After setting all-time highs, Dow Jones and S&P 500 futures aimed for new records Monday as both major indexes gained more ground. Meanwhile, Dow component Apple (AAPL) offered investors a new buy point, while Nvidia stock looked to clear the 600 mark for the first time.
X
Before the opening bell, Dow Jones futures rose 0.3%, while S&P 500 futures gained 0.4%. Tech-heavy Nasdaq 100 futures climbed 0.6% in premarket action.
Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) was up 0.8%, while the SPDR S&P 500 ETF (SPY) rose 0.4%.
The 10-year Treasury yield ticked down to 4.09% Monday morning. The 10-year had climbed to 4.14% Friday, extending a win streak to five sessions.
Further, oil prices paused Monday after last week’s gains, as West Texas Intermediate futures inched higher. WTI futures traded near $74 a barrel.
Dow Jones home improvement giant Home Depot (HD) fell nearly 1% Monday after Oppenheimer downgraded the stock from outperform to perform with a lowered price target from 360 to 345.
Apple stock rallied 1.55% Friday, retaking its 50-day line and placing the stock in an aggressive buy area. A decisive retake of that moving average is bullish for the stock’s immediate prospects and a new official buy point has emerged at 199.62. Shares tacked on 0.4% early Monday.
Economic Data, Big Earnings Results
More key inflation data is due this week, with the Personal Consumption Expenditures Price Index reading for December from the Bureau of Economic Analysis on Friday. Core PCE, the Fed’s preferred inflation gauge, which strips out volatile food and energy prices, is seen rising 3% year over year.
Other economic information includes U.S. Purchasing Managers Index data for services as well as manufacturing, with both due Wednesday. The preliminary fourth-quarter GDP reading comes Thursday.
Key earnings reports this week come from Netflix (NFLX), Tesla (TSLA), Intel (INTC) and chip-equipment firms such as ASML (ASML).
Dow Jones Rallies
On Friday, the Dow Jones Industrial Average climbed 0.5%, while the S&P 500 moved up 0.9%. The tech-heavy Nasdaq composite jumped nearly 1.4%.
Friday’s Big Picture column commented that the S&P 500 “rose more than 1% for the week, its 11th weekly gain out of the past 12. It climbed higher into positive territory for 2024. This is important, as when the benchmark index ends January with a gain it tends to auger well for the stock market.”
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 player Amazon (AMZN), along with DraftKings (DKNG), MercadoLibre (MELI), Novo Nordisk (NVO) and Spotify (SPOT) — plus Dow Jones components American Express (AXP), Amgen (AMGN) and Merck (MRK) — are among the best stocks to buy and watch in the current market rally.
MercadoLibre and Spotify were featured in this Stocks Near A Buy Zone column.
Get Real-time Buy And Sell Alerts On Stock Market Leaders With IBD Leaderboard
Dow Jones: American Express In Buy Range
Credit card leader American Express rebounded from recent losses, moving up nearly 2% Friday. Shares are in buy range past a 175.31 buy point in a cup with handle. AXP stock ticked up slightly higher Monday morning.
Biotech leader Amgen rose 1.1% Friday, 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 climbed 2.4% early Monday.
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 inched higher Monday.
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DraftKings Retakes Key Level
IBD Leaderboard stock Amazon is moving above its buy range, having moved well beyond a cup base’s 145.86 entry, with a 1.2% rally Friday, according to IBD MarketSmith. AMZN stock rallied nearly 1% Monday morning
Sports-betting giant DraftKings surged last week, retaking the key 50-day line. The strong move put the stock in an early buy zone. Meanwhile, a cup base has an official buy point at 39.35. DKNG stock rose another 1.4% Monday.
MercadoLibre is trying to break out past a flat base’s 1,660 buy point, and the breakout regained steam Friday, rising 3.9%. MELI stock gained 1.4% early Monday.
Weight-loss drug maker Novo Nordisk ended Friday down 0.6%, holding above a 105.69 flat-base buy point. NVO stock slipped 0.7% early Monday.
IBD SwingTrader stock Spotify closed Friday above a 202.88 buy trigger in a flat base, despite a slight fall. SPOT stock rose a fraction Monday morning.
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 |
| American Express | (AXP) | 175.31 | Cup with handle |
| DraftKings | (DKNG) | 39.35 | Cup base |
| Spotify | (SPOT) | 202.88 | Flat base |
Source: IBD Data As Of Jan. 22, 2024
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Magnificent Seven Stocks: Nvidia, Tesla
Magnificent Seven stocks Nvidia (TSLA) and Tesla traded up 1% and 0.8%, respectively, in premarket action Monday.
Nvidia rallied 4.2% Friday, moving further out of buy range past a 505.48 buy point in a flat base.
Tesla stock reversed up 0.2% Friday, ending a two-day skid. Shares remain near their lowest level since mid-November. Tesla stock sits sharply below its 50- and 200-day moving averages.
Dow Jones Leaders: Microsoft
Among Dow Jones stocks in the Magnificent Seven, Microsoft (MSFT) traded higher ahead of Monday’s stock market open.
Microsoft stock moved up 1.2% Friday, further above a flat base’s 384.30 buy point. MSFT was a recent IBD Stock Of The Day. And the software giant was up 0.4% Monday morning, looking to clear the 400 level for the first time.
Be sure to follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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