Dow Jones futures rose Monday morning ahead of Tuesday’s planned meeting between President Joe Biden and House Speaker Kevin McCarthy on the debt ceiling. Meanwhile, six best stocks to buy and watch include chip giants AMD and Nvidia (NVDA), along with streaming giant Netflix (NFLX).
Over the weekend, Treasury Secretary Janet Yellen was optimistic that the U.S. would avoid a default, saying “I’m hopeful. I think the negotiations are very active. I’m told they have found some areas of agreement.” The comments came on Saturday from Japan during a meeting of G-7 finance ministers.
On the economic front, the most-anticipated economic report for the coming week will probably be the Labor Dept.’s weekly claims for jobless benefits, out Thursday at 8:30 a.m. ET. After claims surged 22,000 to a cycle-high 264,000 in the week through May 6, the key question is whether claims have broken to the upside or whether the latest reading was quirky, perhaps due to seasonal factors.
Key earnings reports this week include Dow Jones retailers Walmart (WMT) and Home Depot (HD), while Cisco Systems (CSCO) leads the reports for the tech sector. Results are due from highflying footwear brand On Holding (ONON), as well as China giants Alibaba (BABA) and Baidu (BIDU).
Stock Market Today
Pipeline operator Oneok (OKE) agreed to buy Magellan Midstream Partners (MMP) for about $14 billion, a deal that would form one of the biggest U.S. companies involved in transporting and storing energy. OKE stock tumbled nearly 6%, while Magellan shares soared more than 15% in early action.
Electric-vehicle giant Tesla (TSLA) was little changed Monday morning. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were higher ahead of today’s stock market open.
Advanced Micro Devices (AMD), IBD Leaderboard stock Nvidia, IBD SwingTrader idea Netflix and Uber Technologies (UBER) — as well as Dow Jones stocks Salesforce (CRM) and Visa (V) — are among the best stocks to buy and watch in the stock market uptrend.
Visa was featured in this week’s Stocks Near A Buy Zone column. Netflix and Nvidia were recent IBD Stock Of The Day topics.
Dow Jones Today: Oil Prices, Treasury Yields
Ahead of Monday’s opening bell, Dow Jones futures rose 0.4% vs. fair value. S&P 500 futures also gained 0.4%, while the tech-heavy Nasdaq 100 climbed 0.3% in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.3%, while the SPDR S&P 500 ETF (SPY) traded up 0.4% early Monday.
The 10-year U.S. Treasury yield on Monday traded up to 3.5% after slight gains last week due to Friday’s jump.
U.S. oil prices continued to bob between $70 and $72 a barrel. West Texas Intermediate futures were up modestly Monday morning, rising 1% in early trade.
Stock Market Rally
On Friday, the Dow Jones Industrial Average lost less than 0.1%, extending a losing streak to five sessions. The index continues to hold above its 50-day line, however. The S&P 500 declined 0.2%, and the Nasdaq composite lost 0.35%.
Friday’s Big Picture column commented, “The stock market outlook has changed to ‘confirmed uptrend’ but bad breadth and plenty of potential potholes have concerned investors. As a result, limited 20% to 40% exposure make sense.”
Now is an important time to read IBD’s The Big Picture column after last week’s bullish stock market gains.
Five Best Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Buy And Watch: Salesforce, Visa
IBD Leaderboard stock Salesforce rallied past alternative entries at 194.01 and 200.10 in recent sessions, according to Leaderboard analysis. Meanwhile, the RS line hit a new high last week, a bullish signal. CRM stock rose 0.3% Monday morning.
Visa shares remain in buy range above a 230.15 cup-with-handle buy point, even after dipping another 0.1% Friday. The buy range goes up to 241.66. V stock was up 0.3% Monday.
4 Top Growth Stocks To Watch In The Stock Market Rally
Best Stocks To Buy And Watch: AMD, Nvidia, Netflix, Uber
Chip leader Advanced Micro Devices continues to rally up the right side of a cup base that has a 102.53 buy point, according to IBD MarketSmith pattern recognition. Last week’s advance saw AMD stock climb above an early trendline entry, using May 4’s high of 91.64 as the buy point. AMD shares fell 0.1% Monday.
IBD Leaderboard stock Nvidia finished Friday down 0.8%, still in buy range above a 280.10 buy point in a short consolidation. The 5% buy zone goes up to 294.11. NVDA stock was up 0.3% early Monday.
Recent IBD Stock Of The Day, Netflix, popped above its 50-day moving average line last week. That positive action created a buying opportunity for aggressive investors. Further, Netflix shares now are near a buy point of 349.90 out of a cup-with-handle base. NFLX stock gained 0.6% Monday morning.
Uber Technologies remains in buy range past a 37.68 buy point in a cup base, amid a slight rise Friday. The 5% buy area goes up to 39.56. The stock was up 0.2% Monday. Uber is still extended from the 50-day line, though.
Learn How To Time The Market With IBD’s ETF Market Strategy
Best Stocks To Buy And Watch In Stock Market Rally
These are four best stocks to buy and watch in today’s stock market, including two Dow Jones leaders.
Company Name
Symbol
Correct Buy Point
Type Of Buy Point
Nvidia
(NVDA)
280.10
Consolidation
Salesforce
(CRM)
200.10
Consolidation
Visa
(V)
230.15
Cup with handle
Advanced Micro Devices
(AMD)
102.53
Cup base
Source: IBD Data As Of May 15, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock skidded 2.4% Friday, finding stout resistance around its key 50-day line. Despite gains since late April, shares are looking to build a new base. The stock closed Friday 47% off its 52-week high.
TSLA stock was little changed Monday morning.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares slipped 0.7% Friday, still closing just shy of their 52-week high, which was set back in mid-August. The stock continues to add to gains above a 157.48 buy point and is out of the buy range that ran up to 165.35. AAPL stock was up 0.4% premarket Monday.
Microsoft shares fell 0.4% Friday, falling further from Wednesday’s 52-week high price of 313. Shares are sharply above a 276.86 flat-base buy point. On Monday morning, MSFT stock rose 0.2%.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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