October 4, 2023

Dow Jones futures soar with Tesla heading for a new high in 2023. Netflix jumps on price target increases.

Dow Jones futures were slightly higher Wednesday morning, while S&P 500 futures and Nasdaq futures posted slightly larger gains. In the meantime, Tesla (TSLA) shares rallied higher in morning trading to reach a new high in 2023. And Netflix (NFLX) surged after a few increases from analysts’ price target.


Wednesday’s earnings reports include Dave & Busters (PLAY), Love bag (LOVE), Ollie’s bargain outlet (OLLI) and stitch fix (SFIX).

Shares of Dave & Buster were up more than 5%, while LOVE shares were up 4% in premarket trading. Ollie’s shares rose 7% before falling almost 2% in premarket trading. Finally, Stitch Fix was up 10% early.

Fair today

Netflix shares rose 3% on Wednesday, leaning to a new 52-week high. JPMorgan and Wells Fargo raised their Netflix share price targets to 470 and 500, respectively. Both maintained their overweight ratings.

Tesla, the electric vehicle giant, which was already on an eight-day lead, was up 3% on Wednesday morning. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) was trading modestly lower ahead of today’s stock market open.

Cloud Flame (NET), Dexcom (DXCM), Fortinet (FTNT) and Taiwan semiconductor (TSM) – as well as Dow Jones stocks Cisco systems (CSCO), McDonald’s (MCD) and Sales team (CRM) – are among the best stocks to buy or watch in the uptrend of the stock market.

Arista was a recent IBD stock of the day, while Tesla is an IBD Leaderboard stock. And McDonald’s was near a buy zone in the stocks section this week.

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Dow Jones Today: Oil Prices, Treasury Yields

Ahead of Wednesday’s opening bell, Dow Jones futures recovered early losses and rose fractionally from fair value. Salesforce.com led the Dow, up more than 1%.

S&P 500 futures also rose a few inches and Nasdaq 100 futures rose 0.15% in the morning action.

Among US exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) was up 0.15%, while the SPDR S&P 500 ETF (SPY) rallied early Wednesday.

The yield on 10-year US Treasuries fell to 3.68% on Wednesday. On Tuesday, the 10-year yield extended a profit streak to three sessions.

US oil prices rebounded Wednesday morning ahead of the Energy Information Administration’s weekly oil inventories at 10:30 am ET. West Texas Intermediate futures were up more than 1% on Wednesday, about $72.50 a barrel.

Stock market action

The Dow Jones Industrial Average on Tuesday moved slightly higher, while the S&P 500 rose 0.2%. The tech-heavy Nasdaq composite gained 0.4%.

Tuesday’s Big Picture column noted, “The Nasdaq composite and the Nasdaq 100 are starting to look longer than their 50-day moving averages, raising the likelihood of a pullback. But the same can’t be said for the S&P 500, which broke out Friday in higher volume — the same day IBD increased its investment allocation to 60% to 80%.”

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

Five best Dow Jones stocks to buy and watch right now

Dow Jones Stocks to Buy and Watch: Cisco, McDonald’s, Salesforce

Dow Jones networking giant Cisco Systems is building a cup base with a buy point of 52.56. Keep an eye out for a possible entry, which would reveal a previous entry. CSCO shares rose premarket Wednesday.

Dow Jones restaurant giant McDonald’s has fallen below its 10-week moving average, a bearish sign. The stock is trying to stay above the buy point of 281.67 after a breakout two months ago. Profits drop quickly. While the stock is near a buy point, the action suggests not to buy now. Look for a more bullish rebound before considering a stock purchase. MCD shares were trading flat early Wednesday.

According to Leaderboard analysis, Salesforce surged past alternate enrollments at 193.91 and 200.00 in recent weeks. Last week, shares hit the 20% gain zone from a 178.94 cup handle entry, but are now pulling back. The stock may test its key 50-day line soon. CRM shares were up 1.5% on Wednesday morning.

4 Top growth stocks to watch Stock market rally

Best stocks to buy and watch: Dexcom, Cloudflare, Fortinet, TSMC

IBD SwingTrader stock Dexcom is approaching the 126.44 buy point from a flat base after a five-day profit streak, according to IBD MarketSmith pattern recognition. DXCM shares rose 0.1% on Wednesday, a short distance from entry.

Cybersecurity leader Cloudflare broke out last week after a buy point of 66.20 in a double bottom. Shares closed Tuesday in the 5% buy territory, which runs to 69.62. NET stock was flat premarket on Wednesday.

Monday’s day IBD stock, Fortinet, remains above the buy point of 69.07 on its flat base, despite falling 2.4% during the session. FTNT shares closed in the 5% buy zone coming in at 72.52. Stocks added 0.1% premarket on Wednesday.

Chip foundry Taiwan Semiconductor bounced 0.9% on Tuesday, in buy range from a buy point of 95.82 with a double bottom. The 5% buying area extends to 100.72. Shares of TSM rose 0.7% on Wednesday morning.

Learn how to time the market with IBD’s ETF market strategy

Best stocks to buy and watch in stock market rally

Here are the top four stocks to buy and watch in the current stock market, including a Dow Jones leader.

Company Name Symbol Correct point of sale Point of sale type
ASML (ASML) 683.18 Cup with handle
Sales team (CRM) 200.00 Consolidation
Cloud Flame (NET) 66.20 Double bottom
Fortinet (FTNT) 69.07 Flat base
Source: IBD data as of June 6, 2023

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

Tesla stock

IBD Leaderboard Shares Tesla shares rose 1.7% on Tuesday, breaking out of the buy range past a double bottom of 207.79 buy points. Shares closed 33% lower on Tuesday from their 52-week high.

TSLA shares appeared to add to Tuesday’s gains, racing 3% higher Wednesday morning. Now making a fourth consecutive weekly gain, the stock is on track to reach a new high in 2023.

Dow Jones leaders: Apple, Microsoft

Among Dow Jones stocks, Apple stock extended Monday’s losses and fell 0.2% on Tuesday. Shares hit an all-time high at 184.95 on Monday. The stock remains sharply above a buy point of 157.38, falling outside the buy range that rose to 165.35. AAPL shares fell 0.2% in premarket trading on Wednesday.

Microsoft shares broke a three-day profit streak on Tuesday, falling 0.7%. The stock is near its 52-week high on Monday at 338.56. Stocks have hit the 20%-25% gain zone from a 276.76 flat-base buy point, so investors could at least take some profit here. On Wednesday morning, MSFT shares fell 0.3%.

Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more information on growth stocks and the Dow Jones Industrial Average.


Top growth stocks to buy and watch

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