The Dow Jones Industrial Average dropped Tuesday morning after weak New York regional manufacturing data, and ahead of another round of key inflation numbers due out Wednesday. Meanwhile, fourth-quarter earnings season continues Tuesday, with results from Dow Jones stock Goldman Sachs and Morgan Stanley.
The New York Federal Reserve's Empire State Manufacturing Survey for January showed another big contraction, with a -32.9 reading, much lower than the -8.1 estimate vs. an 11.2% decline for December.
On Wednesday morning, the Producer Price Index inflation gauge is due from the Labor Department. Wholesale inflation is expected to fall 0.1% in December, with a 6.8% year-over-year increase, per Econoday estimates. Retail sales data is also due out early Wednesday.
Goldman Sachs declined 4.1% after missing earnings estimates, while Morgan Stanley rose 5.8% in morning trade after an earnings beat.
Other results this week include Alcoa and Charles Schwab. Further, Netflix will kick off tech earnings after the close Thursday.
Stock Market Today
Dow Jones drug giant Pfizer declined 3% Tuesday morning after Wells Fargo downgraded the stock from overweight to equal weight.
Electric-vehicle leader Tesla traded up nearly 6% Tuesday, after new EV registrations data from China implied a healthy jump in weekly Tesla sales. Dow Jones tech giants Apple and Microsoft were both modestly lower after today's stock market open.
Deere, IBD Leaderboard stock Fluor, Insulet and recent IBD Stock Of The Day Medpace — as well as Dow Jones names Amgen, Chevron and Walmart — are among the top stocks to buy and watch with the market testing the strength of a new rally.
Fluor and Medpace are IBD Leaderboard stocks.
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Dow Jones Today: Oil Prices, Treasury Yields
After Tuesday's opening bell, the Dow Jones Industrial Average fell 0.3%, and the S&P 500 rose 0.4%. And the tech-heavy Nasdaq composite moved up 0.5% in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust rose 0.5% and the SPDR S&P 500 ETF traded up 0.4% early Tuesday.
The 10-year Treasury yield rose to 3.54% Tuesday morning, adding to Friday's gains and looking to rebound after last week's sharp losses.
Oil prices rose again Tuesday, lifting West Texas Intermediate futures above $80 a barrel. The 1.5% gain put WTI smack up against the top of its recent trading range, and back above its 50-day moving average — above which it has not settled since mid-November.
Stock Market Rally
On Friday, the Dow Jones Industrial Average rose 0.3%, and the S&P 500 gained 0.4%. The Nasdaq composite moved up 0.7%, extending a win streak to six sessions.
Friday's The Big Picture column commented, "The stock market shrugged off economic warnings from bankers to reverse higher Friday. Indexes closed the week with solid gains, but it's time to watch for a pullback."
Now is an important time to read IBD's The Big Picture column amid the ongoing stock market rally.
Five Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Buy And Watch: Amgen, Chevron, Walmart
Drug giant Amgen is shaping a flat base that has a 296.77 buy point, according to IBD MarketSmith pattern recognition. First, Amgen shares must retake their 50-day line, which is a key resistance level to watch. AGMN shares were up 0.5% early Tuesday.
Energy giant Chevron is trying to break above stout resistance at its 50-day line, as it continues to build a flat base that has a 189.78 buy point. Chevron's fourth-quarter earnings are due Jan 27. CVX shares rose 1.4% Tuesday morning, along with the rising oil prices.
CVX stock shows a solid 91 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.
Discount retailer Walmart also is seeing resistance at its 50-day line amid Friday's 0.3% gain. Shares are building a cup-with-handle base that has a 154.74 buy point and are about 5% away from the latest entry. Walmart shares inched higher Tuesday morning.
4 Top Growth Stocks To Buy And Watch In The Stock Market Rally
Top Stocks To Buy And Watch: Deere, Fluor, Insulet, Medpace
Deere continues to trace a flat base with a 448.50 buy point. Shares have their eye on the buy point as they rebound from a test of 50-day support and are just 2% away from the entry. Deere shares were up 0.6% Tuesday morning.
IBD Leaderboard watch list stock Fluor is trying to break out past a flat base's 36.16 buy point, as shares rallied 3% Friday. Shares are in the 5% buy area that tops out at 37.97. FLR stock was up slightly early Tuesday.
Recent IBD Stock Of The Day, Insulet, is nearing a double-bottom's 316.54 buy point. PODD stock was down 0.2% Tuesday.
Medpace rallied 1.2% Friday, nearing a consolidation's 235.82 buy point. Last week, shares moved above an early entry at 220.09. The company's earnings results are expected on Feb. 13. Medpace shares were up 1.6% Tuesday.
Stocks To Buy And Watch In Stock Market Rally
These are seven top stocks to buy and watch in today's stock market, including three Dow Jones leaders.
|Company Name||Symbol||Correct Buy Point||Type Of Base|
|Walmart||154.74||Cup with handle|
Source: IBD Data As Of Jan. 17, 2023
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Tesla stock declined 0.9% Friday, ending a two-day win streak. Despite a recent rebound, shares remain sharply below their 50- and 200-day lines. In early January, shares hit a 52-week low at 101.81. Tesla stock closed Friday about 68% off its 52-week high. Tesla earnings are due out Jan. 25.
Shares of the EV giant looked to add to last week's solid gains, trading up 5.8% Tuesday morning.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares climbed 1% Friday, closing at their highest level since Dec 21. The stock remains around 25% off its 52-week high. Apple will report its quarterly earnings on Feb. 2. AAPL stock traded up 1.1% Tuesday.
Microsoft stock rose another 0.3% Friday, extending a win streak to six trading days. The software giant is about 25% off its 52-week high. MSFT earnings are due out Jan. 24. Shares rose 0.5% early Tuesday, even after a downgrade to sell by Guggenheim.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.