Dow Jones Futures: 2019 Stock Market Rally Doesn’t Need Apple Stock

Dow Jones futures rose modestly late Monday, along with S&P 500 futures and Nasdaq futures. The 2019 stock market rally rose solidly Monday, building on Friday’s follow-through day. After a punishing stock market correction in which the major averages struggled to advance without Apple (AAPL), the Dow Jones, S&P 500 and Nasdaq all rallied even as Apple stock lags further and further behind. FANG stocks Amazon.com (AMZN) and Netflix (NFLX) continue to rebound, with Amazon stock capturing the hot-potato market-cap crown from Microsoft (MSFT).




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A few top stocks broke out to buy zones in Monday’s stock market, while a wide array of growth names are setting up. Meanwhile, Union Pacific (UNP) surged late after the rail giant named industry veteran Jim Vena as chief operating officer.

Dow Jones Futures Today

Dow Jones futures rose nearly 0.4% vs. fair value. S&P 500 futures climbed 0.4%. Nasdaq 100 futures were up 0.3%. Keep in mind that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular session.

2019 Stock Market Rally

The major market averages continued to climb in Monday’s stock market trading after the Dow Jones and S&P 500 index confirmed the 2019 stock market rally on Friday. The Nasdaq composite advanced 1.3%, the Dow Jones 0.4% and the S&P 500 0.7%, though they all finished off session highs.

The Nasdaq composite and S&P 500 index reclaimed their 21-day moving averages.

A large number of software, restaurant, drug and biotech stocks as well as some discount retailers, auto parts plays and chipmakers are moving toward new highs and buy points. Leading stocks breaking out are key for a healthy stock market rally — and give investors buying opportunities.

Apple Stock Hits Relative Low

Apple stock fell 0.2% Monday to 147.93, though it did pare a 1.6% intraday loss. Still, the relative strength line, which tracks a stock’s performance vs. the S&P 500 index, hit its lowest level since February 2017. The RS line is the blue line in the chart below.

When Apple stock plunged 10% last Thursday after CEO Tim Cook warned on China and iPhone demand, the broader market also sold off. But the major averages also tumbled on a Delta Air Lines (DAL) warning and a stunning drop in the ISM manufacturing index.

Apple iPhone chipmakers such as Broadcom (AVGO) suffered big losses on Thursday. But they moved higher on Monday.

Apple is a member of the Dow Jones, S&P 500 index and Nasdaq composite. But Apple stock is seriously damaged: The company is facing a sudden downshift in revenue with no easy fix. So it’s crucial that the 2019 stock market rally can thrive without the iPhone maker’s leadership.

Amazon Stock Takes Market Cap Crown

Apple stock, which a few months ago boasted a market cap well above $1 trillion, is at $702 billion now.

Amazon stock, which also briefly topped a $1 trillion valuation, is No. 1 with a $796.8 billion cap. Shares shot up 3.4% to 1,629.51, reclaiming their 50-day moving average.

Microsoft stock, which only recently grabbed the market-cap crown from fellow Dow component Apple, is now No. 2 at $783.4 billion. Shares edged up 0.1% to 102.06, giving it a $783.4 billion market cap. Google parent Alphabet (GOOGL) dipped 0.2% to 1,075.92, but held above its 50-day line. Google stock has a $748.3 billion market cap.

Netflix stock, which only boasts a $137.5 billion market cap, shot up 6% on Monday and is up nearly 18% in 2019.

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