This Monday morning, the Dow Jones Industrial Average slipped as investors absorbed earnings reports from Caterpillar (CAT) and McDonald’s (MCD). In the meantime, Nvidia stock experienced a surge following Goldman Sachs’s raised price target and addition of the chip giant to its top stocks list.
X
Shortly after the market opened, the Dow Jones Industrial Average dropped 0.4% and the S&P 500 fell 0.2%. The tech-heavy Nasdaq composite saw a slight dip in morning action.
Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) slid 0.1%, while the SPDR S&P 500 ETF (SPY) fell 0.2%.
The 10-year Treasury yield saw a rise to 4.11% on Monday. Also, oil prices showed signs of reversing last week’s substantial losses, with West Texas Intermediate futures edging up by 0.1%. WTI futures were trading above $72.35 a barrel.
Before the market opened, Caterpillar’s stock saw a 5% jump after posting solid earnings and sales results. Conversely, McDonald’s shares dropped by 2% after failing to meet revenue targets, although the company did exceed earnings estimates.
On Monday, Nvidia (NVDA) experienced a 4% surge after prominent Wall Street broker Goldman Sachs included the stock in its “Conviction List,” which consists of 25 stocks that Goldman considers to be differentiated and fundamental “buy” ideas. Goldman also increased its price target from 625 to 800.
Economic Calendar, Earnings Reports
This week’s economic calendar is notably more tranquil compared to last week, which featured the Federal Reserve’s policy decision and the January jobs report.
Early on Monday, the S&P Global Purchasing Managers’ Index for services is set to be released at 9:45 a.m. ET. The index is expected to remain steady at 52.9 in January compared to the mid-month estimate.
Additionally, the Institute of Supply Management services index is anticipated to climb to 52.1 in January from December’s 50.6 reading. This data is scheduled for release at 10 a.m.
Other key earnings reports this week include Dow Jones components Amgen (AMGN) and Disney (DIS), along with NXP Semiconductors (NXPI) and Ford Motor (F).
Dow Jones Rebounds
On Friday, the Nasdaq composite rallied 1.7%, while the S&P 500 climbed 1.1%, setting a new all-time high in the process. The Dow Jones Industrial Average lagged behind the other main indexes, but managed to gain 0.4%.
Friday’s Big Picture column stated, “Due to recent strong stock market action Investor’s Business Daily is once again raising its recommended market exposure to the 80% to 100% level. But be careful. With many stocks currently extended from buy points it is crucial to increase exposure in a sensible, measured fashion. Be aware that both the S&P 500 and the Nasdaq look extended at these levels.”
Now is an important time to read IBD’s The Big Picture column amid the continuing stock market rally. Be sure to read how to adjust to changing market conditions, with IBD’s new exposure levels.
Learn How To Time The Stock Market With IBD’s ETF Market Strategy
Best Stocks To Buy And Watch
Travel company Expedia (EXPE), investment firm KKR (KKR), homebuilder Lennar (LEN) and database software company MongoDB (MDB) — along with Dow Jones members Caterpillar and Walmart (WMT) — are among the top stocks to buy and watch in the current market rally.
KKR and Walmart were featured in this Stocks Near A Buy Zone column. KKR is on IBD SwingTrader.
Get Real-time Buy And Sell Alerts On Stock Market Leaders With IBD Leaderboard
Dow Jones: Caterpillar Hits New High
With its substantial gains on Monday, heavy machinery giant Caterpillar, also a Dow component, is moving out of buy range past an alternate entry’s 299.20 buy point, according to IBD MarketSmith pattern recognition.
Fellow Dow stock and discount retail giant Walmart is in buy range past a 163.57 entry in a cup with handle, after climbing nearly 1% on Friday. The stock added 0.2% early Monday.
4 Top Growth Stocks To Watch In The Stock Market Rally
Expedia Eyes Buy Point
Travel stock Expedia is tracing a flat base that shows a 155.84 buy point. Shares are finding support around their 50-day line, even as they fell 0.9% early Monday.
IBD Leaderboard stock KKR remains above an 85.66 flat-base entry amid a 1.8% rally on Friday. Shares were down 0.8% Monday morning.
Homebuilder Lennar is within striking distance of a flat base’s 156.01 buy point, with a slight gain on Friday. Shares were off 0.7% early Monday.
Software leader MongoDB is breaking out past a 426.51 buy point, with a 6.6% surge on Friday, according to IBD MarketSmith. MongoDB shares rallied another 2.2% on Monday.
IBD’s latest newsletter MarketDiem provides actionable ideas for stocks, options and crypto delivered right to your inbox
Best Bets In Monday’s Action
These are four best stocks to watch in today’s stock market, including a Dow Jones leader.
Company Name
Symbol
Correct Buy Point
Type Of Buy Point
Novo Nordisk
(NVO)
105.69
Flat base
Merck
(MRK)
119.65
Cup base
DraftKings
(DKNG)
39.35
Cup base
Spotify
(SPOT)
202.88
Flat base
Source: IBD Data As Of Jan. 31, 2024
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Magnificent Seven Stocks: Tesla
Magnificent Seven stock Tesla (TSLA) declined by 1.8% on Monday morning.
Tesla had dropped 0.5% on Friday, remaining close to its recent lows following substantial losses on Jan. 25.
In addition to Monday’s gains, fellow Magnificent Seven stock Nvidia jumped 5% on Friday, climbing over 30% past a a 505.48 buy point in a flat base after a Jan. 8 breakout move. Shares are currently at record highs.
Dow Jones Leaders: Apple, Microsoft
Among the Dow Jones stocks in the Magnificent Seven, Apple (AAPL) and Microsoft (MSFT) saw higher trading following the stock market opening on Monday.
Apple shares reduced heavy losses to 0.5% on Friday, finding support around its long-term 200-day line. A flat base continues to take shape with a 199.62 buy point. Apple shares rose 0.9% on Monday morning.
Microsoft shares rallied 1.8% on Friday, moving out of buy range past a 384.30 buy point in a flat base. The software giant rose 0.7% on Monday morning.
Be sure to follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
YOU MAY ALSO LIKE:
Top Growth Stocks To Buy And Watch
Learn How To Time The Market With IBD’s ETF Market Strategy
Find The Best Long-Term Investments With IBD Long-Term Leaders
Nvidia Partner Rides AI Megatrends To 3,594% Gain — With More To Come
Spot Buy Points And Sell Signals With MarketSmith Pattern Recognition
