Dow Jones Futures Rise Ahead Of Inflation Data, Fed Meeting; AMD, Amazon Rally

Dow Jones futures hovered as tech futures climbed early Monday ahead of a big week for the stock market, including key inflation data and the Reserve’s two-day meeting federal. Advanced micro-systems (AMD) and Amazon (AMZN) rallied on analysts’ price target hikes.


On the economic front this week, the Federal Reserve is expected to skip a rate hike at its two-day policy meeting that ends Wednesday at 2 p.m. ET. The move would pause the 10 consecutive rate hikes that began in March last year.

Ahead of that crucial decision, the Consumer Price Index – a report on inflation that could potentially influence the Fed’s decision on Wednesday – is due out Tuesday morning. May’s CPI is expected to rise 0.3% over the month, with the annual inflation rate dropping from 4.9% to 4.1%. The core CPI, excluding food and energy, is expected to rise 0.4%, bringing the core inflation rate down to 5.3% from 5.5%.

In addition, the Producer Price Index, released at 8:30 a.m. Wednesday, is expected to show headline inflation falling to 1.1% from 2.3%. Core PPI inflation is expected to decline to 2.9% from 3.2%.

In the meantime, Oracle (ORCL) results are expected after Monday’s close. The stock is in the 20%-25% profit zone from a buy point of 91.22 cup with handle after a breakout move in late March.

Stock market today: AMD, Amazon Rally

AMD stock rose nearly 3% after Keybanc raised its price target from 110 to 150, while maintaining its overweight rating. Amazon shares rose 1% after BofA raised its target from 139 to 154, with a buy rating.

Electric vehicle giant Tesla, up 11 days in a row, rose another 1.7% on Monday morning. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) was trading higher ahead of today’s stock market open.

Dexcom (DXCM), Floor and decor (NDF), Fortinet (FTNT) and Capital of Kinsale (KNSL) – as well as Dow Jones stocks Cisco Systems (CSCO), JPMorgan Chase (JPM) and Selling power (CRM) – are among the best stocks to buy or watch in the uptrend of the stock market.

Tesla is an IBD ranking stock, while Floor & Decor was IBD stock of the day on Thursday.

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Dow Jones Today: Oil Price, Treasury Yields

Ahead of Monday’s opening bell, Dow Jones futures were up 0.15% from fair value. S&P 500 futures gained 0.3%, while Nasdaq 100 futures traded up 0.5% in morning action.

Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) traded up 0.5%, while the SPDR S&P 500 ETF (SPY) rose 0.3% early Monday.

With the Federal Reserve’s June meeting this week, the 10-year US Treasury yield rose Monday to 3.75%. On Friday, the 10-year yield rose slightly, still near its late May highs.

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 2% on Monday, returning to around $68.50 a barrel – the bottom of their trading range since early May.

Market share

On Friday, the Dow Jones Industrial Average and S&P 500 both rose 0.1%, while the Nasdaq composite gained 0.2%.

Friday’s Big Picture column commented, “The fact that decliners outnumbered advances by nearly 2 to 1 on both the NYSE and Nasdaq could be a sign of underlying weakness, although volume was mixed. The way the indices faded from early gains also indicated strong selling.”

Now is an important time to read IBD’s The Big Picture column after the recent bullish shift in market outlook.

Five Best Dow Jones Stocks to Buy and Watch Now

Dow Jones stocks to buy and watch: Cisco, JPMorgan, Salesforce

Dow Jones networking giant Cisco Systems added a handful to a cup base last week, now showing a buy point at 50.58. CSCO stock rose 0.4% pre-market Monday.

Dow Jones banking leader JPMorgan is approaching a fixed base buy point of 143.37 after a four-day winning streak. The shares are only 2% away from their last buy point. JPM stock rose 0.3% on Monday morning.

Salesforce has topped alternate entries at 193.91 and 200.00 in recent weeks, according to ranking analysis.

Over the past few weeks, shares have reached the 20% profit zone from an entry of 178.94 cup with handle, and are now bouncing back from support at the 10-week line. CRM stock added 0.8% on Monday morning.

4 growth stocks to watch in the Stock market rally

Best stocks to buy and watch: Dexcom, Floor & Decor, Fortinet, Kinsale

Dexcom continues to form a flat base with a buy point of 126.44, as the stock gained 2.65% on Friday, according to IBD MarketSmith Model Recognition. Shares of DXCM rose 0.8% on Monday.

IBD SwingTrader Floor & Decor stock decisively regained its 50-day line on Wednesday’s 5.1% advance, putting the flooring retailer in a new buy zone. FND stock is only 5% away from a conventional buy point at 101.39. FND shares lost 1.4% on Monday morning.

Insurance leader Kinsale Capital closed in the 5% buy zone on Friday after a buy point of 345.75. The buy zone is up to 363.04. KNSL stock was up 0.2% pre-market on Monday.

The recent IBD stock of the day, Fortinet, remains below the 69.07 buy point of its flat base amid Friday’s 1.4% decline. Shares rose 0.8% pre-market on Monday.

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Best stocks to buy and watch during the stock market rally

These are the four best stocks to buy and watch in today’s stock market, including a leader in the Dow Jones.

Company Name Symbol Correct point of purchase Point of purchase type
ASML (ASML) 683.18 Mug with handle
Selling power (RCMP) 200.00 Consolidation
Cloudy (NET) 66.20 Double bottom
Fortinet (FTNT) 69.07 Flat bottom
Source: IBD data as of June 12, 2023

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Tesla Stock

IBD Leaderboard Tesla stock rebounded 4.1% on Friday, deviating further from the buy range past the 207.79 buy point of a double-bottom base. Shares closed Friday 22% off their 52-week high.

TSLA stock looked to add to its extended winning streak, rallying nearly 2% on Monday morning. Last week, stocks rose for a fourth straight week, advancing 14%.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple stock rose for a second day, with a 0.2% gain on Friday, the shares hit an all-time high at 184.95 last week. The stock continues to hold well above a buy point of 157.38 and is outside the buy range that hit 165.35. AAPL stock rose 0.5% in premarket trading on Monday.

Microsoft shares rose 0.5% on Friday, recouping another small portion of Wednesday’s 3.1% selloff. Last week, MSFT stock hit the 20%-25% profit zone from a fixed base buy point of 276.76, so investors could have taken at least some profit there. . On Monday morning, MSFT stock was up 0.6%.

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


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