The Dow Jones industrial average rose on Monday ahead of a busy week of key economic data and as the dollar fell to an eight-month low. A big week of earnings news includes Tesla’s results, due to be released on Wednesday. Y advanced micro devices (AMD) rose 6% after an upgrade from Barclays to the overweight.
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On the economic front, this week’s data includes Tuesday’s preliminary January purchasing managers’ index for manufacturing and services from researcher Markit. On Thursday, fourth-quarter GDP estimates are due from the Commerce Department along with weekly jobless claims from the Labor Department and December new home sales numbers from the Census Bureau. Finally, inflation data will close out the week on Friday with the Commerce Department’s Personal Consumption Expenditures price index.
Oilfield Equipment Heavyweight baker hughes (BKR) reported earnings on Monday morning, with shares gaining more than 1% in morning trade.
Other key gains this week include Dow Jones members amexpress (AXP), Boeing (LICENSED IN LETTERS), Chevron (CLC), IBM (IBM), Intel (INTC), johnson and johnson (JNJ), Microsoft (MSFT), Travellers (TRV), Verizon Communications (VZ) and Visa (V).
Other significant income is due to ASML (ASML), Dr Horton (IDH), halliburton (HAL) and tesla (TSLA).
stock market today
Spotify (SPOT) advanced more than 3% after announcing layoffs that will cut 6% of its workforce. Shopify (SHOP) rose 4% on an upgrade from Deutsche Bank to hold to buy.
electric vehicle leader tesla (TSLA) was up more than 3% on Monday morning. Dow Jones technology giants Apple (AAPL) and Microsoft (MSFT) were both higher after the stock market opened today.
IBD Classification Table Fluorine (FLR), IBD Recent Stock of the Day med pace (MEDP), monster drink (MNST) and Vertex Pharmaceuticals (VRTX), as well as the names of Dow Jones Caterpillar (CAT), Chevron (CLC) and Visa (V) — are among the top stocks to buy and watch as the market tests the strength of another rally.
Fluor and Medpace are stocks of the IBD classification. Vertex was the IBD stock of the day on Wednesday. Visa appeared in the Stocks column near a buy area last week.
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Dow Jones Today: Oil Prices, Treasury Yields
After the opening bell on Monday, the Dow Jones industrial average rose 0.2% and the S&P 500 gained 0.5%. And the Nasdaq technology composite advanced 1%, with AMD and Tesla among the leaders.
Among US exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) was up 1% and the SPDR S&P 500 ETF (SPY) was up 0.5% early Monday.
The 10-year US Treasury yield rose to 3.53% on Monday morning, looking to rise for a third straight session. Still, the 10-year yield is on a three-week losing streak that saw it hit its lowest level since mid-September.
The dollar lost ground against competing currencies on economic news and views that the Fed was ready to soften its rate-hike strategy. The euro rose above $1.09 against the dollar, while the US dollar index fell to its lowest level since May.
Oil prices rose on Monday, on track to extend a winning streak to three sessions. West Texas Intermediate futures traded above $82 a barrel, close to last week’s high.
Chinese markets are closed all week for the Lunar New Year.
stock rally
On Friday, the Dow Jones Industrial Average rose 1% and the S&P 500 rose 1.9%. The Nasdaq Composite rose 2.7% to break a two-day slide.
Friday’s The Big Picture column commented: “With action encouraging at the end of the week, it makes sense for investors to have 40-60% market exposure. The upper hand.”
Now is an important time to read IBD’s The Big Picture column amid the current stock market rally.
Five Dow Jones Stocks to Buy and Watch Now
Dow Jones Stocks to Buy and Watch: Caterpillar, Chevron, Visa
Caterpillar remains in the buy range above the buy point of 239.95 on a flat basis after last week’s losses. The 5% buy area rises to 251.95. CAT shares rose 0.4% on Monday.
Energy giant Chevron is rounding the right side of a cup base with a buy point of 189.78, according to IBD MarketSmith pattern recognition. Keep an eye out for a handle to offer a lower entry. Chevron’s fourth-quarter earnings will be released on Friday. CVX shares rose 0.1% on Monday.
CVX stock shows a strong 95 out of a perfect IBD composite rating of 99, according to IBD stock verification. The composite rating is designed to help investors easily find the fastest growing stocks.
