Stocks are rebounding nicely on Monday, with the Dow Jones Industrial Average up more than 500 points, rising back over the 24,000 threshold.
Today’s rally is driven by an easing of trade war fears over the weekend, as Washington and Beijing begin discussions on easing tensions.
What’s more, large caps bounced off of the S&P 500’s 200-day moving average for the second time since the February panic low, which is encouraging machine-based buying. And Facebook, Inc. (NASDAQ:FB) has rebounded off of its intraday low, encouraging a widespread buy-the-dip sentiment.
But a handful of key stocks are really driving the rally higher here. Here are five to check out:
Stocks Driving the Rally: Microsoft (MSFT)
Microsoft Corporation (NASDAQ:MSFT) shares have popped back up and over its 50-day moving average with an intraday gain of more than 7% on Monday thanks to a price target increase by analysts at Morgan Stanley.
They are now looking for shares to rise to $130 per share. This follows an upgrade by analysts at Cowen, who are looking for $105.
The company will next report results on April 26 after the close. Analysts are looking for earnings of 85 cents per share on revenues of $25.8 billion.
When the company last reported on Jan. 31, earnings of 96 cents per share beat estimates by nine cents on an 11.9% rise in revenues.
Stocks Driving the Rally: Intel (INTC)
Intel Corporation (NASDAQ:INTC) shares are threatening to push to a new closing high, up nearly 6% on Monday, thanks to an upgrade by analysts at Raymond James and chatter that a possible trade agreement with China would include increased buying of American semiconductors.
The company will next report results on April 26 after the close. Analysts are looking for earnings of 72 cents per share on revenues of $15.1 billion.
When the company last reported on Jan. 25, earnings of $1.08 beat estimates by 21 cents on a 4.1% rise in revenues.
Stocks Driving the Rally: Netflix (NFLX)
Netflix, Inc. (NASDAQ:NFLX) shares have pushed back up and over its 20-day moving average as investors “buy the dip” in large-cap tech stocks after the carnage of last week’s FB stock decline. Earlier in the month, analysts at Loop Capital initiated coverage with a $325 price target.
The company will next report results on April 16 after the close. Analysts are looking for earnings of 63 cents per share on revenues of $3.7 billion. When the company last reported on Jan. 22, earnings of 41 cents per share matched estimates by a 32.6% rise in revenues.
Stocks Driving the Rally: Bank of America (BAC)
Bank of America (NYSE:BAC) shares are gapping higher after once again testing support near the $29-a-share level, which held multiple times back in February.
Financial stocks have been helped by hopes for financial sector deregulation and the net interest margin boost provided by higher long-term interest rates.
The company will next report results on April 16 before the bell. Analysts are looking for earnings of 59 cents per share on revenues of $22.3 billion.
When the company last reported on Jan. 17, earnings of 47 cents per share beat estimates by two cents on a 3.5% rise in revenues.
Stocks Driving the Rally: Texas Instruments (TXN)
Texas Instruments (NASDAQ:TXN) shares are rebounding with a move back toward the 20- and 50-day moving averages. Shares are continuing to recover from a post-earnings selloff in January as investors balked at underwhelming fourth-quarter results and tepid forward guidance.
The company will next report results on April 24 after the close. Analysts are looking for earnings of $1.14 per share on revenues of $3.7 billion. When the company last reported on Jan. 23, earnings of $1.09 matched estimates by a 9.8% rise in revenues.
Anthony Mirhaydari is the founder of the Edge (ETFs) and Edge Pro (Options) investment advisory newsletters. Free two- and four-week trial offers have been extended to InvestorPlace readers.
