Stock Market Rally Continues Amid Earnings Season, Economic Indicators

Strategic Insights -

The Dow Jones Industrial Average reversed higher on Monday, driven by early gains from Apple and Intel, while Tesla stock surged as the company announced its first Cybertruck produced at its Austin, Texas plant. Key economic indicators, such as June retail sales data, are expected to show a moderate overall 0.5% increase, following May's 0.3% rise. This week's earnings lineup includes notable stocks like Tesla, Netflix, Lockheed Martin, United Airlines, Delta Air Lines, and Dow Jones names like Goldman Sachs and Johnson & Johnson.

Key Takeaways:

  • Tesla stock rallied 3.3% early Monday, extending its win streak to four sessions, with shares trading up more than 3% on the news of its first Cybertruck production at the Austin, Texas plant.
  • Dow Jones tech giants Apple and Microsoft were higher, with Apple stock tacking on 0.9% in morning action and Microsoft shares up 0.2% after finding support at their 50-day line last week.
  • Stocks to watch include Allegro MicroSystems, Cloudflare, On Holding, and Monolithic Power Systems, with Allegro surging past a new buy point last week and Cloudflare tracing back to June 2, with an actionable entry point at 69.61.
  • The stock market uptrend continues to show resilience, with IBD recommending sticking at 80% to 100% exposure, but be ready to take action on any sell signals in case of a pullback.
  • American Express, Caterpillar, and Salesforce are Dow Jones stocks to watch, with American Express trying to break out past a cup-with-handle base's 177.04 buy point and Salesforce in a buy range past a flat base's 225 buy point.
  • Locking in exposure and caution is advised as the market reaches year's highs, and it would be wise to read IBD's The Big Picture column for guidance during this time.

Statistics:

  • Tesla stock has rallied 1.25% Friday, extending a win streak to four sessions.
  • June retail sales data is expected to show a moderate overall 0.5% increase, following May's 0.3% rise.
  • The Dow Jones Industrial Average reversed higher after modest losses on Monday, while the S&P 500 rose 0.2% and the Nasdaq composite moved up 0.5% in morning action.
  • The 10-year U.S. Treasury yield traded at 3.81% Monday morning, with a big weekly loss.
  • West Texas Intermediate oil prices pulled back Monday morning, giving back a portion of last week's solid gains.

Sources:

  • IBD Data As Of July 167, 2023
  • Econoday estimates
  • IBD's The Big Picture column