The Dow Jones Industrial Average rose Tuesday morning, as the stock market looked to bounce back from Monday's losses. Meanwhile, Palantir Technologies soared as its artificial intelligence business boosted the company's quarterly results. And Tesla stock reversed higher after an analyst downgrade.
After the opening bell, the Dow Jones Industrial Average climbed 0.4%, while the S&P 500 moved up 0.3%. The tech-heavy Nasdaq composite rose 0.2% in morning action.
Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust gained 0.2%, while the SPDR S&P 500 ETF was up 0.3%.
The 10-year Treasury yield dipped to 4.13% Tuesday. Further, oil prices looked to rebound for a second straight session, as West Texas Intermediate futures gained nearly 1%. WTI futures moved above $73 a barrel.
Key Earnings Reports: Palantir
Palantir soared 25% Tuesday morning, decisively retaking its 50-day moving average. The company reported adjusted earnings of 8 cents a share, in line with estimates, on revenue of $608.4 million. Sales were expected to rise to $602.9 million.
In a letter to shareholders, Palantir Chief Executive Alex Karp said, "Our results reflect both the strength of our software and the surging demand that we are seeing across industries and sectors for artificial intelligence platforms."
Other key earnings movers Tuesday include Eli Lilly, KKR and NXP Semiconductor, along with Spotify and Vertex Pharmaceuticals.
Eli Lilly shares rallied 4.6%, while KKR stock moved up more than 3% in morning action. Apple supplier NXP fell 0.2%, as Spotify shares shot up 8%. And Vertex stock dropped 0.4% in early trading.
Dow Jones Falls
On Monday, the Dow Jones Industrial Average moved down 0.7% and the S&P 500 slipped 0.3%. The tech-heavy Nasdaq composite dropped 0.2%.
Monday's Big Picture column commented, "Despite scattered distribution in the major indexes, the stock market remains structurally sound. The number of new 52-week highs continues to trend well above 52-week lows. To wit, IBD's recommended exposure is holding at 80%-100%."
Now is an important time to read IBD's The Big Picture column amid the continuing stock market rally. Be sure to read how to adjust to changing market conditions, with IBD's new exposure levels.
Learn How To Time The Stock Market With IBD's ETF Market Strategy
Best Stocks To Buy And Watch
Expedia, KKR, Lennar and MongoDB — plus Dow Jones members Disney and Walmart — are among the best stocks to buy and watch in the current market rally.
KKR and Walmart were featured in this Stocks Near A Buy Zone column. KKR is on IBD Leaderboard.
Get Real-time Buy And Sell Alerts On Stock Market Leaders With IBD Leaderboard
Dow Jones: Disney At Buy Point Before Earnings
Media giant leader Disney is in buy range above a flat base's 96.51 buy point, despite a 0.5% loss Monday, according to IBD MarketSmith pattern recognition. Earnings are due out Wednesday after the market closes. Disney stock added 0.3% Tuesday.
Discount retail leader Walmart is in buy range past a 163.57 entry in a cup with handle, even as the stock dropped 0.5% Monday. The stock rose 0.2% early Tuesday.
4 Top Growth Stocks To Watch In The Stock Market Rally
Lennar Eyes Buy Point
Travel stock Expedia is tracing a flat base that shows a 155.84 buy point. Shares are finding support around their 50-day line, as they climbed 0.4% Monday. Expedia stock rose 0.3% Tuesday.
With solid gains Tuesday morning, IBD Leaderboard stock KKR is moving further above an 85.66 flat-base entry.
Homebuilder Lennar is within striking distance of a flat base's 156.01 buy point, with a near-1% fall Monday. Lennar shares moved down 0.2% early Tuesday.
Software leader MongoDB is breaking out past a 426.51 buy point, with a 6.6% surge Friday, according to IBD MarketSmith. MongoDB shares tacked on around 2% Tuesday.
Best Bets In Tuesday's Action
These are four best stocks to watch in today's stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Novo Nordisk | 105.69 | Flat base | |
| Merck | 119.65 | Cup base | |
| DraftKings | 39.35 | Cup base | |
| Spotify | 202.88 | Flat base |
Source: IBD Data As Of Feb. 5, 2024
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Magnificent Seven Stocks: Nvidia, Tesla
Magnificent Seven stocks Nvidia fell 1.4% and Tesla rebounded 1.7% in morning action Tuesday.
Nvidia jumped 4.8% Monday, more than 35% past a a 505.48 buy point in a flat base after a Jan. 8 breakout move. Shares are at record highs.
Tesla tumbled 3.7% Monday, hitting its lowest level since May 2023. Early Tuesday, Daiwa Capital downgraded Tesla stock from outperform to neutral, with a 195 price target. Meanwhile, Piper Sandler raised its price target from 225 to 295, with an outperform rating.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks in the Magnificent Seven, Apple and Microsoft traded higher after Tuesday's stock market open.
Apple shares rallied 1% Monday, still below its key 50-day moving average. A flat base continues to take shape that has a 199.62 buy point. Apple shares were up 0.4% Tuesday.
Microsoft shares dropped 1.35% Monday, still out of buy range past a 384.30 buy point in a flat base. The software giant gained 0.2% Tuesday morning.
Be sure to follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
