Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, traded little changed ahead of Tuesday's open. The stock market reversed higher Monday after Moody's downgrade of the U.S. credit rating sent stocks sharply lower at the market open.
Amazon, Broadcom, Meta Platforms and Palantir Technologies are among the best stocks to buy and watch on the stock market today, as the Dow Jones Industrial Average climbed more than 130 points.
Amazon stock found support around its 200-day moving average Monday, holding just shy of a 214.84 buy point, which is a result of a forming handle on a cup base. Shares of the e-commerce giant edged lower in after-hours trading.
Monday's IBD Stock Of The Day and IBD SwingTrader stock Broadcom is working on a handle with 235.28 potential entry. Its fiscal second-quarter results are due out June 5. Broadcom stock moved down a fraction Monday evening.
Meta stock is tracing a cup base that has an ideal buy point at 740.91. And shares are closing in on a 662.67 early entry, the high price on May 14. Meta shares inched lower late Monday.
Finally, Palantir stock is pulling back to a 125.25 cup-with-handle entry following last week's breakout move. Shares closed just above their entry, according to IBD MarketSurge. But the stock eased 0.2% in extended trading Monday.
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Moody's Downgrade Of U.S. Credit Rating
Late Friday, Moody's Investors Service downgraded the U.S. government credit rating from the top-level Aaa to Aa1, saying this "reflects the increase over more than a decade in government debt and interest payment ratios to levels that are significantly higher than similarly rated sovereigns."
That comes more than a year after Moody's lowered its outlook on the U.S. debt rating to negative. Fitch Ratings and S&P Global Ratings had already stripped the U.S. government of their top credit ratings.
Elsewhere, key earnings movers this week include Home Depot, Lowe's and Target, along with Palo Alto Networks, Snowflake and Workday.
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Dow Jones Futures Today: Oil Prices, Treasury Yields
On Monday, the Dow Jones Industrial Average rose 0.3%, or 137 points, while the S&P 500 gained 0.1% and the Nasdaq inched higher.
Ahead of Tuesday's opening bell, Dow Jones futures, along with S&P 500 futures and tech-heavy Nasdaq 100 futures, were little changed. Remember that overnight action in Dow Jones futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
On Monday, the 10-year U.S. Treasury yield ticked higher to 4.47%. And oil prices climbed, as West Texas intermediate futures settled around $62.10 a barrel.
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What To Do Now As Market Rally Continues
Following the recent bullish stock market action, now is an important time to read IBD's The Big Picture column. With the stock market in rally mode, investors should be methodically putting their capital to work by buying strong breakouts past correct entries. Check out the latest Big Picture column for today's updated recommended exposure level.
On Monday's "IBD Live" show, the team discussed the current trading conditions of the stock market action.
An essential resource for daily breakouts is IBD MarketSurge's "Breaking Out Today" list. It shows MarketSurge Growth 250 stocks that are breaking out past buy points. Meanwhile, the MarketSurge "Near Pivot" list shows more stocks nearing buy points in bases.
To find more stock ideas, check IBD Stock Lists like the IBD 50, Big Cap 20 and Stocks Near A Buy Zone. These features identify bullish patterns and buy points and are available to check every day.
Be sure to follow Scott Lehtonen on X/Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
