The Dow Jones Industrial Average rose on Monday, looking to add to Friday’s strong stock gains. The December-quarterly earnings season kicks off this week with the highly anticipated results of Dow Jones members. JPMorgan Chase (JPM) and UnitedHealth Group (UNH). And Tesla ( TSLA ) shares continued to bounce after hitting new lows on Friday.
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Global markets and oil prices got a boost on Sunday after positive recovery comments from the People’s Bank of China official. That helped send up Tesla and a number of China-based stocks, including chip stocks ASML Holding (ASML) and Nvidia (NVDA) rose to the top of the Nasdaq 100 in early trading.
Includes companies reporting earnings Monday morning Sharpness Brands (BEAR) and Trade metals (CMC). Acuity Brands rose 1% after posting better-than-expected results for its fiscal first quarter. And Commercial Metals shares rose nearly 3% after strong results. Finally, Lululemon Athletica ( LULU ) fell 10% after warning that its fourth-quarter gross margin would be lower than expected.
Other companies reporting later this week include Jefferies (JEF), KB Home page (CKD), Taiwan Semiconductor Manufacturing (TSM), Bank of America (BAC), Citigroup (C) and Wells Fargo (WFC).
Dow Jones stocks Visa (V) and MasterCard (MA) were both upgraded to Overweight at KeyBanc. Visa shares rose 0.5% and MA shares rose 0.8%.
Electric car leader Tesla gained more than 8% on Monday. Dow Jones tech giants apple (AAPL) and Microsoft ( MSFT ) both rose sharply after the stock market opened today.
Cardinal Health (CAH), Deere (DE), Medpace (MEDP) and IBD Leaderboard stocks Neurocrine biosciences (NBIX) — also Dow Jones names Caterpillar (CAT), Chevron (CVX) and Walmart (WMT) – rebought in market rally mode and is among the best stocks to watch.
Neurocrine is an IBD Leaderboard fund. Caterpillar and Medpace were recent IBD Stock Of The Day companies. And Cardinal Health was featured in the Stocks Near Buy Zone column.
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Dow Jones today: Oil prices, Treasury yields
The Dow Jones Industrial Average was up 0.4% and the S&P 500 was up 0.9% after Monday’s opening bell. And the tech-heavy Nasdaq composite rose 1.7% in morning action.
Among US exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust ( QQQ ) rose 1.3%, while the SPDR S&P 500 ETF ( SPY ) rose 0.5% on Monday.
The 10-year Treasury yield rose to 3.58% on Monday morning, trying to bounce back from last week’s sharp losses. Big losses on Friday were caused by the December jobs report.
Meanwhile, oil prices rebounded on Monday morning after last week’s decline. West Texas Intermediate futures rose more than 2% to around $76 a barrel.
Stock market rally
The Dow Jones Industrial Average rose 2.1% on Friday, while the S&P 500 rose 2.3%. The Nasdaq composite rose 2.6%.
Friday’s The Big Picture column commented: “Positive action in high volume has caused IBD’s market outlook to change to ‘confirmed bull market.’ % to 40% should be exposed.”
Five Dow Jones Stocks to Buy and Watch Now
Dow Jones Stocks to Buy and Watch: Caterpillar, Chevron, Walmart
Dow Jones member Caterpillar completely closed its buy range above the flat base’s 239.95 buy point after a 3.6% advance on Friday. 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. Shares rose 0.1% on Monday.
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 is trying to retrace its 50-day line as it continues to build a cup base with a buy point of 189.78. CVX shares rose 0.6% on Monday morning, as oil prices rose.
Discount retailer Walmart retook its 50-day line during a 2.45% gain on Friday. Shares are forming a cup with a handle that has a buy point of 154.74 and is about 5% away from the most recent entry. Walmart shares were down 0.5% on Monday morning.
4 Best Growth Stocks to Buy and Watch in the New Stock market rally
Best stocks to buy and watch: Cardinal Health, Deere, Medpace, Neurocrine
The last IBD stock of the day, Cardinal Health, regained its 50-day line, rising 2.6% on Friday. CAH shares fell 0.1% on Monday.
The other last IBD Stock of the day, Deere, is making a flat base with a buy point of 448.50. During Friday’s 2.8% rally, shares are nearing a recent buy point after breaking above the 50-day line. DE shares were up 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 the previous entry at 220.09 is also in play. MEDP shares rose 1.2% on Friday.
IBD Leaderboard stock Neurocrine Biosciences bounces back from support at its 50-day line. A new flat base indicates a buy point at 129.39 with an early entry at 122.93. NBIX shares 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 Dow Jones leaders.
| Company Name | Symbol | The Right Buy Point | Base Type |
|---|---|---|---|
| Cardinal Health | (CAH) | 81.67 | Flat base |
| Deere | (DE) | 448.50 | Flat base |
| Neurocrine biosciences | (NBIX) | 129.39 | Flat base |
| 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 bounced back from big losses on Friday to close 2.5% higher on the session. Shares hit a 52-week low of 101.81 on Friday, covering about 71% of their 52-week high.
Shares rose 8.4% on Monday morning and looked to build on Friday’s gains.
Dow Jones Leaders: Apple, Microsoft
Among the Dow Jones stocks, Apple shares rose 3.7% on Friday. Last week, the stock hit a new 52-week low of 124.17. The stock remains about 30% off its 52-week high. Shares were up 1.3% on Monday morning.
Microsoft shares gained 1.2% on Friday, snapping a four-day losing streak. The software giant is down nearly 31% from its 52-week high and is still trading near its 52-week low of 213.43.
Be sure to follow Scott Lehtonen on Twitter @IBD_SLehtonen For more information on growth stocks and the Dow Jones Industrial Average.
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