Dow Jones drops as Fed meeting looms; Tesla stock gets an upgrade to buy after a 33% rise
The Dow Jones Industrial Average fell 100 points on Monday as the market looked set to wrap up a strong January run. Headline this week’s Federal Reserve policy meeting, with an important decision also made by OPEC. apple supplier NXP . Semiconductor (NXPI) will report quarterly earnings results after the close of Monday, the start of another busy earnings week. And Tesla stock received a buy upgrade after rising 33% last week.
The Fed’s two-day meeting begins on Tuesday, and the central bank is expected to raise its target federal funds rate by 25 basis points, to a range of 4.5 percent to 4.75%. Investors put a 99% probability of scaling that up, according to the report CME’s FedWatch tool.
tech giants Amazon (AMZN), Apple (AAPL), Alphabet (GOOGLE) and Meta . Platform (META) will be in the news this week, along with ExxonMobil (XOM), member of Dow Jones Merck (A) and Starbucks (SBUX). car manufacturer Ford (F) and common engine (GM) is also due to report.
Investment Action Plan — January Package: Apple, OPEC, Exxon and Fed
Stock market today
Electric vehicle lead Tesla was up 0.5% Monday morning, looking to add to last week’s big gains. tech giant Dow Jones Apple (AAPL) and Microsoft (MSFT) lower than later stock market today open.
IBD Rankings Share axon enterprise (SWITCH), Notable Stocks in Recent IBD Day Etsy (ETSY), monster beverage (MNST) and Vertex Pharmaceuticals (VRTX) — as well as Dow Jones stock letter V (CVX) and JPMorgan Chase (JPM) — among the top stocks to buy and watch, given the continued strength of the market’s rally.
The axon is a IBD Rankings Share. Etsy and top recently IBD shares of the day. Axon and JPMorgan were introduced in column Stocks Near the Buy Zone last week.
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Dow Jones today: Oil prices, Treasury yields
After Monday’s opening bell, the Dow Jones Industrial Average fell 0.3% and the S&P 500 fell 0.6%. The tech-heavy Nasdaq composite was down 0.9% in morning trade. Online retailer based in China JD.com (JD) fell more than 5%, being Nasdaq’s worst-hit stock, after it announced it was pulling out of operations in Thailand and Indonesia.
Between us exchange-traded fundsNasdaq 100 Invesco QQQ Trust tracker (National Assembly member) lost 1% and the SPDR S&P 500 ETF (spy) was trading down 0.6% early Monday.
Yields on the 10-year US Treasury bond edged higher to 3.55% on Monday morning, looking to extend the winning streak to three sessions. Last week, the 10-year bond yield barely ended its three-week slide.
Oil prices fell 2% as the market headed OPEC meeting this week. West Texas Intermediate futures fell to nearly $78 a barrel. The ministers of the Organization of the Petroleum Exporting Countries and its allies, including Russia (OPEC+), will meet on Wednesday. OPEC is expected to maintain current oil production levels but could discuss possible policy adjustments.
Stock market recovers
On Friday, the Dow Jones Industrial Average extended its winning streak to six sessions with a 0.1% gain. The S&P 500 gained 0.25%, while the Nasdaq composite outperformed, gaining 0.95%.
Friday’s The Big Picture column comments“Given the recent bullish action, IBD recommends increasing exposure to 60% to 80%. But be ready to move quickly because things can change quickly in the stock market.”
Now is a great time to read IBD . Big Picture Column in the context of the stock market is recovering.
Five Dow Jones stocks to buy and watch now
Dow Jones stocks to buy and watch: Chevron, JPMorgan
Energy giant Chevron fell 4.4% on Friday following the company’s earnings results. Stocks are adding a handle to the base of the cup, lowering entry from 189.78 to 187.91, according to IBD MarketSmith chart analysis. CVX stock fell another 0.7% Monday morning.
Banking giant JPMorgan is in a buy range above a flat base buy point of 138.76 on a six-day winning streak. JPM shares were down 0.4% Monday morning.
