The major stock indexes gave up a large portion of early gains in morning trade Monday. The Dow Jones industrials traded barely above the break-even mark in today’s stock market. Dow Jones stock Boeing (BA) neared another all-time high. Tesla (TSLA) stock surged after a key upgrade. Notably, top growth stock Lululemon (LULU) is approaching a potential breakout in the current stock market.
The tech-heavy Nasdaq composite gained 0.3%. The S&P 500 index moved up 0.2%, while the Dow Jones industrials cut its advance to less than 0.1%. All three major stock indexes are near potential resistance areas, corresponding to their respective 200-day moving average lines. The Dow is just above that level, while the other two are below it. (For updates on this story and other market coverage, visit the Stock Market Today page.)
Dow Jones Stocks: Boeing Outperforms
On the downside, UnitedHealth Group (UNH) fell over 1%, as it tests its 50-day line. According to MarketSmith chart analysis, UnitedHealth stock is building a cup with handle that has a 272.54 buy point.
Stock Market Earnings: Burger King Parent Breaks Out
Burger King parent Restaurant Brands International (QSR) gained about 4%, as it broke out past a cup with handle’s 64.27 buy point. The restaurant chain topped Q4 earnings estimates early Monday. The 5% buy range tops out at 67.48.
According to the IBD Stock Checkup, Restaurant Brands stock has a 97 out of a highest-possible 99 IBD Composite Rating. The Composite Rating is a blend of key fundamental and technical metrics. Meanwhile, the stock’s relative strength line is trading at highs, confirming the breakout’s strength.
Earning season is slowing down, but a number of high-profile stocks are still set to report this week, including highflying marijuana stocks Cronos (CRON) (early Wednesday) and Canopy Growth (CGC) (early Thursday). Meanwhile, embattled graphics-chip maker Nvidia (NVDA) will report after the stock market close Thursday.
Tesla Stock Upgraded
Tesla stock jumped 3.5% in morning trade after Canaccord Genuity upgraded the electric-auto maker from hold to buy and raised its price target from 330 to 450. The new price target is a 47% premium to Friday’s closing price at 305.80.
The analyst commented that Tesla should have “far fewer concerns” for investors in 2019. Tesla stock remains below its 50-day moving average line and is fighting to regain its long-term 200-day line.
Top Growth Stocks To Watch: Lululemon, PayPal Near Buy Zones
Among the IBD 50 stocks, Lululemon is nearing a cup with handle’s 152.91 buy point in the current stock market. The retail stock gained almost 1% Monday, placing the stock about 2% away from the buy point. Look for the stock’s RS line to hit another high if the stock is able to continue its upside momentum and break out. The RS line should hit a new high on the breakout day or shortly thereafter.
Meanwhile, PayPal (PYPL) stock is regaining a 92.45 buy point with an over-1% gain early Monday. The buy point is the result of a handle added to choppy base formation. Shares fell below the buy point in the wake of the company’s earnings results on Jan. 30.
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