Dow Jones futures were little changed ahead of Tuesday’s open after the Dow Jones Industrial Average pared gains to just 40 points on Monday. Federal Reserve Chairman Jerome Powell’s testimony is scheduled for Tuesday. Apple (AAPL) jumped on an analyst buy rating, while You’re here (TSLA) slipped after the company’s fresh round of price cuts.
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Powell’s Testimonial
Fed Chief Powell is set to begin two days of testimony in Congress on Tuesday, where he will have the opportunity to explain the central bank’s planned response to a more resilient economy. Last month, the Fed raised rates by a quarter of a percentage point, and investors will be looking for clues on the amount of the hike at the March 21-22 meeting this month.
Currently, traders are placing a 69% chance of a quarter percentage point rate hike at the next meeting, according to the CME’s FedWatch tool.
Next, Friday will feature the Labor Department’s February jobs report. Nonfarm payrolls are expected to hit 215,000 in February, down from January’s growth of 517,000, according to Econoday estimates.
guide wire (GWRE) announced mixed results for Q2 on Monday evening. Shares rose about 1% in extended trade. The stock is building a base with a buy point of 78.76.
Other key revenue reports this week include Wholesale BJ’s (BJ), CrowdStrike (CRWD), Dick Sporting Goods (DKS), JD.com (JD), MongoDB (MDB), Thor Industries (THO) and Ultimate Beauty (ULTA).
stock market today
On Monday, the Dow Jones Industrial Average and the S&P 500 both gained 0.1% each. The tech-heavy Nasdaq composite fell 0.1% after giving up strong gains.
Electric vehicle giant Tesla fell 2% on Monday. Among Dow Jones stocks, Apple rose 1.85% and Microsoft (MSFT) climbed 0.6% in today’s trading action.
IBD Ranking Stock Alteryx (AYX), Arista Networks (A NET), Palo Alto Networks (PANW) and Selling power (CRM) — as well as Dow Jones stocks American Express (AXP) and JPMorgan Chase (JPM) – are among the best stocks to buy and watch, amid recent stock market strength.
Alteryx is an IBD ranking stock. And Salesforce was featured in this week’s Stocks Near A Buy Zone column.
4 most important growth stocks to buy and watch in the currentrStock market rally
Dow Jones Futures Today: Oil Price, Treasury Yields
Before Tuesday’s opening bell, Dow Jones, S&P 500 and Nasdaq 100 futures were little changed from fair value. Remember that overnight action on futures contracts on Dow Jones and elsewhere does not necessarily translate into actual trading in the next regular trading session.
The 10-year US Treasury yield rebounded on Monday, settling at 3.98%. Oil prices reversed after early losses to rise about 1%, with West Texas Intermediate futures trading above $80 a barrel. WTI futures traded around their recent highs.
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What to do in strengthening the stock market rally
Now is an important time to read IBD’s The Big Picture column with the stock market trending back into a “confirmed uptrend” after strong gains in recent sessions.
The current uptrend is strengthening, which justifies maintaining a higher exposure level of 60% to 80%. But investors should raise their exposure in a disciplined way in case Powell’s testimony spoils the party this week.
(Check out IBD stock listings like the IBD 50 and stocks near a buy zone, for additional stock ideas.)
Five Dow Jones Stocks to Buy and Watch Now
Dow Jones stocks to buy and watch: American Express, JPMorgan
American Express builds a jumbo mug base with handle that boasts a buy point of 182.25. Shares are only 2% below their buy point, after falling slightly on Monday. On the upside, the stock’s relative strength line is reaching new highs, which is a particularly positive sign ahead of a potential breakout.
Banking giant JPMorgan is in the buy range above its fixed base buy point of 138.76 despite Monday’s 0.6% loss, according to IBD MarketSmith’s chart analysis. Stocks are also rebounding from their main 50-day moving average.
JPM stock boasts a strong IBD composite rating of 94 out of a perfect 99, per IBD stock check. The composite rating is designed to help investors easily find the highest growth stocks.
Top stocks to buy and watch: Palo Alto, Salesforce
Cybersecurity leader Palo Alto Networks is within striking distance of the buying point of 193.01 from a base after rising 12.5% on Feb. 22. Shares fell 1.9% on Monday, closing around 2% from last entry.
Pass: Last week, the cybersecurity giant announced very strong results for the quarter ended January, which saw earnings hit $1.05 per share, up 81% from a year earlier, on a 26% increase in revenue to $1.7 billion.
Last week, Dow Jones leader Salesforce staged a bullish spread beyond a buy point of 178.94 on strong fourth-quarter results. The shares jumped 11.5% on Thursday and are in the 5% buy zone which rises to 187.89.
Pass: Salesforce sells software under a subscription model. Its software helps businesses organize and manage sales operations and customer relationships. The company has expanded into marketing, customer services and e-commerce. Salesforce said it dissolved its “M&A committee”, implying it will no longer make big acquisitions, amid growing pressure from activist investors.
Arista and Alteryx have reached the final buy points
Arista Networks moved back into the buy range above a buy point of 140.91 from a cup basis after Monday’s 1.35% advance. A decisive rally puts the stock in the buy range which rises to 147.96.
Pass: Arista sells switches that speed up communications between clustered computer server racks in data centers. According to analysts, Arista is gaining traction in the so-called “enterprise” market – large enterprises, government agencies and educational institutions. Profits jumped 72% in the last quarter.
IBD Leaderboard Alteryx stock broke a buy point off the trendline at 66.50 in a handle on an early stage cut on Friday. Aggressive investors could buy on the break above the trendline, while a conventional entry at 70.73 is also in play. Stocks are about 5% away from this buying point.
Pass: The Irvine, California company has created a self-service platform for data analysis. Demand is clearly strong, with sales rising from a low of $100 million per quarter in 2021 to $216 million in Q3 2022, up 75% from a year ago, to $301 million. in the fourth quarter of 2022, up 73%. This rapid revenue growth is one of the reasons Alteryx also posted fourth-quarter earnings of 84 cents per share, possibly the biggest quarterly profit in the company’s history.
Join IBD experts as they analyze the top stocks of the current stock market rally on IBD Live
Tesla Stock
Tesla stock slipped 2% on Monday after the electric vehicle giant slashed prices for U.S. vehicles again on Sunday night, the latest sign that demand for Tesla vehicles may decline after an initial price increase in January.
On Sunday, Tesla dropped the price of a Model S by $5,000, bringing the base version to $89,990. Meanwhile, the cost of a Model X SUV has dropped by $10,000, bringing a base version to $99,990, according to pricing on Tesla’s website.
Despite their strong rebound since Jan. 6, stocks are still below the 200-day line. This key level appears as a potential resistance zone. Shares closed Monday about 50% off their 52-week high. Aggressive investors can use the February 16 high at 217.65 as a potential entry. However, to be sure, Tesla stock would have to cross the 200-day line, which is now below 221.
On Tuesday, China’s weekly EV insurance registration data could be an important indicator of demand for Tesla in the world’s biggest EV market, which is in the midst of a massive price war launched by Tesla.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares jumped 1.85% on Monday, closing at their highest level since Feb. 15. Early Monday, Goldman Sachs began hedging with a buy rating and price target of 199, a 31% premium to Friday’s closing price.
Microsoft shares moved above their 200-day line after Monday’s 0.6% gain. The stock is still around 20% off its 52-week high after recent declines. MSFT stock rose 0.3% on Monday.
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