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Dow Jones futures dropped Monday morning, as Wall Street reacted to Moody’s warning on U.S. debt. Meanwhile, Dow Jones aerospace giant Boeing (BA) surged after Dubai carrier Emirates announced a $52 billion order for the company’s jets.
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Late Friday, Moody’s Investors Service cut its U.S. outlook to negative from stable, citing high budget deficits and political polarization. Moody’s reaffirmed, for now, its AAA rating on U.S. sovereign debt.
Due to higher interest rates and no effective way to reduce government spending on increase revenues, Moody’s said it expects fiscal deficits to remain very large and debt affordability to be significantly weakened.
On the economic front this week, October’s consumer price index is out Tuesday. It is expected to show a tame 0.1% overall increase. Yet core prices, excluding food and energy, are seen rising 0.3% on the month and a steady 4.1% from a year ago.
Further, the producer price index is Wednesday, along with U.S. retail sales.
Boeing Rallies On Emirates Deal
Dow Jones airplane giant Boeing rallied 4% early Monday after Emirates ordered 95 of the company’s aircraft at the 2023 Dubai Airshow. Boeing shares closed Friday about 20% off their 52-week high.
Also, Bloomberg reported that China was considering ending its freeze on Boeing 737 Max aircraft orders in light of the upcoming summit between President Joe Biden and China’s Xi Jinping.
Key earnings movers for the session include Monday.com (MNDY), Tower Semi (TSEM) and Tyson Foods (TSN).
MNDY stock jumped 12% in premarket trade, while Tower shares tumbled more than 7%. And Tyson Foods sold off 4% in early action.
Looking ahead, Home Depot (HD), Walmart (WMT) and Cisco Systems (CSCO) are set to deliver earnings results this week.
Dow Jones Today: Oil Prices, Treasury Yields
Ahead of Monday’s opening bell, Dow Jones futures fell 0.2% vs. fair value, while S&P 500 futures moved down 0.3%. Tech-heavy Nasdaq 100 futures dropped 0.4% in morning action.
Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) lost 0.35%, while the SPDR S&P 500 ETF (SPY) moved down 0.3% early Monday.
The yield on the 10-year U.S. Treasury bond ticked higher to 4.63%. On Friday, the benchmark had settled at 4.62%.
Oil prices looked to add to Friday’s gains, as West Texas Intermediate futures edged higher, trading just above $77 a barrel. WTI is bouncing back from its lowest level since late July.
Stock Market Rally
On Friday, the Dow Jones Industrial Average rallied 1.15%, while the S&P 500 advanced 1.6%. The tech-heavy Nasdaq composite jumped 2.05%.
Friday’s Big Picture column commented, “In light of the strong action, IBD is upping its recommended exposure level to 60% to 80%. But take care to increase exposure in a measured fashion, especially as the risk of a market pullback has risen.”
Now is an important time to read IBD’s The Big Picture column after the recent gains. Be sure to read how to invest during the early stages of a stock market uptrend.
Learn How To Time The Stock Market With IBD’s ETF Market Strategy
Stock Market Today: Best Stocks To Watch
IBD Leaderboard stock Amazon (AMZN), along with MercadoLibre (MELI), ServiceNow (NOW) and Uber Technologies (UBER) — as well as Dow Jones stocks Intel (INTC), Walmart (WMT) and UnitedHealth (UNH) — are among the best stocks to watch in the current market rally.
Intel was featured in this Stocks Near A Buy Zone column. Amazon and NOW stock are members of IBD Leaderboard.
Dow Jones Stocks To Watch
Chip giant Intel is in buy range past a 37.22 buy point in a double-bottom base, according to IBD MarketSmith chart analysis. Intel stock rallied 2.8% Friday, further above the latest entry. INTC dropped 1.2% early Monday.
Dow Jones retail titan Walmart advanced 1.4% Friday, retaking a 165.85 buy point in a cup with handle. WMT stock inched higher Monday morning.
Health care giant UnitedHealth is adding a handle to a massive consolidation, and showing a new buy point at 546.78. UNH stock inched a fraction lower Monday.
4 Top Growth Stocks To Watch In The Stock Market Rally
Stocks To Buy And Watch: NOW In Buy Range
Amazon made a bullish move back above its 50-day moving average line in recent weeks, topping an early entry at 134.48. Now, AMZN stock is within striking distance of a cup base’s 145.86 buy point, while a handle could eventually form. Shares moved down 0.7% Monday.
MercadoLibre eased last week, adding a handle to its forming cup base. That takes the buy point to 1,398.59, according to IBD MarketSmith pattern recognition. MELI stock was off 0.7% Monday morning.
ServiceNow is in buy range past a 607.90 entry in a double bottom. The 5% buy zone goes up to 638.30. The pattern also may be interpreted as a flat base with a 614.36 buy point. NOW stock lost 0.8% Monday morning.
Uber is nearly extended above a buy trigger at 49.19, a double-bottom entry, amid Friday’s 3.1% advance. Uber stock was down 0.6% Monday morning.
Best Stocks In Today’s Stock Market Action
These are four best stocks to watch in today’s stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Amazon | (AMZN) | 134.48 | Double bottom |
| UnitedHealth | (UNH) | 546.78 | Handle entry |
| DraftKings | (DKNG) | 31.10 | Trend line |
| Uber Technologies | (UBER) | 49.19 | Double bottom |
Source: IBD Data As Of Nov. 13, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Magnificent Seven Stocks: Nvidia, Tesla
Among the so-called “Magnificent Seven” stocks, Tesla (TSLA) traded up 0.8% early Monday, as Nvidia (NVDA) rose 0.3%. Meanwhile, Dow Jones tech icons Apple (AAPL) and Microsoft (MSFT) traded slightly lower ahead of today’s stock market open.
Graphics-chip giant Nvidia is in buy range past a double-bottom’s 476.09 entry. Shares moved decisively above the entry Friday.
Tesla stock rebounded 2.2% Friday, cutting into Thursday’s big losses. TSLA stock is finding stout resistance at the long-term 200-day moving average. Shares are around 30% off their 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks in the Magnificent Seven, Apple rose 2.2% Friday, moving further past an early entry at 182.34. Shares continue to trace a consolidation that has a 198.23 buy point. Apple shares lost 0.4% Monday.
Microsoft stock moved up 2.5% Friday, hitting a cup base’s 366.78 buy point. In recent weeks, shares rose above an early buy trigger at 346.20. MSFT stock moved down 0.45% Monday morning.
Be sure to follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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