The Dow Jones Industrial Average dropped 175 points Monday morning, kicking off the week with moderate losses. Meanwhile, electric-vehicle giant Tesla stock rallied after a jury on Friday found Chief Executive Elon Musk not liable in a securities-fraud lawsuit, while Musk commented on Twitter that the social media platform was "now trending to break-even."
Cummins, Onsemi and Tyson Foods reported earnings Monday morning. Onsemi dropped 2.2% in morning trade. Cummins gained 1% after its report. Tyson shares sold off 3.5% in early trade.
Meanwhile, corporate earnings results continue this week, with reports from Chipotle Mexican Grill, Disney, Paycom Software, Pinterest, Skyworks Solutions, Transdigm and Vertex Pharmaceuticals.
Stock Market Today: Tesla Stock Races Higher
Electric-vehicle leader Tesla rallied 3.3% Monday morning, while Dow Jones tech giants Apple and Microsoft were squarely lower after today's stock market open.
IBD Leaderboard stock Impinj, Etsy, Nexstar and Wingstop — as well as Dow Jones stock JPMorgan Chase — are among the top stocks to buy and watch, with the ongoing strength of the market rally.
Impinj is an IBD Leaderboard stock. Etsy was a recent IBD Stock Of The Day. Nexstar was a recent IBD 50 Stocks To watch pick. And Impinj and Wingstop were featured in last week's Stocks Near A Buy Zone column.
Dow Jones Today: Oil Prices, Treasury Yields
After Monday's opening bell, the Dow Jones Industrial Average lost 0.5%, and the S&P 500 moved down 0.6%. The tech-heavy Nasdaq composite declined 0.65% in morning action.
Mergers and acquisitions set up to play a role in Monday's market action, as drug component supplier Catalent soared 25% on chatter of a takeover deal by Danaher. Life Storage spiked 11% after Public Storage launched an $11 billion bid.
Plus, Newcrest Mining was down more than 5% after the open, after gold miner Newmont bid $17 billion to acquire the Australia-based outfit. Danaher, Public Storage and Newmont all traded lower in early action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust traded down 0.7% and the SPDR S&P 500 ETF fell 0.5% early Monday.
The 10-year U.S. treasury yield jumped to 3.53% Friday after the blowout jobs report. The 10-year yield continued higher Monday morning, rising to 3.61%.
Oil prices rebounded modestly Monday morning after a third straight fall on Friday. West Texas Intermediate futures are trading below $74 a barrel, near their recent lows.
Stock Market Rally
On Friday, the Dow Jones Industrial Average fell 0.4%, and the S&P 500 lost 1%. And the Nasdaq composite sold off 1.6%.
Friday's The Big Picture column commented, "Nevertheless, it is important to note overall action for the week was still strong. Investors should remain 60% to 80% exposed for now, given the resiliency of the latest stock market uptrend. As ever, it is key to let the stock market action be your guide."
Now is an important time to read IBD's The Big Picture column amid the ongoing stock market rally.
Five Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Buy And Watch: JPMorgan
Banking giant JPMorgan is in the 5% buy range above a 138.76 flat-base buy point after a 1.55% rally Friday. The 5% buy zone tops out at 145.70. JPM shares traded down 0.3% early Monday.
JPM stock shows a solid 93 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.
4 Top Growth Stocks To Buy And Watch In The Stock Market Rally
Top Stocks To Buy And Watch: Impinj, Etsy, Nexstar, Wingstop
Impinj fell sharply below its recent 129.12 buy point in a cup base following a 7.6% dive Friday. If the stock is able to retake the entry, the 5% buy area will top out at 135.58. But investors should be more on the defensive after two straight days of heavy selling. PI stock gained 2% early Monday.
Backstory: Impinj's expertise lies in radio frequency semiconductors to identify, locate and authenticate items. While losing money in 2020, the company earned 25 cents per share in 2021. And annual earnings are expected to surge 284% to 96 cents per share this year.
Etsy remains out of buy range above a 137.01 buy point in a cup with handle despite a 0.5% fall Friday. The 5% buy area topped out at 143.86. Etsy shares fell 0.8% Monday morning.
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. Shares were up 0.2% early Monday.
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 is rapidly approaching a 170.97 buy point in a lopsided cup base, with a fourth-straight gain Friday. Keep an eye out for a potential handle to offer a lower entry. WING stock was down 0.1% early Monday.
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.
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Stocks To Buy And Watch In Stock Market Rally
These are seven top stocks to buy and watch in today's stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Base |
|---|---|---|---|
| Monster | 104.75 | Flat base | |
| Impinj | 129.12 | Cup base | |
| Nexstar | 204.72 | Cup base | |
| Etsy | 137.01 | Cup with handle | |
| JPMorgan | 138.76 | Flat base | |
| Wingstop | 170.97 | Cup base |
Source: IBD Data As Of Feb. 6, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock Rallies On Musk Comments
Tesla stock climbed another 0.9% Friday, extending a win streak to four sessions and closing at its highest level since Dec. 2. Last week, Tesla stock advanced nearly 7%. Despite their strong rebound since Jan. 6, shares are still below the 200-day line. And Tesla stock closed Friday about 51% off its 52-week high.
Shares looked to add to Friday's gains, racing 3.4% higher Monday morning. On Friday, a jury found Musk not liable in a trial over his tweets proposing to take Tesla private back in 2o18.
And on Sunday, Musk commented in a Twitter post, "Last 3 months were extremely tough, as had to save Twitter from bankruptcy, while fulfilling essential Tesla & SpaceX duties. Wouldn't wish that pain on anyone. Twitter still has challenges, but is now trending to break-even if we keep at it. Public support is much appreciated!"
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares rallied 2.4% despite the company's weaker-than-expected earnings results. Shares rallied further above their long-term, 200-day line Friday, but remain around 15% off its 52-week high. AAPL stock fell 1% Monday.
Microsoft stock sold off 2.4% Friday, snapping a three-day win streak. Despite the day's sharp losses, shares are still above their 200-day line and about 18% off the 52-week high. MSFT traded down 0.5% Monday morning.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
