Dow Jones lower ahead of Powell speech; 7 Best Stocks to Buy and Watch

Dow Jones futures edged lower in extended trading ahead of Federal Reserve Chairman Jerome Powell’s speech on Tuesday. The Dow Jones Industrial Average retreated on Monday, rising 305 points.


Powell speech, inflation data, earnings

Fed chief Powell will speak at the Sveriges Riksbank International Central Bank Independence Symposium held in Stockholm, the capital of Sweden. His speech is scheduled to begin at 9 am. Powell’s speech follows Friday’s jobs report, which saw wage growth cool more than expected and workers working fewer hours for the second straight month. The data should allow the Fed to further slow the pace of rate hikes.

Consumer inflation data is due out on Thursday morning. CPI is expected to be unchanged for December and 6.6% higher year-on-year, according to Econoday estimates. According to CME’s FedWatch tool, traders are giving a 77% chance of a 25-basis-point rate hike at the next Fed policy meeting in late January/early February.

The 10-year Treasury yield fell for a second session in a row, falling to 3.51% on Monday.

Jefferies (JEF) reported earnings that met estimates and sales that beat forecasts. Jefferies shares lost more than 3% in extended trading.

Other companies reporting later this week include KB Home page (CKD), Taiwan Semiconductor Manufacturing (TSM), Bank of America (BAC), Citigroup (C) and Wells Fargo (WFC). Dow Jones stocks JPMorgan Chase (JPM) and UnitedHealth Group (UNH) will also report this week.

Stock Exchange Today

The Dow Jones Industrial Average lost 0.3% and the S&P 500 lost 0.1% on Monday. The tech-heavy Nasdaq composite rose 0.6%. Among exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust ( QQQ ) rose 0.65% and the SPDR S&P 500 ( SPY ) inched lower.

The electric car giant Tesla ( TSLA ) rose 5.9% on Monday. Among the Dow Jones stocks, apple ( AAPL ) gained 0.4% Microsoft (MSFT) rose 1% in today’s stock market.

Deere (DE), an IBD Leaderboard stock ELF Beauty (ELF), Rio Tinto (RIO) and IBD SwingTrader stocks Super Micro Computer (SMCI) — also Dow Jones names Caterpillar (CAT), Chevron (CVX) and Walmart (WMT) – rebought in market rally mode and is among the best stocks to watch.

ELF Beauty is an IBD Leaderboard fund. Super Micro is the new IBD SwingTrader idea. Caterpillar and Rio are featured in this week’s Stocks Near Buy Zone column.

4 Best Growth Stocks to Buy and Watch on Current Stock Market Rally

Dow Jones Futures Today: Oil Prices

Dow Jones futures were down 0.3% from fair value and S&P 500 futures were down 0.35% ahead of Tuesday’s opening bell. Tech-heavy Nasdaq 100 futures were down 0.4% at fair value. Remember that an overnight move in Dow Jones futures and elsewhere does not necessarily translate into actual trading in the next regular trading session.

U.S. oil prices rose more than 1% on Monday, slightly recovering from last week’s sharp losses. West Texas Intermediate futures traded just below $75 a barrel.

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What to Do in a New Stock Market Rally

Now is an important time to read IBD’s The Big Picture column, with the stock market trend diverging sharply from recent moves, with a “confirmed bullish” trend after Friday’s strong gains on strong volume.

Friday’s positive action on high volume led the IBD market to enter a new stock market rally. Nevertheless, it is still an uncertain environment and exposure should be increased in moderation. Investors should be exposed to 20% to 40% for now.

(See IBD Stock Lists such as the IBD 50 and Stocks Nearing a Buy Zone for additional fund ideas.)

Five Dow Jones Stocks to Buy and Watch Now

Dow Jones Stocks to Buy and Watch: Caterpillar, Chevron, Walmart

Dow Jones member Caterpillar remains in buy range above the flat base’s 239.95 buy point after falling 0.9% on Monday. According to IBD MarketSmith model recognition. The buy zone rises to the level of 251.95. As a bull, the stock’s relative strength line, a key technical indicator, is at new highs.

The CAT stock shows a strong 98 out of a perfect 99 IBD Composite Rating according to the IBD Stock Check. The Composite Rating is designed to help investors easily find the best growth stocks.

Energy giant Chevron found strong resistance again at its 50-day line as it continues to build a cup base with a buy point of 189.78.

Discount retailer Walmart fell 1.25% on Monday, falling below its 50-day line. Shares are forming a cup with a handle that has a buy point of 154.74 and is about 6% away from the most recent entry.

Best stocks to buy and watch: Deere, ELF Beauty, Rio, Super Micro

Recent IBD Stock Of The Day Deere is forming a flat base with a 448.50 buy point. Shares rose 0.4% on Monday, nearing a recent buy point.

IBD Leaderboard stock ELF Beauty gave up a flat base entry of 57.03 on Monday amid a 3.9% decline. Shares were off on heavy volume on Friday, indicating strong institutional demand for the cosmetics leader. The 5% buy zone is upside at 59.88 if the stock can recover the entry.

Rio Tinto pared its recent IBD share gain to just 0.1% on Monday, rising further above the cup at 73.45 buy points. The buying area continues up to 77.13.

IBD SwingTrader stock Super Micro Computer is moving quickly to the right of a short consolidation that has a 95.32 buy point. Shares pared Monday’s gains to 0.45%.

Stocks to Buy and Watch in the New Stock Market Rally

These are the seven best stocks to buy and watch in today’s stock market, including three Dow Jones leaders.

Company Name Symbol The Right Buy Point Base Type
Deere (DE) 448.50 Flat base
ELF Beauty (ELF) 57.03 Flat base
Rio Tinto (RIO) 73.45 Mug with handle
Super Micro Computer (SMCI) 95.32 Consolidation
Caterpillar (English) 239.95 Flat base
Chevron (CVX) 189.78 Cup base
Walmart (WMT) 154.74 Mug with handle
Source: IBD Data as of January 9, 2023

Join IBD’s experts as they analyze the leading stocks in the current stock rally on IBD Live

Tesla shares

Tesla shares rose nearly 6% on Monday, extending Friday’s gains. Stocks remain sharply below the 50- and 200-day lines.

Last week, the stock hit a 52-week low of 101.81. Tesla shares are down nearly 68% from their 52-week high on Monday.

Dow Jones Leaders: Apple, Microsoft

Among the Dow Jones stocks, Apple shares rose 0.4% on Monday. Last week, the stock hit a new 52-week low of 124.17. The stock remains about 20% off its 52-week high.

Microsoft shares rose 1% on Monday, adding to Friday’s gains. The software giant is down nearly 30% from its 52-week high and is still short of its 52-week low of 213.43 hit on Nov. 4.


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