Dow Jones Futures Rise Amid Key Data; Tesla Rival Xpeng Surges On New Production Platform

Dow Jones futures rose modestly Monday amid the release of key economic data. The first-quarter earnings season is set to heat up this week with Tesla, Netflix and a half-dozen Dow industrials due to report. Chinese Tesla rival Xpeng Motors (XPEV) surged after unveiling a new production platform.

X

Key earnings reporters Monday morning include Charles Schwab (SCHW), M&T Bank (MTB) and State Street (STT). Charles Schwab rose 1%, while MTB stock climbed 3.4% in premarket trade. State Street shares tumbled 8% early.

Q1 earnings season gains momentum this week as, in addition to Tesla (TSLA) and Netflix (NFLX), Goldman Sachs (GS) and ASML (ASML) are also due to report.

On the economic front, the New York Federal Reserve’s Empire State Manufacturing Index rebounded to a reading of 10.8 from March’s -24.6 reading, better than the -18.3 estimate. Up next, the National Association of Homebuilders Housing Market Index is due out at 10 a.m. ET. Wall Street expects the NAHB index to measure 45 in April, up from March’s 44 reading.

Stock Market Today

Xpeng surged nearly 12% after the company released a new technology platform that could help it improve production efficiencies and reduce costs. Electric-vehicle giant Tesla moved up 1% in early trade.

Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were higher before today’s stock market open.

Five Below (FIVE), IBD Leaderboard watchlist stock Floor & Decor (FND), ServiceNow (NOW) and Vertex Pharmaceuticals (VRTX) — as well as Dow Jones stocks Cisco Systems (CSCO), Nike (NKE) and Visa (V) — are among the best stocks to buy and watch with the market’s ongoing uptrend.

Floor & Decor and Visa were featured in last week’s Stocks Near A Buy Zone column.

IBD’s latest newsletter MarketDiem gives you actionable ideas for stocks, options and crypto right in your inbox

Dow Jones Today: Oil Prices, Treasury Yields

Ahead of Monday’s opening bell, Dow Jones futures rose 0.15% vs. fair value, and S&P 500 futures edged higher. Tech-heavy Nasdaq 100 futures inched higher in morning trade.

Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) moved down a fraction, while the SPDR S&P 500 ETF (SPY) traded effectively flat early Monday.

The 10-year U.S. Treasury yield on Monday traded up to 3.54%. Last week, the 10-year yield rebounded from its lowest level since mid-September.

U.S. oil prices paused after Friday’s gains, drifting lower in early morning trade Monday. West Texas Intermediate futures traded near $82 a barrel. Last week, WTI futures extended a win streak to four weeks.

Stock Market Rally

The Dow Jones Industrial Average lost 0.4% Friday, while the S&P 500 dropped 0.2%. The tech-heavy Nasdaq composite slipped 0.35%.

Friday’s Big Picture column commented, “With the market still in a confirmed uptrend, IBD recommends 40% to 60% exposure as earnings season kicks off in earnest. Remember to stay on top of any sell signals in your portfolio.”

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

Five Dow Jones Stocks To Buy And Watch Now

Dow Jones Stocks To Buy And Watch: Cisco Systems, Nike, Visa

Cisco Systems remains squarely below a flat base’s 51.84 buy point after a 0.5% fall Friday, but there is no sell signal yet, according to IBD MarketSmith pattern recognition. CSCO stock topped the entry on March 31. Shares lost 0.1% Monday morning.

Nike shares slipped 0.4% Friday, snapping a four-day win streak that saw them decisively retake their 50-day line. The stock is just below a 126.16 early entry and nearing a 131.41 flat-base buy point. NKE stock gained 0.1% Monday.

Visa shares moved further past a cup-with-handle’s 230.15 buy point, with a 0.6% rise Friday. The buy range goes up to 241.66. V stock tacked on 0.1% early Monday.

4 Top Growth Stocks To Watch In The Stock Market Rally

Best Stocks To Buy And Watch: Five Below, Floor & Decor, ServiceNow, Vertex

Five Below slid another 2% Friday, falling further below a 212.66 buy point in a flat base. If the stock retakes the entry, the 5% buy area will go up to 223.29. The stock traded down 0.2% Monday morning.

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.

IBD Leaderboard watchlist stock Floor & Decor is still just under a cup-with-handle’s 99.47 buy point, as the stock rose 0.2% Friday. Shares were flat early 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.

ServiceNow ended sharply below a cup-with-handle’s 482.43 buy point amid Friday’s 4.2% slide. NOW stock inched higher Monday morning.

Backstory: ServiceNow software tracks and manages services provided by information-technology departments. Also, its self-service tech portal enables workers to access administrative and workflow tools.

Vertex Pharmaceuticals moved further past a cup base’s 325.29 buy point Friday, tacking on 0.1% VRTX stock was up a fraction Monday morning.

Backstory: Vertex Pharmaceuticals researches and develops medical treatments for cystic fibrosis, sickle cell disease, muscular dystrophy, kidney disease and type 1 diabetes.

Learn How To Time The Market With IBD’s ETF Market Strategy

Stocks To Buy And Watch In Stock Market Rally

These are four top stocks to watch in today’s stock market, including two Dow Jones leaders.

Source: IBD Data As Of April 17, 2023

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

Tesla Stock

Tesla stock ended with modest losses last week, still below its key 50-day benchmark. In recent weeks, shares triggered the 7%-8% loss rule from a buy point at 200.76 in a cup with handle. The stock closed Friday 49% off its 52-week high.

TSLA stock ramped 1% higher Monday morning, looking to rebound from Friday’s losses.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares dropped 0.2% Friday, giving back a part of Thursday’s 3.4% jump. They remain solidly above a 157.48 buy point. AAPL stock traded up a fraction early Monday.

Microsoft shares remain above a flat base’s 276.86 buy point, amid a 1.3% loss Friday. The 5% buy area goes from the buy point to 290.70. MSFT stock climbed 1.8% in morning action Monday after a Sunday New York Times report said Microsoft’s Bing may replace Alphabet’s Google as the default search service on Samsung Electronics devices. In addition, Barclays upped Microsoft’s price target from 280 to 310, while maintaining an overweight rating.

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

YOU MAY ALSO LIKE:

Top Growth Stocks To Buy And Watch

Learn How To Time The Market With IBD’s ETF Market Strategy

Find The Best Long-Term Investments With IBD Long-Term Leaders

MarketSmith: Research, Charts, Data And Coaching All In One Place

How To Research Growth Stocks: Why This IBD Tool Simplifies The Search For Top Stocks