Dow Jones stocks to buy and watch: Apple, Microsoft, Axon, Etsy, Fluor, Medpace, Monster, Vertex, Tesla. Economic data, earnings reports, market rally.
The stock market rally continues, with the Dow Jones Industrial Average rallying 0.8%, the S&P 500 rising 1.2%, and the tech-heavy Nasdaq composite jumping 2%. This week, data includes Tuesday’s preliminary January PMI for manufacturing and services from researcher Markit and, on Thursday, fourth-quarter GDP estimates from the Commerce Department as well as the Labor Department’s weekly jobless claims and December new homes sales numbers from the Census Bureau. Meanwhile, key earnings this week include Dow Jones members American Express (AXP), Boeing (BA), Chevron (CVX), IBM (IBM), Intel (INTC), Johnson & Johnson (JNJ), Microsoft (MSFT), Travelers (TRV), Verizon Communications (VZ) and Visa (V). Other important earnings reporters are ASML (ASML), D.R. Horton (DHI), Halliburton (HAL) and Tesla (TSLA).
Investors should have 40% to 60% market exposure, with the potential to reduce this to 20% to 40% if bears regain the upper hand. IBD Stock Lists like the IBD 50 and Stocks Near A Buy Zone offer additional stock ideas. Among Dow Jones stocks, Caterpillar (CAT) moved back out of buy range above a flat base’s 239.95 buy point after Monday’s 1.2% gain, while Energy giant Chevron is rounding out the right side of a cup base with a 189.78 buy point. Banking giant JPMorgan is about 1% below a 138.76 flat-base buy point following last week’s breakout attempt, and payments leader Visa is trading in buy range above a 220.08 handle buy point in a long pattern.
Top stocks to buy and watch include Axon Enterprise (AXON), Etsy (ETSY), Fluor (FLR), Medpace (MEDP), Monster Beverage (MNST) and Vertex Pharmaceuticals (VRTX). Electric-vehicle giant Tesla (TSLA) raced 7.7% higher Monday, closing at its highest level since Dec. 19. Tesla earnings are due out Wednesday after the close. Among Dow Jones stocks, Apple (AAPL) rallied 2.35% Monday, decisively retaking their 50-day line, and Microsoft (MSFT) advanced 1% Monday, finishing just above its 50-day line.
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