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Dow Jones futures came off early highs Monday, wrestling to add to Friday’s powerful stock market gains. December-quarter earnings season kicks off this week, with highly anticipated results from Dow Jones members JPMorgan Chase (JPM)Â and UnitedHealth Group (UNH). And Tesla (TSLA) stock continued to bounce after hitting a new low Friday.
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Global markets and oil prices received a boost after positive recovery comments from a People’s Bank of China official on Sunday. That helped send Tesla and a number of China-based stocks, as well as chip stocks including ASML Holding (ASML) and Nvidia (NVDA) to the top of the Nasdaq 100 in early trade.
Companies reporting earnings Monday morning include Acuity Brands (AYI) and Commercial Metals (CMC). Acuity Brands was inactive after posting better-than-expected results for its fiscal first quarter. And Commercial Metals shares rose nearly 5% after strong results. Lastly, Lululemon Athletica (LULU) plunged 10% after it warned its fourth-quarter gross margin would come in lower than expected.
Other companies reporting later this week include Jefferies (JEF), KB Home (KBH), Taiwan Semiconductor Manufacturing (TSM), Bank of America (BAC), Citigroup (C) and Wells Fargo (WFC).
Dow Jones stock Visa (V) and Mastercard (MA) were both upgraded to overweight ratings at KeyBanc. Visa shares climbed 1%, while MA stock moved up 1.5%.
Electric-vehicle leader Tesla rallied around 3% Monday. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were both squarely higher ahead of today’s stock market open.
Cardinal Health (CAH), Deere (DE), Medpace (MEDP) and IBD Leaderboard stock Neurocrine Biosciences (NBIX) — as well as Dow Jones names Caterpillar (CAT), Chevron (CVX) and Walmart (WMT) — are among the top stocks to buy and watch with the market back in rally mode.
Neurocrine is an IBD Leaderboard stock. Caterpillar and Medpace were recent IBD Stock Of The Day companies. And Cardinal Health was featured in a recent Stocks Near A Buy Zone column.
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Dow Jones Today: Oil Prices, Treasury Yields
Before Monday’s opening bell, Dow Jones futures rose 0.4% above fair value. S&P 500 futures gained 0.5%. And tech-heavy Nasdaq 100 futures rose 0.7% in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.7% and the SPDR S&P 500 ETF (SPY) traded up 0.5% early Monday.
The 10-year Treasury yield ticked higher to 3.59% Monday morning, looking to rebound from last week’s sharp losses. Big losses Friday were sparked by the December jobs report.
Meanwhile, oil prices rebounded Monday morning following last week’s slide. West Texas Intermediate futures rose more than 3%, trading above $76 a barrel.
Stock Market Rally
On Friday, the Dow Jones Industrial Average advanced 2.1%, and the S&P 500 jumped 2.3%. The Nasdaq composite surged 2.6%.
Friday’s The Big Picture column commented, “The positive action in high volume has caused the IBD market outlook to switch to “market in confirmed uptrend.” Nevertheless, it is still an uncertain environment, and exposure should be increased in a measured fashion. Investors should stick to 20% to 40% exposure for now.”
Five Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Buy And Watch: Caterpillar, Chevron, Walmart
Dow Jones member Caterpillar closed squarely in buy range above a flat base’s 239.95 buy point following Friday’s 3.6% advance, according to IBD MarketSmith pattern recognition. The buy zone goes up to 251.95. Bullishly, the stock’s relative strength line, a key technical indicator, is at new highs. Shares were up 0.5% Monday.
CAT stock shows a strong 98 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. The Composite Rating is designed to help investors easily find top growth stocks.
Energy giant Chevron is trying to retake its 50-day line, as it continues to build a cup base that has a 189.78 buy point. CVX shares rose 1.5% Monday morning, climbing with oil prices.
Discount retailer Walmart bullishly reclaimed its 50-day line during Friday’s 2.45% jump. Shares are building a cup with handle that has a 154.74 buy point and are about 5% away from the latest entry. Walmart shares edged higher Monday morning.
4 Top Growth Stocks To Buy And Watch In The New Stock Market Rally
Top Stocks To Buy And Watch: Cardinal Health, Deere, Medpace, Neurocrine
Cardinal Health, a recent IBD Stock Of The Day, rallied 2.6% Friday, regaining its 50-day line. CAH stock was unchanged Monday.
Recent IBD Stock Of The Day, Deere, is building a flat base with a 448.50 buy point. Shares are approaching their latest buy point after moving back above the 50-day line during Friday’s 2.8% rise. DE stock traded up 0.4% Monday morning.
Medpace continues to consolidate below its 50-day line. For now, the correct buy point stays at 235.82, but an earlier entry at 220.09 is also in play. MEDP stock was inactive Friday.
IBD Leaderboard stock Neurocrine Biosciences is rebounding from support at its 50-day line. A new flat base shows a buy point at 129.39, with an early entry at 122.93. NBIX stock was unchanged.
Stocks To Buy And Watch In New Stock Market Rally
These are six top stocks to watch in today’s stock market, including three Dow Jones leaders.
| Company Name | Symbol | Correct Buy Point | Type Of Base |
|---|---|---|---|
| Cardinal Health | (CAH) | 81.67 | Flat base |
| Deere | (DE) | 448.50 | Flat base |
| Neurocrine Biosciences | (NBIX) | 129.39 | Flat base |
| Caterpillar | (CAT) | 239.95 | Flat base |
| Chevron | (CVX) | 189.78 | Cup base |
| Walmart | (WMT) | 154.74 | Cup with handle |
Source: IBD Data As Of Jan. 9, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock reversed from big losses Friday, ending the session up 2.5%. On Friday, shares hit a 52-week low at 101.81, closing about 71% off their 52-week high.
Shares looked to add to Friday’s gains, rising more than 3% Monday morning.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares rebounded 3.7% Friday. Last week, the stock hit a new 52-week low price of 124.17. The stock remains around 30% off its 52-week high. Shares rose 0.5% Monday morning.
Microsoft stock rallied 1.2% Friday, snapping a four-day losing streak. The software giant is about 31% off its 52-week high and is still just off its 52-week low of 213.43, reached on Nov. 4. MSFT stock moved 0.55% higher early Monday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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