Dow Jones stock futures were lower ahead of Tuesday's open after the Dow Jones Industrial Average dropped 55 points Monday on tightening loan conditions. Tech titans Advanced Micro Devices and Nvidia, Netflix and Uber Technologies flashed bullish signals Monday.
Midday Monday, the Federal Reserve's Senior Loan Officer Opinion Survey, or SLOOS, showed that banks tightened their lending standards in the first quarter compared to the fourth quarter of 2022. The survey is an important gauge of the credit system, now under scrutiny amid the ongoing banking crisis.
The net percentage of U.S. banks tightening loan standards for large- and medium-size businesses climbed to 46% in the first quarter, up from 44.8% in the prior quarter, the report showed. Meanwhile, the percentage of banks tightening loan standards for small businesses moved up to 46.7% in Q1 vs. 43.8% in the fourth quarter of 2022.
At last week's Fed meeting, Fed Chair Jerome Powell told reporters, "The SLOOS is broadly consistent when you see it with how we and others have been thinking about the situation and what we're seeing from other sources. Banking data will show that lending has continued to grow, but the pace has been slowing really since the second half of last year."
Late Monday, Palantir Technologies, PayPal, Shockwave Medical and Skyworks Solutions were on the move after earnings.
Palantir shares soared more than 23% in extended trade, while PayPal stock declined nearly 3%. Shockwave shares jumped 4% late, and Skyworks Solutions was off nearly 5% after the close.
Inflation Data On Deck
On the economic front this week, the consumer price index for April is out at 8:30 a.m. ET on Wednesday.
Inflation data will be keenly watched throughout May, after the Federal Reserve last week hinted at a possible pause, in June, to the rate-hike regimen that is slowing inflation but aggravating financial sector instability. Regulators say they "will closely monitor incoming information and assess the implications for monetary policy."
Stock Market Today
On Monday, the Dow Jones Industrial Average fell 0.2%. The S&P 500 rose less than 0.1%, while the tech-heavy Nasdaq composite gained 0.2%.
EV leader Tesla traded up 1% Monday. Among Dow Jones stocks, Apple inched lower and Microsoft lost 0.6% in today's stock market action.
Advanced Micro Devices, IBD Leaderboard stock Nvidia, IBD SwingTrader idea Netflix and Uber Technologies — as well as Dow Jones stocks Nike and Visa — are among the best stocks to watch in the still-struggling 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.
4 Top Growth Stocks To Buy And Watch In The Current Stock Market Rally
Dow Jones Stock Futures Today: Oil Prices, Treasury Yields
Ahead of Tuesday's opening bell, Dow Jones futures lost 0.4% vs. fair value, while S&P 500 futures dropped 0.45%. Nasdaq 100 futures were down 0.5% vs. fair value in overnight trading. 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 jumped to 3.52% Monday. Since early April, the 10-year yield has continued to rebound from its lowest level since mid-September. U.S. oil prices rose Monday, as West Texas Intermediate futures settled just below $73 a barrel.
What To Do In The Stock Market Rally
Now is an important time to read IBD's The Big Picture column with the stock market trend in an "uptrend under pressure."
Amid Monday's mixed action, the market outlook remains in an "uptrend under pressure," which means investors should be more on the defensive than aggressively buying breakout stocks. IBD's recommended exposure currently sits at 20% to 40%.
Two useful IBD MarketSmith lists to check right now are "Breaking Out Today" and "Near Pivot." The latter shows stocks nearing buy points in bases, and the other flags stocks rising past buy points during the session.
To find more stock ideas, check IBD Stock Lists, like IBD 50, Big Cap 20 and Stocks Near A Buy Zone. These features identify bullish patterns and buy points and should be checked every day.
Learn How To Time The Market With IBD's ETF Market Strategy
Dow Jones Stocks To Buy And Watch: Nike, Visa
Nike shares rose 0.2% Monday, still below a cup-with-handle's 127.59 buy point, according to IBD MarketSmith pattern recognition, after last week's breakout attempt.
Visa shares remain in buy range above a 230.15 cup-with-handle buy point amid Monday's slight rise. The buy range goes up to 241.66.
Best Stocks To Buy And Watch: AMD, Nvidia, Netflix, Uber
Chip leader Advanced Micro Devices surged 5.8% Monday, bullishly retaking the 50-day line. Shares climbed above an early trendline entry, using Thursday's high of 91.64 mark as the buy point. The stock continues to build a cup base with a 102.53 buy point.
IBD Leaderboard stock Nvidia's shares finished Monday further above a 280.10 buy point in a short consolidation after the session's 1.6% rise, according to IBD MarketSmith. The 5% buy zone goes up to 294.11.
Monday's IBD Stock Of The Day, Netflix, popped above its 50-day moving average line. That positive action created a buying opportunity for aggressive investors. Further, Netflix shares now are nearing a buy point of 349.90 out of a cup-with-handle base.
Uber Technologies decisively moved above a 37.68 buy point in a cup base, rallying 2.9% Monday. The 5% buy area goes up to 39.56.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock rallied another 1% Monday, adding to Friday's sharp gains. Still, shares remain below their 50-day line, as they look to build a new base.
The stock closed Monday 45% off its 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares paused Monday after Friday's 4.7% surge. They closed just off their 52-week highs, which were set back in mid-August. The stock continues to add to gains above a 157.48 buy point and it is out of the buy range that ran up to 165.35.
Microsoft shares are sharply above a flat base's 276.86 buy point, after they hit a 52-week high Friday. They dipped 0.6% Monday to 308.65. The 5% buy area went up from the buy point to 290.70.
Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for top stocks to buy and watch and Dow Jones Industrial Average action.