JPM shares showing a solid 94 out of a perfect 99 IBD Composite Ratingaccording to the Check out IBD stock. Composite Ratings are designed to make it easy for investors to find top growth stocks.
Top 4 Growth Stocks To Buy And Watch Stock market recovers
Top stocks to buy and watch: Axon, Etsy
Security leader Axon fell 0.4% on Friday, remaining within a 5% buy range above an 189.72 buy point in a cup-with-handle model. The buy zone peaked at 199.21. Axon shares were down 0.1% Monday morning.
plot: Formerly known as Taser International, the company took advantage of a business opportunity driven by public demand for more surveillance of police departments. The body camera line and its accompanying software are currently leading the market. The company is headquartered in Scottsdale, Ariz. also boasts a cloud-based digital proof platform.
Etsy is back above buy point 137.01 in cup with handle after Friday’s 2.4% rally. 5% buy area up to 143.86. ETSY stock lost 0.5% on Monday.
plot: The company is an online e-commerce platform provider where arts and crafts, vintage and other unique merchandise creators will sell their wares. It has a unique business model that has, over the past few years, gone from being a niche e-commerce marketplace to being a premier shopping destination across multiple categories.
Monster, Vertex Eye Buy Points
Monster Beverage is about to break through a flat base 104.75 buy point despite Friday’s 1.1% drop. MNST stock was down 0.5% early Monday.
plot: monster beverage market leader in energy drinks monopoly with private competitor Red Bull. The company’s portfolio of energy drinks brands includes Monster Energy, Reign and NOS Energy.
Monster dominated energy drinks in the US and had a 39% market share last year, according to Jefferies data, bringing in record $5.5 billion in revenue for the company. Red Bull will account for 37% of the US energy drink market by 2021. poison (CELH), on an impressive growth trackaccounted for 4.9% of the market.
Recent IBD Stocks of the Day, Vertex Pharmaceuticals, is within impressive distance of a buy point of 324.85 on a cup basis after its sixth straight gain on Friday. Quarterly earnings will be announced on Feb. 7. VRTX stock edged higher on Monday.
plot: The company is best known for its cystic fibrosis treatments — a market for which Vertex estimates 88,000 patients. Among them, there are still 20,000 patients who can receive the old-fashioned oral treatment. But analysts are keeping an eye on what’s new from Vertex, including an updated three-drug regimen that could strengthen Vertex’s position against the competition. AbbVie (ABBV).
Stocks to buy and watch as the stock market recovers
Here are the top seven stocks to buy and watch in today’s stock market, including the top three Dow Jones stocks.
|Company name||Icon||Exact point of purchase||base type|
|axon||(SWITCH)||189.72||cup with handle|
|Etsy||(ETSY)||137.01||cup with handle|
|JP Morgan||(JPM)||138.76||flat sole|
|letter V||(CVX)||187.91||cup with handle|
|Passport||(DRAW)||220.08||cup with handle|
Source: IBD Data as of January 30, 2023
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Tesla shares added 11% on Friday, extending its winning streak to six sessions and pushing the stock above its 50-day moving average. Despite the strong bounce since January 6, the stock remains below the 200-day moving average. Tesla shares closed down about 54% from their 52-week high.
Shares of the EV giant were up 0.5% Monday morning after receiving an upgrade at Berenberg from hold to buy. The new price target is 200, down from 255.
Leading Dow Jones: Apple, Microsoft
Between Dow Jones stockShares of Apple rose 1.4% on Friday, pushing the stock closer to its 200-day long-term moving average. The 200-day line is likely to be the key resistance area to watch. Shares are down about 20% from their 52-week high. Apple will report quarterly earnings on Thursday. AAPL shares traded down 0.3% on Monday.
Microsoft stock rose 0.1% on Friday, moving further above its recently reset 50-day moving average, which is bullish for the stock’s immediate outlook. Still, the stock is still down 21% from its 52-week high. Shares were down 1.5% early Monday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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