Dow Jones futures were little changed ahead of Tuesday's open, along with S&P 500 futures and Nasdaq 100 futures, in overnight trade. The major stock indexes reversed from early sharp losses Monday, as Wall Street worried that the Israel-Hamas war could derail the new stock market rally.
Middle East tensions erupted Saturday when Hamas militants launched the largest assault on Israel in 50 years, sending forces across the Gaza border and into southern Israel. Caught entirely off guard, Israel responded by declaring war on Hamas and launching retaliatory strikes throughout Palestinian communities.
In economic data news, Wall Street will pay close attention to this week's CPI and PPI inflation reports, along with Fed minutes from the September policy meeting.
Further, third-quarter earnings season kicks off this week, with earnings results from Delta Air Lines, as well as UnitedHealth and banking giants JPMorgan Chase, Citigroup and Wells Fargo.
Stock Market Today: Dow Jones Rises
On Monday, the Dow Jones Industrial Average and S&P 500 both rose 0.6%. The tech-heavy Nasdaq composite moved up 0.4%.
Electric-vehicle giant Tesla traded down 0.3% Monday, while Nvidia lost 1.1%. NVDA stock closed just above its 50-day line. Dow Jones tech icons Apple and Microsoft ended squarely higher in today's stock market, with AAPL stock up 0.85% and Microsoft up 0.8%.
IBD Leaderboard member Arista Networks, Duolingo, DraftKings and Meta Platforms — as well as Dow Jones stocks Chevron and UnitedHealth — are among the best stocks to buy and watch in the new stock market uptrend.
Meta is a new IBD SwingTrader stock, while Arista is featured in this Stocks Near A Buy Zone column.
Dow Jones Today: Oil Prices, Treasury Yields
Ahead of Tuesday's opening bell, Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, were little changed vs. fair value. Remember that overnight action in Dow Jones futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
The bond market was closed Monday for Columbus Day. On Friday, the 10-year U.S. Treasury hit a long-term high before settling at 4.78%.
On Monday, oil prices jumped more than 4% after last week's heavy losses. West Texas Intermediate futures moved above $86 a barrel.
New Stock Market Rally: What To Do Now
Now is an important time to read IBD's The Big Picture column, with the major stock indexes starting a new uptrend Friday. And Monday's surprising rebound in the direct aftermath of a follow-through day bodes well for the new stock market rally.
Amid the recent strength, investors have the greenlight for new purchases, so put those curated watchlists to work. Meanwhile, look for new stock market leadership to emerge over the coming weeks.
One way to do this is by using the relative strength line. The RS line measures a stock's price performance vs. the S&P 500. Keep an eye on stock charts in which the line is trending upward, which means the stock is outperforming the S&P.
The RS line is in all IBD charts and IBD MarketSmith. In addition, the IBD Stock Screener includes a list of top-rated stocks with lines at new highs. MarketSmith also has the "RS Blue Line Dot" list, which screens for RS lines at new highs.
Two useful MarketSmith lists to check right now are "Breaking Out Today" and "Near Pivot." The latter shows stocks nearing buy points in bases, and the other flags stocks rising past buy points during the session.
Dow Jones Stocks: Chevron, UnitedHealth
Dow Jones oil giant Chevron jumped almost 3% Monday as oil prices spiked. In recent weeks, CVX stock broke out past a short handle entry at 168.96. Meanwhile, a cup base within a larger consolidation continues to show a 172.88 buy point. Shares are back above their 50-day line.
Health insurer UnitedHealth closed Monday in buy range above a 515.86 buy point in a cup base, per IBD MarketSmith chart analysis. The 5% buy area goes up to 541.65.
4 Top Growth Stocks To Watch In The Stock Market Rally
Stocks To Watch: Arista, DraftKings, Duolingo, Meta
Arista climbed 1.2% Monday, further rebounding from the 50-day line. A bullish rebound from that level places the stock in a new buy area. Meanwhile, shares are approaching a 198.70 buy point out of a flat base.
DraftKings is building a consolidation that has a 34.49 buy point, per IBD MarketSmith pattern recognition. An early entry looms at 32.65. Shares are trying to decisively retake their 50-day moving average, which would be a bullish signal.
IPO Leader Duolingo surged more than 6% Monday, back above its latest buy point at 167.35 and in buy range. The new entry is the result of a handle forming on a double-bottom base.
Social media giant Meta Platforms is in buy range after a strong move past a 312.87 buy point. Its cup base has an official buy point at 326.20.
Learn How To Time The Market With IBD's ETF Market Strategy
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 |
|---|---|---|---|
| Meta Platforms | 312.87 | Handle entry | |
| Chevron | 293.88 | Handle entry | |
| Duolingo | 167.35 | Double bottom with handle | |
| DraftKings | 32.65 | Cup with handle |
Source: IBD Data As Of Oct. 9, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock Hits Buy Point
Tesla stock erased heavy losses Monday, finishing the session down just 0.3%. Shares remain above their 50-day line and near an alternative buy area. The buy zone starts at 254.77 and goes up to 258.40 for aggressive investors.
TSLA stock has an official cup-with-handle base with a buy point at 278.98, and shares are about 7% away from that entry.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple moved up 0.85% Monday, rallying for a fourth straight session. Shares are bouncing back from their recent lows. Amid the continued weakness, the stock is sharply below its 50-day line after September's losses. If AAPL stock can rebound, it would likely have a double-bottom base with a 189.98 buy point.
Microsoft shares gained 0.8% Monday, moving further above their 50-day line. A new base is forming, with an early entry at 340.86.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
