Dow Jones Rallies Ahead Of Biden, Xi Meeting; Rivian, Tesla Skid

The Dow Jones Industrial Average rallied 100 points early Monday ahead of President Biden’s virtual meeting with Chinese President Xi Jinping. Rivian reversed higher in morning trade, while Tesla stock skidded.

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Among the Dow Jones leaders, Apple (AAPL) moved up 0.9% Monday, while Microsoft (MSFT) added 0.1% in today’s stock market. American Express (AXP), JPMorgan Chase (JPM) and Nike (NKE) continue to trade near new buy points in the current rally.

Among the electric-vehicle leaders, Tesla (TSLA) declined 3% Monday, while Rivian (RIVN) moved up over 3% after reversing from early losses. Lucid Motors (LCID) will report Monday night. Elsewhere, CrowdStrike (CRWD) slid more than 6% early after Morgan Stanley started the stock at underweight.

Among the top stocks to buy and watch, Google-parent Alphabet (GOOGL), On Holding (ONON) and Sprout Social (SPT) are in or near buy zones.

Microsoft, On Holding and Tesla are IBD Leaderboard stocks. Apple was featured in last week’s Stocks Near A Buy Zone story. And Alphabet was featured in Friday’s IBD Sector Leaders story.

Dow Jones Today: Biden, Xi Meeting

After the stock market open Monday, the Dow Jones Industrial Average rose 0.3%, while the S&P 500 gained 0.2%. The tech-heavy Nasdaq composite rallied 0.3% in morning trade

Among exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.3% after the market open. And the SPDR S&P 500 ETF (SPY) ascended 0.25%.

President Joe Biden and President Xi plan to meet virtually Monday evening, but expectations are modest and neither expect concrete outcomes. Discussion topics include Taiwan, human rights and Chinese economic practices.

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Stock Market Rally

The stock market pullback continued to stabilize Friday, as the major stock indexes logged moderate to strong gains. Despite the Thursday-Friday rebound, the Nasdaq and S&P 500 still both snapped five-week win streaks.

On Friday, The Big Picture commented, “Yet, the stock market’s recovery healed much of the week’s earlier damage, and a prolonged slump now seems less likely. The past week’s moderate contraction served as a healthy shakeout, after the major indexes raced to record highs.”

For daily stock market commentary, be sure to check out IBD’s The Big Picture.

Five Best Dow Jones Stocks To Watch Now

Dow Jones Stocks To Buy And Watch: Amex, JPMorgan, Nike

American Express ended Friday in buy range past a 178.90 entry in a cup with handle, according to IBD MarketSmith chart analysis. Shares traded up 0.3% Monday.

Stocks To Buy And Watch: Alphabet, On Holding, Sprout

IBD Sector Leader Alphabet regained a 2,925.18 buy point in a flat base, according to IBD MarketSmith chart analysis, during Friday’s rally. The 5% buy area runs up to 3,071.44, so the stock is back in buy range. GOOGL shares rallied 0.3% Monday.

IBD Stock Checkup shows GOOGL stock with a strong 97 out of a perfect 99 IBD Composite Rating. The IBD Composite Rating identifies stocks with a blend of strong fundamental and technical characteristics.

IBD Leaderboard stock On Holding is building a cup with handle with a 39.90 buy point. Shares were down 0.3% Monday. Per Leaderboard analysis, the stock recently crossed an aggressive trendline buy point near 36.

Tuesday’s IBD 50 Stocks To Watch pick, Sprout Social, continues to form a choppy consolidation with a 145.52 buy point. Shares tried to claim an early entry at 139.90 last week, but that breakout attempt sputtered. The stock was up 1.5% Monday, looking to add to Friday’s 3.9% gain.

Join IBD experts as they analyze leading stocks in the current stock market uptrend on IBD Live

EV Stocks To Buy And Watch: Xpeng, Lucid Motors, Rivian, Tesla

Xpeng Motors (XPEV) moved back above a 48.08 buy point in a choppy cup base following Friday’s 2% advance after the company teased a new electric vehicle. It will be unveiled at a Guangzhou auto show Nov. 19. XPEV stock fell nearly 1% Monday.

Lucid stock rallied nearly 1% Monday, ahead of the company’s earnings after the close. Lucid Motors started deliveries in late October. LCID stock is extended past a 28.49 buy point in a cup with handle.

Hot new issue Rivian rallied over 3% Monday, set to extend a three-day win streak. Despite the stock’s initial surge, remember that investors should be disciplined about buying new issues. Wait for an IPO base to form and offer the stock’s first buy point before considering a purchase.

Tesla stock dropped 3% Monday, threatening to add to Friday’s 2.8% stumble. The stock ended Friday about 17% off its 52-week high amid last week’s sharp losses.

Tesla traded as high as 1,243.49 on Nov. 4. TSLA shares remain sharply above a 764.55 buy point in a cup with handle, as well as earlier entries at 700.10 and 730. The chart also showed an alternate entry at 900.50.

Dow Jones Leaders: Apple, Microsoft

Among the top Dow Jones stocks, Apple has formed a new cup-with-handle base with a 153.27 buy point, according to IBD MarketSmith chart analysis. Meanwhile, an early entry at 152.53 is also in play. Shares traded up 0.9% Monday after Friday’s 1.4% gain bounced off the key 50-day moving average.

A real flaw is the stock’s lagging relative strength line. That line is near recent lows, indicating sharp stock market underperformance vs. the S&P 500.

Software giant Microsoft moved up 0.1% Monday, looking to add to Friday’s 1.3% gain. On Oct. 18, Microsoft broke out past a flat base‘s 305.94 buy point. The 5% buy zone tops out at 321.24, so the stock is now extended. Shares are just off new highs.

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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