Dow Jones futures rose slightly early Tuesday morning, along with S&P 500 futures and Nasdaq futures. The Dow Jones, S&P 500 index and Nasdaq composite rose modestly Monday. But five stocks broke out into buy zones: Nike (NKE), marijuana stocks Tilray (TLRY) and Canopy Growth (CGC), Ollie’s Bargain Outlet (OLLI) and NextEra Energy Partners (NEP).
All five stocks rose in above-average trade, with Ollie’s Bargain Outlet trading in volume 33% above average and NextEra Energy Partners soaring at 407%. That shows institutional support. Also, Monday’s moves into buy zones weren’t tied to an earnings report, unlike most recent breakouts. That’s a good sign for the stock market rally.
Dow Jones Futures Today
Dow Jones futures were about 0.1% above fair value late Monday. S&P 500 futures were just above break-even. Nasdaq 100 futures climbed 0.1%. The stock market, especially the Dow Jones, has gotten some support over the past several days on news that the U.S and China will hold low-level trade talks in D.C. on Wednesday-Thursday. However, President Donald Trump, in an interview with Reuters released Monday afternoon, expressed doubt that this week’s talks would amount to much. The China trade war could escalate if the U.S. goes ahead with Trump tariffs on a further $16 billion worth of Chinese goods as soon as Thursday.
Nike Stock
Nike stock rose about 3% to 82.18 on Monday, reclaiming an 81.10 buy point. Volume was 43% above normal for Monday’s IBD Stock of the Day. A pair of analyst upgrades to Nike shares triggered Monday’s move, but Nike earnings and sales growth have accelerated as the athletic apparel and shoe giant revives.
Nike stock briefly cleared the 81.10 entry earlier this month, but the move was short-lived and came in light volume.
Marijuana Stocks Tilray, Canopy Growth Break On Through
Tilray stock shot up 17% to 35.90, blasting above a 34.20 IPO base. Volume was 80% above normal. Canopy Growth stock vaulted 11% to 37.54, clearing a 36.55 entry. Volume was 390% above normal. Marijuana stocks have surged since Corona beer maker Constellation Brands (STZ) announced plans on Aug. 15 to greatly increase its investment in Canopy Growth.
Canopy Growth stock listed in the U.S. in May, but was already trading in Canada. Tilray stock is the first true pure-play U.S.-listed marijuana stock IPO.
Ollie’s Bargain Outlet Stock
The closeout retailer’s shares rose 4.3% to 77.65, just clearing a 77.60 buy point. Volume was 33% above normal, which is OK, but investors should focus on breakouts with trading that’s at least 40%-50% higher than usual. Meanwhile, Ollie’s stock is clearing a late-stage pattern, which is riskier.
Don’t be surprised if Ollie’s stock pulls back and consolidates slightly below the buy point, much like Nike stock did.
NextEra Energy Partners Stock
NextEra Energy Partners is a limited partnership focusing on solar, wind and natural gas assets of utility giant NextEra Energy (NEE). Boasting a solid dividend yield, NextEra Energy Partners was an IBD Stock of the Day selection last week.
NextEra Energy Partners stock popped 2.7% to 49.74, clearing a 48.85 entry in volume that was 407% above normal.
