The Dow Jones Industrial Average rose Tuesday after closing out January with a strong two-day stock market rally. NXP Semiconductors and Exxon Mobil reported earnings ahead of Tuesday's open, while tech titans Advanced Micro Devices, Alphabet and PayPal plan to report earnings after the close Tuesday.
Among the Dow Jones leaders, Apple dropped 0.8% Tuesday, while Microsoft was down 0.6% in today's stock market. American Express, a Dow Jones stock to watch, moved slightly lower early Tuesday as it approaches a new buy point. Salesforce.com led the Dow in early trade, up 0.8% following its 4.7% surge on Monday.
Electric-vehicle leader Tesla dropped over 1% Tuesday, on pace to snap a two-day win streak.
Among Tuesday's top stocks to buy and watch, Baker Hughes, CF Industries, Matson and Vertex Pharmaceuticals are in or near new buy zones.
Matson, Microsoft and Tesla are IBD Leaderboard stocks. Vertex was featured in this week's Stocks Near A Buy Zone column.
Dow Jones Today
After the stock market open Tuesday, the Dow Jones Industrial Average rose 0.1%, while the S&P 500 gained 0.1%. The tech-heavy Nasdaq composite turned lower. Among exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust lost 0.1%, and the SPDR S&P 500 ETF traded flat after Tuesday's open.
The 10-year Treasury yield ticked down below 1.75% Tuesday morning. The 10-year Treasury yield closed at 1.78% Monday. Oil prices eased, sending West Texas Intermediate down 0.5%, to just below $88 a barrel — and just under a seven-year high.
Early Tuesday, Purchasing Managers' Manufacturing Index will be released at 9:45 a.m. ET, followed by the ISM Manufacturing Index at 10 a.m. ET.
Stock Market Rally
The stock market on Monday posted strong gains in higher volume, a bullish session to close out a weak start to the year. After Monday's stock market strength, now is an important time to read IBD's The Big Picture column.
Monday's The Big Picture commented, "While the stock market remains volatile, indexes rose sharply and closed near session highs for the second straight session. That's a change in sentiment from the previous many days, when it was mostly losses by stocks and indexes."
If you're new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one key to the investment guidelines. IBD offers a broad range of growth stock lists, such as Leaderboard.
Investors also can create watchlists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.
Five Dow Jones Stocks To Watch Now
Stock Market Earnings: NXP, AMD, Alphabet, PayPal
Dutch chipmaker NXP Semiconductors reported results late Monday, sparking a 0.6% gain in morning trade. The company also increased its quarterly cash dividend 50% to 84.5 cents a share. Plus, it announced a new $2 billion share repurchase program. The new stock buyback plan is in addition to the $1.35 billion in repurchase authorizations still remaining on its prior plan.
Elsewhere, Exxon Mobil reported mixed earnings and sales results early Tuesday. Shares were up around 1% in early trade. XOM stock is extended past a 66.48 cup-base buy point.
Meanwhile, AMD, Alphabet and PayPal will report after the close Tuesday.
Wall Street expects Advanced Micro Devices to earn 76 cents per share on revenue of $4.52 billion. AMD shares closed Monday more than 30% off their 52-week high, even after rising 8.6% Monday to regain their 200-day line.
FANG stock Alphabet is expected to report earnings per share of $27.65 on sales of $72.2 billion. GOOGL stock is riding its 200-day moving average line as it forms a new base.
Payments leader PayPal is expected to earn $1.12 a share on sales of $6.89 billion. PayPal shares are about 45% from their 52-week high.
Dow Jones Stocks To Watch: American Express
American Express decisively regained its 10-week moving average last week with an 11.5% advance. AXP shares are moving up the right side of a new base with a 189.13 buy point, according to IBD MarketSmith chart analysis. Be on the lookout for a potential handle to offer a more risk-optimal entry. Shares lost 0.1% Tuesday.
Bullishly, the stock's relative strength line is just shy of new highs following last week's sharp ascent. A strong RS line, particularly during a weak overall market, highlights American Express as a stock to watch.
Four Top Growth Stocks To Watch In The Current Stock Market Rally
Stocks To Watch: Baker, CF Industries, Matson, Vertex
Oilfield equipment leader Baker Hughes is just below a 27.76 cup-base buy point after Monday's 1% gain. Shares dipped 1.9% Tuesday.
Fertilizer producer CF Industries continues to trace an ascending base with a 74.87 buy point. Bullishly, the stock's RS line hit a new high last week, indicating strong stock market outperformance. CF stock boasts a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. The stock is about 8% away from the latest buy point following Monday's 3.1% decline. Shares rallied 0.9% Tuesday. Learn more about what's driving investor interest in CF Industries in IBD's New America.
Matson is back in buy range above a cup-with-handle base buy point of 93.27 following Monday's 0.5% dip. The 5% buy range tops out at 97.84. Its RS line hit a new high on the breakout, a bullish sign. Shares were up 2.3% Tuesday. Learn about Matson's markets and competition in IBD's Industry Snapshot.
New IBD Leaderboard stock Vertex Pharmaceuticals broke out past a 234.68 buy point Friday with a 6.5% surge, according to IBD MarketSmith chart analysis. Shares inched higher Monday but remain in the 5% buy range that runs up to 246.41. Shares were down 0.1% Tuesday.
Per Leaderboard analysis, Vertex just broke out of a first-stage bottoming base. Since November, Vertex has counted numerous instances of strong gains in above-average volume, a plus.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock dropped over 1% Tuesday, giving back a part of Monday's 10.7% surge. The stock found much-needed support at its long-term 200-day moving average in recent sessions. But Tesla shares remain sharply below their 50-day line and there is no proper entry in sight.
The stock traded as high as 1,243.49 on Nov. 4, but ended Monday about 25% off that 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock advanced 2.6% Monday, moving further above the key 50-day line after Friday's decisive move. Shares are again about 14% past a 153.27 buy point out of a cup-with-handle base, according to IBD MarketSmith chart analysis. A new base is likely forming, but it is slightly too early for a new buy point. Apple shares dropped 0.8% Tuesday.
Software leader Microsoft rose 0.9% Monday, as the top Dow Jones stock extended a win streak to four sessions after finding support at the 200-day line last week. Shares dropped 0.6% Tuesday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
