Futures for the Dow Jones Industrial Average and other major stock indexes rose modestly in premarket action Monday, as Wall Street kicked off the week seeking more record highs. Among the gainers was Nvidia (NVDA), which rallied after multiple price-target hikes from analysts, while Tesla rival Li Auto (LI) skidded after an earnings miss on the stock market today.
X
Prior to the opening bell, Dow futures rose 0.1% vs. fair value, while S&P 500 futures gained 0.2%. Tech-focused Nasdaq 100 futures rose 0.2% in morning action.
Early Monday, the 10-year Treasury yield ticked lower to 4.42%. Further, oil prices dipped as West Texas Intermediate futures traded around $79.80 a barrel.
Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) was up 0.2%, while the SPDR S&P 500 ETF (SPY) added 0.2%.
Nvidia shares rallied 1.4% Monday morning after a number of price-target hikes. Baird upped its target from 1,050 to 1,200, while Susquehanna raised its to 1,100 from 1,050. Further, Barclays adjusted its price target from 850 to 1,100. The artificial intelligence giant is set to report earnings Wednesday.
Nvidia stock slipped 2% Friday, barely holding above a handle entry at 922.20. The AI leader is an IBD Leaderboard stock.
Stock Market Today
Li Auto was a key earnings mover Monday morning. The Chinese electric-vehicle maker veered more than 4% downward after reporting weaker-than-expected earnings during the first quarter. Li also offered a lower outlook for the current quarter, as the company struggles with increased competition.
The coming week sees Wednesday’s release of Federal Reserve minutes for May. Investors will be look for further clues into the thoughts of Fed Chair Jerome Powell and other central bankers on the future path of interest rates.
Other economic reports due in the coming week includes existing-home sales on Wednesday, new-home sales Thursday and S&P flash U.S. Purchasing Managers’ Index data for both manufacturing and services, which come Thursday.
Be sure to read how to adjust to changing market conditions, with IBD’s new exposure levels.
Dow Jones Tops 40,000
On Friday, the Dow rose 0.3%, and the S&P 500 moved up 0.1%. The Nasdaq composite inched lower. All three major stock indexes hit record highs last week. With Friday’s gain, the Dow closed above the 40,000 level for the first time. It touched that threshold in intraday action on Thursday, but closed below it with a slight loss.
Investor’s Business Daily’s Big Picture column on Friday said that the Nasdaq “turned in a solid weekly gain of 2.1%. It has now risen for four weeks in a row and is now up 11.2% for the year. The tech-heavy index sits above its short-term moving averages as well as the key 50-day line.“
During Friday’s IBD Live show, the IBD Live team discussed the current trading conditions and how investors should handle the ongoing stock market rally.
Now is an important time to read The Big Picture column amid the ongoing stock market action. Also, 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
Stock Market Today: Best Stocks To Watch
PDD (PDD), Taiwan Semiconductor Manufacturing (TSM), Trade Desk (TTD) and Tradeweb Markets (TW) — plus Dow Jones components JPMorgan Chase (JPM) and Merck (MRK) — are among the best companies to watch on the stock market today.
JPMorgan and Taiwan Semi are featured in this Stocks Near A Buy Zone column.
An essential resource for daily breakouts is IBD MarketSurge’s “Breaking Out Today” list. It shows MarketSurge Growth 250 stocks that are breaking out past new buy points. Notably, Palomar (PLMR) broke out past a 86.26 buy point in a flat base. Check out the MarketSurge “Near Pivot” list for more stocks nearing buy points in bases.
To find more stock ideas, check IBD Stock Lists like IBD 50, Big Cap 20 and Stocks Near A Buy Zone. These features identify bullish patterns and buy points and are available to check every day.
Get Real-Time Buy And Sell Alerts On Stock Market Leaders With IBD Leaderboard
Dow Jones: JPMorgan, Merck
JPMorgan is breaking out past a flat base’s 200.94 entry following strong gains in recent weeks. Shares rose 0.8% on the stock market today.
Meanwhile, drug giant Merck is rapidly approaching a flat base’s 133.10 entry. Merck stock was up a fraction Monday.
4 Top Growth Stocks To Watch In The Stock Market Today
Outside the Dow Jones index, Temu-parent PDD is breaking out past a cup-with-handle’s 142.32 buy point, according to IBD MarketSurge. PDD shares added 1.4% ahead of the open on Monday.
Chipmaker Taiwan Semiconductor is in buy range above a 148.43 buy point in a double-bottom base in the wake of strong recent gains. The stock gained 0.2% Monday.
Trade Desk climbed 1.7% Friday, closing above a 94 entry in a consolidation. Trade Desk rose 0.3% Monday morning.
Tradeweb is at the top of its buy range past a flat base’s 108.04 buy point, with a 0.4% rise Friday. The stock was unchanged Monday.
Find The Best Stocks To Buy And Watch With IBD Stock Screener And IBD Screen Of The Day
Stock Market Today: Companies To Watch
These are four stocks in or near buy zones in today’s stock market.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| American Express | (AXP) | 231.69 | Consolidation |
| Texas Roadhouse | (TXRH) | 157.12 | Flat base |
| Chipotle | (CMG) | 3,023.98 | Consolidation |
| Tradeweb Markets | (TW) | 108.04 | Flat base |
Source: IBD Data As Of May 6, 2024
Join IBD experts as they analyze leading stocks in the stock market today on IBD Live
Magnificent Seven Stocks: Tesla
Among Magnificent Seven stocks, Tesla (TSLA) climbed 0.7% Monday morning, looking to extend its win streak to three sessions.
Tesla stock rallied 1.5% Friday, rebounding from support at the 50-day line. Shares remain more than 40% off their 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks in the Magnificent Seven, Apple (AAPL) and Microsoft (MSFT) traded mixed ahead of Monday’s stock market open.
Apple stock inched higher Friday, extending a win streak to five sessions. Shares are forming a cup base that has a 199.62 buy point, but keep an eye out for a potential handle to offer a lower entry. The stock was off 0.4% Monday morning.
Microsoft shares lost 0.2% Friday, still within striking distance of the software giant’s flat base that has a 430.82 buy point. And Microsoft stock rose 0.3% Monday.
Be sure to follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on growth stocks, the Dow Jones Industrial Average and the stock market today.
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