Dow Jones futures were little changed before Tuesday’s open after the Dow Jones Industrial Average pared gains to just 40 points on Monday. Testimony from Federal Reserve Chairman Jerome Powell is due Tuesday. Apple (AAPL) shares rose on an analyst’s buy rating, while tesla (TSLA) shares slid after the company’s additional round of price cuts.
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Powell’s Testimony
Fed chief Powell will begin two days of testimony before Congress on Tuesday, where he will have the opportunity to explain the central bank’s planned response to a more resilient economy. Last month, the Fed raised rates by a quarter of a percentage point, and investors will be looking for clues as to the amount of the increase at the meeting on March 21-22 this month.
Traders currently place a 69% chance of a quarter percentage point rate hike at the next meeting, according to CME’s FedWatch tool.
Then, on Friday, the Labor Department’s February employment report will be released. Nonfarm payrolls are expected to hit 215,000 in February, down from January’s 517,000 growth, according to Econoday estimates.
guide wire (GWRE) reported mixed results for the fiscal second quarter on Monday night. Shares were up around 1% in extended trading. The stock is building a bottom base with a buy point of 78.76.
More key earnings reports this week include BJ wholesale (B.J.), crowdstrike (CRWD), Dick’s Sporting Goods (DKS), jd.com (J.D.), MongoDB (MDB), thor industries (TO) and ultimate Beauty (ULT)
stock market today
On Monday, the Dow Jones Industrial Average and the S&P 500 each gained 0.1%. The tech-heavy Nasdaq Composite fell 0.1% after giving up solid gains.
Electric vehicle giant Tesla was down 2% on Monday. Among the Dow Jones stocks, Apple rose 1.85% and Microsoft (MSFT) was up 0.6% in today’s stock action.
IBD Classification Table alteryx (AYX), Arista Networks (A NETWORK), Palo Alto Networks (PANW) and Sales force (CRM), as well as Dow Jones stocks amexpress (AXP) and JPMorgan Chase (JPM) — are among the top stocks to buy and watch amid recent stock market strength.
Alteryx is an IBD Leaderboard stock. And Salesforce appeared in the Stocks column near a buy zone this week.
4 Top Growth Stocks to Buy and Watch on the Current stock rally
Dow Jones Futures Today: Oil Prices, Treasury Yields
Before the opening bell on Tuesday, Dow Jones futures were up 0.15% against fair value, and S&P 500 futures gained 0.2%. Nasdaq 100 futures rose 0.3% against fair value. Remember that overnight action in the Dow Jones futures and elsewhere does not necessarily translate into actual trading at the next regular stock market session.
The 10-year US Treasury yield rallied on Monday to 3.98%. Oil prices reversed their early losses to rise around 1% as West Texas Intermediate futures traded above $80 a barrel. WTI futures traded around their recent highs.
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What To Do On The Strengthening Stock Market Rally
Now is an important time to read IBD’s The Big Picture column with the stock market trending back into a “confirmed uptrend” after strong gains in recent sessions.
The current uptrend is strengthening, which justifies maintaining a higher level of exposure of 60% to 80%. But investors should increase their exposure in a disciplined manner in case Powell’s testimony crashes the party this week.
(Check out IBD stock listings such as the IBD 50 and Stocks Near A Buy Zone for additional stock ideas.)
Five Dow Jones Stocks to Buy and Watch Now
Dow Jones Stocks to Buy and Watch: American Express, JPMorgan
American Express is building a giant handled mug base that shows a buy point of 182.25. Shares are only 2% below their buy point as they inched lower on Monday. Bullishly, the stock’s relative strength line is at fresh highs, which is a particularly positive sign ahead of a potential breakout.
Banking giant JPMorgan is in the buy range above its flat-based buy point of 138.76 despite a 0.6% loss on Monday, according to IBD MarketSmith chart analysis. Stocks are also recovering from their key 50-day moving average.
JPM’s stock shows a strong IBD composite rating of 94 out of a perfect 99, according to IBD’s stock review. The composite rating is designed to help investors easily find the fastest growing stocks.
Top Stocks to Buy and Watch: Palo Alto, Salesforce
Cybersecurity leader Palo Alto Networks is within striking distance of a base’s 193.01 buy point following a 12.5% rise on February 22. Shares fell 1.9% on Monday, closing around 2% away from the latest entry.
Background: Last week, the cybersecurity giant announced very strong results for the quarter ending in January, with earnings reaching $1.05 per share, up 81% from the previous year, with a 26% increase in revenue to $1.7 billion.
Last week, Dow Jones leader Salesforce gapped higher than a buy point of 178.94 on the back of strong fourth quarter results. Shares were up 11.5% on Thursday and are in the 5% buy zone rising to 187.89.
Background: Salesforce sells software under a subscription model. Its software helps companies organize and manage sales operations and customer relationships. The company has expanded into marketing, customer services, and e-commerce. Salesforce said it has dissolved its “mergers and acquisitions committee,” meaning it will not make any more big acquisitions, amid mounting pressure from activist investors.
Arista and Alteryx reach last buy points
Arista Networks returned to the buy range above a buy point of 140.91 from a cup basis after Monday’s 1.35% advance. A decisive take puts the stock in the buying range which rises to 147.96.
Background: Arista sells switches that speed up communications behind the scenes of packaged computer servers in data centers. According to analysts, Arista is gaining ground in the so-called “enterprise” market: large companies, government agencies and educational institutions. Profits increased 72% in the most recent quarter.
Shares of IBD Leaderboard Alteryx broke above a trendline buy point at 66.50 within a handle in early-stage cup on Friday. Aggressive investors could buy on the break above the trend line, while a conventional entry at 70.73 is also in play. The shares are 5% away from that purchase point.
Background: The Irvine, California-based firm created a self-service platform for data analysis. Demand is clearly strong as sales have risen from a low of $100 million per quarter in 2021 to $216 million in Q3 2022, up 75% from a year ago, and $301 million in Q4 2022 , 73% more. This rapid revenue growth is one reason Alteryx also posted a fourth-quarter profit of 84 cents per share, likely the highest quarterly profit in the company’s history.
Join IBD experts as they discuss the top stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla shares fell 2% on Monday after the electric vehicle giant cut prices for US vehicles yet again on Sunday night, the latest sign that demand for Tesla vehicles may be waning after an initial boost coming from the January price cuts.
On Sunday, Tesla dropped the price of the Model S by $5,000, bringing the base version to $89,990. Meanwhile, the cost of a Model X SUV has dropped by $10,000, bringing a base version to $99,990, according to prices on Tesla’s website.
Despite its strong recovery since January 6, stocks are still below the 200-day line. That key level is shaping up to be an area of potential resistance. Shares closed Monday around 50% of their 52-week high. Aggressive investors can use the February 16 high at 217.65 as a potential entry. However, to be sure, Tesla shares should break above the 200-day line, which is now below 221.
On Tuesday, weekly electric vehicle insurance registration data in China could be an important indicator of demand for Tesla in the world’s largest EV market, which is in the midst of a major Tesla-initiated price war. .
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares rose 1.85% on Monday, closing at their highest level since February 15. On Monday morning, Goldman Sachs began covering with a Buy rating and a 199 price target, which was a 31% premium to Friday’s closing price.
Microsoft shares moved further above their 200-day line after Monday’s 0.6% gain. The stock is still around 20% below its 52-week high after recent declines. MSFT shares rose 0.3% on Monday.
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