Dow Jones futures, S&P 500 futures, and Nasdaq 100 futures were mostly steady as the two-day Federal Reserve policy meeting approached. The artificial intelligence leader Super Micro Computer (SMCI) saw its shares rise following a positive earnings report, while tech giant Alphabet (GOOGL) was set to report after Tuesday’s market close.
On Wednesday, the Fed meeting and Fed Chair Jerome Powell’s news conference will be in focus. The market expects Powell to signal the beginning of a process to wind down balance-sheet tightening, although the pace of this action will be key. On Friday, the January employment report is expected to show an addition of 165,000 jobs.
After reporting robust earnings and sales results, Super Micro Computer’s shares surged 10% in extended trading on Monday. The company also provided fiscal Q3 guidance that exceeded Wall Street’s estimates.
The Dow Jones Industrial Average rose by 0.6% and the S&P 500 rallied 0.8% on Monday, while the Nasdaq composite gained 1.1%. This week will see earnings reports from five of the Magnificent Seven stocks: Alphabet, Amazon (AMZN), Apple (AAPL), Meta Platforms (META), and Microsoft (META). Among these, Tesla (TSLA) saw the most significant gain, climbing 4.2%, while Nvidia (NVDA) rose by 2.35%. Apple and Microsoft stocks had mixed results, with Apple’s stock dropping by 0.4% and Microsoft’s stock rising by 1.4%.
DraftKings (DKNG), KKR (KKR), Novo Nordisk (NVO), Snowflake (SNOW), and Spotify (SPOT), as well as Dow Jones components Amgen (AMGN), Merck (MRK), and Walmart (WMT), are among the top stocks to buy and watch in the current market rally.
Dow Jones futures and the Nasdaq 100 futures saw little change compared to fair value before Tuesday’s opening bell. Monday saw the 10-year U.S. Treasury yield drop to 4.09%, while oil prices settled below $77 a barrel for West Texas intermediate futures.
Following Monday’s positive market performance, it’s important to stay updated with the stock market outlook in a confirmed uptrend through IBD’s The Big Picture column. The IBD MarketSmith’s “Breaking Out Today” list and “Near Pivot” list can provide daily breakout stock ideas and stocks nearing buy points in bases, such as Shake Shack (SHAK) and Expedia (EXPE) respectively.
Amgen, Merck, and Walmart have all seen significant stock movement in light of their latest financial results. Discount retail giant Walmart is in buy range past a 163.57 entry in a cup with handle, amid a three-day win streak.
Leading stocks DraftKings, KKR, Novo Nordisk, Snowflake, and Spotify have all shown strong movements as well. DraftKings rallied 3.7% Monday, decisively breaking out past a double-bottom base’s official buy point at 38.97, while KKR broke out Friday, moving above an 85.66 flat-base entry. Novo Nordisk, the maker of weight-loss drugs, ended Monday up 0.9%, further above its 105.69 flat-base buy point. Software leader Snowflake is breaking out past a 202.83 buy point in a flat base with its 3.% rally. However, Spotify closed Monday out of buy range past a 202.88 buy trigger in a flat base, with a 2% rise.
Tesla saw a 13% decline last week, closing at its lowest level since May 2023. The stock rebounded by 4.2% on Monday but is still significantly below its 52-week high and moving averages.
Among Dow Jones stocks in the Magnificent Seven, Apple and Microsoft had mixed results on Monday. Apple dropped 0.4% and continued its losing streak to four sessions, while Microsoft stock rallied to record highs, rising 1.4%. Be sure to follow Scott Lehtonen on X/Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
