Upcoming Fed Meeting: Supermicro AI Stock Soars 10% After Beating Earnings Expectations

Stock market futures, including S&P 500 futures and Nasdaq 100 futures, were barely unchanged prior to the Federal Reserve policy meeting commencing on Tuesday. Equities of artificial intelligence leader Super Micro Computer (SMCI) surged following a favorable earnings report, while Magnificent Seven stock Alphabet (GOOGL) is set to release their report after the market closes on Tuesday.


The focus this week is the Fed meeting on Wednesday and Fed Chair Jerome Powell’s news conference. The market anticipates Powell to lay out the path for reversing balance-sheet tightening, even if it’s a lengthy process. However, his tone will be crucial.

Likewise, Friday’s January employment report is projected to reveal an addition of 165,000 jobs

Monday evening witnessed a 10% surge in Super Micro Computer stocks in after-hours trading following robust financial results. The AI frontrunner also provided fiscal Q3 guidance that surpassed Wall Street’s predictions.

Stock Market Today: Magnificent Seven Stocks To Report

The Dow Jones Industrial Average moved up 0.6% and the S&P 500 rallied 0.8% on Monday. The Nasdaq composite, heavily populated with tech companies, advanced 1.1%.

This week, Alphabet, Amazon (AMZN), Apple (AAPL), Meta Platforms (META) and Microsoft (META) are part of the five Magnificent Seven stocks reporting earnings.

Of the Magnificent Seven stocks, Tesla (TSLA) witnessed the greatest increase, climbing 4.2%. Nvidia (NVDA) also saw an increase of 2.35%.

Dow Jones listed tech giants Apple and Microsoft experienced mixed movement in today’s market, with Apple dropping 0.4% and Microsoft rising 1.4%.

DraftKings (DKNG), KKR (KKR), Novo Nordisk (NVO), Snowflake (SNOW) and Spotify (SPOT) — along with Dow Jones components Amgen (AMGN), Merck (MRK) and Walmart (WMT) — are among the top stocks to monitor and potentially invest in during the ongoing market rally.

KKR and Walmart were featured in this Stocks Near A Buy Zone column.

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Dow Jones Today: Oil Prices, Treasury Yields

Prior to the opening bell on Tuesday, Dow Jones futures, S&P 500 futures, and Nasdaq 100 futures showed negligible change compared to the fair value. Keep in mind that the overnight market activity in futures does not always translate into live stock market trades.

On Monday, the 10-year U.S. Treasury yield dropped to 4.09%. Concurrently, the price of oil decreased, with West Texas intermediate futures settling below $77 per barrel.

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Stock Market Rally: What To Do Now

Now is an important time to read IBD’s The Big Picture column and take notice of the confirmed uptrend in the stock market.

Following Monday’s bullish gains, make sure to check out today’s The Big Picture for an updated exposure level.

For a daily record of breakout stocks, refer to IBD MarketSmith’s “Breaking Out Today” list, which highlights MarketSmith Growth 250 stocks breaking past new buy points. Today, there were five breakouts, including Shake Shack (SHAK), which escaped the 76.74 cup-with-handle entry.

Similarly, the MarketSmith “Near Pivot” list identifies stocks approaching buy points in bases, such as Expedia (EXPE). Expedia stock is edging closer to a 155.84 flat-base entry.

For additional stock ideas, explore IBD Stock Lists like IBD 50, Big Cap 20, and Stocks Near A Buy Zone to identify bullish patterns and buy points.

Dow Jones: Walmart Breaks Out

Biotech leader Amgen recorded a 0.5% increase on Monday, surpassing the 5% buy range following an official buy point of 288.46 in a flat base, extending the 5% buy area to 302.88.

Drugmaker Merck experienced a breakout past the 119.65 buy point in a cup base, as recognized by IBD MarketSmith pattern recognition. Shares finished well above their entry amid a 0.4% increase on Monday.

Discount retailer Walmart is currently within buy range after reaching a 163.57 entry in a cup with handle, amidst a three-day win streak.

4 Top Growth Stocks To Watch In The Stock Market Rally

Stocks To Buy And Watch: DraftKings Breaks Out

IBD Leaderboard watchlist stock DraftKings saw a substantial 3.7% rally on Monday, decisively surpassing an official buy point of 38.97 from a double-bottom base.

IBD SwingTrader stock KKR broke out on Friday, reaching past an 85.66 flat-base entry with a 0.5% increase on Monday.

Novo Nordisk, which develops weight-loss drugs, climbed 0.9% on Monday, surpassing the 105.69 flat-base buy point.

Software leader Snowflake broke past a 202.83 buy point in a flat base with a 3.% rally on Monday, as per IBD MarketSmith’s report.

Spotify closed Monday out of buy range after surging past the 202.88 buy trigger in a flat base, with a 2% increase.

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Best Bets In Today’s Action

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

Company Symbol Correct buy point Type of buy point
Novo Nordisk (NVO) 105.69 Flat base
Walmart (WMT) 288.46 Cup with handle
KKR (KKR) 85.66 Flat base
Snowflake (SNOW) 202.83 Flat base
Source: IBD Data As Of Jan. 29, 2024

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Tesla Stock

Tesla plummeted by 13% last week and closed at its lowest level since May 2023. The stock is approximately 40% lower than its 52-week high.

TSLA bounced back by 4.2% on Monday, although it remains significantly below both its 50- and 200-day moving averages.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks in the Magnificent Seven, Apple and Microsoft experienced mixed movement in Monday’s stock market activities.

Apple witnessed a 0.4% decline on Monday, extending its ongoing losing streak to four sessions. The shares are currently tracing a flat base with a buy point of 199.62.

Microsoft stock soared to record highs on Monday, rising by 1.4%. The shares have exceeded the 366.78 cup-base buy point.

For more growth stock updates and Dow Jones Industrial Average analysis, follow Scott Lehtonen on X/Twitter at @IBD_SLehtonen.


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