Dow Jones futures rose in overnight trading ahead of Tuesday’s trading, along with S&P 500 futures and Nasdaq 100 futures. The stock market correction deepened Monday, with the Dow Jones Industrial Average dropping nearly 200 points.
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Late Monday, Bitcoin’s price soared as much as 15% to trade at around $34,900. According to CoinDesk. Bitcoin hit its highest price since May 2022.
tech titans Amazon (AMZN), alphabet (Google), meta platform (meta) and microsoft (MSFT) Highlighting this week’s busy earnings calendar. Alphabet and Microsoft’s results are scheduled to be released on Tuesday night, while Meta’s is expected to be released after the close of trading on Wednesday. Finally, Amazon’s financial results will be released later on Thursday.
Adding to earnings season, this week’s economic calendar includes the first official forecast for third-quarter gross domestic product (GDP) growth on Thursday, expected to top 4% on accelerating consumer spending.
Additionally, September personal income and spending data released on Friday will show how the Fed’s main inflation rate (core PCE price index) finished the quarter. Economists expect the 0.3% rise to accelerate after a quiet three months to August.
Stock market today: Dow Jones falls
On Monday, the Dow Jones Industrial Average fell 0.6% and the S&P 500 fell 0.2%. The Nasdaq Composite Stock Index, which has a high proportion of high-tech stocks, reversed its early decline and rose by 0.3%. All three major stock indexes hit new adjustment lows.
electric car giant tesla (TSLA) Stock market leaders rose slightly on Monday Nvidia (NVDA) rose 3.8%.Meanwhile, the Dow Jones tech icon apple (AAPL) And in the stock market today, Microsoft’s stock price rose, with AAPL stock up 0.1% and Microsoft stock up 0.8%.
IBD leaderboard members Arista Networks (ANET), lululemon athletica (Lulu), Metaplatform, Z scaler (ZS) — Same goes for Dow Jones stocks. JP Morgan Chase (J.P.M.) and sales force (CRM) — one of the best stocks to buy and watch during the new stock market correction.
JP Morgan is featured in this “Stocks Near a Buy Zone” column.
Dow Jones Today: Oil Prices, Treasury Yields
Ahead of Tuesday’s opening bell, Dow Jones futures rose 0.2% to fair value, while S&P 500 futures rose 0.25%. Nasdaq 100 futures rose 0.3% to fair value. Note that overnight movements in Dow Jones futures or elsewhere do not necessarily translate into actual trades in the next regular stock market.
On Monday, the 10-year U.S. Treasury bond fell from a long-term high to settle at 4.83%. The yield on the 10-year U.S. Treasury rose above 5% at one point Monday morning. Meanwhile, oil prices fell more than 2%, with West Texas Intermediate futures closing just below $86 a barrel.
Attempting a Stock Market Rise: What to Do Now
With the stock market outlook downgraded to a market correction on Friday, now is an important time to read IBD’s “The Big Picture” column.
Amid the recent downturn, IBD investors should remain extremely cautious in taking new positions, with recommended stock market exposure at the 0%-20% level.
A new stock market rally began on Monday with a reversal of gains in the Nasdaq. That means the Nasdaq could see a follow-through day as early as Thursday, the fourth day of the rally attempt.
In the meantime, watch for new stock market leadership to emerge in the coming weeks to see if the Dow Jones and other indexes can recover. Pay attention to whether the stock is performing better than the broader market.
One way to do this is to use relative intensity lines. The RS line measures a stock’s performance relative to the S&P 500. Notice the stock chart where this line is trending upward. This means the stock is outperforming the S&P.
The RS line is found on all IBD charts and in IBD MarketSmith.In addition IBD stock screener Contains a list of top-rated stocks and new highs. MarketSmith also has an “RS Blue Line Dot” list that screens the RS Line at new highs.
MarketSmith’s list for finding stocks during market downturns is “Near Pivot.” Indicates stocks that are nearing a buy point on base.
Dow Jones Stocks: JP Morgan, Salesforce
Dow Jones banking giant JPMorgan fell 1.4% on Monday. According to IBD MarketSmith’s chart analysis, the stock is well below its 50-day line and has established a flat base at a buy point of 159.38. Using the high price on October 13th as a buying trigger, an early entry is imminent at 153.11.
Software leader Salesforce is fighting for support over its 200-day long line. Next up is the 50-day line, which has emerged as a major area of resistance to watch. If the stock regains that important level, it will move closer to the double-bottom buy point at 228.79.
4 Top Growth Stocks to Watch stock market correction
Stocks to buy and watch: Meta Retake Buy Points
Arista rebounded 0.2% on Monday, closing at its 50-day line and about 5% away from the flat-based 198.70 buy point. The company will announce its third quarter financial results on October 30th.
Lululemon rose 1.7% on Monday, closing just below a flat-based buy point of 406.94, according to IBD MarketSmith pattern recognition. Wait for another sustained move above that entry as a buy signal.
Facebook parent company Meta Platforms rose above a 312.87 buy point during a 1.7% rise in stock price on Monday. Meanwhile, Meta stock remains below the official cup-based buy point of 326.20. The social media giant will report third-quarter financial results later Wednesday.
Cyber security giant Zscaler has rebounded from support near its 50-day line, rising 0.2% on Monday. If there is another decisive rebound, the stock will enter a new buying opportunity.
Learn how to time the market with IBD’s ETF Market Strategy
Best stocks in today’s stock market movements
These are the four best stocks to buy and watch in the stock market today, including the Dow Jones leader.
Company Name | symbol | correct purchase point | Types of purchase points |
---|---|---|---|
meta platform | (meta) | 312.87 | handle entry |
sales force | (CRM) | 228.79 | double bottom |
lululemon | (Lulu) | 406.94 | flat base |
Arista Networks | (ANET) | 198.70 | flat base |
Source: IBD data as of October 23, 2023
IBD experts analyze the top stocks in the current stock market correction on IBD Live.
tesla stock
Tesla stock rose less than 0.1% on Monday, ending a three-day losing streak that ended with the stock falling below its 200-day line for the first time since May 26.
The stock is trying to find support near its long-term levels and is down nearly 30% from its 52-week high.
Dow Jones Leader: Apple, Microsoft
Among Dow Jones stocks, Apple rose slightly on Monday, ending a six-day losing streak. The stock is trying to halt its recent decline near the 200-day line. Apple will release its fourth quarter report on November 2nd.
On Monday, Microsoft stock rose 0.8%, and the stock continues to hold to find support near its 50-day line. A new foundation is being formed ahead of the company’s first-quarter earnings report on Tuesday. The base is showing an early entry at 340.86. Another early entry at the October 16 high of 336.14 is also valid.
Be sure to follow Scott Lehtonen on Twitter. @IBD_SLehtonen Learn more about growth stocks and the Dow Jones Industrial Average.
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