Dow Jones Futures Rise: 4 Top Stocks To Buy And Watch In Volatile Stock Market Rally

Dow Jones futures were higher following Monday’s volatile stock market action. Dow Jones biotech Amgen, along Alpha & Omega Semiconductor and Take-Two Interactive Software, are key earnings movers late. And drug giant Pfizer will report ahead of Tuesday’s open.

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Amid a volatile stock market rally, Alphabet (GOOGL), Blackstone (BX), CF Industries (CF) and Cheniere Energy (LNG) are among Monday’s top stocks to buy and watch. All four are in or near new buy zones.

On Monday, the Dow Jones Industrial Average ended unchanged, while the S&P 500 lost 0.4%. The tech-heavy Nasdaq composite slid 0.6% after reversing from solid gains.

Among the Dow Jones leaders, Apple (AAPL) dropped 0.4% Monday, while Microsoft (MSFT) was down 1.6% in today’s stock market. American Express (AXP), a Dow Jones stock to watch, rallied 1.1% as it heads toward a new buy point.

Electric-vehicle leader Tesla (TSLA) skidded nearly 2% Monday, giving up a part of Friday’s gains.

Cheniere, Microsoft and Tesla are IBD Leaderboard stocks. American Express and Blackstone were featured in this week’s Stocks Near A Buy Zone column.

Dow Jones Futures Today

After the stock market close Monday, Dow Jones futures rose 0.15% vs. fair value, while S&P 500 futures gained 0.25%. Nasdaq 100 futures were up 0.4% vs. fair value.

Among exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) dropped 0.8% Monday, and the SPDR S&P 500 ETF (SPY) moved down 0.3%.

The 10-year Treasury yield pared losses Monday, but still ticked down below 1.92%. On Friday, the 10-year Treasury yield closed at 1.93%, the highest level since 2019. Meanwhile, U.S. oil prices declined around 1%, as West Texas Intermediate crude traded below $92 a barrel. West Texas Intermediate briefly topped $93 a barrel last week.

Stock Market Rally

The major stock indexes posted mixed action Monday, as the Nasdaq and S&P 500 ended with solid losses. Amid the recent volatility, now is an important time to read IBD’s The Big Picture column.

Friday’s The Big Picture commented, “Amazon.com (AMZN) fueled a big rally for the Nasdaq composite Friday, although the stock market wasn’t sure how to react initially to the January employment report, which came in much better than expected and prompted more selling in the bond market.”

If you’re new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one key to the investment guidelines. IBD offers a broad range of growth stock lists, such as Leaderboard.

Investors also can create watchlists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.

Five Dow Jones Stocks To Watch Now

Dow Jones Earnings: Amgen

After the close Monday, Dow Jones biotech stock Amgen (AMGN) reported fourth-quarter earnings and sales results. The stock rallied less than 1% in extended trade.

AMGN shares ended Monday about 15% off their 52-week high.

Stock Market Earnings: AOSL, Take-Two, Pfizer, TransDigm

Other earnings Monday included Alpha & Omega Semiconductor (AOSL) and Take-Two Interactive Software (TTWO). Alpha & Omega Semiconductor initially rose in extended after reporting better-than-expected fiscal third-quarter results, but turned flat. Take-Two slid around 5% after the close after missing sales estimates.

Early Tuesday, drug giant Pfizer (PFE) and TransDigm (TDG) will release their quarterly results.

Wall Street expects Pfizer to earn 87 cents per share on sales of $24.15 billion. PFE shares finished Monday below their 50-day. In recent weeks, the stock triggered a round-trip sell signal from a 51.96 cup-base entry.

Meanwhile, TransDigm is expected to earn $3.14 a share on revenue of $1.23 billion. TDG shares are building a cup with handle with a 669.13 buy point.

Dow Jones Stocks To Buy And Watch: American Express

American Express decisively regained its 10-week moving average in recent weeks and continues to move up the right side of a new base with a 189.13 buy point, according to IBD MarketSmith chart analysis. Shares are just under a new buy point after Monday’s 1.1% gain.

Bullishly, the stock’s relative strength line is at new highs, indicating significant stock market outperformance.

Four Top Growth Stocks To Watch In The Current Stock Market Weakness

Stocks To Buy And Watch: Alphabet, Blackstone, CF Industries, Cheniere

Outside the 30-stock Dow Jones industrials, FANG stock Alphabet attempted a breakout past a 3,019.43 buy point following strong earnings results last week, but fell more than 7% below the new entry following recent losses. GOOGL shares almost 3% Monday, triggering the 7%-8% loss-cutting rule.

Despite the sell signal, last week’s strong earnings reaction was a big positive. Keep an eye on the search giant; it could be adding a handle to its current formation which would eventually result in a new entry.

Top financial stock Blackstone is trying to break out past a double bottom’s 136.56 buy point, but the stock is about 4% below the entry following three straight days of losses. Wait for the stock to stage another decisive move past the entry before considering a purchase of shares.

Fertilizer producer CF Industries gave up its ascending base’s 74.87 buy point during Monday’s 3.5 fall. CF stock boasts a perfect 99 IBD Composite Rating, per IBD Stock Checkup.

IBD Leaderboard stock Cheniere Energy is squarely above a 113.50 buy point in a flat base after Monday’s 2.15% climb, after recovering from a post-breakout slide. Its RS line hit another new high Monday.

Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live

Tesla Stock

Tesla stock descended almost 2% Monday, giving back a part of Friday’s 3.6% gain. The stock found much-needed support at its long-term 200-day moving average in recent sessions. But Tesla shares remain sharply below their 50-day line and there is no proper entry in sight.

The stock traded as high as 1,243.49 on Nov. 4 but ended Friday about 26% off that 52-week high.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple stock dropped 0.4% Monday, falling for a third straight session and ending right at the 50-day line. Shares are again about 12% past a 153.27 buy point out of a cup-with-handle base, according to IBD MarketSmith chart analysis.

A new base is likely forming, but it is slightly too early for a proper buy point, but a decisive move past Thursday’s high of 176.24 could be used as an early entry for aggressive investors.

Software leader Microsoft dropped 1.6% Friday, setting up another potential test of the 200-day line. The top Dow Jones stock continues to build a new base but is below the 50-day line. Shares edged up 0.2% Monday.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.

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