Dow futures were higher ahead of Tuesday's open after the Dow Jones Industrial Average rallied 376 points Monday. Up next, January's CPI inflation report is due out Tuesday, and recent revisions showed that inflation was running hotter than previously thought.
The Labor Department's CPI inflation report is due out at 8:30 a.m. ET. Per Econoday estimates, the CPI is expected to rise 0.5% for the month vs. December, with an annual increase of 6.2%.
Arista Networks, Cadence Design Systems, Lattice Semiconductor, Medpace and SolarEdge Technologies will report earnings results after Monday's close.
Arista shares climbed 1.2% in extended trade and are approaching a buy point at 140.91. Cadence jumped almost 3%. Lattice stock rose less than 1%. And Medpace declined around 2% late. Finally, SolarEdge shares dropped 1% despite strong Q4 earnings and sales results.
Additional earnings results this week include Airbnb, Albemarle, Applied Materials, Coca-Cola, GlobalFoundries, Roblox, Roku and Shopify.
Stock Market Today
On Monday, the Dow Jones Industrial Average and the S&P 500 each rose 1.1%. The tech-heavy Nasdaq composite rallied 1.5%. Among exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust moved up 1.6% and the SPDR S&P 500 climbed 1.2%.
Electric-vehicle giant Tesla traded down 1.1% Monday. Among Dow Jones stocks, Apple rose 1.9% and Microsoft jumped 3.1% in today's stock market.
Dexcom, IBD Leaderboard stock Snowflake, Inspire Medical Systems and Wingstop — as well as Dow Jones stocks Caterpillar, JPMorgan Chase and Salesforce — are among the top stocks to buy and watch, amid the recent pullback in the market rally.
Snowflake is an IBD Leaderboard stock. Inspire was a recent IBD Stock Of The Day. Salesforce was featured in this week's Stocks Near A Buy Zone column.
4 Top Growth Stocks To Buy And Watch In The Current Stock Market Rally
Dow Jones Futures Today: Oil Prices, Treasury Yields
Ahead of Tuesday's opening bell, Dow Jones futures rose 0.1% vs. fair value, and S&P 500 futures gained 0.3%. Nasdaq 100 futures were up 0.4% 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 10-year U.S. Treasury yield fell Monday, settling at 3.71%. Oil prices dropped less than 1% Monday, pausing after last week's big rebound in prices. West Texas Intermediate futures traded just above $79 a barrel.
What To Do In The Ongoing Stock Market Rally
Now is an important time to read IBD's The Big Picture column with the stock market trend in a "confirmed uptrend" amid strong gains since the Jan. 6 follow-through day.
Despite last week's losses on the Nasdaq, the stock market rally is still holding up after big gains since early January. So, it makes sense for investors to maintain an exposure of 60% to 80%. But be ready to move quickly as things can rapidly change on the stock market, especially with Tuesday's release of the CPI inflation report.
(Check out IBD Stock Lists like the IBD 50 and Stocks Near A Buy Zone, for additional stock ideas.)
Five Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Buy And Watch: Caterpillar, JPMorgan, Salesforce
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. CAT stock rose 0.2% Monday, even after Baird downgraded the stock from outperform to neutral, with a lowered price target of 230.
Banking giant JPMorgan is in the 5% buy range above a 138.76 flat-base buy point after a 1.1% rise Monday. The 5% buy zone tops out at 145.70. JPM stock shows a solid 94 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.
Salesforce, featured in this week's Stocks Near A Buy Zone column, is building a cup with handle that has a 178.94 buy point. Shares climbed 2.4% Monday.
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Top Stocks To Buy And Watch: Inspire, Snowflake
Recent IBD Stock Of The Day Inspire Medical Systems closed at the top of the 5% buy area past a flat base's 262.64 buy point amid Monday's 3% rally, according to IBD MarketSmith pattern recognition. The buy zone tops out at 275.77. INSP stock shows a modest 84 IBD Composite Rating.
Backstory: The company sells an implantable device to treat sleep apnea through electrical stimulation of the nerves — a process called neurostimulation.
New IBD Leaderboard stock Snowflake is approaching an early entry at 178.80, as the software leader moves up the right side of a deep cup base that features a 205.76 buy point. SNOW stock was up 2.9% Monday.
Backstory: The software firm offers a new way for enterprises and large organizations to access, arrange and analyze their data. To help customers maximize their investments in data analytics, Snowflake charges by time of usage. Earnings are due out March 1.
Dexcom, Wingstop Eye Latest Buy Points
Dexcom shares rose 0.3% Monday, moving further up the right side of a cup base with a 125.65 buy point. Shares could also form a handle over the next few weeks, so keep an eye out for a potential lower entry.
Backstory: On Feb. 9, Dexcom reported stronger-than-expected quarterly results. The beat comes as Dexcom's newest continuous glucose monitor, or CGM, gains steam in the U.S. and Europe. These body-worn devices keep track of blood sugar in real time. The Food and Drug Administration cleared Dexcom's new device, G7, last year.
Wingstop added a handle to a cup base, lowering the correct entry to 169.04. Shares are just 3% away from the entry after Monday's near-5% rally.
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, Colombia, Panama, Singapore and the U.K. The company added a net 40 stores in the prior quarter. Earnings are due out Feb. 22.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock declined 1.1% Monday, adding to Friday's 5% skid. Despite their strong rebound since Jan. 6, shares are still below the 200-day line.
Shares closed Monday nearly 50% off their 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares jumped 1.9% Monday, rebounding from last week's losses. Shares are around 15% off their 52-week high and are moving up the right side of a new base.
Microsoft stock advanced 3.1% Monday, snapping a three-day losing streak. Shares are back above their 200-day line and are about 17% off the 52-week high after recent gains.
