The stock market remained higher in afternoon trading Monday. Investors are getting ready for a big week of earnings and the Fed's next move on Wednesday.
The Fed meets for two days this week with a policy announcement due 2 p.m. ET Wednesday. After a June pause following 10 hikes, the Fed is expected to raise rates by another quarter point. Investors are pondering the rate outlook for the rest of the year.
Fed policymakers in June forecast two more rate hikes this year, but mild inflation reports have reinforced investor expectations that there's only a modest chance of another increase after Wednesday.
The 10-year Treasury yield added 1 basis point to 3.85% Monday afternoon.
Stock Market Action
The Nasdaq composite was 0.2% higher Monday afternoon. The Dow Jones Industrial Average added 0.6% and the S&P 500 rose 0.5%. Meanwhile, the small-cap Russell 2000 crept up 0.3%. The Dow is trying to add to its winning streak, which would make it 11 gains in a row. It would be the longest winning streak since Feb. 27, 2017.
The Nasdaq 100-tracking Invesco QQQ Trust ETF added 0.1%. However, the Innovator IBD 50 ETF was weaker than the major indexes, falling 1.4%.
NYSE volume rose and Nasdaq volume fell vs. the same time on Friday.
Google parent Alphabet and Microsoft report earnings on Tuesday after the market close, while Meta Platforms reports late Wednesday. The three saw modest movement Monday.
ServiceNow, General Electric, Visa, Chipotle Mexican Grill, Boeing and General Motors are just a few of the big names set to report this week.
AI Stock Plummets
IBD 50 stock Symbotic eased from larger earlier losses and is now down roughly 7% in heavy volume, sending shares below the 50-day line. But the stock regained the line as the stock seeks support.
The move came on news that the warehouse robotics company entered into a joint venture with Japan's SoftBank Group. The new enterprise, named GreenBox, was created to further automate supply-chain networks using Symbotic's AI technology.
Tesla reversed course and rose 2.7%. Early today, UBS downgraded the EV stock to neutral from buy, but raised its price target to 270 from 220.
UBS believes the stock's powerful price action already reflects the strong demand seen from its recent price cuts. Shares are up over 110% this year so far. UBS sees limited upside risk to the EV stock and sees Tesla as the industry leader. Tesla has already projected lower Q3 deliveries but expects to start delivering its Cybertruck in 2024.
Stock Market Standouts: Chinese Retailer Breaks Out
Oilfield services provider Atlas Energy Solutions popped more than 5% in heavy volume, breaking out of a loose base with a 18.95 buy point. Shares are in the 5% buy zone that reaches to 19.90. The firm went public on March 9 at 18 a share. Analysts expect 19% earnings growth this year and a healthy 27% EPS gain in 2024.
China-based consumer products and toy retailer Miniso Group surged over 8%, breaking out of a saucer base with a 19.49 buy point. The buy range goes up to 20.47.
Shares have gained over 90% this year so far. Analysts expect 114% earnings growth in fiscal 2023 and an additional 22% in 2024.
Shares of Becton Dickinson gapped up 5% in heavy volume after the company received Food and Drug Administration clearance for its updated Alaris infusion medical pumps. BDX stock blasted through a buy zone that went up to 272.87 from a cup-with-handle buy point of 259.88.
Raymond James upgraded the medical supply stock to outperform from market perform and raised its price target to 305. BDX is the S&P 500's biggest gainer today.
Cava soared over 7% and is now extended from the 47.89 entry of an IPO base. Shares of the Mediterranean fast-casual restaurant stock have enjoyed the recent rally in restaurant stocks. Cava started trading on June 15 at 22 a share.
Oil Giant Pulls Ahead On Early Numbers
Chevron added 2.5% after the oil and gas refiner gave preliminary second-quarter earnings on Sunday that exceeded analysts' expectations. The company posted record production in the Permian Basin, located in Texas and New Mexico.
The Dow Jones company also announced that Chief Financial Officer Pierre Breber will step down in 2024, and that it will waive the mandatory retirement age for CEO Mike Wirth. Chevron will release full second-quarter results Friday. CVX is the Dow's biggest gainer today.
Shares of Domino's Pizza trimmed earlier gains to rise 1.2% after the pizza chain reported higher-than-expect Q2 profit but lower sales. Same-store U.S. sales inched down 0.1% from last year's quarter.
Shopify lifted 0.4% after MoffettNathanson upgraded the stock to outperform from market perform with a 76 price target.
Lam Research bumped up 2.6% after Stifel upgraded the semiconductor equipment stock to a buy rating from hold and raised its price target to 725 from 505. The move lifted the stock back above its 21-day exponential moving average.
Meme-stock AMC Entertainment soared over 40% on news that a Delaware judge rejected a plan to convert its preferred stock to common stock with a 10-to-1 reverse stock split.
Dow Win Streak Is Longest In 6 Years; Fed, Tech Titans Loom
Other Stock Movers: Airline Stock Crashes
Ryanair sold off 9% in heavy trading, after the budget Irish airline lowered its projected fiscal-year traffic growth, citing Boeing delivery delays. It reported better-than-expected fiscal first-quarter earnings and sales, but that took a back seat to the lower guidance.
Shares tumbled below the 50-day in heavy volume, triggering a sell signal.
American Express continued its Friday sell-off and dropped 1.2%, after Piper Sandler downgraded the Dow Jones stock to underweight from neutral and slashed its price target to 149 from 172. The company reported lower-than-expected Q2 sales and higher earnings Friday. The stock is testing its 50-day moving average.
Before Monday's market open, a Nasdaq 100 special rebalance went into effect, reducing the dominance of the Big Tech "Magnificent Seven" stocks.
Follow Kimberley Koenig for more stock market news on Twitter @IBD_KKoenig.
