Dow Jones Futures: Fed Meeting On Deck; AI Stock Supermicro Surges 10% On Earnings Beat

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Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, were little changed ahead of Tuesday’s start of the two-day Federal Reserve policy meeting. Shares of artificial intelligence leader Super Micro Computer (SMCI) jumped on a positive earnings report, while Magnificent Seven stock Alphabet (GOOGL) will report after the close Tuesday.


On the economic calendar this week, Wednesday’s Fed meeting and Fed Chair Jerome Powell’s news conference will take center stage. Wall Street expects Powell to begin charting a path to winding down balance-sheet tightening, even if he plans a long process, but his tone will be key.

Meanwhile, Friday’s January employment report is expected to show that employers added 165,000 jobs.

Late Monday, shares of Super Micro Computer surged 10% in extended trade after reporting strong earning and sales results. The AI leader also issued fiscal Q3 guidance that topped Wall Street’s estimates.

Stock Market Today: Magnificent Seven Stocks To Report

On Monday, the Dow Jones Industrial Average moved up 0.6% and the S&P 500 rallied 0.8%. The tech-heavy Nasdaq composite advanced 1.1%.

Five Magnificent Seven stocks report earnings this week: Alphabet, Amazon (AMZN), Apple (AAPL), Meta Platforms (META) and Microsoft (META).

Among the Magnificent Seven stocks, Tesla (TSLA) was the biggest gainer, up 4.2%. Nvidia (NVDA) climbed 2.35%.

Finally, Dow Jones tech icons Apple and Microsoft traded mixed in today’s stock market, with Apple stock down 0.4% and Microsoft up 1.4%.

DraftKings (DKNG), KKR (KKR), Novo Nordisk (NVO), Snowflake (SNOW) and Spotify (SPOT) — plus Dow Jones components Amgen (AMGN), Merck (MRK) and Walmart (WMT) — are among the best stocks to buy and watch in the current market rally.

KKR and Walmart were featured in this Stocks Near A Buy Zone column.

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Dow Jones Today: Oil Prices, Treasury Yields

Ahead of Tuesday’s opening bell, Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, were little changed vs. fair value. Remember that overnight action in Dow Jones futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

On Monday, the 10-year U.S. Treasury yield ticked lower to 4.09%. Meanwhile, oil prices dropped, as West Texas intermediate futures settled below $77 a barrel.

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Stock Market Rally: What To Do Now

Now is an important time to read IBD’s The Big Picture column, with the stock market outlook in a confirmed uptrend.

Following Monday’s bullish gains, be sure to check out today’s The Big Picture for an updated exposure level.

A great resource for daily breakouts is IBD MarketSmith’s “Breaking Out Today” list. It shows MarketSmith Growth 250 stocks that are breaking out past new buy points. There were five breakouts today, including Shake Shack (SHAK), which is breaking out past a 76.74 cup-with-handle entry.

Meanwhile, the MarketSmith “Near Pivot” list shows stocks nearing buy points in bases, like Expedia (EXPE). Expedia stock is approaching a 155.84 flat-base entry.

To find more stock ideas, check IBD Stock Lists, like IBD 50Big Cap 20 and Stocks Near A Buy Zone. These features identify bullish patterns and buy points and should be checked every day.

Dow Jones: Walmart Breaks Out

Biotech leader Amgen rose 0.5% Monday, further out of the 5% buy range past a 288.46 official buy point in a flat base. The 5% buy area went up to 302.88.

Drugmaker Merck is breaking out past a cup base’s 119.65 buy point, according to IBD MarketSmith pattern recognition. Shares finished further above their entry amid a 0.4% climb Monday.

Discount retail giant Walmart is in buy range past a 163.57 entry in a cup with handle, amid a three-day win streak.

4 Top Growth Stocks To Watch In The Stock Market Rally

Stocks To Buy And Watch: DraftKings Breaks Out

IBD Leaderboard watchlist stock DraftKings rallied 3.7% Monday, decisively breaking out past a double-bottom base’s official buy point at 38.97.

IBD SwingTrader stock KKR broke out Friday, moving above an 85.66 flat-base entry. Shares tacked on 0.5% Monday.

Novo Nordisk, the maker of weight-loss drugs, ended Monday up 0.9%, further above its 105.69 flat-base buy point.

Software leader Snowflake is breaking out past a 202.83 buy point in a flat base with its 3.% rally Monday, according to IBD MarketSmith.

Spotify closed Monday out of buy range past a 202.88 buy trigger in a flat base, with a 2% rise.

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Best Bets In Today’s Action

These are the four best stocks to watch in today’s stock market, including a Dow Jones leader.

Company Symbol Correct buy point Type of buy point
Novo Nordisk (NVO) 105.69 Flat base
Walmart (WMT) 288.46 Cup with handle
KKR (KKR) 85.66 Flat base
Snowflake (SNOW) 202.83 Flat base
Source: IBD Data As Of Jan. 29, 2024

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Tesla Stock

Tesla dived 13% last week, closing at its lowest level since May 2023. Shares are around 40% off their 52-week high.

TSLA rebounded 4.2% Monday, still sharply below its 50- and 200-day moving averages.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks in the Magnificent Seven, Apple and Microsoft traded mixed during Monday’s stock market action.

Apple dropped 0.4% Monday, extending its losing streak to four sessions. Shares continue to trace a flat base with a 199.62 buy point.

Microsoft stock rallied to record highs Monday, rising 1.4%. Shares are extended past a 366.78 cup-base buy point.

Be sure to follow Scott Lehtonen on X/Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.


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