The Dow Jones Industrial Average and other major indexes traded higher, as investors reacted to President Donald Trump's comments on Mexican and Canadian tariffs. Meanwhile, Nvidia and Tesla were early movers on the stock market today, as Apple dived on multiple analyst downgrades.
After the opening bell, the Dow Jones Industrial Average rose 0.7%, while the S&P 500 gained 0.6%. The tech-heavy Nasdaq composite moved up 0.3% in morning trades.
The 10-year Treasury yield dropped to 4.56% early Tuesday. And oil prices declined more than 3%, with West Texas Intermediate futures trading around $75.50 per barrel.
Among exchange traded funds, the Invesco QQQ Trust rose 0.3%, as the SPDR S&P 500 ETF gained 0.6% after the open.
Nvidia bounced another 1.6% Tuesday morning, looking to add to Friday's 3.1% rally. Shares are looking to retake their 50-day moving average, a key level to watch.
Electric-vehicle giant Tesla raced more than 2% higher Friday. Shares appear to be finding support around their 10-week line, and they may be forming a new base. Tesla stock reversed from early gains to slide 3% in morning action Tuesday.
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Stock Market Today: Trump Tariffs Loom; Netflix Earnings Next
On Monday night, Trump commented that he was thinking about imposing 25% tariff hikes on Canada and Mexico on Feb. 1. His omission of China may relate to TikTok's uncertain status, after a law took effect on Jan. 19 banning the app unless it had been sold by China-based ByteDance.
In stocks, 3M, Charles Schwab and D.R. Horton were key earnings movers Tuesday morning.
Shares of 3M rallied 3.5% in morning trading, moving well above a 141.34 flat-base entry. Brokerage Charles Schwab jumped 3.5%. And homebuilder D.R. Horton surged 3.7% in early morning action.
After the market close Tuesday, Netflix is anticipated to report its fourth-quarter earnings report. Netflix stock closed Friday below its 50-day line, a key level to watch.
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Dow Jones Rallies
Markets were closed Monday for the Martin Luther King holiday. On Friday, the Dow Jones Industrial Average gained 0.8%, while the S&P 500 advanced 1% and the Nasdaq rallied 1.5%. Following last week's bullish action, now is a good time to check IBD's The Big Picture for an update on the current exposure level.
Among the best companies to watch in the current stock market are Broadcom, Howmet Aerospace, Meta Platforms and Spotify.
Along with Apple and Nvidia, Dow Jones components making notable moves were Amazon.com, Microsoft and Walmart.
Meta and Walmart are featured in this Stocks Near A Buy Zone column.
Check out IBD MarketSurge's "Breaking Out Today" list for top growth stocks that are moving above correct buy points. Check for potential breakouts on the "Near Pivot" list. To find additional stock ideas, check IBD Stock Lists like IBD 50, Big Cap 20 and Stocks Near A Buy Zone.
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Dow Jones: Walmart Eyes Buy Point
Dow Jones retail giant Walmart is building a flat base that offers a 96.18 buy point, according to MarketSurge pattern recognition. But it must first find support at the 50-day moving average. Shares added 0.5% Tuesday.
Outside the Dow Jones index, chip giant Broadcom rallied 3.5% Friday, about 6% below a 251.88 buy point in a flat base. Broadcom stock moved up 1% Tuesday.
Howmet Aerospace is breaking out and in buy range above a 120.71 buy point in a flat base. Shares added 2.2% Tuesday
Social media platform Meta is approaching a 638.40 buy point, as shares again find support around their 50-day line. And Meta stock rose 1% in Tuesday's trading.
And Spotify is just shy of a flat base's 506.47 buy point following last week's bullish move. Spotify stock boasts the RS Line Blue Dot from IBD. That confirms the music streaming giant as a market leader. Shares climbed 2.4% Tuesday morning.
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Stock Market Today: Companies To Watch
These are four stocks in or near buy zones in today's stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Broadcom | 251.88 | Flat base | |
| Walmart | 96.18 | Flat base | |
| Spotify | 506.47 | Flat base | |
| Meta Platforms | 602.95 | Flat base |
Source: IBD Data as of Jan. 20
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Dow Jones Leaders: Amazon, Apple, Microsoft
Besides Nvidia, another Dow Jones component in the Magnificent Seven is Amazon stock, which rallied 2.4% Friday to move closer to a 233 buy point in a flat base. That's a new buying opportunity for the e-commerce giant. It added 1.9% Tuesday.
Shares of Apple bounced 0.8% Friday, still at their lowest level since mid-November. This week, they tumbled decisively below their 10-week line, a key sign of weakness. But they sold off 4% early Tuesday after Jefferies downgraded the stock from hold to underperform and Loop Capital downgraded shares from buy to hold.
Microsoft shares inched lower Tuesday morning, as they look to add to their bullish move above their 50-day line.
Be sure to follow Scott Lehtonen on X at @IBD_SLehtonen for more on growth stocks, the Dow Jones Industrial Average and the stock market today.
