Dow Jones futures were slightly lower in extended trading ahead of Federal Reserve Chairman Jerome Powell’s speech on Tuesday. The Dow Jones Industrial Average rallied to 305 points on Monday before turning lower.
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Powell speech, inflation data, earnings
Fed chief Powell will speak at the Sveriges Riksbank International Symposium on Central Bank Independence in Stockholm, Sweden. His speech is scheduled to begin at 9 a.m. ET. Powell’s speech comes on the heels of Friday’s jobs report, which showed wage growth cooled more than expected and workers worked fewer hours for the second straight month. The data should allow the Fed to further reduce interest rate hikes.
The 10-year Treasury yield fell to 3.51% on Monday, falling for a second straight session.
Jefferies (JEF) reported earnings that met estimates and sales that topped forecasts. Jefferies shares lost more than 3% in extended trading.
Other companies that will report later this week include KB Home (KBH), Taiwan Semiconductor Manufacturing (TSM), Bank of America (BAC), Citigroup (c) and Wells Fargo (WFC) Dow Jones stocks JPMorgan Chase (JPM) and United Health Group (UNH) will report this week.
Stock market today
On Monday, the Dow Jones Industrial Average fell 0.3%, and the S&P 500 lost 0.1%. The tech-heavy Nasdaq composite rose 0.6%. Among equities, Nasdaq 100 tracker Invesco QQQ Trust ( QQQ ) rose 0.65% while the SPDR S&P 500 ( SPY ) fell.
Electric-vehicle giant Tesla ( TSLA ) rose 5.9 percent Monday. Among Dow Jones stocks, Apple ( AAPL ) gained 0.4% and Microsoft ( MSFT ) rose 1 percent in today’s stock market .
Deer (DE), IBD leaderboard stock ELF beauty (ELF), Rio Tinto (RIO) and IBD SwingTrader stock Super micro computer (SMCI) – as well as names of the Dow Jones Caterpillar (CAT), Chevron (CVX) and Walmart (WMT) – Are among the top stocks to buy and watch with the market in rally mode.
ELF Beauty is an IBD leaderboard stock. Super Micro is a new IBD SwingTrader idea. Caterpillar and Rio have recently seen shares close to the exit zone this week.
4 High Growth Stocks to Buy and Watch in CurRent stock market rally
Dow Jones futures today: oil prices
Dow Jones futures traded 0.3% below par before Tuesday’s opening bell, and S&P 500 futures were down 0.35%. Tech-heavy Nasdaq 100 futures were down 0.4% against the real deal. Remember that overnight action in Dow Jones futures and elsewhere does not translate into actual trading during the next regular stock market session.
U.S. oil prices rose more than 1 percent on Monday, recovering slightly from last week’s sharp losses. West Texas Intermediate futures were trading below $75 a barrel.
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What to do in the new stock market rally
Now is an important time to read IBD’s The Big Picture column, where the stock market’s trend toward “confirmed growth” is different from recent moves following Friday’s strong gains.
Friday’s positive move has led to a shift in IBD’s market outlook to a new stock market rally. However, it is still an area of uncertainty, and exposure should increase measurably. Investors should maintain 20% to 40% exposure for now.
(For more stock ideas, check out IBD’s Stock Lists, such as the IBD 50 and Nearest Buy Zone.)
Five Dow Jones stocks to buy and watch now
Dow Jones stocks to buy and watch: Caterpillar, Chevron, Walmart
The Dow Jones Industrial Average remains squarely in buy territory above a flat 239.95 buy point after Monday’s 0.9% decline. According to IBD’s MarketSmith pattern detector. The buy zone reaches 251.95. Bullishly, the stock’s relative strength line, a key technical indicator, is at a new high.
CAT stock shows a strong 98 out of 99 in IBD’s composite rating, according to IBD’s stock survey. Composite Ratings are designed to help investors easily find high-growth stocks.
Energy giant Chevron found strong resistance at its 50-day line as a cup base with a buy point of 189.78 continued to build.
Discount retailer Walmart traded down 1.25% on Monday, falling below its 50-day line. Shares are forming a cup with a 154.74 buy point and 6% away from the recent entry.
Top stocks to buy and watch: Deere, ELF Beauty, Rio, Super Micro
The latest IBD stock is building a flat base with a buy point of 448.50. Shares rose 0.4% on Monday and are nearing their latest buy point.
IBD Leaderboard stock ELF Beauty left a flat-base entry of 57.03 amid Monday’s 3.9% decline. Shares opened higher on Friday, indicating strong institutional demand for the cosmetics leader. If the stock is able to regain its earnings, the 5% buy zone will be exceeded at 59.88.
IBD’s latest stock of the day, Rio Tinto, shed just 0.1% of Monday’s gains, rising above the handle’s 73.45 buy point cup. The buy position goes up to 77.13.
IBD SwingTrader stock Super Micro Computer has a short consolidation with a 95.32 buy point and is moving quickly to the right. Shares were down 0.45% on Monday.
Shares to buy and watch in the new stock market rally
These are seven top stocks to buy and watch in today’s stock market, including three Dow Jones leaders.
| Company Name | sign | The right point of purchase | Base type |
|---|---|---|---|
| Deer | (DE) | 448.50 | Flat base |
| ELF beauty | (ELF) | 57.03 | Flat base |
| Rio Tinto | (RIO) | 73.45 | Cup with hand |
| Super micro computer | (SMCI) | 95.32 | Consolidation |
| Caterpillar | (CAT) | 239.95 | Flat base |
| Chevron | (CVX) | 189.78 | Cup base |
| Walmart | (WMT) | 154.74 | Cup with hand |
Source: IBD data as of January 9, 2023
Join IBD’s experts as they analyze the top stocks in the current stock market rally on IBD Live
Tesla stock
Tesla shares rose nearly 6% on Monday, adding to Friday’s reversal. Shares remain well below their 50- and 200-day lines.
Last week, shares hit a 52-week low of 101.81. Tesla stock closed about 68% off its 52-week high on Monday.
Dow Jones leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares rose 0.4 percent on Monday. Last week, the stock hit a new 52-week low of 124.17. The stock remains about 20% off its 52-week high.
Microsoft shares rose 1% on Monday, adding to Friday’s gains. The software giant is 30% off its 52-week high and is still off its 52-week low of 213.43, reached on November 4.
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