28/02/2024

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Dow Jones Futures Fall: Magnificent Seven Stocks Rally; Nvidia Breaks Out Past Buy Point

Dow Jones Futures Fall: Magnificent Seven Stocks Rally; Nvidia Breaks Out Past Buy Point

Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, were lower ahead of Tuesday’s open in overnight trade. Meanwhile, the Magnificent Seven stocks rallied, with sharp gains among Apple (AAPL), Amazon (AMZN) and Nvidia (NVDA).




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Headlining this week’s economic data are two big inflation reports: Thursday’s consumer price index and Friday’s producer price index.

Further, banks launch their fourth-quarter reporting season on Friday, with JPMorgan Chase (JPM), Bank of America (BAC), Citigroup (C) and Wells Fargo (WFC) lined up to report.

Late Monday, Jefferies (JEF) lost nearly 2% in extended trade. JEF stock ended Monday out of buy range past a 37.42 buy point in a cup with handle.

Stock Market Today: Magnificent Seven Stocks Rally

On Monday, the Dow Jones Industrial Average moved up 0.6%, and S&P 500 rallied 1.4%. The tech-heavy Nasdaq composite advanced 2.2%.

The Magnificent Seven stocks rallied sharply Monday, with Nvidia the biggest gainer, up 6.4%. Shares are breaking out past a flat base’s 505.48 buy point and are in buy range.

Meanwhile, Tesla (TSLA) climbed 1.25%, while Alphabet (GOOGL) and Meta Platforms (META) were up 2.3% and 1.9%, respectively. Amazon also rallied 2.7%, regaining the 145.86 entry in a cup base.

Finally, Dow Jones tech icons Apple and Microsoft (MSFT) traded higher in today’s stock market, with AAPL stock up 2.4% and Microsoft shares up 1.8%.

Magnificent Seven players Alphabet and Amazon, and Netflix (NFLX) and Novo Nordisk (NVO) — along with Dow Jones components Amgen (AMGN), Caterpillar (CAT) and Visa (V) — are among the best stocks to buy and watch in the current market rally.

Amgen and Novo Nordisk featured in this Stocks Near A Buy Zone column.


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Dow Jones Today: Oil Prices, Treasury Yields

Ahead of Tuesday’s opening bell, Dow Jones futures dropped 0.15% vs. fair value, while S&P 500 futures were down 0.1%. Nasdaq 100 futures were also off 0.1% vs. fair value. Remember that overnight action in Dow Jones futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

On Monday, the 10-year U.S. Treasury yield ticked lower to 4%. Meanwhile, oil prices sold off, as West Texas Intermediate futures settled below $71 a barrel.


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Stock Market Rally: What To Do Now

Now is an important time to read IBD’s The Big Picture column, with the stock market outlook in a confirmed uptrend.

Following Monday’s bullish gains, investors raise their market exposure, as the uptrend continues to hold up. Be sure to check out today’s IBD Big Picture for an updated exposure level.

A great resource for daily breakouts is IBD MarketSmith’s “Breaking Out Today” list. It shows MarketSmith Growth 250 stocks that are breaking out past new buy points. There were three breakouts today, including Dexcom (DXCM) and Nvidia. DXCM stock is breaking out past a cup-with-handle’s 126.37 buy point.

Meanwhile, the MarketSmith “Near Pivot” list shows stocks nearing buy points in bases.

To find more stock ideas, check IBD Stock Lists, like IBD 50Big Cap 20 and Stocks Near A Buy Zone. These features identify bullish patterns and buy points and should be checked every day.

Dow Jones: Amgen Out Of Buy Range

Drug leader Amgen rallied 2.6% Monday, moving further out of the 5% buy range past a 288.46 official buy point in a flat base. The 5% buy area went up to 302.88.

Heavy machinery giant Caterpillar ended Monday just below its 293.88 buy trigger, amid a 1.2% gain.

Payments leader Visa remains in buy range above a 250.06 entry in a cup base, according to IBD MarketSmith pattern recognition. V stock was up 1.1% Monday.


4 Top Growth Stocks To Watch In The Stock Market Rally


Stocks To Buy And Watch: Amazon Regains Entry

IBD Leaderboard stock Amazon reclaimed its cup base’s 145.86 buy point during Monday’s 2.7% rally, finding support around its 50-day line.

Alphabet regained its 50-day line, but closed just below its 139.42 buy point in a cup with handle following a 2.3% rise Monday, according to IBD MarketSmith.

IBD SwingTrader stock Netflix moved up 2.3% Monday, regaining a 482.70 buy point in a cup with handle.

Novo Nordisk ended Monday up 0.4%, above a 105.69 flat-base buy point following a strong breakout on Jan. 4.


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Best Bets In Today’s 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
Novo Nordisk (NVO) 105.69 Flat base
Caterpillar (CAT) 293.88 Cup base
Netflix (NFLX) 482.70 Cup with handle
Snowflake (SNOW) 192.66 Cup with handle
Source: IBD Data As Of Jan. 8, 2024

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Tesla Stock

Tesla stock moved up 1.25% Monday, as shares rebound from their 50-day support level. TSLA stock snapped a six-day losing streak Monday.

The EV giant has a big double-bottom pattern with conventional buy point of 278.98. Meanwhile, an early buy trigger is at 265.13.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks in the Magnificent Seven, Apple and Microsoft traded higher during Monday’s stock market action.

Apple ended a five-day skid Monday, with a 2.4% advance. Shares remains below a 192.93 buy point and their 50-day line.

Microsoft stock rebounded 1.9% Monday, still in buy range a 366.78 cup-base buy point. Meanwhile, MSFT is rebounding from its 50-day line.

Be sure to follow Scott Lehtonen on X/Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.

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