Will Powell testimony threaten stock market rally? Apple, Tesla in focus

Dow Jones futures were little changed ahead of Tuesday’s open after the Dow Jones Industrial Average pared gains to just 40 points on Monday. Federal Reserve Chairman Jerome Powell’s testimony is due on Tuesday. Apple (AAPL) stock jumped on an analyst buy rating, while Tesla ( TSLA ) shares slipped after the company’s further round of price cuts.


Powell testimony

Fed chief Powell is set to begin two days of congressional testimony on Tuesday, giving him the chance to explain the central bank’s planned response to a more resilient economy. Last month, the Fed raised interest rates by a quarter of a percentage point, and investors will be looking for a clue about the size of the increase at this month’s meeting on the 21st-22nd. March.

Currently, traders are placing a 69% chance of a quarter percentage point rate hike at the next meeting, according to CME’s FedWatch Tool.

Then Friday will feature the Labor Department’s employment report from February. Nonfarm payrolls are expected to come in at 215,000 in February, down from January’s growth of 517,000, according to Econoday estimates.

Guide wire (GWRE) reported mixed financial results for the second quarter late Monday. Shares rose about 1% in extended trading. The stock is building a bottom base with a buy point of 78.76.

Several key earnings reports this week include BJ’s Wholesale (BJ), CrowdStrike (CRWD), Dick’s Sports Equipment (DKS), JD.com (JD), MongoDB (MDB), Thor Industries (THO) and Ulta Beauty (ULTA).

Stock market today

On Monday, the Dow Jones Industrial Average and the S&P 500 both rose 0.1% each. The tech-heavy Nasdaq composite fell 0.1% after giving up solid gains.

Electric car giant Tesla fell 2% on Monday. Among Dow Jones stocks, Apple rose 1.85% and Microsoft ( MSFT ) rose 0.6% in today’s stock market action.

IBD Leaderboard stock Alteryx (AYX), Arista network (A NET), Palo Alto Networks (PANW) and Sales force (CRM) – as well as Dow Jones shares American Express (AXP) and JPMorgan Chase (JPM) — is among the best stocks to buy and watch amid recent stock market strength.

Alteryx is an IBD Leaderboard stock. And Salesforce was featured in this week’s column Stocks Near a Buy Zone.

4 Top Growth Stocks to Buy and Watch in Currongoing stock market rally

Dow Jones Futures Today: Oil Prices, Treasury Rates

Before Tuesday’s opening bell, Dow Jones futures, S&P 500 futures and Nasdaq 100 futures were little changed relative to fair value. Keep in mind that overnight action in Dow Jones futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.

The 10-year US Treasury yield rose on Monday and fell to 3.98 percent. Oil prices reversed early losses to rise about 1% as West Texas Intermediate futures traded above $80 a barrel. barrel. WTI futures were trading around their recent highs.

IBD’s latest newsletter, MarketDiem, brings you actionable ideas for stocks, options and crypto straight to your inbox.

What to do in the strengthened stock market rally

Now is an important time to read IBD’s The Big Picture column, with the stock market trending back in a “confirmed uptrend” after strong gains in recent sessions.

The current uptrend is strengthening, justifying holding a higher exposure level of 60% to 80%. But investors should raise their exposure in a disciplined manner if Powell’s testimony spoils the party this week.

(Check 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 is building a giant cup-with-handle base showing a buy point at 182.25. Shares are just 2% below their buy point when they fell on Monday. Bullishly, 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. Shares are also pulling back from their key 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 buy point at 193.01 after a 12.5% ​​gain on Feb. 22. Shares fell 1.9% on Monday, closing about 2% away from the most recent entry.

Back story: Last week, the cybersecurity giant announced very good results for the quarter that ended in January, with earnings hitting $1.05 per share. stock, up 81% from a year earlier, on a 26% jump in revenue to $1.7 billion.

Last week, Dow Jones leader Salesforce staged a bullish breakout gap past a 178.94 buy point on strong fourth-quarter results. Shares rose 11.5% on Thursday and are in the 5% buy zone going up to 187.89.

Back story: Salesforce sells software under a subscription model. Its software helps companies organize and manage sales operations and customer relationships. The company has expanded into marketing, customer service and e-commerce. Salesforce said it has disbanded its “M&A committee,” suggesting it will not make any more big acquisitions, amid mounting pressure from activist investors.

Arista, Alteryx hit recent buy points

Arista Networks moved back into buy territory above a 140.91 buy point from a cup base after Monday’s 1.35% gain. A decisive retracement puts the stock in buy territory, going up to 147.96.

Back story: Arista sells switches that speed up communication between racks of computer servers packed into data centers. According to analysts, Arista is gaining ground in the so-called “enterprise” market — large companies, public authorities and educational institutions. Earnings rose 72% in the most recent quarter.

IBD Leaderboard stock Alteryx cleared a 66.50 trendline buy point within an early-stage cup handle on Friday. Aggressive investors could buy on breakout above the trendline, while a conventional entry at 70.73 is also in play. Shares are about 5% away from this buy point.

Back story: The Irvine, Calif., company created a self-service platform for data analytics. Demand is clearly strong as sales have risen from the lows of $100 million per quarter of 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, up 73%. This rapid revenue growth is one of the reasons why Alteryx also posted a profit of 84 cents per share in the 4th quarter, probably the largest quarterly earnings 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 slipped 2% on Monday after the EV giant cut prices on US vehicles once again on Sunday night, and recent demand for Tesla vehicles may be slowing after an initial boost came from price cuts in January.

On Sunday, Tesla dropped the price of a Model S by $5,000, bringing the base version to $89,990. Meanwhile, the price of a Model X SUV dropped by $10,000, bringing a base version to $99,990, according to prices on Tesla’s website.

Despite their strong rally since January 6, shares are still below the 200-day line. That key level looms as a potential area of ​​resistance. Shares closed Monday about 50% off their 52-week high. Aggressive investors can use the February 16 high at 217.65 as a potential entry point. To be safe, however, Tesla stock should clear the 200-day line, which is now below 221.

On Tuesday, weekly Chinese EV insurance registration data could be a key measure of Tesla demand in the world’s biggest electric market, which is in the middle of a huge price war started by Tesla.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares jumped 1.85% on Monday to close at their highest level since February 15. Early Monday, Goldman Sachs initiated coverage with a buy rating and 199 price target, which was a 31% premium to Friday’s close.

Microsoft shares moved further above their 200-day line after Monday’s 0.6% gain. The stock is still about 20% off its 52-week high after recent declines. MSFT shares rose 0.3% on Monday.


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 managers

MarketSmith: Research, charts, data and coaching in one place

How to research growth stocks: Why this IBD tool simplifies the search for top stocks

Leave a Reply

Scroll to Top
%d bloggers like this: