The Dow Jones Industrial Average turned higher Monday ahead of a busy week of earnings results that includes tech titans Alphabet, Amazon, Intel and Microsoft. C3.ai dived on an analyst downgrade, while Super Micro Computer plunged after issuing a revenue warning.
On the economic front, Friday is the big day for data, led by the Commerce Department personal income and outlays report for March, which focuses on the Fed's favorite inflation gauge, the personal consumption expenditures price index.
Weekly initial claims for jobless benefits come out Thursday at 8:30 a.m. ET. Both new claims and continuing claims have been on the rise, so weaker employment reports are likely to follow. Also due for release on Thursday, first-quarter GDP growth is expected to show a 2% rise. New home sales, out Tuesday at 10 a.m., are seen dipping to an annualized pace of 632,000 units.
Key earnings reports this week include Boeing, General Motors, Halliburton, McDonald's, PepsiCo and Verizon Communications.
On Monday morning, Coca Cola rallied 1.1% after reporting better-than-expected first-quarter earnings and sales results.
Stock Market Today
Artificial-intelligence play C3.ai plunged more than 9% Monday after Wolfe Research downgraded the stock from peer perform to underperform, with a 14 price target. Super Micro Computer dived as much as 11% after the company warned that its March-quarter revenue would miss its prior forecast. Super Micro now expects revenue of $1.28 billion, below the $1.47 billion midpoint of its earlier forecast.
Electric-vehicle giant Tesla dropped 1.1% Monday morning, while Dow Jones tech giants Apple and Microsoft were mixed after today's stock market open.
Crocs, DraftKings, IBD Leaderboard idea Floor & Decor and IBD SwingTrader stock Lululemon Athletica — as well as Dow Jones stocks JPMorgan Chase, Nike and Visa — are among the top stocks to buy and watch with the ongoing market rally.
JPMorgan and Lululemon were featured in last week's Stocks Near A Buy Zone column. Floor & Decor was a recent IBD Stock Of The Day.
Dow Jones Today: Oil Prices, Treasury Yields
After Monday's opening bell, the Dow Jones Industrial Average rose 0.1%, and the S&P 500 gained 0.15%. The tech-heavy Nasdaq composite inched higher in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust moved up less than 0.1%, while the SPDR S&P 500 ETF traded up 0.15% early Monday.
The 10-year U.S. Treasury yield on Monday traded down to 3.53%. Over the last two weeks, the 10-year yield rebounded from its lowest level since mid-September.
U.S. oil prices edged lower Monday morning. West Texas Intermediate futures continued to bob between $77 and $78 a barrel, after pulling back from an April 12 high above $83 a barrel.
Stock Market Rally
On Friday, the Dow Jones Industrial Average rose 0.1%, narrowly ending a three-day losing streak. Procter & Gamble was the benchmark's big winner, up 3.5%. The S&P 500 and Nasdaq both added 0.1% as well.
Friday's Big Picture column commented, "Big Tech stocks have played a key role in the stock market rally so far in 2023, so (the coming week's list of big-tech earnings reports) could be crunchtime. META is a member of the Leaderboard list of top stocks while MSFT has also shown impressive relative strength."
Now is an important time to read IBD's The Big Picture column with the stock market in an uptrend.
Five Best Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Buy And Watch: JPMorgan, Nike, Visa
JPMorgan shares dipped 0.2% Friday, holding steady near a flat base's 144.44 buy point and above the 50-day moving average, according to IBD MarketSmith pattern recognition. JPM stock inched higher early Monday.
Nike shares rose 0.9% Friday, still above their 50-day line. The stock is just below a 126.16 early entry and nearing a 131.41 flat-base buy point. NKE stock moved up 0.5% in early trade Monday.
Visa shares remain in buy range above a 230.15 cup-with-handle buy point. The buy range goes up to 241.66. V stock rose 0.2% in early morning trade. Visa reports fiscal second-quarter results on Tuesday.
4 Top Growth Stocks To Watch In The Stock Market Rally
Best Stocks To Buy And Watch: Crocs, DraftKings
Crocs shares climbed 1% Friday, extending a win streak to six sessions and finishing higher in the buy range past a cup base's 143.60 buy point, according to IBD MarketSmith. The 5% buy range goes up to 150.78. CROX stock inched higher early Monday. The company plans to report first-quarter earnings on Thursday.
Backstory: Broomfield, Colo.-based Crocs is best known for its rubbery, casual-wear shoes. The company in recent years expanded its Crocs brand portfolio from the classic slip-on clogs to include boots, sandals, wedges and sneakers. The Crocs brand makes up around 75% of sales.
DraftKings broke out above a cup base's 21.72 buy point during Friday's 2.8% advance. The 5% buy zone tops out at 22.81. DKNG stock fell 0.6% Monday morning.
Backstory: Boston's DraftKings is an online sports betting platform that allows users to play daily fantasy games and win cash prizes. Sports-betting prospects look strong, with around 20% of U.S. adults saying they bet money on sports in some way in the last 12 months, according to a 2022 Pew Research Center survey. DraftKings reports first-quarter results on May 4.
Floor & Decor, Lululemon
Floor & Decor is treading water just below a cup-with-handle's 99.47 buy point. Look for a decisive retake of the entry as a signal to buy shares. FND shares were up 0.6% early Monday. Floor & Decor's first-quarter earnings are due May 4.
Backstory: Floor & Decor operates 191 warehouse-format stores and six design studios across 36 states. It sells tile, wood, laminate, vinyl, and natural stone flooring products. It also sells decorative accessories. Earnings are seen slipping 2% this year before rising to 27% in 2024 and 24% in 2025.
IBD SwingTrader stock Lululemon moved further past a 371.36 entry in a cup with handle, with a 0.3% rise Friday. Shares gained 0.7% Monday morning.
Backstory: On March 28, Lululemon hiked 2023 guidance after topping earnings and revenue estimates for the holiday fourth quarter, sparking a 12.7% surge on March 29. The yogawear and athleisure apparel retailer's final fourth-quarter results also exceeded its own preliminary announcement, issued in early January.
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 three Dow Jones leaders.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Crocs | 143.60 | Cup base | |
| Nike | 131.41 | Flat base | |
| Visa | 230.15 | Cup with handle | |
| Cisco Systems | 51.84 | Flat base |
Source: IBD Data As Of April 24
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock rebounded 1.3% Friday, recovering a small part of Thursday's 9.75% earnings-fueled dive. Last week, shares hit their lowest level since Jan. 26. In recent weeks, shares triggered the 7%-8% loss rule from a buy point at 200.76 in a cup with handle. And they are trading sharply below their 50-day line, a key level. The stock closed Friday 55% off its 52-week high.
TSLA stock threatened to give up Friday's gains, down 1.1% in early Monday trade.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares dropped 1% Friday. They closed just in the 5% buy range beyond a 157.48 buy point. AAPL stock rose 0.1% Monday. Apple reports its fiscal second-quarter results on May 4.
Microsoft shares are still in buy range past a flat base's 276.86 buy point, with a 0.1% loss Friday. The 5% buy area goes up from the buy point to 290.70. And on Monday, MSFT stock lost 0.6%. The company plans to report its fiscal second-quarter results late Tuesday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
