Dow Jones Futures Rise As Market Needs To Do This; Five Stocks Flash

Dow Jones futures rose slightly overnight, along with S&P 500 futures and Nasdaq futures. The stock market rally climbed solidly Tuesday, even as Treasury yields continued to march higher. The major indexes remain in a recent range.

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Apple (AAPL) is on the cusp of a buy signal. Investors arguably could buy Apple stock now from the 50-day line.

Meanwhile, EXPE stock broke out Tuesday, with Expedia (EXPE) earnings due Thursday. Shares of the online travel site rose 3.5% to 193.90, hitting a new high and clearing a 190.88 buy point.

Several hotel/casino stocks are flashing early entries or breaking out. MGM Resorts (MGM) cleared short-term resistance, though earnings are due Wednesday. Hilton Worldwide (HLT) and Hyatt (H) are racing up to highs while Marriott International (MAR) cleared an official buy point. They all have earnings next week.

All of these stocks, from Expedia to MGM stock, have relative strength lines at or near highs. That reflects their outperformance vs. the S&P 500 index.

With coronavirus cases tumbling once again, travel activity should pick up. But the looming earnings reports are definitely a concern. Investors who want to play these stocks now may want to adopt an earnings options strategy.

Speaking of earnings, Paycom (PAYC), Doximity (DOCS), Enphase Energy (ENPH), Global Foundries (GFS) and Chipotle Mexican Grill (CMG) rallied overnight on results, but are well off highs. New Relic (NEWR), a database software maker that was setting up, plunged in extended trade on mixed results and weak guidance.

CVS Health (CVS) earnings are due Wednesday morning with shares hitting highs. As a drugstore, pharmacy benefit and health insurance giant, its results and guidance will be important for a wide range of medical firms.

Expedia stock was added to IBD Leaderboard on Tuesday as an earnings options play.

The video embedded in this article analyzed the market action and discussed EXPE stock, Deere (DE) and Anthem (ANTM).

Dow Jones Futures Today

Dow Jones futures rose 0.2% vs. fair value. S&P 500 futures advanced 0.2% and Nasdaq 100 futures climbed 0.3%.

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live

Stock Market Rally

The stock market rally opened mixed, then moved solidly higher.

The Dow Jones Industrial Average rose 1.1% in Tuesday’s stock market trading. The S&P 500 index advanced 0.8%. The Nasdaq composite climbed 1.3%. The small-cap Russell 2000 popped 1.7%.

The 10-year Treasury yield rose 4 basis points to 1.95%, hitting a fresh two-year high of 1.97% intraday. U.S. crude oil futures fell 2.2% to $89.36 a barrel.

Apple stock rose 1.85% to 174.83, rebounding from its 50-day line. The RS line, the blue line in the charts provided, remains right at record highs.

After this week, AAPL stock is due to have a new base. Investors…