Dow Jones futures fell in overnight trading ahead of Tuesday’s trading, along with S&P 500 futures and Nasdaq 100 futures. Tesla stock ended its losing streak on Monday as Wall Street geared up for the EV giant’s third-quarter deliveries.
Key inflation data will be in the spotlight this week, with the Commerce Department’s Personal Income and Expenditure Report scheduled for release on Friday. Personal consumption is expected to steadily increase by 0.5%, following July’s 0.8% increase. The Fed’s main inflation measure, the PCE price index, is expected to rise 0.2%, bringing the 12-month inflation rate down to 3.8%.
Meanwhile, housing starts hit a three-year low in August, and home construction inventories expanded unchecked as the Federal Reserve braced for an extended high interest rate season. This puts August new home sales data and pending home sales numbers (expected on Wednesday and Friday, respectively) in the spotlight with investors.
Finally, members of the Dow Jones Nike (NKE) will report its fiscal 2024 first-quarter results late Thursday. Analysts expect Nike’s profits to decline for the third consecutive quarter, with a 19% decline. Sales growth is also expected to slow for the third consecutive quarter, increasing by 2.6%.
Stock market today: Dow Jones rises
On Monday, the Dow Jones Industrial Average rose slightly and the S&P 500 index rose 0.4%. The Nasdaq Composite Index, which has a high proportion of high-tech stocks, rose 0.45%.
electric car giant tesla (TSLA) rose 0.9% on Monday, but Nvidia (NVDA) rose 1.5%.Dow Jones tech icon apple (AAPL) and microsoft (MSFT) The stock market ended higher today, with AAPL stock up 0.7% and Microsoft up 0.2%.
airbnb (ABNB), draft kings (DKNG), IBD Leaderboard Stock meta platform (Meta) and Uber Technologies (Uber) — Same goes for Dow Jones stocks. amgen (AMGN) and caterpillar (Cat) — is one of the stocks to watch in the ongoing stock market correction.
Meta is an IBD Leaderboard stock and is featured in this Stocks Near the Buy Zone column. Airbnb was recently named his IBD Stock of the Day.
Dow Jones Today: Oil Prices, Treasury Yields
Ahead of Tuesday’s opening bell, Dow Jones futures were down 0.35% to fair value, while S&P 500 futures were down 0.4%. Nasdaq 100 futures fell 0.5% 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 Treasury yield rose to a new high of 4.54%. Although oil prices have fallen, they are still at 2023 high levels. West Texas Intermediate futures settled near $90 per barrel.
Struggling to rise in stock prices: What to do now?
Now is an important time to read IBD’s “The Big Picture” column, as the major stock indexes look to bounce back from new correctional lows.
As the stock market is currently in a correction phase, investors should focus on reducing their market exposure to a range of 0% to 20%, while at the same time focusing on strong stocks that could emerge as leaders when the next uptrend begins. You need to build a strong watchlist of relevant stocks.
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 the RS 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.
Two useful MarketSmith lists to check out right now are “Breaking Out Today” and “Near Pivot.” The latter indicates stocks that are approaching buy points on base, while other flags indicate stocks that are rising above buy points during the session.
Dow Jones Stocks: Amgen, Caterpillar
Pharmaceutical giant Amgen ended Monday just below a 268.24 buy point in cups with handles, according to IBD MarketSmith pattern recognition.
Dow Jones leader Caterpillar continues to form a flat base at a buy point of 293.88 after its biggest rally since early June. CAT stock rose 0.4% on Monday, closing just below its 50-day line.
4 Top Growth Stocks to Watch stock market correction
Stocks to watch: Airbnb, DraftKings, Meta, Uber
Recent IBD Stock Of The Day Airbnb continues to build a cup-with-handle base with a buy point of 151.16. However, despite Monday’s 1.5% rise, ABNB stock is still below its 50-day line.
IBD Leaderboard Watchlist Stock DraftKings is building a cup with handle with a 32.65 buy point, according to IBD MarketSmith pattern recognition. The stock is holding steady below its 50-day moving average, which is an important level to watch.
Social media giant Meta Platforms is tracking Cups with Handles with a buy point of 312.87.
Uber Technologies remains below its key 50-day line, rising 1.1% on Monday. UBER forms a flat base with 49.49 entries.
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 watch in the stock market today, including the Dow Jones leader.
|Company Name||symbol||correct purchase point||Types of purchase points|
|Uber Technologies||(Uber)||143.63||flat base|
|draft kings||(DKNG)||32.65||cup with handle|
Source: IBD data as of September 25, 2023
Tesla stock rose 0.9% on Monday, but remains well below its 50-day line. TSLA stock has an official cup-with-handle buy point of 278.98, but the stock is about 11% away from that entry.
Tesla is likely to report third-quarter vehicle deliveries on Monday, October 2, with Wall Street predicting the number will be lower than the EV giant’s second-quarter record-setting number of 466,140 vehicles. . Analysts had been expecting Tesla’s third quarter to beat its second quarter since late July.
Dow Jones Leader: Apple, Microsoft
Among Dow Jones stocks, Apple shares rose 0.7% on Monday, but are still below their 50-day line after a steep decline in recent weeks. AAPL stock continues to build a flat base with a buy point of 198.23.
Microsoft stock remains well below its 50-day line and rose 0.2% on Monday after the Guggenheim Museum upgraded MSFT stock from sell to neutral.
Follow Scott Lehtonen on Twitter. @IBD_SLehtonen Learn more about growth stocks and the Dow Jones Industrial Average.
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