Dow futures were little changed ahead of Tuesday’s open. Nvidia and Tesla stocks rose, giving a fresh rally attempt in the stock market a much needed boost.
This week, investors will be looking for more clues about monetary policy when Federal Reserve Chairman Powell delivers his annual economic symposium address in Jackson Hole, WY, on Friday. Busy week of retail earnings reports Dick’s Sporting Goods (DKS), kohl (Kansas), Messi (M) and others — it can update views on consumer spending amid the back-to-school shopping season.
Meanwhile, Titan chip nvidia (NVDA) fell by 8.5% on Monday after HSBC and KeyBanc raised their price targets ahead of the chip designer’s earnings report late Wednesday. HSBC raised its price target from 600 to 780, while KeyBanc rose from 550 to 620. Rosenblatt last week raised its target on the stock to 800.
Fabrinet shares jumped 10.5% in extended trading, while Zoom shares rose 5.5%.
Stock Market Today: The Falls of the Dow Jones
On Monday, the Dow Jones Industrial Average fell 0.1%, while the S&P 500 rose 0.7%. The Nasdaq Composite Index, which was dominated by technology stocks, closed up 1.6%.
Costco wholesale (it costs), lululemon (Lulu), Arista Networks (network) And inspiration (ORCL) – as well as Dow Jones shares Boeing (Bachelor’s) And visa (Fifth) – Among the top stocks to watch in the ongoing stock market correction.
Tesla and Costco are IBD stock leaders, while Boeing was among the last IBD stocks picked for the day. Arista appeared in the column of stocks close to the overbought zone.
Dow jones today: oil prices and treasury yields
Before the opening bell on Tuesday, Dow Jones futures, S&P 500 futures and Nasdaq 100 futures were little changed against fair value. Remember that overnight movement in Dow futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.
On Monday, the yield on the 10-year US Treasury note rose to 4.34%. Oil prices fell about 1%, and are still near their highest levels in 2023. West Texas Intermediate futures settled near $80 a barrel.
Stock market action: what to do now
Now is an important time to read IBD’s “Big Picture” column, as the major stock indices are seeing a fresh bid to rally in the stock market.
A day after Thursday’s move corrected the stock market, Friday marked the beginning of a new attempt to rally. This is because IBD considers a bearish day’s close in the upper half of its true range as a rosy bullish day. We recommend an exposure range of 20%-40% for now.
Monday was the second day of the rally attempt, so a follow-up day could happen on Wednesday.
But you can find many of the next uptrend leaders long before the follow-up happens.
One way to do this is to use the relative strength line. The RS line measures the performance of a stock’s price against the S&P 500. Look for stock charts where the line is heading upwards, meaning the stock is outperforming the S&P.
The RS line is found on all IBD and IBD MarketSmith charts. In addition, the IBD stock screening device Includes a list of top rated stocks with streaks at new highs. MarketSmith also has an “RS Blue Line Dot” listing, which shows RS lines at new highs.
Two useful MarketSmith checklists to check once a follow-up has occurred are Breaking Out Today and Near Pivot. The latter shows arrows approaching buy points in the bases, while other flags arrows rise past buy points during the session.
The five best Dow stocks to buy and watch right now
Dow Jones shares: Boeing, Visa
Aerospace giant Boeing has erupted in recent weeks, eclipsing its entry point with a flat base of 223.91. Stocks are testing the overbought point and the 50-day line, adding 0.25% on Monday.
Visa, the payments leader at Dow Jones, continues to hold a buy range above 235.57 fixed-base buy points, according to IBD MarketSmith pattern recognition. Stocks are trying to find support around the 50 day line.
4 top-growth stocks to watch stock market correction
Stocks to watch: Arista, Lululemon, Costco, Oracle
Leading stock AI Arista Networks is testing the buy point of 178.36 in a consolidation, and is in a long range after the breakout move on July 31st. Its RS streak reached its highest level since late March, which is a sign of significant outperformance in recent weeks.
Lululemon has seen continued support around the 50-day line in recent weeks, even after breaching the buy point of 389.06. LULU’s RS line has reached its highest level since May, according to IBD MarketSmith.
On the IBD Leaderboard, Costco has been added as a half-size stand in recent weeks. Retailer Megacap is testing the 50-day support level. Meanwhile, entry indicator looms at 571.16.
Oracle continues to follow the flat base at 127.54 buy points. There is also an early entry at 118.06, where the program leader is trying to maintain support around the 50 day line.
Learn how to time the market with IBD’s ETF market strategy
Best stocks to watch in a stock market correction
These are four of the best stocks to buy and watch in the stock market today, including Dow Jones stocks.
|a company||Code||The right point of purchase||Point of purchase type|
|slb||(slb)||58.70||mug with handle|
|Costco||(it costs)||571.16||mug with handle|
Source: IBD data as of August 21, 2023
IBD leader Tesla rose 7.3% on Monday, snapping a six-day losing streak. However, stocks are still sharply below the 50-day line. Amid the recent sell-off, it is clear that the stock needs more time to consolidate before a new entry emerges.
Early Monday, Baird analyst Ben Callow outlined several catalysts for the stock in the second half of the year.
Car price cuts and pressure on Tesla’s gross margins will continue to be the main story for the global EV giant, Kallo wrote Monday. However, Calo added that TSLA could be pushed higher by the launch of the Cybertruck – expected in the third quarter – and other factors. Baird maintains an outperform rating of TSLA with a price target of 300, 30% higher than where the shares are currently trading.
Dow Jones leaders: Apple and Microsoft
Among Dow Jones stocks, Apple rose 0.8% on Monday, adding to Friday’s gains. The stock remains squarely below the 50-day line after sharp losses in recent weeks.
Microsoft shares remain directly below the 50-day line, which is a sign that the stock needs more time to consolidate before a new buy point emerges.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen Learn more about developing stocks and the Dow Jones Industrial Average.
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