Dow Jones futures and tech futures rallied Monday morning, as Apple stock jumped ahead of the company’s WWDC 2022 developers event. A key test for the stock market this week is Friday’s consumer-price index, as investors look for signs that inflation has peaked.
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Shares of Keurig Dr Pepper (KDP), VICI Properties (VICI) and ON Semiconductor (ON) surged after S&P Dow Jones Indices said the three companies will join the benchmark S&P 500 index this month.
China-based stocks and stocks with China exposure rallied as Beijing eased some Covid restrictions. Solar issues jumped after Reuters reported the Biden administration planned a 24-month waiver on any new tariffs for components imported from Southeast Asian nations.
Electric-vehicle giant Tesla (TSLA) traded up more than 2%. Elsewhere, Dow Jones tech leaders Microsoft (MSFT) chased Apple‘s (AAPL) early gains in today’s stock market. American Express (AXP) led the Dow in early trade, following an upgrade to buy from brokerage Edward Jones.
Amid the ongoing stock market rally, Dow Jones leaders Chevron (CVX) and Merck (MRK) — along with Albemarle (ALB), Eli Lilly (LLY), Enphase (ENPH), Northrop Grumman (NOC) and ZIM Integrated Shipping (ZIM) — are among IBD’s top stocks to watch for Monday.
Albemarle is an IBD Leaderboard stock. Enphase is on IBD SwingTrader. And Albemarle was featured in last week’s Stocks Near A Buy Zone column. ZIM was a featured IPO Leader.
Dow Jones Today: Treasury Yields, Oil Prices
Before Monday’s open, Nasdaq 100 futures led the premarket action with a 1.5% advance. Dow Jones futures rose 0.8% vs. fair value, while S&P 500 futures moved up 1.1%. Remember that trading in Dow Jones futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 1.5%, while the SPDR S&P 500 ETF (SPY) gained 1.1%.
The 10-year Treasury yield threatened to give back a part of last week’s gains, falling to 2.95% Monday morning. Meanwhile, U.S. oil prices held effectively flat, with West Texas Intermediate crude traded just below $119 a barrel.
Stock Market Rally
On Friday, the major stock indexes sold off sharply. The Nasdaq was the index that suffered the most, dropping 2.5%. The S&P 500 also had a tough time, falling 1.6%.
Friday’s The Big Picture column commented, “While job growth slowed compared to April, it may not be sufficient to prevent the Fed from continuing to hike interest rates beyond the summer. The job data poured cold water on enthusiasm that rose Thursday after private payroll data from ADP showed an estimated gain of 128,000 jobs in May, well shy of estimates.”
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 and SwingTrader.
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 Stocks To Watch: Chevron, Merck
Dow Jones leader and energy giant Chevron is trading just above a flat base’s 174.86 buy point, according to IBD MarketSmith chart analysis, following Friday’s 0.9% gain. The 5% buy zone tops out at 183.60. CVX shares traded up 0.3% Monday.
CVX stock boasts a 98 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. Investors can use the IBD Composite Rating to easily gauge the quality of a stock’s fundamental and technical metrics.
Merck, a Dow Jones and IBD Big Cap 20 stock, is still in buy range past a cup-with-handle’s 89.58 buy point, as shares fell 0.1% Friday. The 5% buy area goes up to 94.06. MRK shares inched higher Monday morning.
The stock’s relative strength line hit a new high in mid-May, but is now pulling back sharply.
Four Top Growth Stocks To Watch In The Current Stock Market Rally
Stocks To Buy And Watch: Albemarle, Eli Lilly, Enphase, Northrop, ZIM
IBD Leaderboard stock Albemarle is about 8% away from a cup with handle’s buy point at 273.78, according to IBD MarketSmith chart analysis. In recent weeks, Albemarle passed an early buy point near 248. ALB shares rose 1.3% Monday morning.
Pharmaceutical giant Eli Lilly dropped 0.3% Friday, falling further below a flat base’s 314.10 buy point after a May 27 breakout. Eli Lilly shares were 1.2 higher Monday.
IBD SwingTrader stock Enphase is in buy range past a double-bottom base’s 193 buy point following Friday’s 1.3% fall. The 5% buy area goes up to 202.65. A big weakness is the stock’s lagging RS line. Enphase shares advanced nearly 7% Monday morning after the Wall Street Journal said President Joe Biden planned a package of policies aimed at boosting U.S. solar production and installations.
Northrop Grumman broke out Friday past a cup-with-handle’s 477.36 buy point. The defense contractor is also moving above a trend line within its handle that had an early entry around 464. NOC shares were narrowly higher Monday morning.
IPO Leader ZIM Integrated is tracing a cup with handle that has a 68.80 buy point. Shares are about 1% away from the correct buy point after Friday’s climb. ZIM shares gained 0.5% early Monday.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock dived 9.2% Friday after CEO Elon Musk said he plans to slash 10% of his company’s salaried workforce. Shares looked to rebound from that tumble, rising almost 3% Monday morning.
The stock is falling further below its 50- and 200-day moving averages. Tesla stock traded as high as 1,243.49 on Nov. 4. Shares are about 43% off that record high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares sold off 3.9% Friday. The stock remains far below its long-term 200-day line. AAPL stock traded up 1.5% Monday.
With the company’s WWDC event kicking off Monday, Apple will showcase the latest innovations in its device operating systems: iOS, iPadOS, macOS, watchOS and tvOS. It also could use the conference to show off the prototype headset for augmented reality and virtual reality.
Software leader Microsoft slipped 1.7% Friday, and remains sharply below its 50- and 200-day lines. The stock closed more than 20% off its 52-week high. MSFT shares were up 1.3% 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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