Dow Goes For 5 Straight; Tesla Reverses Higher; Airlines Soar | Stock News & Stock Market Analysis

The Dow Jones industrial average was poised for its fifth straight gain late Tuesday, helped by strength in American Express (AXP), Verizon (VZ) and Walt Disney (DIS), which showed gains of around 1%.

XAutoplay: On | OffThe Dow was up 0.4%; the S&P 500 added 0.2% and the Nasdaq composite rose 0.1%. Small caps lagged a bit with the Russell 2000 down 0.2%.

In the stock market today, sellers were in Tesla (TLSA) early, but shares reversed higher, rising 1% to 345.60. Late Monday, the company reported lower-than-expected production of its new, lower-priced Model 3 sedan. The electric car maker is still below the 50-day moving average after flashing a sell signal from a 370.10 buy point.

Tesla is one of several high-profile names that have been weighing on the Nasdaq 100 recently, along with Apple (AAPL) and Amazon.com (AMZN), among others.

Leaderboard name Netflix (NFLX) was looking a bit vulnerable Monday when shares fell more than 2% in higher volume. It closed slightly below the 50-day moving average but was back above the support level Tuesday. Shares were up 0.9% to 178.53 in light volume. Its cup-with-handle base with a 190.05 buy point remains intact.

Meanwhile, airlines outperformed after Delta Air Lines (DAL) reported September traffic data. Shares of Delta gapped powerfully above the 50 level, soaring 6.5% to 51.19.

SkyWest (SKYW) was another big mover in the group, up 4% to 47.08, but it’s well-extended after a breakout over a 39.95 buy point. SkyWest has been a rare bright spot in a tough year overall for airline stocks. Year-to-date, the group is down about 12% compared to a 13% gain for the S&P 500.

Inside the IBD 50, China-based names did the heavy lifting again. Weibo (WB), China Lodging (HTHT), Alibaba (BABA) and Sina (SINA) showed gains ranging from 2.5% to 4%. China’s Hang Seng index jumped 2.25% overnight, while gains were more muted in the Shanghai Composite at 0.3%.


IBD’S TAKE: Weibo is one of several China stocks tracked in IBD’s internet content group, a top-performing group based on six-month price performance. For a look at other leaders in the group, consult an IBD Stock Checkup.


In the homebuilding group, Lennar (LEN) looked poised to extend its winning streak to seven sessions after reporting better-than-expected earnings before the open. Shares jumped 5% to 55.43. Lennar is still in buy range from a 54.96 entry but it still has its prior high to contend with at 55.75.

Benchmark crude oil futures for November delivery edged lower to $50.44 a barrel.

Meanwhile, the 10-year Treasury yield eased 1 basis point to 2.33% ahead of Wednesday’s ADP Employment Report for September, which is expected to show private payrolls up 140,000, compared to 237,000 in August. Nonfarm payrolls gains on Friday are seen coming in at 100,000. The sluggish number is partly due to hurricanes in Texas and Florida. So far this year, the economy has created an average of 184,000 jobs each month.

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