Dow Jones reverses lower ahead of Powell’s speech; 7 Best Stocks to Buy and Watch

Dow Jones futures were slightly lower in extended trading ahead of a speech by Federal Reserve Chairman Jerome Powell on Tuesday. The Dow Jones Industrial Average rose as much as 305 points on Monday before reversing lower.


Powell speech, inflation data, earnings

Fed chief Powell will speak at the Sveriges Riksbank International Symposium on Central Bank Independence in Stockholm, Sweden. His speech is scheduled to begin at 9 a.m. ET. Powell’s speech comes on the heels of Friday’s jobs report this led to wage growth slowing much more than expected and workers working fewer hours for the second month in a row. The data should allow the Fed to further slow its pace of rate hikes.

Consumer inflation data is due out on Thursday morning. The consumer price index is expected to be unchanged for the month of December and 6.6% higher on a year-over-year basis, according to Econoday estimates. According to CME’s FedWatch tooltraders are placing a 77% chance of a 25 basis point rate hike at the Fed’s next meeting in late January/early February.

The yield on the 10-year Treasury note fell to 3.51% on Monday, falling for a second session in a row.

Jeffries (JEFF) reported earnings that met forecasts and sales that exceeded forecasts. Jefferies shares lost more than 3% in extended trading.

Other companies reporting later this week include KB Home (KBH), Taiwanese semiconductor manufacturing (TSM), Bank of America (BAC), Citigroup (° С) and Wells Fargo (WFC). Dow Jones Stocks JPMorgan Chase (JPM) and UnitedHealth Group (UNH) will also report this week.

Stock market today

On Monday, the Dow Jones Industrial Average fell 0.3% and the S&P 500 lost 0.1%. The tech-heavy Nasdaq Composite rose 0.6%. Between exchange traded fundsthe Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.65% and the SPDR S&P 500 (A SPY) per inch lower.

Electric vehicle giant Tesla (TSLA) traded up 5.9% on Monday. Between Dow Jones Stocks, An apple (AAPL) gained 0.4% and Microsoft (MSFT) grew by 1% in today’s stock market.

Deere (ON), IBD ranking availability ELF Beauty (ELF), Rio Tinto (RIO) and IBD SwingTrader availability Super micro computer (SMCI) — as well as Dow Jones names Caterpillar (CAT), Chevron (CVX) and Walmart (WMT) — are among the best stocks to buy and watch with the market back in rally mode.

ELF Beauty is IBD ranking availability. Super Micro is new IBD SwingTrader idea. Caterpillar and Rio were presented in this week’s recent column for stocks near a buy zone.

4 Biggest Growth Stocks to Buy and Watch in the Courserstock market rally

Dow Jones Futures Today: Oil Prices

Before Tuesday’s open, Dow Jones futures were trading 0.3 percent below fair value, and S&P 500 futures were down 0.35 percent. Technology-heavy Nasdaq 100 futures were down 0.4 percent at fair value. Remember this night action in Dow Jones futures and elsewhere does not necessarily become an actual trade in the next regular Stock Exchange session.

U.S. oil prices rose more than 1 percent on Monday, recovering a bit from last week’s sharp losses. West Texas Intermediate futures were trading just below $75 a barrel.

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What to do in the new stock market rally

Now is an important time to read IBD’s The Big Picture column with the stock market trending back into a “confirmed uptrend” after Friday’s strong gains on high volume, a sharp departure from recent action.

Friday’s positive action in heavy volume led to a shift in IBD’s market outlook to another stock market rally. Regardless, this is still an uncertain environment and exposure should be increased measuredly. Investors should stick to 20% to 40% exposure for now.

(Take a look IBD Stock Lists like IBD 50 and Stocks near a buy zonefor additional stock ideas.)

Five Dow Jones Stocks to Buy and Watch Now

Dow Jones stocks to buy and watch: Caterpillar, Chevron, Walmart

Dow Jones member Caterpillar remains right in buy range above a flat base of 239.95 buy point after Monday’s 0.9% decline, According to IBD MarketSmith pattern recognition. The buy zone rises to 251.95. On the upside, the relative strength line of stocks, a key technical indicator, is at new highs.

CAT warehouse showing a strong 98 out of a perfect 99 IBD Composite Ratingaccording to IBD Stock Check. The Composite Rating is designed to help investors easily find the highest growth stocks.

Energy giant Chevron once again found strong resistance at its 50-day line as it continues to build a cup base that has a 189.78 buy point.

Discount retailer Walmart reversed 1.25% lower on Monday, falling back below its 50-day line. The stock is forming a cup handle that has a 154.74 buy point and is about 6% away from the last entry.

Top stocks to buy and watch: Deere, ELF Beauty, Rio, Super Micro

Recent IBD Stock of the Day Deere is building a flat base with a buy point of 448.50. The stock is nearing its latest buy point, moving 0.4% higher on Monday.

Stocks in the IBD Ranking ELF Beauty gave up a 57.03 flat base amid Monday’s 3.9% drop. Shares rallied Friday on heavy volume, indicating strong institutional demand for the cosmetics leader. The 5% buy zone tops out at 59.88 if the stock manages to regain its entry.

Recent IBD Stock of the Day Rio Tinto pared gains to just 0.1% on Monday, rising further above a cup with a buy point of 73.45. The buy zone reaches 77.13.

IBD SwingTrader Stocks Super Micro Computer is moving up quickly on the right side of a short consolidation that has a 95.32 buy point. Shares trimmed gains to 0.45% on Monday.

Stocks to Buy and Watch in New Stock Market Rally

These are seven of the best stocks to buy and watch in today’s stock market, including three Dow Jones leaders.

Company name Symbol Right point of purchase Type of foundation
Deere (ON) 448.50 Flat base
ELF Beauty (ELF) 57.03 Flat base
Rio Tinto (RIO) 73.45 Mug with a handle
Super micro computer (SMCI) 95.32 Consolidation
Caterpillar (CAT) 239.95 Flat base
Chevron (CVX) 189.78 Cup base
Walmart (WMT) 154.74 Mug with a handle
Source: IBD data as of January 9, 2023

Join IBD’s experts as they analyze leading stocks in the current stock market rally on IBD Live

Tesla stock

Tesla shares jumped nearly 6% on Monday, adding to Friday’s upturn. Shares remain sharply below their 50- and 200-day lines.

Last week, the stock hit a 52-week low of 101.81. Tesla shares closed Monday about 68% off their 52-week high.

Dow Jones Leaders: Apple, Microsoft

Between Dow Jones Stocks, Apple shares rose 0.4% on Monday. Last week, the stock hit a new 52-week low of 124.17. The stock remains about 20% off its 52-week high.

Microsoft shares rose 1% on Monday, adding to Friday’s gains. The software giant is about 30% below its 52-week high and still slightly above its 52-week low of 213.43 reached on November 4.


Top Growth Stocks to Buy and Watch

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