The Dow Jones Industrial Average rose on Tuesday amid comments from Fed Chairman Jerome Powell. Meanwhile, the aerospace giant Boeing (BA) slipped after being downgraded by Morgan Stanley.
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Powell Comments, Earnings Results
Powell spoke at the Sveriges Riksbank International Central Bank Independence Symposium in Stockholm. While raising interest rates to curb economic growth could intensify the political blow, the Central Bank remains firmly committed to reducing inflation, Powell said in prepared remarks.
Powell’s prepared remarks did not comment on the Federal Reserve’s future interest rate decisions, but instead emphasized the importance of central bank independence without political interference.
Powell’s remarks followed comments from Atlanta Federal Reserve President Raphael Bostic and San Francisco Fed President Mary Daly that rattled markets on Monday. Daly and Bostic each pointed to a Fed rate hike above 5%.
Powell’s comments follow 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.
late monday Jefferies (JEF) reported earnings that met estimates and sales that beat forecasts. Jefferies shares lost more than 1% in morning trading. Albertsons ( ACI ) rose 1% after earnings growth. Bed Bath & Beyond ( BBBY ) rose 12% in morning trade after missing estimates for its fiscal third quarter.
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 aerospace leader Boeing fell 2.2% after Morgan Stanley downgraded the stock to equal weight from overweight. King Carib ( RCL ) rose 1% after Morgan Stanley upgraded the cruise operator to equal weight from underweight. Finally, AT&T Wells Fargo ( T ) gained 1.4% as it upgraded its stock from equal weight to overweight.
Electric car leader Tesla fell more than 1% on Tuesday after reports the automaker delivered more than 10,000 vehicles in a single day on Friday. Dow Jones tech giants apple (AAPL) and Microsoft ( MSFT ) were both higher after the stock market opened today.
Deere (DE), an IBD Leaderboard stock ELF Beauty (ELF), Rio Tinto (RIO) and 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. Caterpillar and Rio are featured in this week’s Stocks Near Buy Zone column.
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Dow Jones today: Oil prices, Treasury yields
The Dow Jones Industrial Average was up 0.2% and the S&P 500 was up 0.15% after the opening bell on Tuesday. And the tech-heavy Nasdaq composite rose 0.25% in morning action.
Among U.S. exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust ( QQQ ) rose 0.2% and the SPDR S&P 500 ETF ( SPY ) rose 0.15% on Tuesday.
The 10-year Treasury yield rose to 3.58% on Tuesday morning, looking to snap a two-day losing streak.
Meanwhile, oil prices rebounded to the midpoint of their recent trading range, heading for a third straight gain. West Texas Intermediate futures rose less than 1% to around $75 a barrel.
Stock market rally
The Dow Jones Industrial Average lost 0.3% and the S&P 500 lost 0.1% on Monday after giving up solid gains. The Nasdaq composite posted a strong gain of up to 0.6%.
Monday’s The Big Picture column commented: “If this bullish trend in the stock market is real, investment opportunities will emerge within weeks or months. So there’s no need to rush. With any purchase, start with half of your intended investment. If the stock continues to rise. , Add more as you try to complete your purchases until the stock is 5% above the buy point.”
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 Monday. According to IBD MarketSmith model recognition. The buy zone that CAT shares have been in and out of since December 21 is rising to 251.95. As a bull, the stock’s relative strength line, a key technical indicator, is at new highs. Shares fell 0.3% on Tuesday.
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 were up 0.8% on Tuesday morning despite a slight increase in oil prices.
Discount retailer Walmart retook its 50-day line during a 2.45% gain on Friday. It then returned that support to the non-strait on Monday. Shares are forming a cup base with a handle that has a buy point of 154.74 and is about 5% away from the most recent entry. Walmart shares rose Tuesday morning.
4 Best Growth Stocks to Buy and Watch in the New Stock market rally
Best stocks to buy and watch: Deere, ELF Beauty, Rio, Super Micro
Recent IBD Stock Of The Day, Deere, is making a flat base with a buy point of 448.50. Stocks are eyeing a buy point as they bounce back from the 50-day support test. Shares of Deere were down 0.1% Tuesday morning.
IBD Leaderboard stock ELF Beauty gave up a flat base entry of 57.03 amid sharp declines on Monday. Shares were off on heavy volume on Friday, indicating strong institutional demand for the cosmetics leader. If the stock can recover the buy point, the 5% buy zone tops out at 59.88. ELF shares fell 0.8% on Tuesday.
IBD shares of Rio Tinto rose 0.1% on Monday, rising above a cup of 73.45 buy points. The buying area continues up to 77.13. Rio shares rose 1% on Tuesday.
Super Micro Computer is moving quickly to the right of a short consolidation with a 95.32 buy point. But SMCI shares fell 7% on Tuesday morning after Spruce Point Management issued a brief report.
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 10, 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.
Shares of the EV giant tried to extend a two-day winning streak, but were down more than 1% on Tuesday morning.
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. AAPL shares rose 0.2% on Tuesday.
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. Microsoft shares were up 1% early Tuesday.
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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