jones industrials rebounded from a test of support at its 50-day moving average, while the Nasdaq and S&P 500 continued their rebounds.

Thursday’s Big Picture commented, “The Nasdaq snapped a three-day losing streak Thursday, as it won a key first battle for support at the critical 50-day moving average. The Nasdaq’s bullish reversal could mean the recent selling is finished, but that’s not a certainty at this point. The S&P 500 halted its decline just above its 50-day line.”

For more stock market commentary, check out IBD’s The Big Picture.

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Dow Jones Stocks To Buy And Watch: Home Depot

Home Depot stock is back below a cup-with-handle’s 333.55 buy point following Tuesday’s earnings sell-off.

Shares rallied 0.8% Friday morning, but are still 2% below the buy point. The stock is trying to find support at its 50-day line.

Stocks To Buy And Watch: Mercado Libre, Nvidia, Shopify

IBD Leaderboard stock and Wednesday’s IBD Stock Of The Day, Mercado Libre, moved up 0.3% Friday morning. The largest e-commerce company in Latin America continues to trace a cup with handle with a 1,899.43 buy point. MELI stock is holding just above a 1,755.05 buy point created by the Aug. 5 gap-up on earnings.

New IBD SwingTrader stock Nvidia is approaching a 207.43 buy point, according to IBD MarketSmith chart analysis. The chart also can be interpreted to be a flat base with a 208.85 buy point. Nvidia stock advanced over 2% Friday, moving closer to the new entry. The chip giant featured as Thursday’s IBD Stock Of The Day.

Shopify is just below a 1,499.85 buy point in a cup base, while trying to find support at its key 50-day moving average. Shares rose about 0.5% Friday. The IBD Stock Checkup shows SHOP stock with a strong 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

Tesla stock briefly rallied nearly 2% Friday morning following the company’s AI Day. Tesla’s AI Day, which started nearly an hour late Thursday evening, included a brief introduction by CEO Elon Musk followed, followed by engineer-led presentations of the EV maker’s self-driving capabilities and its Project Dojo supercomputer. The presentation was clearly geared to prospective engineers interested in working for the company’s AI division. 

Musk said the goal of AI Day was to highlight the use of artificial intelligence beyond its vehicle fleet. Musk said the company should unveil a humanoid robot prototype by next year to handle boring and repetitive tasks.

Shares remain squarely below 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, IBD SwingTrader stock Apple moved up 0.5% Friday, looking to add to Thursday’s slight gain. Apple stock is below a 148 trendline buy point. The stock hit an all-time high on Aug. 18 at 151.68 before reversing lower.

Software giant Microsoft rose 1.5% early Friday to hit a new high. 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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