The Dow Jones Industrial Average rose Monday to add to Friday’s sharp gains. Earnings season for the December quarter begins this week with the much-anticipated earnings from Dow Jones members JPMorgan Chase (JPM) and United Health Group (UNH). and Tesla (TSLA) stock continued to rally after hitting a new low on Friday.
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Global markets and oil prices got a boost after positive comments on the recovery from a People’s Bank of China official on Sunday. That helped send Tesla and a number of China-based and chip stocks ASML Holding (ASML) and NVIDIA (NVDA) topped the Nasdaq 100 in early trading.
Companies reporting earnings on Monday morning include Acuity Brands (AYI) and Commercial Metals (CMC). Acuity Brands rose 1% after reporting better-than-expected results for the fiscal first quarter. And Commercial Metals shares rose nearly 3% on strong results. Last, Lululemon Athletica (LULU) plunged 10% after warning that its fourth-quarter gross margin would be lower than expected.
Other companies reporting later this week include, among others Jefferies (JEF), KB Home (KBH), Taiwan semiconductor manufacturing (TSM), Bank of America (BAK), Citigroup (C) and Wells Fargo (WFC).
Dow Jones stock Visas (V) and MasterCard (MA) were both upgraded to overweight ratings at KeyBanc. Visa shares rose 0.5%, while MA shares gained 0.8%.
Electric vehicle leader Tesla gained more than 8% on Monday. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were both significantly higher after the market open today.
cardinal health (CAH), deer (DE), Medpace (MEDP) and IBD Leaderboard Shares Neurocrine Life Sciences (NBIX) – as well as Dow Jones names Caterpillar (CAT), rafters (CVX) and Walmart (WMT) – are among the top stocks to buy and watch when the market is back in rally mode.
Neurocrine is an IBD Leaderboard stock. Caterpillar and Medpace were the most recent IBD Stock Of The Day companies. And Cardinal Health was recently featured in a “Stocks Near A Buy Zone” column.
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Dow Jones Today: Oil Prices, Treasury Yields
After Monday’s opening bell, the Dow Jones Industrial Average was up 0.4% and the S&P 500 was up 0.9%. And the tech-heavy Nasdaq Composite rose 1.7% in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) was up 1.3% and the SPDR S&P 500 ETF (SPY) was up 0.5% early Monday.
The 10-year Treasury yield rose to 3.58% Monday morning, appearing to be recovering from last week’s sharp losses. Big losses on Friday were prompted by the December jobs report.
Meanwhile, Monday morning oil prices rebounded after last week’s decline. West Texas Intermediate futures were up more than 2% to trade around $76 a barrel.
stock market rally
On Friday, the Dow Jones Industrial Average was up 2.1% and the S&P 500 was up 2.3%. The Nasdaq Composite rose 2.6%.
Friday’s The Big Picture column commented, “The widespread positive action has resulted in the IBD market outlook having switched to ‘market in confirmed uptrend’ should remain at 20% to 40% exposure for now.”
Five Dow Jones stocks to buy and watch
Dow Jones stocks to buy and watch: Caterpillar, Chevron, Walmart
Dow Jones stock Caterpillar closed right in the buy range above the buy point of a flat base of 239.95, after a 3.6% gain from Friday, pattern recognition by IBD MarketSmith. The buy zone rises to 251.95. On an optimistic note, the stock’s relative strength line, a key technical indicator, is at fresh highs. Shares rose 0.1% on Monday.
CAT stocks show strong 98 out of 99 perfect IBD Composite Ratings according to IBD Stock Checkup. The Composite Rating is designed to help investors easily find top growth stocks.
Energy giant Chevron is attempting to retake its 50-day moving average as it continues to build a cup base with a buy point of 189.78. CVX shares were up 0.6% Monday morning, rising with oil prices.
Discounter Walmart bullishly regained its 50-day moving average during Friday’s 2.45% surge. Stocks build a mug with a handle that has a buy point of 154.74 and is about 5% from the last entry. Walmart shares fell 0.5% Monday morning.
4 top growth stocks to buy and watch in the new stock market rally
Top stocks to buy and watch: Cardinal Health, Deere, Medpace, Neurocrine
Cardinal Health, a current IBD stock of the day, was up 2.6% on Friday, hitting its 50-day moving average. CAH stock fell 0.1% on Monday.
Another recent IBD stock of the day, Deere is building a flat base with a buy point of 448.50. Stocks are nearing their final buying point after bouncing back above the 50-day moving average during Friday’s 2.8% surge. DE shares rose 0.5% on Monday morning.
Medpace continues to consolidate below its 50-day moving average. For now, the right buy point remains at 235.82, but an earlier entry at 220.09 is also in play. MEDP shares rose 1.2% on Friday.
IBD Leaderboard stock Neurocrine Biosciences is recovering from support at its 50-day moving average. A new flat base shows a buy point at 129.39 with an early entry at 122.93. NBIX stock lost 0.1%.
Stocks to buy and watch in the new stock market rally
These are six top stocks to watch in today’s stock market, including three top Dow Jones stocks.
| Company Name | symbol | Correct purchase point | type of base |
|---|---|---|---|
| cardinal health | (CAH) | 81.67 | flat base |
| deer | (EN) | 448.50 | flat base |
| Neurocrine Life Sciences | (NBIX) | 129.39 | flat base |
| Caterpillar | (CAT) | 239.95 | flat base |
| rafters | (CVX) | 189.78 | cup base |
| Walmart | (WMT) | 154.74 | Cup with handle |
Source: IBD data as of January 9, 2023
Join IBD experts as they analyze leading stocks from the current stock market rally on IBD Live
Tesla stock
Tesla stock rebounded from big losses on Friday to end the session up 2.5%. On Friday, shares hit a 52-week low at 101.81 and closed about 71% below their 52-week high.
Shares appeared to contribute to Friday’s gains, rising 8.4% on Monday morning.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares rallied 3.7% on Friday. Last week the stock hit a fresh 52-week low at 124.17. The stock remains around 30% below its 52-week high. Shares rose 1.3% on Monday morning.
Microsoft shares rose 1.2% on Friday, on a four-day losing streak. The software giant is about 31% off its 52-week high and still just below its 52-week low of 213.43, set on Nov. 4. MSFT shares were up 1% early Monday.
Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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