Dow Jones futures were lower ahead of Tuesday's open after the Dow Jones Industrial Average fell 34 points Monday. Federal Reserve Chair Jerome Powell will speak Tuesday at the Economic Club of Washington, D.C., and investors will look for hints of future Fed hikes in the wake of Friday's blowout jobs report.
Late Monday, Diodes, Fabrinet, Pinterest, Skyworks Solutions and Take-Two Interactive Software were key earnings reporters.
Diodes beat Q4 top- and bottom-line estimates, but shares were essentially inactive in the after-hours trading session. Fabrinet shares climbed less than 1% on stronger-than-expected earnings and sales results.
Pinterest plunged as much as 16% in extended trade before trimming losses to about 10% after missing sales estimates. Skyworks jumped 2% despite mixed results, as the company approved a new $2 billion stock buyback program.
Take-Two missed Wall Street's targets for the December quarter, citing weaker consumer spending. Take-Two also guided much lower than views for the March quarter. TTWO stock fell more than 1% in extended trade.
More earning reports this week include Chipotle Mexican Grill, Disney, Paycom Software, Transdigm and Vertex Pharmaceuticals.
Stock Market Today
On Monday, the Dow Jones Industrial Average fell 0.1%, and the S&P 500 dropped 0.6%. The tech-heavy Nasdaq composite sold off 1%. Among exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust moved down 0.85% and the SPDR S&P 500 lost 0.6%.
Electric-vehicle giant Tesla traded up 2.5% Monday. Among Dow Jones stocks, Apple declined 1.8% and Microsoft dropped 0.6% in today's stock market.
IBD Leaderboard watchlist stock Lattice Semiconductor, Etsy, Nexstar and Wingstop — as well as Dow Jones stocks Caterpillar and JPMorgan Chase — are among the top stocks to buy and watch, with the ongoing strength of the market rally.
Lattice is an IBD Leaderboard watchlist stock. Etsy was a recent IBD Stock Of The Day. Nexstar was a recent IBD 50 Stocks To watch pick. Caterpillar and Lattice were featured in this week's 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
Ahead of Tuesday's opening bell, Dow Jones futures fell 0.1% vs. fair value, and S&P 500 futures gained 0.1%. Nasdaq 100 futures were up 0.3% 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.
The 10-year U.S. Treasury yield rose sharply again Monday, settling at 3.63%. On Friday, the 10-year yield jumped after the Labor Department's strong jobs report.
Oil prices rebounded more than 1% Monday, snapping a three-day slide that saw West Texas Intermediate futures fall below $73 a barrel. WTI futures traded around $74.50 a barrel, still near their recent lows.
What To Do In The Ongoing Stock Market Rally
Now is an important time to read IBD's The Big Picture column with the stock market trend in a "confirmed uptrend" amid strong gains since the beginning of January.
With more encouraging action last week amid the Nasdaq's five-week win streak, it makes sense for investors to increase exposure to 60% to 80%. But be ready to move quickly as things can rapidly change on the stock market, especially with Fed chief Powell's speech on the docket for Tuesday.
(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: Caterpillar, JPMorgan
Top Dow Jones stock Caterpillar is back in buy range above a 239.85 flat-base entry, as it tries to find support around its 50-day moving average, according to IBD MarketSmith chart analysis. Shares were up 1.5% Monday.
Banking giant JPMorgan remains in buy range above a 138.76 flat-base buy point amid a 0.6% gain Monday. JPM stock shows a solid 94 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. The Composite Rating is designed to help investors easily find top growth stocks.
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Top Stocks To Buy And Watch: Lattice, Etsy, Nexstar
IBD Leaderboard watchlist stock Lattice declined 1.45% Monday, still in buy range above a 76.57 cup-with-handle buy point. LSCC stock show a strong 98 out of a perfect IBD Composite Rating.
Backstory: The Oregon-based designer of programmable gate arrays focuses on four key markets: data center, computing, automotive and industrial. Its logic chips are winning new designs due to exceptional qualities of small size, low power, reliability and ease of use. On Dec. 5, Lattice officially debuted its newest chip design platform, Avant, and executives said the new product will double its total addressable market. Lattice reports Q4 results on Feb. 13.
Etsy remains out of buy range above a 137.01 buy point in a cup with handle despite a 2% fall Monday. The 5% buy area topped out at 143.86.
Backstory: The company is a provider of an online e-commerce platform where creators of arts and crafts, vintage items and other unique goods go to sell their products. It has a unique business model that, in the last few years, has gone from a niche e-commerce marketplace to a top-of-mind shopping destination across numerous categories.
Media giant Nexstar is in buy range past a cup base's 204.72 buy point and was Tuesday's IBD 50 Stocks To Watch pick. Earnings are due out Thursday.
Backstory: America's largest local broadcast TV group, Nexstar Media produces and distributes local and national news, sports and entertainment content. In addition to its leading position in television, Nexstar is one of the world's leading diversified media companies.
Wingstop Eyes Latest Buy Point
Wingstop is approaching a 170.97 buy point in a lopsided cup base, despite a 1.1% loss Monday, which ended a four-day win streak. Keep an eye out for a potential handle to offer a lower entry.
Backstory: The Dallas-based restaurant chain has more than 1,900 locations in the U.S. and international markets, according to Dow Jones Newswires. Its international locations include Mexico, Columbia, Panama, Singapore and the U.K. The company added a net 40 stores in the prior quarter. Earnings are due out Feb 22.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock climbed another 2.5% Monday, extending a win streak to five sessions and closing at its highest level since Dec. 2.
Despite their strong rebound since Jan. 6, shares are still below the 200-day line. And Tesla stock closed Monday about 50% off its 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares dropped 1.8% Monday, ending a four-day win streak that saw the stock regain its long-term 200-day line. Shares remain around 16% off their 52-week high.
Microsoft stock fell 0.6% Monday, dropping for a second-straight session. Shares are trying to stem their slide around their 200-day line and are about 19% off the 52-week high.
