Dow Jones futures climbed Monday morning, as earnings season continued, with reports out from Bank of America (BAC), Charles Schwab (SCHW) and Dow Jones stock Goldman Sachs (GS).
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Bank of America fell almost 1% after its second-quarter results. Schwab climbed around 3% after a strong earnings report, while Goldman shares jumped more than 3% on better-than-expected earnings results. Late Monday, Dow Jones member IBM (IBM) will report its second-quarter results.
Auto and truck drivetrain components maker BorgWarner (BWA) surged more than 7% on an analyst upgrade. Boeing (BA) jumped 4% after announcing an order for 100 737-10 jets from Delta Air Lines (DAL).
Tesla (TSLA) traded up around 2% early Monday. Elsewhere, Dow Jones tech leaders Apple (AAPL) and Microsoft (MSFT) were both up around 1% before today’s stock market open.
In a volatile stock market environment, Dow Jones leaders Johnson & Johnson (JNJ), Merck (MRK) and UnitedHealth — as well as BJ’s Wholesale Club (BJ), Dollar Tree (DLTR), Northrop Grumman (NOC) and Quanta Services (PWR) — are among the stocks to watch. Keep in mind that ongoing stock market volatility is a reason to stay defensive.
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Northrop is an IBD Leaderboard stock. BJ’s is an IBD 50 stock. Dollar Tree is a new IBD SwingTrader stock. Quanta was an IBD Stock Of The Day in recent weeks. Northrop was featured in last week’s Stocks Near A Buy Zone column.
Dow Jones Today: Treasury Yields, Oil Prices, Retail Sales
Before Monday’s open, Dow Jones futures moved up 0.8%, S&P 500 futures gained 0.7% and Nasdaq 100 futures were up 0.8% vs. fair value. Remember that overnight action in Dow 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) moved up 0.8%. The SPDR S&P 500 ETF (SPY) rose 0.7%.
The 10-year Treasury yield ticked higher to 2.95% Monday morning, rebounding from Friday’s fall to 2.93%. Meanwhile, U.S. oil prices looked to stem their recent slide, rising around 2% in early action. West Texas Intermediate traded near $96 per barrel after briefly falling to its lowest level since late February last week.
Stock Market Rally
On Friday, the stock market posted strong gains, as the Nasdaq rose 1.8% and the Dow Jones industrials surged 2.1%.
Friday’s The Big Picture column commented, “Individual stock action has been improving in recent days. That’s a good thing, but when it comes to new buys, think risk management and keep positions small to start. Don’t raise exposure too quickly, especially amid plenty of uncertainty and not much in the way of setups.”
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.
Dow Jones Earnings: Goldman Sachs, IBM
Goldman Sachs reported better-than-expected Q2 results early Monday, sparking a 3% jump ahead of the market open. The Dow Jones investment giant earned $7.73 per share on sales of $11.86 billion. Both numbers topped analyst estimates.
IBM is set to report after the close. Analysts expect the company to earn $2.26 per share on sales of $15.08 billion. IBM shares are just 4% off their 52-week high.
Four Dow Jones Stocks To Watch Now
Dow Jones Stocks To Watch: Johnson & Johnson, Merck, UnitedHealth
Dow Jones leader Johnson & Johnson is just 2% below a double-bottom base’s 181.84 buy point, according to IBD MarketSmith chart analysis. The company reports earnings early Tuesday. JNJ shares rose 0.5% Monday morning.
Drug giant Merck rose 1.1% Friday, finishing just below its flat base’s 95.02 buy point. Merck shares traded up 0.4% early Monday.
Health insurance giant UnitedHealth closed in buy range above its double bottom’s 507.36 buy point following Friday’s earnings-fueled 5.4% advance. UNH shares traded up a fraction Monday morning.
UNH stock shows a strong 96 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.
3 Top Growth Stocks To Watch In The Current Stock Market Rally
Top Stocks To Watch: BJs, Dollar Tree, Northrop, Quanta
IBD 50 stock BJ’s Wholesale is at the top of the 5% buy range above a 67 buy point from a cup-with-handle base after Friday’s 0.4% fall. The stock’s relative strength line reached new highs last week, which is a sign of stock market strength. Shares were unchanged early Monday.
IBD SwingTrader stock Dollar Tree is still in buy range above its cup-with-handle’s 166.45 buy point despite falling 0.5% Friday. Another positive note is the discount retailer’s RS line, which hit a new high last week. Dollar Tree stock shows a strong 97 out of a best-possible 99 IBD Composite Rating, per the IBD Stock Checkup. Dollar Tree shares rose nearly 1% Monday.
IBD Leaderboard stock Northrop Grumman is building a new flat base that has a 492.40 buy point. NOC shares are still below support around their key 50-day line. The stock was flat Monday.
Quanta Services is putting the finishing touches on a cup-with-handle base that has a 138.56 buy point, according to IBD MarketSmith chart analysis. Shares are about 5% away from the latest entry after Friday’s slight fall. Shares traded up a fraction in morning trade.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock rallied 0.7% Friday, rising for a third straight day. Shares looked to add to those gains, gaining 2% in morning trade Monday.
Shares are beneath their 50-day line and even further below their 200-day line ahead of the company’s earnings due out late Wednesday. Tesla stock traded as high as 1,243.49 on Nov. 4. Shares are about 42% off that record high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares rallied 1.15% Friday, moving further above the 50-day line and hitting its highest level since early June. Shares remain far below their long-term 200-day line and are about 18% off their 52-week high. Apple earnings are due out July 28. Apple shares traded up 1% early Monday.
Microsoft rose 1% Friday, but is still below the 50-day line. The stock closed about 27% off its 52-week high. The software giant will report quarterly results on July 26. Microsoft shares rose 0.8% early 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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