The Dow Jones industrial average rose on Monday ahead of a big week for the stock market, including key inflation data and the Federal Reserve’s two-day meeting. Advanced Micro Devices (AMD) and Amazon (AMZN) piled on analyst price-target hikes.
On the economic front this week, the Federal Reserve is widely expected to avoid a rate hike at its two-day policy meeting, which ends at 2pm on Wednesday. The move halts 10 consecutive fare hikes that began in March last year.
Ahead of that important decision, the Consumer Price Index – an inflation report that could affect the Fed’s decision on Wednesday – is due out on Tuesday morning. May’s CPI rose 0.3%, with the annual inflation rate easing to 4.1% from 4.9%. Core CPI, which excludes food and energy, is forecast to rise 0.4%, with the core inflation rate easing to 5.3% from 5.5%.
Also, the producer price index, due out at 8:30 am on Wednesday, is expected to show headline inflation falling to 1.1% from 2.3%. Core PPI inflation is forecast to ease to 2.9% from 3.2%.
Meanwhile, Oracle (ORCL) earnings close after Monday’s close. Shares are on a 20%-25% gain from a 91.22 cup-with-handle buy point following a late-March breakout move.
Stock Market Today: AMD, Amazon Rally
AMD stock rose nearly 3% after Keybanc kept its overweight rating and raised its price target to 150 from 110. Amazon shares rose nearly 1% after BofA raised its target to 154 from 139.
Dexcom (DXCM), Flooring and decoration (FND), Fortinet (FTNT) and Kinsale is the capital (KNSL) — as well as Dow Jones stocks Cisco systems (CSCO), JP Morgan Chase (JPM) and Salesforce (CRM) — is one of the best stocks to buy or watch in a stock market boom.
Tesla is an IBD Leaderboard stock, while Floor & Decor is IBD’s Stock of the Day on Thursday.
Dow Jones today: Oil prices, Treasury yields
After the opening hours on Monday, the Dow Jones industrial average rose 0.2%, while the S&P 500 added 0.3%. The tech-heavy Nasdaq composite traded 0.5% higher in morning action.
With the Federal Reserve’s June meeting this week, the 10-year U.S. Treasury yield fell to 3.73% on Monday. On Friday, the 10-year yield rose to its highest level since late May.
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, moving below $68 a barrel — the lowest end of their trading range since early May.
Stock market activity
On Friday, the Dow Jones Industrial Average and the S&P 500 both rose 0.1%, while the Nasdaq Composite gained 0.2%.
Commenting on Friday’s Big Picture column, “The fact that decliners outnumbered advancers by nearly 2-to-1 on both the NYSE and Nasdaq could be a sign of some fundamental weakness, though volume was mixed. The index also pointed to a reversal from early gains. Strong selling.”
Now is an important time to read IBD’s The Big Picture column after recent volatility in the market’s outlook.
Five Best Dow Jones Stocks to Buy and Watch Now
Dow Jones stocks to buy and watch: Cisco, JP Morgan, Salesforce
Dow Jones networking giant Cisco Systems added a handle to a cup base last week, now showing a buy point at 50.58. CSCO shares rose 0.2% on Monday.
Dow Jones Bank leader JP Morgan is nearing a flat-base buy point of 143.37 after a four-day winning streak. Shares are 2% away from their latest buy point. JPM stock lost 0.1% in early Monday trading.
According to Leaderboard analysis, Salesforce has rallied past exchange entries at 193.91 and 200.00 in recent weeks.
In recent weeks, the stock has hit a 20% profit zone from the 178.94 cup-with-handle entry and is now breaking out from support at a 10-week line. CRM stock added 0.7% on Monday morning.
4 Best Growth Stocks to Watch Stock market rally
Best stocks to buy and watch: Dexcom, Floor & Decor, Fortinet, Kinsale
Dexcom continues to form a stable base with a 126.44 buy point as the stock rallied 2.65% on Friday, according to the IBD MarketSmith model consensus. Shares of DXCM rose 1.2% on Monday.
IBD SwingTrader stock Floor & Decor decisively retook its 50-day line during Wednesday’s 5.1% advance. FND stock is just 5% away from a conventional buy point at 101.39. FND shares lost 1.3% in early Monday trading.
Insurance leader Kinsale Capital crossed a 345.75 buy point in 5% buy territory on Friday. The buying zone runs up to 363.04. KNSL shares fell 0.1% on Monday.
The latest IBD Stock of the Day, Fortinet, is below its flat base’s 69.07 buy point amid Friday’s 1.4% drop. Shares rose 0.8% on Monday.
Learn how to time the market with IBD’s ETF Market Strategy
Best stocks to buy and watch in the stock market
These are four of the best stocks to buy and watch in today’s stock market, including the Dow Jones leader.
|Name of the company||Symbol||Perfect buying point||Type of point of purchase|
|ASML||(ASML)||683.18||Cup with handle|
Source: IBD data as of June 12, 2023
IBD Leaderboard Shares Tesla rallied 4.1% on Friday, moving further from buy range beyond the 207.79 buy point of the double-bottom floor. Shares closed Friday 22% off a 52-week high.
TSLA stock added to its extended winning streak on Monday morning, rallying nearly 2%. Last week, shares advanced for the fourth straight week, rising 14%.
Dow Jones Leaders: Apple, Microsoft
On the Dow Jones, Apple shares rose for a second day, with a 0.2% gain on Friday, and shares hit an all-time high of 184.95 last week. The stock continues to hold sharply above the 157.38 buy point and is outside the buy range running up to 165.35. AAPL shares rose 0.3% in morning trading on Monday.
Microsoft shares rose 0.5% on Friday, recovering another small portion of Wednesday’s 3.1% selloff. Last week, MSFT shares reached the 20%-25% profit zone from a flat-base buy point of 276.76, so investors may have taken at least some profits. On Monday morning, MSFT stock was up 0.5%.
Don’t forget to follow Scott Lehtonen on Twitter @IBD_SLehtonen Learn more about growth stocks and the Dow Jones Industrial Average.
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