Dow Jones futures sank early Tuesday, as index component Apple (AAPL) sold off after offering discounts on its newer iPhones in China for the first time in years. But fellow Dow member Goldman Sachs (GS) managed to rally on fourth-quarter earnings.
X
Ahead of the opening bell, Dow Jones futures slipped 0.15%, while S&P 500 futures lost 0.3%. Tech-heavy Nasdaq 100 futures also dropped 0.3% in premarket action.
Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) was down 0.5%, while the SPDR S&P 500 ETF (SPY) fell 0.4%.
Also, oil prices were slightly higher Tuesday morning, as West Texas Intermediate futures moved up 0.3%. WTI futures held just below $73 a barrel.
The 10-year yield ticked higher to 4.01% Tuesday morning. The 10-year Treasury yield fell to 3.95% Friday after the Labor Department’s Producer Price Index inflation report.
Apple stock sold off 1.5% Tuesday morning after the tech titan began cutting retail prices by 500 yuan, or $70 in U.S. currency, discounting some iPhones by 5%, according to Apple’s China website. It’s a Jan. 18-21 promotion ahead of China’s Lunar New Year, which is in February.
Apple stock rose 0.2% Friday, remaining below a 192.93 buy point and the 50-day line.
Big Bank Earnings
More of Wall Street’s banks reported their fourth-quarter earnings results Tuesday, with results from Goldman Sachs, and Morgan Stanley (MS) and PNC (PNC).
Goldman stock climbed 1.5% Tuesday morning on better-than-expected earnings and sales results. Morgan Stanley gained 1.3% despite a mixed earnings report.
Finally, PNC dropped 1.6% despite topping fourth-quarter earnings and sales targets.
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Dow Jones Falls
On Friday, the Dow Jones Industrial Average dropped 0.3%, while the S&P 500 moved up 0.1%. The tech-heavy Nasdaq composite inched higher to extend a win streak to six sessions.
Friday’s Big Picture column commented, “With the stock market closed on Monday to observe MLK Day, the workload will be lighter than usual. U.S. retail sales data is due early Wednesday while the Philadelphia Fed manufacturing survey drops Thursday.”
Now is an important time to read IBD’s The Big Picture column amid the continuing stock market rally. Be sure to read how to adjust to changing market conditions, with IBD’s new exposure levels.
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Best Stocks To Buy And Watch
Magnificent Seven players Alphabet (GOOGL) and Amazon (AMZN), along with MercadoLibre (MELI), Netflix (NFLX) and Novo Nordisk (NVO) — plus Dow Jones components Amgen (AMGN), Caterpillar (CAT) and Merck (MRK) — are among the best stocks to buy and watch in the current market rally.
Amgen and Novo Nordisk were featured in this Stocks Near A Buy Zone column.
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Dow Jones: Merck Nears Buy Point
Biotech leader Amgen rallied 1.1% Friday, moving further out of the 5% buy range past a 288.46 official buy point in a flat base. The 5% buy area went up to 302.88. AMGN stock rose 0.2% early Tuesday.
Heavy machinery giant Caterpillar ended Friday just below its 293.88 buy trigger, amid a 0.6% drop. CAT stock was down 0.3% Tuesday morning.
Drug maker Merck is trying to break out past a cup base’s 119.65 buy point, according to IBD MarketSmith pattern recognition. MRK stock slipped 0.4% Tuesday.
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MercadoLibre Breaks Out
Alphabet rose 0.4% Friday, holding near its new highs and still above a 139.42 buy point in a cup with handle, according to IBD MarketSmith. GOOGL stock fell 0.3% early Tuesday.
IBD Leaderboard stock Amazon remains out of buy range beyond a cup base’s 145.86 buy point, despite a 0.4% drop rally Friday. AMZN stock sank 0.7% Tuesday morning.
MercadoLibre is trying to break out past a flat base’s 1,660 buy point, with a 4.2% advance Friday. MELI stock dropped 0.4% early Tuesday.
IBD SwingTrader stock Netflix inched lower Friday, above a 482.70 buy point in a cup with handle. NFLX stock dipped 0.3% Tuesday.
Weight-loss drug maker Novo Nordisk ended Friday up 0.4%, still in buy range above a 105.69 flat-base buy point. NVO stock moved down 0.6% early Tuesday.
Best Bets In Today’s Action
These are four best stocks to watch in today’s stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Novo Nordisk | (NVO) | 105.69 | Flat base |
| Caterpillar | (CAT) | 293.88 | Cup base |
| Netflix | (NFLX) | 482.70 | Cup with handle |
| Snowflake | (SNOW) | 192.66 | Cup with handle |
Source: IBD Data As Of Jan. 16, 2024
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