The Dow Jones Industrial Average fell Tuesday morning, ahead of Federal Reserve Chair Jerome Powell's interview at the Economic Club of Washington, D.C., starting at 12:40 p.m. ET. Investors will look for hints of future Fed hikes in the wake of Friday's blowout jobs report.
Embattled retailer Bed Bath & Beyond crashed 47% after announcing it will try to raise as much as $1.025 billion through an equity offering, but would likely file for bankruptcy if the fundraising failed. Late Monday, the Wall Street Journal reported the company secured investor backing for more than $1 billion in capital in order to stave off bankruptcy. On Monday, BBBY shares vaulted more than 92%.
Late Monday, Fabrinet, Pinterest, Skyworks Solutions and Take-Two Interactive Software reported earnings. And BP and Transdigm announced early Wednesday. BP jumped 4%, while Transdigm shares rallied 2.2% in morning trade.
Fabrinet shares climbed 3% on stronger-than-expected earnings and sales results. Pinterest dropped more than 1% Tuesday despite missing sales estimates. Skyworks gained 4.9% despite mixed results, as the company approved a new $2 billion stock buyback program.
Video game publisher 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 rose 1.7% in early trade.
Meanwhile, corporate earnings results continue this week, with reports from Chipotle Mexican Grill, Disney, Paycom Software and Vertex Pharmaceuticals.
Stock Market Today
Electric-vehicle leader Tesla fell 0.8% Tuesday morning, while Dow Jones tech giants Apple and Microsoft were higher after today's stock market open.
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.
Dow Jones Today: Oil Prices, Treasury Yields
After Tuesday's opening bell, Dow Jones Industrial Average lost 0.4%, and the S&P 500 moved down 0.25%. The tech-heavy Nasdaq composite inched lower in morning action. China-based search giant Baidu led the Nasdaq 100, up more than 11% after confirming it would launch a ChatGPT-style artificial intelligence platform next month.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust traded up less than 0.1% and the SPDR S&P 500 ETF fell 0.1% early Tuesday.
The 10-year U.S. treasury yield jumped to 3.6% Monday, as bonds backed off sharply for a second straight session. The 10-year yield crept up to 3.65% Tuesday morning, ahead of Fed Chair Powell's interview, to be conducted by Carlyle Group Co-Chairman David Rubenstein.
Oil prices further rebounded Tuesday morning after a modest bounce Monday. West Texas Intermediate futures are trading above $75 a barrel, near the bottom of their 10-week trading range.
Stock Market Rally
On Monday, the Dow Jones Industrial Average fell 0.1%, and the S&P 500 lost 0.6%. Meanwhile, the Nasdaq composite sold off 1%.
Monday's The Big Picture column commented, "The January rally took many by surprise as the Nasdaq and other indexes smashed resistance levels. The cost of the rapid advance is a normal pullback, which appears to be occurring now. But as long as indexes and leading stocks don't go below support levels, investors will pay just a small price for the pullback."
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
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 0.1% Monday. CAT stock inched lower Tuesday morning.
Banking giant JPMorgan is in the 5% buy range above a 138.76 flat-base buy point after a 0.6% gain Monday. The 5% buy zone tops out at 145.70. JPM shares traded down 0.1% early Tuesday.
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: Lattice, Etsy, Nexstar
IBD Leaderboard watchlist stock Lattice Semiconductordeclined 1.45% Monday, still in buy range above a 76.57 cup-with-handle buy point. LSCC stock shows a strong 98 out of a perfect IBD Composite Rating. Lattice shares were up 0.6% Tuesday.
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 fourth-quarter 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. ETSY stock was down 0.8% early Tuesday.
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. Early Tuesday, Nexstar shares down 1.7%.
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. WING stock was down 1.7% Tuesday morning.
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 | |
| Lattice Semiconductor | 76.57 | Cup with handle | |
| 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
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.
Shares looked to add to Monday's gains, but turned down 0.8% Tuesday morning.
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. Apple stock traded up 0.3% Tuesday.
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. Microsoft shares were up 1.6% early Tuesday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
