On Monday, the Dow Jones Industrial Average began to rise after initially dipping, as investors prepare for the upcoming Federal Reserve policy meeting and earnings reports from major companies. SoFi Technologies (SOFI) saw a significant surge after reporting its first quarterly profit and surpassing Wall Street’s expectations.
After the market opened, the Dow Jones Industrial Average increased by less than 0.1%, with the S&P 500 rising by 0.1% and the Nasdaq composite showing a 0.2% gain. Notable among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) advanced by 0.2%, while the SPDR S&P 500 ETF (SPY) also showed a slight increase.
The 10-year Treasury yield fell to 4.1% on Monday, and oil prices appeared to continue the previous week’s gains, but West Texas Intermediate futures dropped by 0.9% to trade around $77.50 per barrel.
This week’s calendar includes the Federal Reserve meeting and Fed Chair Jerome Powell’s press conference on Wednesday, and the January employment report on Friday is expected to indicate an addition of 165,000 jobs.
SoFi Technologies’ shares rose by 18% in early trading after reporting earnings of 2 cents per share on sales of $594.2 million, which exceeded Wall Street’s estimates. Additionally, Alphabet (GOOGL), Amazon (AMZN), Apple (AAPL), Meta Platforms (META), and Microsoft (MSFT) are among the “Magnificent Seven” companies expected to release their earnings reports this week, as well as aerospace giant Boeing (BA).
The Nasdaq composite dipped by 0.4% on Friday but remains more than 5% above its 50-day line and clear of its short-term moving averages. The S&P 500 slipped by 0.1% while the Dow Jones Industrial Average outperformed other major indexes, gaining 0.2% to reach a new high.
Amgen (AMGN) and Merck (MRK) are among the best stocks to watch in the current market rally. Amgen stock rose by 0.5%, while Merck stock broke out past a cup base’s 119.65 buy point and climbed by 0.5% on Monday.
DraftKings (DKNG), KKR (KKR), Novo Nordisk (NVO), Snowflake (SNOW), and Spotify (SPOT) along with Amgen (AMGN) and Merck (MRK) are identified as favorable stocks in the current market rally.
Nvidia (NVDA) and Tesla (TSLA) saw gains of 0.6% and 1.3% respectively in morning trading on Monday.
Apple (AAPL) and Microsoft (MSFT) stocks experienced mixed trading on Monday after a decline on Friday. Apple shares fell by 0.9% and Microsoft stock decreased by 0.2% on Friday but rose by 0.5% and 0.2% respectively on Monday morning.
