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Futures: Big Bank Earnings, Key Inflation Data Due Out

Dow Jones futures were little changed ahead of Tuesday’s open, with key inflation data due out Wednesday and Thursday. Meanwhile, first-quarter bank earnings kick off later this week. And Apple, Pioneer Natural Resources and Tesla stock were in focus after big swings Monday.


On the economic front this week, inflation data is due out midweek, with the release of the Consumer Price Index and the Producer Price Index. Wall Street expects the CPI to rise 0.3% on the month in March, with an annual rate of 5.2%.

Meanwhile, first-quarter earnings season starts off with JPMorgan Chase (JPM), Citigroup (C) and Wells Fargo (WFC) and PNC Financial (PNC) kicking off bank earnings. And Delta Air Lines (DAL) and UnitedHealth (UNH) are the first airline and health insurer, respectively, to report for the first quarter.

Stock Market Today

On Monday, the Dow Jones Industrial Average rose 0.3%, with Caterpillar (CAT) and Dow (DOW) the big winners. CAT stock rallied 3.1%, while Dow shares climbed 2.1%. The S&P 500 gained 0.1%, while the tech-heavy Nasdaq composite dropped less than 0.1%.

EV leader Tesla (TSLA) traded down 0.3% Monday. Pioneer Natural Resources (PXD) surged 5.8% on reports Exxon Mobil (XOM) has held early takeover talks with the shale play.

Among Dow Jones stocks, Apple (AAPL) sold off 1.6% and Microsoft (MSFT) dropped 0.8% in today’s stock market action.

Five Below (FIVE), IBD Leaderboard watch list stock Floor & Decor (FND), ServiceNow (NOW) and Vertex Pharmaceuticals (VRTX) — as well as Dow Jones stocks Boeing (BA), Cisco Systems (CSCO) and Visa (V) — are among the top stocks to buy and watch with the ongoing market strength.

Floor & Decor and Visa were featured in this week’s Stocks Near A Buy Zone column.

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Dow Jones Futures Today: Oil Prices, Treasury Yields

Ahead of Tuesday’s opening bell, Dow Jones futures, S&P 500 futures and Nasdaq 100 futures were little changed in overnight trading. Remember that overnight action in Dow Jones futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

The 10-year U.S. Treasury yield rose to 3.41% Monday. Last week, the 10-year yield hit at its lowest level since mid-September. U.S. oil prices dipped Monday, as West Texas Intermediate futures settled just below $80 a barrel.

IBD’s latest newsletter, MarketDiem, gives you actionable ideas for stocks, options and crypto right in your inbox.

What To Do In The Stock Market Rally

Now is an important time to read IBD’s The Big Picture column with the stock market trend in a “confirmed uptrend” after recent gains.

Amid Monday’s mixed action, the market outlook remains in a confirmed uptrend, which means investors continue to have the green light to buy breakout stocks. IBD’s recommended exposure currently sits at 40% to 60%, but weakness in growth and other leading stocks in recent sessions is concerning.

Two useful IBD MarketSmith lists to check right now are “Breaking Out Today” and “Near Pivot.” The latter shows stocks nearing buy points in bases, and the other flags stocks rising past buy points during the session.

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

Learn How To Time The Market With IBD’s ETF Market Strategy

Dow Jones Stocks To Buy And Watch: Boeing, Cisco Systems, Visa

Dow Jones leader Boeing is nearing a flat base’s 221.43 buy point, according to IBD MarketSmith pattern recognition. Shares fell 0.3% Monday, just 5% away from the latest entry.

Cisco Systems is below a flat base’s 51.84 buy point amid Monday’s slight rise. Bullishly, the stock’s relative strength line hit a new high in recent weeks, a sign of stock market outperformance.

Visa shares rose 0.2% Monday, still holding above their 50-day line. The stock continues to form a cup base with a 234.40 buy point.

Top Stocks To Buy And Watch: Five Below, Floor & Decor, ServiceNow, Vertex

Five Below raced 4.7% higher Monday, breaking out past a 212.66 buy point in a flat base. Shares are in the 5% buy area that goes up to 223.29.

Back story: On March, 15, Philadelphia-based Five Below, which operates 1,292 teen- and tween-focused discount stores in 42 states, closed out 2022 with an earnings and revenue beat. For the fourth quarter, Five Below earnings popped 23% to $3.07 per share, ending a three-quarter string of year-over-year declines.

IBD Leaderboard watchlist stock Floor & Decor decisively regained its 50-day moving average with a 5.8% gain Monday. Last week, FND stock added a handle to a cup base, resulting in a 99.47 buy point.

Back story: Floor & Decor operates 191 warehouse-format stores and six design studios across 36 states. It sells tile, wood, laminate, vinyl, and natural stone flooring products. It also sells decorative accessories. Earnings are seen slipping 2% this year before rising to 27% in 2024 and 24% in 2025.

IBD SwingTrader pick ServiceNow continues to move up the right side of a cup base with 494.72 buy point. Keep an eye out for a potential handle to offer a lower entry.

Back story: NOW software tracks and manages services provided by information-technology departments. Also, its self-service tech portal enables workers to access administrative and workflow tools.

Vertex Pharmaceuticals is trading just shy of a cup base’s 325.29 buy point. VRTX stock rose 0.5% Monday.

Back story: Vertex Pharmaceuticals researches and develops medical treatments for cystic fibrosis, sickle cell disease, muscular dystrophy, kidney disease and type 1 diabetes.

Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live

Tesla Stock

Tesla stock fell another 0.3% Monday, slashing losses after skidding as much as 4.8% at the market open. Still, it extended a losing streak to five sessions. Last week, shares triggered the 7%-8% loss rule from a buy point at 200.76 in a cup with handle. And they fell sharply below their 50-day line, a key support level. The stock closed Monday 52% off its 52-week high.

TSLA stock dropped after the company reduced U.S. prices on its Model S and Model X vehicles by $5,000 each to $84,990 and $94,990 for the base models, respectively. The company also lowered the price on its Model 3 sedan and some Model Y crossovers.

Meanwhile, the EV giant announced it is building a factory in Shanghai to produce its Megapack battery.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares fell 1.6% Monday after IDC data showed that Apple’s PC shipments fell more than 40% in the first quarter.

Microsoft shares moved back into buy range past a flat base’s 276.86 buy point, with a 0.8% fall Monday. The 5% buy area goes up from the buy point to 290.70.

Microsoft shares surged earlier this month after the company announced that it is adding artificial intelligence tools to its popular Office productivity applications suite. That follows the company’s investments in artificial intelligence startup OpenAI, the firm behind the buzzworthy ChatGPT application.


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