The Dow Jones Industrial Average kept stretching gains Monday, as the markets continue to touch new highs following last week's rally and digested new housing data. Meanwhile, Tesla hit an early buy trigger last week and shares looked to extend that breakout, while Netflix stock is breaking out today.
The Housing Market Index from the National Association of Home Builders rose to 37 for December, just above the Econoday estimate. That's up from November's 34 reading.
There's more housing data on the horizon as the Commerce Department is scheduled to release housing starts and building permits Tuesday at 8:30 a.m., along with new home sales Friday at 10 a.m. The National Association of Realtors is due to issue a report on existing home sales Wednesday at 10 a.m.
Further on the economic front this week, the Fed's primary inflation gauge, the Personal Consumption Expenditures price index, takes the spotlight Friday. The PCE price data is a part of the Commerce Department's personal income and outlays report.
Finally, key earnings reports this week are coming from FedEx, General Mills, Heico, Nike and Toro.
On the markets, U.S. Steel soared 26% Monday morning after Nippon Steel agreed to acquire the Pittsburgh-based company for $55 a share, a 40% premium to Friday's closing price.
Dow Jones Today: Oil Prices, Treasury Yields
After Monday's opening bell, the Dow Jones Industrial Average rose 0.1%, while the S&P 500 gained 0.3%. And the tech-heavy Nasdaq composite climbed 0.2% in morning action. Both the Dow and Nasdaq are working toward an eighth-straight day in the black.
Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust moved up 0.2%, while the SPDR S&P 500 ETF gained 0.3% early Monday.
The yield on the 10-year U.S. Treasury bond ticked higher, at 3.96% Monday morning. Last week, the benchmark tumbled to 3.92%, its lowest level since late July.
Oil prices looked to rebound for a fourth session Monday, as West Texas Intermediate futures rose more than 3%. WTI moved above $74 a barrel. Last week, WTI hit its lowest level since late June before bouncing.
Stock Market Rally
The Nasdaq composite ended with a solid gain of 0.4% on Friday. It now sits at levels last seen in January 2022 after rising just shy of 3% for the week.
The S&P 500 gave up slight ground Friday, but closed essentially flat. The index rose about 2% for the week, its seventh weekly gain in succession. Finally, the Dow Jones industrials inched higher, hitting a another record closing high.
Friday's Big Picture column commented, "The stock market turned in bulky gains for the week following a dovish Federal Open Market Committee meeting where Fed Chair Jerome Powell and Co. indicated at least three rate cuts are possible in 2024. Stocks held on to those returns even after New York Federal Reserve President John Williams said Friday that they are not 'really talking about rate cuts right now.'"
Now is an important time to read IBD's The Big Picture column amid the continuing stock market rally. Be sure to read how to invest during the ongoing stock market uptrend.
Learn How To Time The Stock Market With IBD's ETF Market Strategy
Stock Market Today: Best Stocks To Buy And Watch
Chip giant Applied Materials, IBD Leaderboard stock Arm, IBD SwingTrader issue Netflix and Snowflake — along with Dow Jones stocks American Express, JPMorgan Chase and Visa — are among the best stocks to buy and watch in the current market rally.
Apple and Snowflake are featured in this Stocks Near A Buy Zone column.
Get Real-time Buy And Sell Alerts On Stock Market Leaders With IBD Leaderboard
Dow Jones Stocks To Watch: AMEX Breaks Out
Financial leader American Express is breaking out past a 175.31 buy point in a cup with handle, as it posted sharp gains last week. AXP stock rose 0.6% early Monday.
Banking giant JPMorgan is in buy range past a 159.38 buy point in a cup base, rallying 0.8% Friday. JPM stock gained 0.5% Monday.
Payments leader Visa fell for a second day Friday, down 0.3% but still in the buy range above a 250.06 buy point in a cup base, according to IBD MarketSmith pattern recognition. V stock bounced 0.4% Monday.
4 Top Growth Stocks To Watch In The Stock Market Rally
Stocks To Buy And Watch: NFLX Eyes Buy Point
Chip giant and recent IBD Stock Of The Day Applied Materials rose 0.1% Friday, hitting a fresh 52-week high. Shares are extended past a 148.40 double-bottom entry, but they are in buy range past an alternate buy point at 157.76. AMAT stock moved down 0.8% early Monday.
IBD Leaderboard stock Arm is extended past a 64.92 buy point in a cup with handle, according to IBD MarketSmith. The 5% buy area went up to 68.17. ARM stock slid 2% Monday after Deutsche Bank downgraded the stock from buy to hold.
IBD SwingTrader stock Netflix gained 0.5% Friday, just 3% away from a 482.70 buy point in a cup with handle. NFLX stock moved up 4% Monday morning, breaking out past the latest entry.
Artificial intelligence leader Snowflake is in buy range past a cup-with-handle's 192.66 buy point. SNOW stock lost 0.9% Friday, about 3% above the buy trigger. SNOW stock dropped 0.4% early Monday.
Best Stocks In Today's Stock Market Action
These are four best stocks to watch in today's stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Applied Materials | 145.86 | Alternate entry | |
| JPMorgan | 159.38 | Cup base | |
| Netflix | 482.70 | Cup with handle | |
| Snowflake | 192.66 | Cup with handle |
Source: IBD Data As Of Dec. 18, 2023
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Magnificent Seven Stocks: Nvidia, Tesla
Among the so-called "Magnificent Seven" stocks, Tesla moved up 1.1% early Monday, while Nvidia rose 1.25%.
Graphics-chip giant Nvidia moved up 1.1% Friday, extending a win streak to four sessions. NVDA stock is still in buy range above a 476.09 double-bottom entry.
Tesla stock rallied 1% Friday, closing above an early entry at 252.75. The stock's big double-bottom pattern has a 278.98 buy point.
Dow Jones Leaders: Apple, Microsoft
Two Dow Jones stocks in the Magnificent Seven, Apple and Microsoft, traded mixed ahead of today's stock market open.
Apple stock moved down 0.3% Friday, as its breakout move continues. Shares are in a buy range above a cup-with-handle entry at 192.93. Apple shares lost 1.5% Monday after Bloomberg reported that China expanded its ban on Apple devices late Friday.
Microsoft stock regained its 366.78 cup-base buy point during Friday's 1.3% rise. And the software giant was down 0.3% Monday morning.
Be sure to follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
