The Dow Jones Industrial Average rallied more than 250 points Monday ahead of a big week of earnings reports, headlined by Netflix and Tesla. Meanwhile, tech titan Apple stock fell sharply on iPhone 15 news.
Along with earnings season, the economic calendar this week includes retail sales results for September, due Tuesday at 8:30 a.m. ET. Wall Street economists expect a mild 0.2% rise after gains of 0.6% in August and 0.5% in July.
Yoga-gear maker Lululemon Athletica surged 6% Monday morning after S&P Dow Jones Indices said the company would join the S&P 500 index before the open on Wednesday. Lululemon will replace Activision Blizzard, the $69 billion acquisition of which was just completed by Microsoft on Friday, in the S&P 500.
Dow Jones Today: Oil Prices, Treasury Yields
After Monday's opening bell, the Dow Jones Industrial Average rose 0.8%, while the S&P 500 gained 0.9%. The tech-heavy Nasdaq composite moved up 1% in morning action, with Moderna down hard at the bottom of the list.
Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust rose 1%, while the SPDR S&P 500 ETF moved up 0.9% early Monday.
The yield on the 10-year U.S. Treasury bond ticked higher to 4.71% Monday morning, taking a mild bounce after last week's sharp loss.
Oil prices paused Monday morning following a 6% jump last week. West Texas Intermediate futures traded flat, just below $88 a barrel.
Stock Market Rally
On Friday, the Nasdaq composite led the sell-off with a 1.2% drop. The S&P 500 retreated more than 0.5% and the Russell 2000 dropped 0.8%. The Dow Jones Industrial Average finished slightly higher.
Friday's Big Picture column commented, "just one week after the Nasdaq composite issued a new confirmed uptrend with its strong follow-through rally on Oct. 6 — a move that came on the eighth day of a new rally attempt — you'd like to see the index pad its gains. Instead, Friday's sell-off highlighted a weak spine among the bulls."
Now is an important time to read IBD's The Big Picture column, with the stock market outlook showing signs of a pressured uptrend. Be sure to read how to handle the changing stock market outlook.
Learn How To Time The Market With IBD's ETF Market Strategy
Stock Market Today
Drug giant Pfizer climbed around 4% even after the company cut its revenue forecast and warned of potential layoffs.
Electric-vehicle giant Tesla rose 0.4% early Monday. And Nvidia gained nearly 1% amid reports the Biden administration may tighten restrictions on artificial intelligence chip exports to China. Dow Jones tech icons Apple and Microsoft traded mixed after today's stock market open.
IBD Leaderboard member Arista Networks, Meta Platforms and Regeneron Pharmaceuticals — as well as Dow Jones stocks Salesforce and UnitedHealth — are among the best stocks to buy and watch in the new stock market uptrend.
Meta is an IBD SwingTrader stock, while Arista is featured in this Stocks Near A Buy Zone column. Regeneron was IBD's Stock Of The Day on Friday.
Dow Jones Stocks: Salesforce, UnitedHealth
Software leader Salesforce is battling resistance around its key 50-day line. If the stock retakes that key level, then it would move closer to a 228.79 buy point in a double-bottom base. CRM stock gained 0.5% Monday morning.
Health insurer UnitedHealth is barely in buy range above a 515.86 buy point in a cup base, per IBD MarketSmith chart analysis, following Friday's earnings-fueled 2.6% jump. The 5% buy area goes up to 541.65. UNH stock moved up 0.5% Monday.
4 Top Growth Stocks To Buy And Watch In The Stock Market Rally
Stocks To Buy And Watch:
Arista slipped 1.6% Friday, still holding near a 198.70 buy point in a flat base. A recent bullish rebound from the 50-day line in recent sessions placed the stock in a new buy area. The company reports third-quarter results Oct. 30. Shares climbed 0.6% early Monday.
Social media giant Meta Platforms is clinging to a 312.87 buy point following Friday's 29% drop. Meanwhile, Meta stock is back below a cup base's official buy point at 326.20. The company reports third-quarter results Oct. 25. Meta stock rose 1.1% Monday.
Biotech leader Regeneron is trying to break out past a flat base's 847.50 buy point, according to IBD MarketSmith pattern recognition. Earnings are due out Nov. 2. Shares were up 0.8% early Monday.
Best Stocks In Today's Stock Market Action
These are four best stocks to buy and watch in today's stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Meta Platforms | 312.87 | Handle entry | |
| Salesforce | 228.79 | Double bottom | |
| Duolingo | 167.53 | Double bottom with handle | |
| Arista Networks | 198.70 | Flat base |
Source: IBD Data As Of Oct. 16, 2023
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Tesla Stock Awaits Earnings
Tesla stock skidded 3% Friday, closing right at its 50-day line and just below an alternative buy area. The buy zone started at 254.77 and went up to 258.40 for aggressive investors. TSLA stock has an official cup-with-handle base with a buy point at 278.98, and shares are about 9% away from that entry. Tesla reports quarterly results late Wednesday.
Shares moved up 0.4% early Monday in morning trade.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple slid 1% Friday, ending a two-day rally. Shares remain above their 50-day line. If AAPL stock can extend its rebound, it likely would have a double-bottom base with a 189.98 buy point. Apple delivers its fiscal fourth-quarter report on Nov. 2.
Shares lost 0.9% early Monday after Bloomberg reported that Apple's new iPhone 15 is selling far worse in China than its predecessor.
Microsoft shares fell 1% Friday, still above their 50-day line after solid gains in recent sessions. A new base is forming, with an early entry at 340.86. Earnings results are out Oct. 24. And on Monday morning, MSFT stock was up 1.2%.
Be sure to follow Scott Lehtonen on X/Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
