Dow Jones futures slipped Monday morning, as Wall Street digested earnings reports from Caterpillar (CAT) and McDonald’s (MCD). Meanwhile, Nvidia stock rallied after Goldman Sachs raised its price target and added the chip giant to its Conviction List.
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Before the opening bell, Dow Jones futures fell 0.3%, as S&P futures lost 0.25% vs. fair value. Tech-heavy Nasdaq 100 futures were down 0.1% in premarket action.
Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) edged lower, while the SPDR S&P 500 ETF (SPY) fell 0.25%.
The 10-year Treasury yield jumped to 4.1% Monday. Further, oil prices threatened to extend last week’s heavy losses, as West Texas Intermediate futures dropped 0.2%. WTI futures were just above $72 a barrel.
Economic Calendar, Earnings Reports
This week’s economic calendar is much calmer than last week, which included the Federal Reserve’s policy decision and the January jobs report.
Early Monday, the S&P Global Purchasing Managers’ Index for services is due out at 9:45 a.m. ET. The index is expected to hold steady at 52.9 in January vs. the mid-month estimate.
Further, the Institute of Supply Management services index is expected to rise to 52.1 in January vs. December’s 50.6 reading. That data is out at 10 a.m.
Ahead of the market open, Caterpillar jumped 4.4% after reporting strong earnings and sales results. And McDonald’s slipped 0.9% after missing revenue targets. The restaurant giant did beat earnings estimates, though.
More key earnings reports this week include Dow Jones components Amgen (AMGN) and Disney (DIS), along with NXP Semiconductors (NXPI) and Ford Motor (F).
Dow Jones Rebounds
On Friday, the Nasdaq composite rallied 1.7%, while the S&P 500 climbed 1.1%, hitting an all-time high in the process. The Dow Jones Industrial Average lagged the other major indexes, but still gained 0.4%.
Friday’s Big Picture column commented, “Due to recent strong stock market action Investor’s Business Daily is once again raising its recommended market exposure to the 80% to 100% level. But be careful. With many stocks currently extended from buy points it is crucial to increase exposure in a sensible, measured fashion. Be aware that both the S&P 500 and the Nasdaq look extended at these levels.”
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.
Learn How To Time The Stock Market With IBD’s ETF Market Strategy
Best Stocks To Buy And Watch
Expedia (EXPE), KKR (KKR), Lennar (LEN) and MongoDB (MDB) — plus Dow Jones members Caterpillar and Walmart (WMT) — are among the best stocks to buy and watch in the current market rally.
KKR and Walmart were featured in this Stocks Near A Buy Zone column. KKR is on IBD SwingTrader.
Get Real-time Buy And Sell Alerts On Stock Market Leaders With IBD Leaderboard
Dow Jones: Caterpillar Hits New High
With its big gains Monday, heavy machinery giant Caterpillar, also a Dow component, is moving out of buy range past a alternate entry’s 299.20 buy point, according to IBD MarketSmith pattern recognition.
Fellow Dow stock and discount retail giant Walmart is in buy range past a 163.57 entry in a cup with handle, after climbing nearly 1% Friday. The stock added 0.2% early Monday.
4 Top Growth Stocks To Watch In The Stock Market Rally
Expedia Eyes Buy Point
Travel stock Expedia is tracing a flat base that shows a 155.84 buy point. Shares are finding support around their 50-day line, even as they fell 0.7% early Monday.
IBD Leaderboard stock KKR remains above an 85.66 flat-base entry amid a 1.8% rally Friday. Shares were slightly higher Monday morning.
Homebuilder Lennar is within striking distance of a flat base’s 156.01 buy point, with a slight gain Friday. Shares edged lower early Monday.
Software leader MongoDB is breaking out past a 426.51 buy point, with a 6.6% surge Friday, according to IBD MarketSmith. MongoDB shares tacked on 0.7% Monday.
Best Bets In Monday’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 |
| Merck | (MRK) | 119.65 | Cup base |
| DraftKings | (DKNG) | 39.35 | Cup base |
| Spotify | (SPOT) | 202.88 | Flat base |
Source: IBD Data As Of Jan. 31, 2024
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Magnificent Seven Stocks: Nvidia, Tesla
Magnificent Seven stocks Nvidia (NVDA) rallied 3.5% and Tesla (TSLA) declined 1.2% in premarket action Monday.
Nvidia jumped 5% Friday, more than 30% past a a 505.48 buy point in a flat base after a Jan. 8 breakout move. Shares are at record highs.
Tesla dropped 0.5% Friday, still near its recent lows after big losses on Jan. 25.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks in the Magnificent Seven, Apple (AAPL) and Microsoft (MSFT) traded higher ahead of Monday’s stock market open.
Apple shares slashed heavy losses to 0.5% Friday, finding support around its long-term 200-day line. A flat base continues to take shape that has a 199.62 buy point. Apple shares rose 0.8% Monday morning.
Microsoft shares rallied 1.8% Friday, moving out of buy range past a 384.30 buy point in a flat base. The software giant edged higher Monday morning.
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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