Dow Jones futures were little changed ahead of Tuesday’s open after the Dow Jones Industrial Average trimmed gains to just 40 points on Monday. Federal Reserve Chairman Jerome Powell is scheduled to testify on Tuesday. Apple (AAPL) stock jumped on an analyst buy rating while Tesla (TSLA) shares slipped after the company’s additional round of price cuts.
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Powell Testimony
Fed Chief Powell begins Tuesday with two days of congressional testimony, where he will have a chance to explain the central bank’s planned response to a more resilient economy. Last month, the Fed raised rates by a quarter of a percentage point, and investors will be looking for clues to the amount of the rate hike at this month’s March 21-22 meeting.
According to the CME’s FedWatch Tool, traders currently estimate a 69% chance of a rate hike of a quarter of a percentage point at the next meeting.
The Labor Department’s February employment report will then be released on Friday. Nonfarm payrolls are expected to reach 215,000 in February, down from January’s growth of 517,000, according to Econoday estimates.
Guide wire (GWRE) reported mixed second-quarter fiscal results late Monday. Shares rose about 1% in extended trading. The stock is building a low with a buy point of 78.76.
More key earnings reports this week include BJ’s wholesale (BJ), CrowdStrike (CRWD), Dick’s Sporting Goods (D.K.S.), JD. com (J.D.), MongoDB (MDB), Thor Industries (THO) and Ulta Beauty (ULTA).
Fair today
On Monday, the Dow Jones Industrial Average and the S&P 500 each gained 0.1%. The tech-heavy Nasdaq composite fell 0.1% after posting solid gains.
Electric vehicle giant Tesla was trading 2% lower on Monday. Among Dow Jones stocks, Apple rose 1.85% and Microsoft (MSFT) climbed 0.6% in today’s stock market action.
IBD Leaderboard stock Alteryx (AYX), Arista Networks (A NET), Palo Alto Networks (PANW) and Sales team (CRM) – as well as Dow Jones stocks American Express (AXP) and JPMorgan Chase (JPM) – are among the top stocks to buy and watch amid recent stock market strength.
Alteryx is an IBD Leaderboard stock. And Salesforce was featured this week in the Stocks Near a Buy Zone column.
4 Top Growth Stocks to Buy and Watch in the CurRent Stock Market Rally
Dow Jones Futures Today: Oil Prices, Treasury Yields
Prior to Tuesday’s opening bell, Dow Jones futures, S&P 500 futures and Nasdaq 100 futures were little changed from fair value. Remember that overnight action in Dow Jones futures and elsewhere does not necessarily translate into actual trading in the next regular trading session.
The 10-year yield on US Treasuries rebounded Monday to 3.98%. Oil prices reversed from early losses and rose about 1%, while West Texas Intermediate futures traded above $80 a barrel. WTI futures have been trading around their recent highs.
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What to do during the strengthening stock market rally
This is an important time to read IBD’s The Big Picture column with the stock trending back in a “confirmed uptrend” after sharp gains in recent sessions.
The current upward trend is strengthening, which justifies maintaining a higher exposure level of 60% to 80%. But investors need to discipline their exposure in case Powell’s testimony spoils the party this week.
(Check out IBD stock lists like the IBD 50 and stocks near a buy zone for additional stock ideas.)
Five Dow Jones stocks to buy and watch now
Dow Jones Stocks to Buy and Watch: American Express, JPMorgan
American Express builds a giant cup-with-handle base that displays a buy point of 182.25. Shares are just 2% below their buy point, having moved slightly lower on Monday. Bullish, the stock’s relative strength line is at new highs, which is a particularly positive sign ahead of a potential breakout.
Banking giant JPMorgan is in buy range above its 138.76 flat-base buy point despite Monday’s 0.6% loss, according to IBD MarketSmith chart analysis. Stocks are also recovering from their main 50-day moving average.
JPM shares show a solid 94 IBD Composite Rating out of a perfect 99, per IBD Stock Checkup. The Composite Rating is designed to help investors easily find top growth stocks.
Top stocks to buy and watch: Palo Alto, Salesforce
Cybersecurity leader Palo Alto Networks is within striking distance of a base’s 193.01 buy point after rising 12.5% on Feb. 22. Shares fell 1.9% on Monday, closing about 2% away from the last entry.
Back story: Last week, the cybersecurity giant reported very strong results for the quarter ending January, when earnings were $1.05 per share, up 81% from a year earlier, on a 26% increase in revenue to $1. 7 billion.
Last week, Dow Jones leader Salesforce made a bullish breakaway gap past a buy point of 178.94 on strong fourth quarter results. Shares rose 11.5% on Thursday and are in the 5% buy zone rising to 187.89.
Back story: Salesforce sells software under a subscription model. The software helps companies organize and handle sales activities and customer relationships. The company has expanded into marketing, customer service and e-commerce. Salesforce said it has dissolved its “M&A committee,” implying it will no longer make major acquisitions, amid growing pressure from activist investors.
Arista, Alteryx have achieved the last buy points
Arista Networks re-entered the buy range above a buy point of 140.91 from a cup base following Monday’s 1.35% gain. A decisive rematch places the stock in the buy range which goes up to 147.96.
Back story: Arista sells switches that speed up communication between racks of computer servers in data centers. According to analysts, Arista is gaining ground in the so-called “enterprise” market – large corporations, government agencies and educational institutions. Earnings rose 72% in the most recent quarter.
IBD Leaderboard Share Alteryx managed to hit a trendline buy point at 66.50 within a grasp of an early-stage cup on Friday. Aggressive investors could buy on the breakout above the trendline, while a conventional entry of 70.73 is also in play. Stocks are about 5% away from that buy point.
Back story: The Irvine, California-based company created a self-service data analytics platform. Demand is clearly strong as sales have increased from the low of $100 million per quarter in 2021 to $216 million in the third quarter of 2022, up 75% from a year ago, and $301 million in the fourth quarter of 2022, an increase of 73%. This rapid revenue growth is one of the reasons Alteryx also posted earnings of 84 cents per share in the fourth quarter, probably the largest quarterly profit in the company’s history.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla stock
Tesla shares fell 2% on Monday after the EV giant slashed US vehicle prices again on Sunday evening, the latest sign demand for Tesla vehicles may ease after an initial boost came from price cuts in January.
On Sunday, Tesla cut the price for a Model S by $5,000, bringing the base model to $89,990. Meanwhile, the cost of a Model X SUV fell by $10,000, bringing a base version to $99,990, according to pricing on Tesla’s website.
Despite their strong recovery since January 6, the shares are still below the 200-day mark. That key level looms as a potential area of resistance. Shares closed around 50% of their 52-week high on Monday. Aggressive investors can use the February 16 high of 217.65 as a potential entry point. However, to be on the safe side, Tesla stock should cross the 200-day mark, which is now below 221.
On Tuesday, weekly Chinese EV insurance registration data could be a key gauge of Tesla demand in the world’s largest EV market, which is in the middle of a massive price war started by Tesla.
Dow Jones leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares rose 1.85% on Monday to close at their highest level since Feb. 15. Early Monday, Goldman Sachs opened with a buy rating and a price target of 199, which was a 31% premium over Friday’s closing price.
Microsoft shares rose further above their 200-day mark after Monday’s gain of 0.6%. The stock is still about 20% off its 52-week high after recent declines. MSFT shares rose 0.3% on Monday.
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