Payments leader Visa is trading in a buy range above a buy point of 220.08 in a long pattern. The 5% buy area rises to 231.08. Visa shares inched lower early Monday, ahead of the company’s fiscal first-quarter results due to be released on Thursday.
Top 4 Growth Stocks to Buy and Watch in the stock rally
Top Stocks to Buy and Watch: Fluor, Medpace
Stocks of the IBD Fluor rating are trying to break above the buy point of 36.16 on a flat basis, and are right at the entry after Friday’s 4.4% rise. If the stock picks up that entry, the 5% buy area tops out at 37.97. FLR shares rose 0.7% early Monday.
Background: Fluor manages large infrastructure projects in the oil and gas, chemical, mining and transportation industries. This is a profit-changing play. A poor earnings per share rating reflects net losses in 2019 and 2020 and a drop in expected earnings in 2022 to 86 cents per share. Analysts, however, see earnings rising 95% next year to $1.68 per share.
Medpace inched closer to the 235.82 buy point of a consolidation, ending just 3% shy of the last entry. In recent weeks, shares have moved above an anticipated entry at 220.09. The company’s earnings results are expected on February 13. Medpace shares rose 0.8% early Monday.
Background: Medpace is a Clinical Contract Resource Organization, or CRO. It helps drug manufacturers conduct the clinical studies necessary to obtain approval for new drugs. In the third quarter, the company issued a bullish outlook for 2023, forecasting 18% sales growth at the midpoint of its guidance.
Monster, Vertex Trace Flat Bases
Monster Beverage is directly below its 50-day line after last week’s dip. Stocks are tracing a flat bottom with a buy point of 104.75. MNST shares were down 0.2% on Monday.
Background: Monster Beverage leads an energy drink duopoly with private competitor Red Bull. The Company’s portfolio of energy drink brands includes Monster Energy, Reign and NOS Energy.
Monster dominates energy drinks in the US, grabbing a 39% market share last year, according to Jefferies data, resulting in record $5.5 billion in revenue for the company. Red Bull accounted for 37% of the US energy drink market in 2021. Upstart Celsius (CELH), which is on an impressive growth streak, grabbed 4.9% of the market.
Wednesday’s IBD stock for the day Vertex Pharmaceuticals is nearing a buy point of 324.85 on a flat basis after bullishly retaking its 50-day line last week. VRTX shares were flat on Monday.
Background: The company is known for its cystic fibrosis treatments, a market Vertex estimates at 88,000 patients. Of those, there are still 20,000 patients who could get their old-school oral treatments. But analysts are watching for Vertex news, including an updated regimen of three drugs that could strengthen Vertex’s position against its rival. AbbVie (ABBV).
Stocks to Buy and Watch on the Stock Market Rally
Here are the top seven stocks to buy and watch in today’s stock market, including three leaders from the Dow Jones.
| company name | Symbol | correct point of purchase | base type |
|---|---|---|---|
| Monster | (MNST) | 104.75 | flat base |
| Fluorine | (FLR) | 36.16 | flat base |
| Vertex | (VRTX) | 324.85 | flat base |
| med pace | (MEDP) | 235.82 | Consolidation |
| Caterpillar | (CAT) | 239.95 | flat base |
| Chevron | (CLC) | 189.78 | cup bottom |
| Visa | (V) | 220.08 | mug with handle |
Source: EII data as of January 23, 2023
Join IBD experts as they discuss the top stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla shares rose 4.9% on Friday, up 9% for the week and closing at their highest level since December 21. Despite their recent rally, shares remain well below their 50 and 200 day lines. Tesla shares closed Friday down 65% from their 52-week high. Tesla earnings are due Wednesday after the close.
Shares of the electric vehicle giant appeared to add to the gains on Friday, trading 3.5% higher on Monday morning.
Dow Jones Leaders: Apple, Microsoft
Among the Dow Jones stocks, Apple shares rose 1.9% on Friday, targeting its 50-day line, where it has been trading since mid-December. The stock remains around 23% below its 52-week high. Apple will report its quarterly earnings on February 2. AAPL shares rose 1.45% on Monday.
Microsoft shares advanced 3.6%, ending just below its 50-day line, where they met stiff resistance last week. A decisive resumption would be bullish for the stock’s outlook, even though shares remain 24% below their 52-week high. MSFT earnings will be released Tuesday night. Shares rose 0.6% early Monday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more information on growth stocks and the Dow Jones Industrial Average.
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