The Dow Jones Industrial Average and other major stock indexes looked to extend their rallies in morning action Monday, with comments from key Federal Reserve speakers due later in the day. Meanwhile, Warren Buffett's Berkshire Hathaway reversed lower after reporting earnings on the stock market today.
The Dow Jones Industrial Average gained 0.3% in morning action, as the S&P 500 rose 0.6%. If both indexes hold up during the trading day, they could move above their 50-day moving averages. The tech-focused Nasdaq composite climbed 0.6% after the opening bell, adding to Friday's gains above the 50-day line.
Early Monday, the 10-year Treasury yield ticked lower to 4.49%. Further, oil prices climbed nearly 1% as West Texas Intermediate futures traded around $78.70 a barrel.
Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust ETF was up 0.6%, as the SPDR S&P 500 ETF rose 0.5%.
Over the weekend, Warren Buffett-led Berkshire reported strong first-quarter earnings and another big increase in cash, with the billionaire investor expecting further increases ahead during the company's annual shareholder meeting. Shares reversed from early gains to fall 0.3% in early action Monday. The "A" shares of Berkshire Hathaway were down a fraction near $602,000.
Stock Market Today: Fed Speakers
The economic calendar lightens up this week, but Wall Street will be focused on speeches from Thomas Barkin and John Williams Monday afternoon. Both are presidents of Federal Reserve banks.
Later this week, the Labor Department's weekly unemployment claims are due out Thursday, while Friday will feature the University of Michigan's preliminary consumer sentiment data for May.
Early Monday, a key earnings mover was Tyson Foods. Shares tumbled 4% in morning trading.
Key earnings reports this week include Disney, Palantir Technologies, Uber Technologies and Vertex Pharmaceuticals.
Be sure to read how to adjust to changing market conditions, with IBD's new exposure levels.
Dow Jones Rises
On Friday, The Dow Jones Industrial Average rallied 1.2%, while the S&P 500 climbed 1.3%. The tech-heavy Nasdaq composite advanced 2%.
Friday's The Big Picture column commented, "The strong gains Friday justify raising exposure to the 40% to 60% range. Buying opportunities were relatively limited, however, which makes holding closer to the lower end of this range a prudent approach. Remember to increase exposure in a measured, disciplined fashion. Lower volume on the Nasdaq's upward thrust means Friday's action failed to qualify as a follow-through day."
Now is an important time to read Investor's Business Daily's The Big Picture column amid the ongoing stock market action. Be sure to read how to adjust to changing market conditions, with IBD's new exposure levels.
Learn How To Time The Stock Market With IBD's ETF Market Strategy
Stock Market Today: Best Stocks To Watch
Chipotle Mexican Grill, NXP Semiconductors, Texas Roadhouse and Tradeweb Markets — plus Dow Jones component American Express — are among the best companies to watch in the current market.
Texas Roadhouse is featured in this Stocks Near A Buy Zone column.
An essential resource for daily breakouts is IBD MarketSurge's "Breaking Out Today" list. It shows MarketSurge Growth 250 stocks that are breaking out past new buy points. Also, the MarketSurge "Near Pivot" list shows stocks nearing buy points in bases.
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 are available to check every day.
Get Real-Time Buy And Sell Alerts On Stock Market Leaders With IBD Leaderboard
Dow Jones: American Express Below Buy Point
American Express is bouncing back in heavy volume from support around its 50-day moving average. The bullish rebound has placed the software leader in a new buy area, while shares are back below a 231.69 entry in a short consolidation. Shares were up 0.7% on the stock market today.
3 Top Growth Stocks To Watch In The Stock Market Today
Outside the Dow Jones index, Chipotle gained 0.4% Friday, still in buy range past a 3,023.98 buy point in a short consolidation, according to IBD MarketSurge. Chipotle shares rose 0.8% after the open on Monday.
NXP Semiconductors is again breaking out past a double-bottom buy point at 251.96, and is making progress above that entry after Friday's gains. Shares climbed another 0.6% Monday.
Texas Roadhouse jumped above its flat base's 157.12 buy point, with a 3.6% rise Friday. Shares were up 1.9% Monday morning.
Tradeweb held above the 50-day moving average despite Friday's near-1% loss, as it forms a flat base with a 108.04 buy point. Shares were up 2.2% Monday.
Stock Market Today: Companies To Watch
These are four stocks in or near buy zones in today's stock market.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| American Express | 231.69 | Consolidation | |
| Texas Roadhouse | 157.12 | Flat base | |
| Chipotle | 3,023.98 | Consolidation | |
| Tradeweb Markets | 108.04 | Flat base |
Source: IBD Data As Of May 6, 2024
Join IBD experts as they analyze leading stocks in the stock market today on IBD Live
Magnificent Seven Stocks: Nvidia, Tesla
Magnificent Seven stocks Nvidia and Tesla advanced 3.1% and 3.3%, respectively, in Monday's morning action.
Nvidia stock rallied 3.5% Friday, retaking its 50-day line, a key area to watch. Shares continue to form a consolidation that has a new buy point at 974. Aggressive investors can use 888.19 as an early buy trigger as a result of a trendline entry.
Tesla stock climbed 0.7% Friday, adding to Thursday's gains. Shares remain above their 50-day line following last week's advance.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks in the Magnificent Seven, Apple and Microsoft traded mixed after Monday's stock market open.
Apple bullishly jumped above its long-term, 200-day line Friday after the company's earnings results. And the stock fell 0.5% Monday morning.
Microsoft shares gained 2.2% Friday, still below their 50-day line, as the software giant builds a new flat base that has a 430.82 buy point. Shares moved up 0.1% Monday.
Be sure to follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on growth stocks, the Dow Jones Industrial Average and the stock market today.
