Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, were little changed ahead of Tuesday’s stock market open. Palantir Technologies (PLTR), an artificial intelligence stock, experienced a significant surge following a positive earnings report. On the other hand, Tesla (TSLA), one of the Magnificent Seven stocks, reached new recent lows.
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Palantir’s stock jumped more than 18% after the company released a report showing an adjusted EPS of 8 cents, in line with estimates, on a revenue of $608.4 million. The anticipated increase in sales was $602.9 million.
Additionally, shares of NXP Semiconductor (NXPI), an Apple supplier, surged 3% in extended trade after reporting strong earnings and sales results.
Analysis of the Stock Market Today
On Monday, the Dow Jones Industrial Average decreased by 0.7% and the S&P 500 slipped by 0.3%. The tech-heavy Nasdaq composite dropped by 0.2%.
Of the Magnificent Seven stocks, Tesla (TSLA) experienced the biggest loss, declining by 3.65%. However, Nvidia (NVDA) rallied 4.8% to record highs.
Furthermore, Dow Jones tech icons Apple (AAPL) and Microsoft (MSFT) traded mixed in today’s stock market, with Apple stock increasing by 1% and Microsoft falling by 1.35%.
Expedia (EXPE), KKR (KKR), Lennar (LEN), and MongoDB (MDB) — along with Dow Jones members Caterpillar and Walmart (WMT) — are among the best stocks to buy and watch in the current market rally.
Disney and Lennar were highlighted in the Stocks Near A Buy Zone column.
Dow Jones Today: Oil Prices, Treasury Yields
Ahead of Tuesday’s opening bell, Dow Jones futures, S&P 500 futures and Nasdaq 100 futures remained relatively stable compared to fair value. Keep in mind that overnight action in Dow Jones futures and elsewhere might not necessarily translate into actual trading in the next regular stock market session.
On Monday, the 10-year U.S. Treasury yield increased to 4.16%. Meanwhile, oil prices rebounded, with West Texas intermediate futures settling just below $73 a barrel.
Guidance for the Stock Market Rally
This is a crucial time to review IBD’s The Big Picture column, providing the stock market outlook in a confirmed uptrend.
Following Monday’s losses, ensure to check today’s The Big Picture for an updated exposure level.
IBD MarketSmith’s “Breaking Out Today” list is an excellent resource for daily breakouts. It highlights MarketSmith Growth 250 stocks breaking out past new buy points. Today, there were three breakouts, including JFrog (FROG), which is breaking out past a 35.35 flat-base entry.
Additionally, the MarketSmith “Near Pivot” list identifies stocks nearing buy points in bases, such as Global Payments (GPN) approaching a 138.07 flat-base entry.
For more stock ideas, refer to IBD Stock Lists, such as IBD 50, Big Cap 20, and Stocks Near A Buy Zone. These features identify bullish patterns and buy points that should be reviewed daily.
Dow Jones: Disney, Walmart
Media giant leader Disney is in buy range above a flat base’s 96.51 buy point, despite a 0.5% loss on Monday, according to IBD MarketSmith pattern recognition. Earnings for Disney are scheduled to be released on Wednesday after the market closes.
Discount retail leader Walmart is in buy range above a 163.57 entry in a cup with handle, despite the stock dropping 0.5% on Monday.
4 Top Growth Stocks To Watch In The Stock Market Rally
Lennar Eyes Buy Point
Travel stock Expedia is tracing a flat base with a 155.84 buy point. Shares saw support around their 50-day line with a 0.4% climb on Monday.
IBD Leaderboard stock KKR remains above an 85.66 flat-base entry, despite a 1.2% drop on Monday.
Homebuilder Lennar is within reach of a flat base’s 156.01 buy point with a near-1% fall on Monday.
Software leader MongoDB is breaking out past a 426.51 buy point, accompanied by a 6.6% surge on Friday, according to IBD MarketSmith. MongoDB shares added 0.2% on Monday.
Insights On Timing The Market
These are the top four stocks to watch in today’s stock market, including a Dow Jones leader.
Company Name
Symbol
Correct Buy Point
Type Of Buy Point
Lennar
(LEN)
156.01
Flat base
Merck
(MRK)
119.65
Cup base
KKR
(KKR)
85.66
Flat base
MongoDB
(MDB)
426.51
Handle entry
Source: IBD Data As Of Feb. 5, 2024
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla experienced a decline of as much as 6.9% on Monday, reaching its lowest level since May 2023 before finishing with a 3.65% loss. The shares are currently around 40% off their 52-week high.
The 2024 Tesla earnings estimates are now lower than those for 2023, indicating another year of negative growth for this growth story stock. Additionally, the electric vehicle giant raised the U.S. price of its Model 3 Long Range variant on Sunday.
According to FactSet, analysts are now expecting Tesla earnings per share of just $3.08 in 2024. This would represent a 1% decline compared to last year’s $3.12, which in turn marked a 23% decline versus 2022.
Dow Jones Leaders: Apple, Microsoft
Among the Dow Jones stocks in the Magnificent Seven, Apple and Microsoft had mixed performance in Monday’s stock market activity.
Apple recorded a 1% increase on Monday, yet it remains below its 50-day line following significant losses in recent weeks. The shares continue to follow a flat base with a 199.62 buy point.
On the other hand, Microsoft stock declined by 1.35% on Monday, ending a two-day rally. The shares are currently extended past a 366.78 cup-base buy point.
For more on growth stocks and the Dow Jones Industrial Average, follow Scott Lehtonen on X/Twitter at @IBD_SLehtonen.
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