Dow Jones futures rose before the open on Tuesday after the Dow Jones Industrial Average fell 34 points on Monday. Federal Reserve Chairman Jerome Powell will speak at the Economic Club in Washington, DC on Tuesday, and investors will be looking for signs of further Fed hikes in the wake of Friday’s jobs report.
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Monday afternoon, diodes (DIODE), Fabrinet (FN), pinterest (PAWS), Skyworks Solutions (SWKS) and Take-Two Interactive Software (TTWO) were key earnings reporters.
Diodes beat headline and fourth-quarter earnings estimates, but stocks were essentially down in the post-close trading session. Fabrinet’s shares rose less than 1% on better-than-expected earnings and sales results.
Pinterest plunged as much as 16% in extended trading before cutting losses to around 10% after missing sales estimates. Skyworks jumped 2% despite mixed results as the company approved a new $2 billion share buyback program.
Take-Two missed Wall Street’s targets for the December quarter, citing weaker consumer spending. Take-Two also guided much lower views than the March quarter. TTWO shares fell more than 1% in extended trading.
More earnings reports this week include chipotle mexican grill (CMG), Disney (OFF), payment software (PAYC), transdigma (TDG) and Vertex Pharmaceuticals (VRTX).
stock market today
On Monday, the Dow Jones industrial average fell 0.1% and the S&P 500 fell 0.6%. The Nasdaq tech composite sold off 1%. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) was down 0.85% and the SPDR S&P 500 (SPY) lost 0.6%.
electric vehicle giant tesla (TSLA) rose 2.5% on Monday. Among the Dow Jones stocks, Apple (AAPL) decreased 1.8% and Microsoft (MSFT) fell 0.6% in today’s stock market.
IBD Classification Table Watch List lattice semiconductor (LSCC), etsy (ETSY), nextstar (NXST) and wing stop (WING), as well as Dow Jones stocks Caterpillar (Cat and JPMorgan Chase (JPM) — are among the top stocks to buy and watch, with continued strength from the market rally.
Lattice is an IBD Leaderboard watchlist stock. Etsy was recently an IBD day action. Nexstar was a recent IBD 50 Stocks pick to watch. Caterpillar and Lattice 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 Tuesday, Dow Jones futures were up 0.2% against fair value, and S&P 500 futures gained 0.25%. Nasdaq 100 futures were up 0.25% 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 rose strongly again on Monday to 3.63%. On Friday, the 10-year bond yield jumped after the strong employment report from the Labor Department.
Oil prices rallied more than 1% on Monday, snapping a three-day slide that sent West Texas Intermediate futures dipping below $73 a barrel. WTI futures traded around $74.50 a barrel, still close to their recent lows.
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What to do in the ongoing stock market rally
Now is an important time to read IBD’s The Big Picture column with the stock market trending in a “confirmed uptrend” amid strong gains since early January.
With more encouraging stocks last week amid the Nasdaq’s five-week winning streak, it makes sense for investors to increase exposure from 60% to 80%. But be prepared to move quickly as things can change quickly in the stock market, especially with Fed chief Powell’s speech on the agenda for Tuesday.
(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: Caterpillar, JPMorgan
Dow Jones’ top stock Caterpillar is back in the buying range above a flat-bottomed entry of 239.85 as it tries to find support around its 50-day moving average, according to chart analysis by Dow Jones. IBD MarketSmith. Shares rose 1.5% on Monday.
Banking giant JPMorgan remains in the buy range above a flat-based buy point of 138.76 amid a 0.6% gain on Monday. JPM shares show a solid 94 out of a perfect 99 IBD composite rating, according to IBD stock verification. The composite rating is designed to help investors easily find the fastest growing stocks.
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Top Stocks to Buy and Watch: Lattice, Etsy, Nexstar
Shares of the IBD Leaderboard Lattice watch list fell 1.45% on Monday, still in a buy range above a 76.57 cup-handle buy point. LSCC shares show a strong 98 of a perfect IBD composite rating.
Background: The Oregon-based designer of programmable door arrays focuses on four key markets: data center, computing, automotive, and industrial. Its logic chips are gaining new designs due to the exceptional qualities of small size, low power, reliability, and ease of use. On December 5, Lattice officially unveiled its newest chip design platform, Avant, with executives saying the new product will double its total addressable market. Lattice reports fourth quarter results on February 13.
Etsy remains out of the buying range above a buy point of 137.01 on a handle mug despite a 2% drop on Monday. The 5% buy area exceeded 143.86.
Background: The company is a provider of an online e-commerce platform where creators of handicrafts, vintage items and other unique products go to sell their wares. It has a unique business model that, in recent years, has grown from a niche eCommerce marketplace to a top shopping destination across numerous categories.
Media giant Nexstar is in the buy range beyond the 204.72 buy point of a cup basis and was Tuesday’s IBD 50 Stocks To Watch pick. Earnings will be released on Thursday.
Background: Nexstar Media, the largest locally broadcast television group in the United States, produces and distributes local and national news, sports, and entertainment content. In addition to its leadership position in television, Nexstar is one of the world’s leading diversified media companies.
Wingstop Eyes Ultimate Point of Purchase
Wingstop is nearing a buy point of 170.97 on an unbalanced cup basis, despite a 1.1% loss on Monday, ending a four-day winning streak. Be on the lookout for a potential handle to offer a lower input.
Background: The Dallas-based restaurant chain has more than 1,900 locations in the US and international markets, according to Dow Jones Newswires. Its international locations include Mexico, Colombia, Panama, Singapore, and the United Kingdom. The company added 40 net stores in the prior quarter. Earnings will be posted on February 22.
Join IBD experts as they discuss the top stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla shares rose another 2.5% on Monday, extending a winning streak to five sessions and closing at their highest level since December 2.
Despite its strong recovery since January 6, stocks are still below the 200-day line. And Tesla shares closed Monday down 50% from their 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among the Dow Jones stocks, Apple shares fell 1.8% on Monday, ending a four-day winning streak in which the stock retraced its long-term 200-day line. Shares remain around 16% below their 52-week high.
Microsoft shares fell 0.6% on Monday, falling for the second session in a row. Stocks are trying to stem their slide around their 200-day line and are 19% below the 52-week high.
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