Dow Jones Futures Higher After Trump Speech; Chipotle, Amgen, Verizon, Union Pacific Near Buy Points

Dow Jones futures rose late Tuesday, along with S&P 500 futures and Nasdaq futures, after President Donald Trump made the case to the public for border wall funding amid the government shutdown. The stock market rally continued Tuesday with more top stocks setting up near buy points.




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Amgen (AMGN), Chipotle Mexican Grill (CMG), Verizon Communications (VZ), Union Pacific (UNP) and Five9 (FIVN) are closing rapidly on buy points. Amgen stock, Chipotle stock, Union Pacific stock, Verizon stock and Five9 stock all have relative strength lines at or near highs. The relative strength line tracks a stock’s performance vs. the S&P 500 index.

Dow Jones Futures Today

Dow Jones futures rose 0.4% vs. fair value after the Trump speech. S&P 500 futures climbed 0.4%. Nasdaq 100 futures advanced 0.6%. Remember that Dow futures and other overnight action don’t necessarily translate in actual trading in the next regular session.

Trump Speech: It’s A ‘Crisis,’ But No Emergency

President Trump made a brief primetime speech making the case for border wall funding as the partial government shutdown continues. He said illegal immigration is a “crisis.” But  he didn’t declare a national emergency to unilaterally fund the wall, a move that would have invited swift legal action. He invited congressional leaders to the White House for a meeting Wednesday.

House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer gave the official response to the Trump speech for the Democrats. They blamed Trump for the shutdown.

2019 Stock Market Rally

Amid China trade deal hopes, the Dow Jones and Nasdaq composite rose 1.1% in Tuesday’s stock market while the S&P 500 index advanced 0.9%. The 2019 stock market rally has been underway for nine sessions. That’s now longer than the prior two uptrends since the stock market correction began around early October.

The Trump speech, by avoiding a “national emergency” crisis that could have triggered political chaos in Washington, may offer some more certainty for Wall Street. Still, the government shutdown remains.

A few top stocks have cleared buy points, but a large number are in the pipeline for potential breakouts.

Chipotle Stock

Tuesday’s IBD Stock of the Day, Chipotle Mexican Grill shares moved toward a double-bottom buy point of 501.08. Chipotle stock rose 2.5% to 497.37, less than 1% from the entry. It’s shot up 13% since Christmas Eve, so it wouldn’t be surprising if it took a breather soon.

Chipotle earnings soared 62% in the latest quarter as the company moves past food-borne illness woes, introduces new products and steps up its digital game. Revenue growth has accelerated at a glacial pace that last two quarters.

Chipotle stock is one of several top restaurant stocks acting bullishly.

Verizon Stock

The Dow Jones stock rose 2.9% to 58.38, reclaiming its 50-day line, on strong Verizon wireless subscriber growth. Verizon stock, which rebounded from its 200-day line on Dec. 26, is 4% off a 61.68 buy point from a flat base.

Union Pacific Stock

Union Pacific stock gapped above its 50-day and 200-day averages on Tuesday, gaining 8.7% to 150.75. That moved shares close to a 159.73 double-bottom buy point.

The rail operator late Monday hired Jim Vena as COO. Vena is expected to accelerate the Union Pacific’s adoption of precision scheduled railroading. Union Pacific earnings and sales growth have already accelerated for the past three quarters.

Amgen Stock

Like Chipotle stock and Union Pacific stock, biotech giant Amgen has a double-bottom base. Amgen stock rose 1.3% to 200.61, nearing a 209.09 buy point. Shares reclaimed their 50-day line on Friday.

Five9 Stock

Five9 stock gained 2.3% to 46.94 after popping 7.9% on Monday. Shares are working on a 49.60 buy point from a four-month consolidation.

The IBD 50 software stock is a leader in cloud-based contact center software. Five9 also is adopting artificial intelligence to improve its products. Five9 stock is a recent selection for IBD 50 Stocks To Watch.

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