Dow Jones futures were lower ahead of Tuesday's open, with first-quarter earnings season set to heat up this week. Netflix earnings are out Tuesday, while Tesla earnings are set for Wednesday.
Early Tuesday, Bank of America, Goldman Sachs, Johnson & Johnson and Lockheed Martin are all set for their quarterly earnings results. Intuitive Surgical and Netflix will report after the close.
Stock Market Today
On Monday, the Dow Jones Industrial Average rose 0.3%, with Walgreens Boots Alliance and Boeing the big winners. Walgreens stock rallied 1.7%, while Boeing shares climbed 1.6%. The S&P 500 and the tech-heavy Nasdaq composite each climbed 0.3%.
EV leader Tesla traded down 1% Monday. Among Dow Jones stocks, Apple inched higher and Microsoft rose 0.9% in today's stock market action.
Five Below, Floor & Decor, IBD Leaderboard watch list stock Lululemon Athletica and Vertex Pharmaceuticals — as well as Dow Jones stocks Cisco Systems, JPMorgan Chase, Nike and Visa — are among the top stocks to buy and watch with the ongoing market rally.
JPMorgan and Lululemon were featured in this week's Stocks Near A Buy Zone column.
4 Top Growth Stocks To Buy And Watch In The Current Stock Market Rally
Dow Jones Futures Today: Oil Prices, Treasury Yields
Ahead of Tuesday's opening bell, Dow Jones futures rose 0.1% vs. fair value, while S&P 500 futures climbed 0,4%. Nasdaq 100 futures were up 0.7% vs. fair value in overnight trading. Remember that overnight action in Dow Jones futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
The 10-year U.S. Treasury yield rose to 3.59% Monday. Last week, the 10-year yield rebounded from its lowest level since mid-September. U.S. oil prices dropped Monday, as West Texas Intermediate futures settled just below $81 a barrel.
What To Do In The Stock Market Rally
Now is an important time to read IBD's The Big Picture column with the stock market trend in a "confirmed uptrend" after continued gains.
Amid Monday's positive action, the market outlook remains in a confirmed uptrend, which means investors continue to have the green light to buy breakout stocks. IBD's recommended exposure currently sits at 40% to 60%.
Two useful IBD MarketSmith lists to check right now are "Breaking Out Today" and "Near Pivot." The latter shows stocks nearing buy points in bases, and the other flags stocks rising past buy points during the session.
To find more stock ideas, check IBD Stock Lists, like IBD 50, Big Cap 20 and Stocks Near A Buy Zone. These features identify bullish patterns and buy points and should be checked every day.
Learn How To Time The Market With IBD's ETF Market Strategy
Dow Jones Stocks To Buy And Watch: Cisco Systems, JPMorgan, Nike Visa
Cisco Systems remains squarely below a flat base's 51.84 buy point after a 0.5% fall Monday, but there is no sell signal yet, according to IBD MarketSmith pattern recognition. CSCO stock topped the entry on March 31.
JPM shares rose 0.8% Monday, holding about 4% below a flat base's 144.44 buy point in the wake of Friday's earnings-fueled surge.
Nike shares rose 0.2% Monday, still above their 50-day line. The stock is just above a 126.16 early entry and nearing a 131.41 flat-base buy point.
Visa shares remains in buy range above a 230.15 cup-with-handle buy point. The buy range goes up to 241.66.
Top Stocks To Buy And Watch: Five Below, Floor & Decor, Lululemon, Vertex
Five Below declined 1.7% Monday, extending a losing streak to four sessions and closing below the 50-day line. Shares are now sharply below their 212.66 buy point in a flat base and further weakness will likely trigger the 7%-8% loss rule.
Backstory: On March, 15, Philadelphia-based Five Below, which operates 1,292 teen- and tween-focused discount stores in 42 states, closed out 2022 with an earnings and revenue beat. For the fourth quarter, Five Below earnings popped 23% to $3.07 per share, ending a three-quarter string of year-over-year declines.
Floor & Decor remains just shy of a cup-with-handle's 99.47 buy point, with a 0.4% loss Monday.
Backstory: Floor & Decor operates 191 warehouse-format stores and six design studios across 36 states. It sells tile, wood, laminate, vinyl, and natural stone flooring products. It also sells decorative accessories. Earnings are seen slipping 2% this year before rising to 27% in 2024 and 24% in 2025.
IBD Leaderboard watchlist stock Lululemon is just shy of a 371.36 buy point in a cup with handle. Shares edged higher Monday.
Backstory: On March 28, Lululemon hiked 2023 guidance after topping earnings and revenue estimates for the holiday fourth quarter, sparking a 12.7% surge on March 29. The yogawear and athleisure apparel retailer's final Q4 results also exceeded its own preliminary announcement, issued in early January.
Vertex Pharmaceuticals is trading in the 5% buy range above a cup base's 325.29 buy point that goes up to 341.55. VRTX stock dropped 1.7% Monday.
Backstory: Vertex Pharmaceuticals researches and develops medical treatments for cystic fibrosis, sickle cell disease, muscular dystrophy, kidney disease and type 1 diabetes.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock rallied 1.1% Monday, rebounding from Friday's modest decline. In recent weeks, shares triggered the 7%-8% loss rule from a buy point at 200.76 in a cup with handle. And they fell sharply below their 50-day line, a key level. Now, the stock is seeing some resistance at that area. A decisive retake would be bullish for the stock's immediate prospects.
The stock closed Monday 50% off its 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares rose a fraction Monday. They remain solidly above a 157.48 buy point.
Microsoft shares are at the top of the buy range past a flat base's 276.86 buy point, with a 0.8% rise Monday. The 5% buy area goes up from the buy point to 290.70.
