The Dow Jones Industrial Average rose Monday ahead of a big week for the stock market, including key inflation data and the Federal Reserve’s two-day meeting. Advanced micro-systems (AMD) and Amazon (AMZN) rallied on analysts’ price target hikes.
On the economic front this week, the Federal Reserve is expected to skip a rate hike at its two-day policy meeting that ends Wednesday at 2 p.m. ET. The move would pause the 10 consecutive rate hikes that began in March last year.
Ahead of that crucial decision, the Consumer Price Index – a report on inflation that could potentially influence the Fed’s decision on Wednesday – is due out Tuesday morning. May’s CPI is expected to rise 0.3% over the month, with the annual inflation rate dropping from 4.9% to 4.1%. The core CPI, excluding food and energy, is expected to rise 0.4%, bringing the core inflation rate down to 5.3% from 5.5%.
In addition, the Producer Price Index, released at 8:30 a.m. Wednesday, is expected to show headline inflation falling to 1.1% from 2.3%. Core PPI inflation is expected to decline to 2.9% from 3.2%.
In the meantime, Oracle (ORCL) results are expected after Monday’s close. The stock is in the 20%-25% profit zone from a buy point of 91.22 cup with handle after a breakout move in late March.
Stock market today: AMD, Amazon Rally
AMD stock rose nearly 3% after Keybanc raised its price target from 110 to 150, while maintaining its overweight rating. Amazon shares soared nearly 1% after BofA raised its target from 139 to 154, with a buy rating.
Electric vehicle giant Tesla, up 11 days in a row, rose another 1.7% on Monday morning. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) was trading higher after the stock market opened today.
Dexcom (DXCM), Floor and decor (NDF), Fortinet (FTNT) and Capital of Kinsale (KNSL) – as well as Dow Jones stocks Cisco Systems (CSCO), JPMorgan Chase (JPM) and Selling power (CRM) – are among the best stocks to buy or watch in the uptrend of the stock market.
Tesla is an IBD ranking stock, while Floor & Decor was IBD stock of the day on Thursday.
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Dow Jones Today: Oil Price, Treasury Yields
After Monday’s opening bell, the Dow Jones Industrial Average rose 0.2%, while the S&P 500 added 0.3%. The tech-heavy Nasdaq composite traded up 0.5% in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) traded up 0.5%, while the SPDR S&P 500 ETF (SPY) rose 0.3% early Monday.
With the Federal Reserve’s June meeting this week, the 10-year US Treasury yield fell to 3.73% on Monday. On Friday, the 10-year yield rose slightly, still near its late May highs.
Oil prices suffered another round of losses on Monday morning after Goldman Sachs cut its price outlook for the year by 10%. West Texas Intermediate futures fell more than 3% on Monday to below $68 a barrel – the low of their trading range since early May.
On Friday, the Dow Jones Industrial Average and S&P 500 both rose 0.1%, while the Nasdaq composite gained 0.2%.
Friday’s Big Picture column commented, “The fact that decliners outnumbered advances by nearly 2 to 1 on both the NYSE and Nasdaq could be a sign of underlying weakness, although volume was mixed. The way the indices faded from early gains also indicated strong selling.”
Now is an important time to read IBD’s The Big Picture column after the recent bullish shift in market outlook.
Five Best Dow Jones Stocks to Buy and Watch Now
Dow Jones stocks to buy and watch: Cisco, JPMorgan, Salesforce
Dow Jones networking giant Cisco Systems added a handful to a cup base last week, now showing a buy point at 50.58. CSCO stock rose 0.2% on Monday.
Dow Jones banking leader JPMorgan is approaching a fixed base buy point of 143.37 after a four-day winning streak. The shares are only 2% away from their last buy point. JPM shares fell 0.1% on Monday morning.
Salesforce has topped alternate entries at 193.91 and 200.00 in recent weeks, according to ranking analysis.
Over the past few weeks, shares have reached the 20% profit zone from an entry of 178.94 cup with handle, and are now bouncing back from support at the 10-week line. CRM stock added 0.7% on Monday morning.
4 growth stocks to watch in the Stock market rally
Best stocks to buy and watch: Dexcom, Floor & Decor, Fortinet, Kinsale
Dexcom continues to form a flat base with a buy point of 126.44, as the stock gained 2.65% on Friday, according to IBD MarketSmith Model Recognition. Shares of DXCM rose 1.2% on Monday.
IBD SwingTrader Floor & Decor stock decisively regained its 50-day line on Wednesday’s 5.1% advance, putting the flooring retailer in a new buy zone. FND stock is only 5% away from a conventional buy point at 101.39. FND shares lost 1.3% on Monday morning.
Insurance leader Kinsale Capital closed in the 5% buy zone on Friday after a buy point of 345.75. The buy zone is up to 363.04. KNSL stock fell 0.1% on Monday.
The recent IBD stock of the day, Fortinet, remains below the 69.07 buy point of its flat base amid Friday’s 1.4% decline. Shares rose 0.8% on Monday.
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Best stocks to buy and watch during the stock market rally
These are the four best stocks to buy and watch in today’s stock market, including a leader in the Dow Jones.
|Company Name||Symbol||Correct point of purchase||Point of purchase type|
|ASML||(ASML)||683.18||Mug with handle|
Source: IBD data as of June 12, 2023
Join IBD experts as they analyze the top stocks of the current stock market rally on IBD Live
IBD Leaderboard Tesla stock rebounded 4.1% on Friday, deviating further from the buy range past the 207.79 buy point of a double-bottom base. Shares closed Friday 22% off their 52-week high.
TSLA stock looked to add to its extended winning streak, rallying nearly 2% on Monday morning. Last week, stocks rose for a fourth straight week, advancing 14%.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock rose for a second day, with a 0.2% gain on Friday, the shares hit an all-time high at 184.95 last week. The stock continues to hold well above a buy point of 157.38 and is outside the buy range that hit 165.35. AAPL stock rose 0.3% in morning trade on Monday.
Microsoft shares rose 0.5% on Friday, recouping another small portion of Wednesday’s 3.1% selloff. Last week, MSFT stock hit the 20%-25% profit zone from a fixed base buy point of 276.76, so investors could have taken at least some profit there. . On Monday morning, MSFT stock was up 0.5%.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen to learn more about growth stocks and the Dow Jones Industrial Average.
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