by Dow Jones futures were higher before Tuesday’s open after the Dow Jones Industrial Average fell 34 points on Monday. Federal Reserve Chairman Jerome Powell is due to speak at the Economic Club in Washington, DC on Tuesday, and investors will be looking for clues about the Fed’s future hikes in the wake of Friday’s jobs report.
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late Monday, Diodes (DIODE), Fabricet (FN), Pinterest (PINS), Skyworks Solutions (SWKS) e Take-Two interactive software (TTWO) were key earnings reporters.
Diodes broke estimates for fourth-quarter highs and lows, but shares were essentially inactive in the after-hours trading session. Fabrinet shares rose less than 1% on better-than-expected earnings and sales results.
Pinterest plunged as much as 16% in extended commerce before trimming losses to around 10% after missing sales estimates. Skyworks jumped 2% despite mixed results, as the company approved a new $2 billion share repurchase program.
Take-Two missed Wall Street’s targets for the December quarter, citing weaker consumer spending. Take-Two also drove far below viewership for the March quarter. TTWO stock is down more than 1% in extended trade.
Other earnings reports this week include Mexican Grilled Chipotle (CMG), Disney (DIS), PayCom software (PAYC), Transdigma (TDG) e Vertex Pharmaceuticals (VRTX).
Stock market today
The Dow Jones Industrial Average was down 0.1% on Monday and the S&P 500 was down 0.6%. The tech-heavy Nasdaq composite lost 1%. Among exchange-traded funds, the Invesco Nasdaq 100 tracker QQQ Trust (QQQ) fell 0.85% and the SPDR S&P 500 (SPY) lost 0.6%.
The electric vehicle giant Tesla (TSLA) rose 2.5% on Monday. Among the Dow Jones shares, Apple (AAPL) decreased by 1.8% and Microsoft (MSFT) fell 0.6% in today’s stock market.
IBD Leaderboard Checklist Titles Lattice semiconductor (LSCC), Etsy (ETSY), Nextstar (NXST) and Stop wings (WING) – as well as Dow Jones stock caterpillar (CAT) e JPMorgan Chase (JPM) — are among the best stocks to buy and watch, with the continued strength of the market rally.
Lattice is an IBD Leaderboard Watchlist stock. Etsy was a recent IBD Stock Of The Day. Nexstar was a recent pick of 50 IBD stocks to watch. Caterpillar and Lattice were featured in this week’s Stocks Near A Buy Zone column.
4 growth stocks to buy and watch in the CurRent stock market rally
Dow Jones Futures Today: Oil Prices, Treasury Yields
Before the opening bell on Tuesday, Dow Jones futures were up 0.2% from fair value and the S&P 500 futures were up 0.25%. Nasdaq 100 futures are up 0.3% from fair value. Remember that overnight action in Dow Jones futures and elsewhere does not necessarily translate into actual trading in the next regular session of the stock market.
The yield on 10-year US Treasuries rose sharply again on Monday to 3.63%. The 10-year yield jumped on Friday after the Department of Labor’s strong jobs report.
Oil prices rebounded more than 1% on Monday, breaking a three-day slide that saw West Texas Intermediate futures fall below $73 a barrel. WTI futures traded around $74.50 a barrel, still close to 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 moving in a “confirmed uptrend” amid strong gains since early January.
With more encouraging action last week during the Nasdaq’s five-week winning streak, it makes sense for investors to increase exposure from 60% to 80%. But be ready to move quickly as things can change rapidly in the stock market, especially with Fed Chief Powell’s speech scheduled for Tuesday.
(Check out IBD stock listings like IBD 50 and Stocks near a buy zone, for more stock ideas.)
Five Dow Jones stocks to buy and watch now
Dow Jones Stocks to Buy and Watch: Caterpillar, JPMorgan
Top-performing Dow Jones Caterpillar is back in the buy range above a flat-base entry of 239.85, as it tries to find support around its 50-day moving average, according to chart analysis by IBD MarketSmith. Shares rose 1.5% on Monday.
Banking giant JPMorgan remains in the buy range above a fixed 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 Check. The Composite Rating is designed to help investors easily find the best growth stocks.
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Top stocks to buy and watch: Lattice, Etsy, Nexstar
Lattice stock on the IBD leaderboard watchlist fell 1.45% on Monday, still in the buy range above a buy point of 76.57 cups with a handle. LSCC shares show a strong 98 on a perfect IBD composite score.
Background: The Oregon-based programmable gate array designer focuses on four key markets: data center, computing, automotive and industrial. Its logic chips are winning new designs due to the outstanding qualities of small size, low power, reliability and ease of use. On Dec. 5, Lattice officially unveiled its newest chip design platform, Avant, and executives said the new product would double its total addressable market. Lattice reports fourth-quarter results on February 13.
Etsy remains outside the buy range above a 137.01 point buy in a cup with handle despite a 2% drop on Monday. The 5% buy area peaked at 143.86.
Background: The company is a provider of an online e-commerce platform where makers of arts and crafts, vintage items and other unique goods go to sell their wares. It has a unique business model that has, in recent years, grown from a niche ecommerce market to a top-of-mind 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 picked by Tuesday’s IBD 50 Stocks To Watch. Earnings should come out on Thursday.
Background: America’s largest local broadcast television group, Nexstar Media produces and distributes local and national news, sports and entertainment content. In addition to its leading position in the television industry, Nexstar is one of the world’s leading diversified media companies.
Wingstop Eyes Ultimate Buying Point
Wingstop is closing in on a 170.97 buy point on a lopsided cup basis, despite a 1.1% loss on Monday, which ended a four-day winning streak. Keep an eye out for a potential handle to offer lower entry.
Background: The Dallas-based restaurant chain has more than 1,900 locations in the U.S. and international markets, according to Dow Jones Newswires. Its international offices include Mexico, Colombia, Panama, Singapore and the United Kingdom. The company added 40 net stores in the prior quarter. Earnings expire February 22nd.
Join IBD experts as they analyze the major stocks in the current stock market rally on IBD Live
Tesla shares
Tesla stock rose another 2.5% on Monday, extending a winning streak to five sessions and closing at its highest level since Dec. 2.
Despite their strong rebound since Jan. 6, shares are still below the 200-day line. And Tesla stock closed Monday about 50% off its 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares fell 1.8% on Monday, ending a four-day winning streak that saw the stock regain its long-term 200-day line. Shares remain about 16% below their 52-week high.
Microsoft stock fell 0.6% on Monday, down for the second straight session. The shares are trying to cap their decline around their 200-day line and are about 19% down from their 52-week high.
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