Fed meeting on deck; AI Supermicro stock rises 10% on earnings increase

Fed meeting on deck;  AI Supermicro stock rises 10% on earnings increase

Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, were little changed before the start of the Federal Reserve’s two-day policy meeting on Tuesday. Shares of the artificial intelligence leader Super micro computer (SMCI) jumped on a positive earnings report, while Magnificent Seven jumped the alphabet (GOOGL) will submit its report after the close on Tuesday.


On this week’s economic calendar, Wednesday’s Fed meeting and Fed Chairman Jerome Powell’s press conference will take center stage. Wall Street expects Powell to begin charting a path to ease balance sheet tightening, even if he plans a long process, but his tone will be key.

Meanwhile, the January employment report on Friday is expected to show that employers added 165,000 jobs.

Late Monday, shares of Super Micro Computer rose 10% in extended trading after reporting strong earnings and sales results. The AI ​​leader also issued third-quarter financial guidance that beat Wall Street estimates.

Stock Market Today: Seven Great Stocks to Report On

On Monday, the Dow Jones Industrial Average rose 0.6% and the S&P 500 rose 0.8%. The Nasdaq Composite Index, which is dominated by technology stocks, advanced 1.1%.

Five Magnificent Seven stocks reporting earnings this week: Alphabet, Amazon (Amzn), apple (Camel), Meta platforms (dead) and Microsoft (dead).

Among the seven wonderful stocks Tesla TSLA stock was the biggest gainer, rising by 4.2%. Nvidia (NVDA) rose by 2.35%.

Finally, shares of Apple and Microsoft, the Dow Jones technology icon, traded mixed on the stock market today, with Apple shares down 0.4% and Microsoft shares up 1.4%.

Kings Project (Deking), KKR (KKR), Novo Nordisk (non Governmental Organization), Snowflake (snow) and Spotify (SPOT) – in addition to the components of the Dow Jones Index Amgen (Amgen), Merck (Mark) and Walmart (WMT) – Among the best stocks to buy and watch in the current market rally.

KKR and Walmart are shown in the column of stocks near the buy zone.

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Dow Jones Index Today: Oil Prices and Treasury Yields

Before the opening bell on Tuesday, Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, were little changed versus fair value. Remember, overnight movement in Dow Jones futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.

On Monday, the yield on the 10-year US Treasury note fell to 4.09%. Meanwhile, oil prices fell, with West Texas Intermediate futures settling below $77 per barrel.

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Stock Market Rising: What to Do Now

Now is an important time to read IBD’s Big Picture column, with the stock market forecast in a certain uptrend.

After Monday’s bullish gains, be sure to check today’s Big Picture for an updated exposure level.

A great source for daily breakouts is IBD MarketSmith’s “Breaking Out Today” list. It shows MarketSmith Growth 250 stocks that have crossed new buy points. There were five breakouts today, including… Shake Shack (SHAK), which broke the 76.74 cup with handle barrier.

Meanwhile, MarketSmith’s “Near Pivot” list shows stocks that are approaching buy points in bases, e.g Expedia (exp). Expedia stock is approaching a flat entry level at 155.84.

To find more stock ideas, check out our lists of IBD stocks, such as the 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.

Dow Jones: Walmart is breaking out

Biotech leader Amgen’s stock rose 0.5% on Monday, well beyond its 5% buy range and past the official buy point of 288.46 on a flat base. The buy zone rose 5% to 302.88.

Pharmaceutical company Merck is above a cup base buy point of 119.65, according to IBD MarketSmith pattern recognition. Shares finished higher than their entry amid a 0.4% rise on Monday.

Discount retail giant Walmart is in a buy range beyond the 163.57 entry level in a cup with handle, amid a three-day winning streak.

4 Higher Growth Stocks to Watch in Stock market pool

Stocks to Buy and Watch: DraftKings Exit

IBD Leaderboard Watchlist DraftKings stock rose 3.7% on Monday, decisively surpassing the official double bottom buy point of 38.97.

IBD SwingTrader KKR stock took off on Friday, moving above a flat entry level at 85.66. Shares rose 0.5% on Monday.

Novo Nordisk, a maker of weight-loss drugs, ended Monday up 0.9%, above a flat buy point of 105.69.

Software leader Snowflake surpassed a 202.83 buy point in a flat base while rising 3.0% on Monday, according to IBD MarketSmith.

Spotify closed Monday outside of a buy range after crossing the 202.88 buy zone on a flat base, with a 2% upside.

Learn how to time the market with IBD’s ETF market strategy

Best bets in today’s action

These are the four best stocks to watch in the stock market today, including Dow Jones stocks.

a company Code Correct point of purchase Point of purchase type
Novo Nordisk (non Governmental Organization) 105.69 Flat base
Walmart (and died) 288.46 Cup with handle
KKR (KKR) 85.66 Flat base
Snowflake (the snow) 202.83 Flat base
Source: IBD data as of January 29, 2024

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Tesla shares

Tesla stock fell 13% last week, closing at its lowest level since May 2023. Shares are down about 40% from their 52-week high.

TSLA shares rebounded 4.2% on Monday, still well below their 50- and 200-day moving averages.

Dow Jones leaders: Apple, Microsoft

Among the Dow Jones stocks in the Magnificent Seven, Apple and Microsoft shares traded mixed during Monday’s stock market action.

Apple stock fell 0.4% on Monday, extending its losing streak to four sessions. Shares continue to track a flat base with a buy point of 199.62.

Microsoft shares rose to record highs on Monday, rising 1.4%. Shares were extended beyond their base buy point of 366.78 kopecks.

Be sure to follow Scott Lehtonen on X/Twitter at @IBD_SLehtonen To learn more about growth stocks and the Dow Jones Industrial Average.

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