The Dow Jones Industrial Average rose on Monday, looking to add to strong stock market gains on Friday. December quarter earnings season kicks off this week, with highly anticipated results from Dow Jones members JPMorgan Chase (JPM) and UnitedHealth Group (A H). And You’re here (TSLA) continued to rebound after hitting a new low on Friday.
Global markets and oil prices received a boost after positive comments on the takeover from a People’s Bank of China official on Sunday. It helped send Tesla and a number of China-based stocks, as well as chip stocks, including ASML Company (ASML) and Nvidia (NVDA) at the top of the Nasdaq 100 in early trading.
Companies reporting profits on Monday morning include Sharpness marks (AYI) and Trade metals (CMC). Acuity Brands rose 1% after posting better-than-expected results for its first fiscal quarter. And shares of Commercial Metals rose nearly 3% after strong results. Lately, Lululemon Athletica (LULU) plunged 10% after warning that its gross margin in the fourth quarter would be below expectations.
Other companies reporting later this week include Jefferies (I F), Knowledge base home (KBH), Semiconductor manufacturing in Taiwan (TSM), Bank of America (BAC), Citigroup (This Wells Fargo (WFC).
Dow Jones Stock Visa (V) and MasterCard (MA) were both reclassified to overweight at KeyBanc. Visa shares climbed 0.5%, while MA shares rose 0.8%.
Electric vehicle leader Tesla was up more than 8% on Monday. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were both downright higher after today’s stock market open.
Cardinal Health (ACH), Deere (OF), Medpace (MEDP) and IBD ranking stock Neurocrine Biosciences (NBIX) – as well as Dow Jones names caterpillar (CAT), Chevron (CLC) and walmart (WMT) – are among the best stocks to buy and watch as the market returns to rally mode.
Neurocrine is an IBD classification title. Caterpillar and Medpace were recent IBD Stock Of The Day companies. And Cardinal Health was featured in a recent Stocks Near A Buy Zone column.
IBD’s latest newsletter, MarketDiem, brings you practical insights for stocks, options and crypto straight to your inbox
Dow Jones Today: Oil Price, Treasury Yields
After Monday’s opening bell, the Dow Jones Industrial Average rose 0.4% and the S&P 500 gained 0.9%. And the tech-heavy Nasdaq composite rose 1.7% in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 1.3% and the SPDR S&P 500 ETF (SPY) rose 0.5% early Monday.
The 10-year Treasury yield rose to 3.58% on Monday morning, looking to rebound from last week’s steep losses. Big losses on Friday were triggered by the December jobs report.
Meanwhile, oil prices rebounded on Monday morning after falling last week. West Texas Intermediate futures rose more than 2%, trading around $76 a barrel.
Stock market rally
On Friday, the Dow Jones Industrial Average rose 2.1% and the S&P 500 jumped 2.3%. The Nasdaq composite jumped 2.6%.
Friday’s The Big Picture column commented: “The positive high volume action has shifted the outlook for the IBD market to a ‘confirmed uptrend market.’ Nevertheless, it is still an uncertain environment and exposure should be increased in a measured way. should stick to 20-40% exposure for now.”
Five Dow Jones Stocks to Buy and Watch Now
Dow Jones Stocks to Buy and Watch: Caterpillar, Chevron, Walmart
Dow Jones member Caterpillar closed squarely in the buy range above the 239.95 buy point on a flat basis after Friday’s 3.6% advance, according to IBD MarketSmith pattern recognition. The buy zone rises to 251.95. On the upside, the stock’s relative strength line, a key technical indicator, hits new highs. Shares rose 0.1% on Monday.
The CAT stock is posting a solid 98 out of a perfect IBD composite score of 99, according to the IBD stock balance sheet. The composite rating is designed to help investors easily find the highest growth stocks.
Energy giant Chevron is trying to retake its 50-day line, as it continues to build a cut base that has a buy point of 189.78. CVX shares were up 0.6% on Monday morning, climbing along with oil prices.
Discount retailer Walmart clawed back its 50-day line higher in Friday’s 2.45% jump. The stock is building a cup with a handle that has a buy point of 154.74 and is about 5% away from the last entry. Walmart shares fell 0.5% on Monday morning.
4 growth stocks to buy and watch in the new Stock market rally
Top stocks to buy and watch: Cardinal Health, Deere, Medpace, Neurocrine
Cardinal Health, a recent IBD stock of the day, rebounded 2.6% on Friday, regaining its 50-day line. CAH shares fell 0.1% on Monday.
Another recent IBD stock of the day, Deere, is building a flat base with a buy point of 448.50. Stocks are approaching their final buying point after climbing back above the 50-day line on Friday’s 2.8% rise. DE stock traded down 0.5% on Monday morning.
Medpace continues to consolidate below its 50-day line. For now, the correct buy point remains at 235.82, but an earlier entry at 220.09 is also in play. MEDP stock rose 1.2% on Friday.
IBD Leaderboard Neurocrine Biosciences stock rebounds from support at its 50-day line. A new flat base shows a buy point at 129.39, with early entry at 122.93. NBIX stock fell 0.1%.
Stocks to buy and watch in the new stock market rally
These are the top six stocks to watch in today’s stock market, including three leaders from the Dow Jones.
|Company Name||Symbol||Correct point of purchase||Basic type|
|Cardinal Health||(ACH)||81.67||Flat bottom|
|Neurocrine Biosciences||(NBIX)||129.39||Flat bottom|
|walmart||(WMT)||154.74||Mug with handle|
Source: IBD data as of January 9, 2023
Join IBD experts as they analyze the top stocks of the current stock market rally on IBD Live
Tesla stock reversed after big losses on Friday, ending the session up 2.5%. Shares hit a 52-week low of 101.81 on Friday, closing about 71% off their 52-week high.
Stocks appeared to add to Friday’s gains, rising 8.4% on Monday morning.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares rebounded 3.7% on Friday. Last week, the stock hit a new 52-week low at 124.17. The stock remains around 30% off its 52-week high. Shares rose 1.3% on Monday morning.
Microsoft stock rebounded 1.2% on Friday, ending a four-day losing streak. The software giant is around 31% off its 52-week high and is still just off its 52-week low of 213.43, hit on November 4. MSFT stock rose 1% early Monday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen to learn more about growth stocks and the Dow Jones Industrial Average.
YOU MIGHT ALSO LIKE:
Top growth stocks to buy and watch
Learn to Time the Market with IBD’s ETF Market Strategy
Find the best long-term investments with IBD’s long-term leaders
MarketSmith: research, charts, data and coaching in one place
How to Research Growth Stocks: Why This IBD Tool Simplifies Finding the Best Stocks