Tech Futures Lead Ahead Of Inflation Data, Fed Meeting

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


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

Ahead of that crucial decision, the consumer price index — an inflation report that could potentially influence the Fed’s decision on Wednesday, is due out Tuesday morning. May’s CPI is seen rising 0.3% on the month, with the annual inflation rate easing to 4.1% from 4.9%. The core CPI, excluding food and energy, is forecast to rise 0.4%, lowering the core inflation rate to 5.3% from 5.5%.

Further, the producer price index, out Wednesday at 8:30 a.m., is expected to show wholesale inflation slowing to 1.1% from 2.3%. Core PPI inflation is forecast to ease to 2.9% from 3.2%.

Meanwhile, Oracle (ORCL) earnings are due out after Monday’s close. Shares are at the 20%-25% profit area from a 91.22 cup-with-handle buy point following a late-March breakout move.

Stock Market Today: AMD, Amazon Rally

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

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

Dexcom (DXCM), Floor & Decor (FND), Fortinet (FTNT) and Kinsale Capital (KNSL) — as well as Dow Jones stocks Cisco Systems (CSCO), JPMorgan Chase (JPM) and Salesforce (CRM) — are among the best stocks to buy or watch in the stock market uptrend.

Tesla is an IBD Leaderboard stock, while Floor & Decor was IBD’s Stock Of The Day on Thursday.

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Dow Jones Today: Oil Prices, Treasury Yields

Ahead of Monday’s opening bell, Dow Jones futures rose 0.15% vs. fair value. S&P 500 futures gained 0.3%, while Nasdaq 100 futures traded 0.5% higher 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 U.S. Treasury yield on Monday ticked higher to 3.75%. On Friday, the 10-year yield edged higher, still near its late-May highs.

Oil prices suffered another round of losses Monday morning, after Goldman Sachs cut its price outlook for the year by 10%. West Texas Intermediate futures dropped more than 2% Monday, moving back to around $68.50 a barrel — the low end of what has been their trading range since early May.

Stock Market Action

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 advancers by almost 2-to-1 on both the NYSE and the Nasdaq could be a sign of some underlying weakness, though volume was mixed. The way indexes faded from early gains also indicated selling into strength.”

Now is an important time to read IBD’s The Big Picture column after the recent bullish change in the market’s 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 handle to a cup base last week, now showing a buy point at 50.58. CSCO stock rose 0.4% Monday premarket.

Dow Jones banking leader JPMorgan is nearing a 143.37 flat-base buy point after a four-day win streak. Shares are just 2% away from their latest buy point. JPM stock climbed 0.3% early Monday.

Salesforce rallied past alternative entries at 193.91 and 200.00 in recent weeks, according to Leaderboard analysis.

In recent weeks, shares reached the 20% profit zone from a 178.94 cup-with-handle entry, and are now bouncing from support at the 10-week line. CRM stock added 0.8% Monday morning.

4 Top 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 126.44 buy point, as the stock gained 2.65% Friday, according to IBD MarketSmith pattern recognition. DXCM shares were up 0.8% Monday.

IBD SwingTrader stock Floor & Decor decisively regained its 50-day line during Wednesday’s 5.1% advance, placing the flooring retailer in a new buy area. FND stock is just 5% away from a conventional buy point at 101.39. FND stock lost 1.4% early Monday.

Insurance leader Kinsale Capital closed Friday in the 5% buy area past a 345.75 buy point. The buy zone runs up to 363.04. KNSL stock was up 0.2% premarket Monday.

Recent IBD Stock Of The Day, Fortinet, remains below its flat base’s 69.07 buy point amid Friday’s 1.4% drop. Shares were up 0.8% premarket Monday.

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Best Stocks To Buy And Watch In Stock Market Rally

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

Company Name Symbol Correct Buy Point Type Of Buy Point
ASML (ASML) 683.18 Cup with handle
Salesforce (CRM) 200.00 Consolidation
Cloudflare (NET) 66.20 Double bottom
Fortinet (FTNT) 69.07 Flat base
Source: IBD Data As Of June 12, 2023

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Tesla Stock

IBD Leaderboard stock Tesla rallied 4.1% Friday, moving further out of buy range beyond a double-bottom base’s 207.79 buy point. Shares closed Friday 22% off their 52-week high.

TSLA stock looked to add to its extended win streak, rallying nearly 2% Monday morning. Last week, shares advanced for a fourth-straight week, racing 14% higher.

Dow Jones Leaders: Apple, Microsoft

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

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

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


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