Futures Slide To Start Week; Tesla Rallies After Musk Verdict

Dow Jones futures dropped 200 points Monday morning, set to kick off the week with moderate losses. EV giant Tesla (TSLA) stock rallied after a jury on Friday found Chief Executive Elon Musk not liable in a securities-fraud lawsuit, while Musk commented on Twitter that the social media platform was “now trending to breakeven.”

X

Cummins (CMI), Onsemi (ON) and Tyson Foods (TSN) reported earnings Monday morning. Onsemi dropped 3% in premarket trade. Cummins gained 0.7% just after its report. Tyson shares sold off 5.5% in early trade.

Meanwhile, corporate earnings results continue this week, with reports from Chipotle Mexican Grill (CMG), Disney (DIS), Paycom Software (PAYC), Pinterest (PINS), Skyworks Solutions (SWKS), Transdigm (TDG) and Vertex Pharmaceuticals (VRTX).

Stock Market Today: Tesla Stock Races Higher

Electric-vehicle leader Tesla rallied 2% Monday morning, while Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were squarely lower ahead of today’s stock market open.

IBD Leaderboard stock Impinj (PI), Etsy (ETSY), Nexstar (NXST) and Wingstop (WING) — as well as Dow Jones stock JPMorgan Chase (JPM) — are among the top stocks to buy and watch, with the ongoing strength of the market rally.

Impinj is an IBD Leaderboard stock. Etsy was a recent IBD Stock Of The Day. Nexstar was a recent IBD 50 Stocks To watch pick. Impinj and Wingstop 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, the Dow Jones futures lost 0.6% vs. fair value, and S&P 500 futures moved down 0.8%. Nasdaq 100 futures lost 1% in morning action.

Mergers and acquisitions set up to play a role in Monday’s market action, as drug component supplier Catalent (CTLT) soared 28% on chatter of a takeover deal by Danaher (DHR). Life Storage (LSI) spiked 11% after Public Storage (PSA) launched an $11 billion bid. Newcrest Mining (NCMGF) was inactive ahead of the open, after gold miner Newmont (NEM) bid $17 billion to acquire the Australia-based outfit.

Danaher, Public Storage and Newmont all traded lower in early action.

Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) traded down 1% and the SPDR S&P 500 ETF (SPY) fell 0.8% early Monday.

The 10-year U.S. treasury yield jumped to 3.53% Friday after the blowout jobs report. The 10-year yield continued higher Monday morning, rising to 3.6%.

Oil prices rebounded modestly Monday morning after a third straight fall on Friday. West Texas Intermediate futures are trading below $74 a barrel, near their recent lows.

Stock Market Rally

On Friday, the Dow Jones Industrial Average fell 0.4%, and the S&P 500 lost 1%. And the Nasdaq composite sold off 1.6%.

Friday’s The Big Picture column commented, “Nevertheless, it is important to note overall action for the week was still strong. Investors should remain 60% to 80% exposed for now, given the resiliency of the latest stock market uptrend. As ever, it is key to let the stock market action be your guide.”

Now is an important time to read IBD’s The Big Picture column amid the ongoing stock market rally.

Five Dow Jones Stocks To Buy And Watch Now

Dow Jones Stocks To Buy And Watch: JPMorgan

Banking giant JPMorgan is in the 5% buy range above a 138.76 flat-base buy point after a 1.55% rally Friday. The 5% buy zone tops out at 145.70. JPM shares traded down 0.5% early Monday.

JPM stock shows a solid 93 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. The Composite Rating is designed to help investors easily find top growth stocks.

4 Top Growth Stocks To Buy And Watch In The Stock Market Rally

Top Stocks To Buy And Watch: Impinj, Etsy, Nexstar, Wingstop

IBD Leaderboard stock Impinj fell sharply below its recent 129.12 buy point in a cup base following a 7.6% dive Friday. If the stock is able to retake the entry, the 5% buy area will top out at 135.58. But investors should be more on the defensive after two straight days of heavy selling. PI stock gained 1.2% early Monday.

Backstory: Impinj’s expertise lies in radio frequency semiconductors to identify, locate and authenticate items. While losing money in 2020, the company earned 25 cents per share in 2021. And annual earnings are expected to surge 284% to 96 cents per share this year.

Etsy remains out of buy range above a 137.01 buy point in a cup with handle despite a 0.5% fall Friday. The 5% buy area topped out at 143.86. Etsy shares fell 0.7% Monday morning.

Backstory: The company is a provider of an online e-commerce platform where creators of arts and crafts, vintage items and other unique goods go to sell their products. It has a unique business model that, in the last few years, has gone from a niche e-commerce marketplace to a top-of-mind shopping destination across numerous categories.

Media giant Nexstar is in buy range past a cup base’s 204.72 buy point and was Tuesday’s IBD 50 Stocks To Watch pick. Earnings are due out Thursday. Shares were unchanged early Monday.

Backstory: America’s largest local broadcast TV group, Nexstar Media produces and distributes local and national news, sports and entertainment content. In addition to its leading position in television, Nexstar is one of the world’s leading diversified media companies.

Wingstop is rapidly approaching a 170.97 buy point in a lopsided cup base, with a fourth-straight gain Friday. Keep an eye out for a potential handle to offer a lower entry. WING stock was inactive early Monday.

Backstory: The Dallas-based restaurant chain has more than 1,900 locations in the U.S. and international markets, according to Dow Jones Newswires. Its international locations include Mexico, Columbia, Panama, Singapore and the U.K. The company added a net 40 stores in the prior quarter. Earnings are due out Feb 22.

How Did Your Online Broker Do In IBD’s 2023 Best Online Broker Survey?

Stocks To Buy And Watch In Stock Market Rally

These are seven top stocks to buy and watch in today’s stock market, including a Dow Jones leader.

Source: IBD Data As Of Feb. 6, 2023

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

Tesla Stock Rallies On Musk Comments

Tesla stock climbed another 0.9% Friday, extending a win streak to four sessions and closing at its highest level since Dec. 2. Last week, Tesla stock advanced nearly 7%. Despite their strong rebound since Jan. 6, shares are still below the 200-day line. And Tesla stock closed Friday about 51% off its 52-week high.

Shares looked to add to Friday’s gains, racing 2% higher Monday morning. On Friday, a jury found Musk not liable in a trial over his tweets proposing to take Tesla private back in 2o18.

And on Sunday, Musk commented in a Twitter post, “Last 3 months were extremely tough, as had to save Twitter from bankruptcy, while fulfilling essential Tesla & SpaceX duties. Wouldn’t wish that pain on anyone. Twitter still has challenges, but is now trending to breakeven if we keep at it. Public support is much appreciated!”

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares rallied 2.4% despite the company’s weaker-than-expected earnings results. Shares rallied further above their long-term 200-day line Friday, but remain around 15% off its 52-week high. AAPL stock fell 0.9% Monday.

Microsoft stock sold off 2.4% Friday, snapping a three-day win streak. Despite the day’s sharp losses, shares are still above their 200-day line and about 18% off the 52-week high. MSFT traded down 1% Monday morning.

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