Dow Jones futures were little changed ahead of Tuesday’s open. Nvidia and Tesla surged, fueling another long-awaited stock market rally attempt.
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Investors will be looking for more clues on monetary policy this week as Fed Chairman Jerome Powell delivers his annual speech at the Economics Symposium in Jackson Hole, Wyoming, on Friday.From a Busy Week of Retail Earnings Reports — dicks sporting goods (DKS), Coles (KSS), Macy’s (M.) and more – likely to update our views on consumer spending in the middle of the back-to-school shopping season.
Chip Titan, on the other hand, Nvidia (NVDA) surged 8.5% on Monday after HSBC and KeyBanc raised their price targets ahead of the chip designers’ earnings reports later Wednesday. HSBC raised its price target from 600 to 780 shares, while Keybank raised its price target from 550 to 620 shares. Rosenblatt raised its price target to 800 shares last week.
late monday, Fabricette (FN) and zoom video (ZM) reported quarterly results.
Fabrinet shares rose 10.5% in extended trading, while Zoom shares rose 5.5%.
Stock Market Today: Dow Jones Falls
On Monday, the Dow Jones Industrial Average fell 0.1% and the S&P 500 rose 0.7%. The tech-heavy Nasdaq Composite Index closed 1.6% higher.
EV giant Tesla (TSLA) rose 7.3% on Monday.Dow Jones tech giant apple (AAPL) and microsoft (MSFTMore) Ended higher in today’s stock market action, with AAPL shares up 0.8% and Microsoft shares up 1.7%.
costco wholesale (Fee), lululemon (Lulu), Arista Networks (ANET) and Oracle (ORCL) — as well as Dow Jones stocks boeing (BA) and visa (V.) — one of the most notable stocks in the ongoing stock market correction.
Tesla and Costco are IBD Leaderboard stocks, and Boeing was recently named an IBD Stock Of The Day. Arista was featured in this “Stocks Close to the Buy Zone” column.
Dow Jones Today: Oil Prices, Treasury Yields
Ahead of Tuesday’s opening bell, Dow Jones futures, S&P 500 futures and Nasdaq 100 futures were little changed relative to fair value. Note that an overnight move in Dow Jones futures or elsewhere does not necessarily lead to the next real deal in the regular stock market.
On Monday, the 10-year US Treasury yield climbed to 4.34%. Oil prices have fallen nearly 1% but are still near 2023 highs. West Texas Intermediate futures settled near $80 a barrel.
Stock market movements: what to do now
Now is a great time to read IBD’s “The Big Picture” column on the major stock indices in their new stock rally endeavors.
A day after Thursday’s action led to a correction in the stock market, Friday marked the beginning of a new upward attempt. This is because IBD considers a drop date that ends in the upper half of the actual range to be a pink rally date. We currently recommend an exposure range of 20% to 40%.
Monday was the second day of the rally, so a follow-through day could be held as early as Wednesday.
However, many of the next uptrend leaders can be spotted well before the follow-through happens.
One way to do this is with relative intensity lines. The RS line measures a stock’s performance against the S&P 500. Look for stock charts with an upward trending RS line. This means the stock is outperforming the S&P.
The RS line is on all IBD charts and IBD MarketSmith.In addition IBD Stock Screener Includes a list of top rated stocks and a new high line. MarketSmith also has an “RS Blue Line Dot” list that screens RS lines at new highs.
Two MarketSmith lists that can help you check your follow-through once it happens are ‘Today’s Breakouts’ and ‘Near Pivot’. The latter shows stocks that are approaching the buy point at the base, while the other flags show stocks rising above the buy point during the session.
5 Best Dow Jones Stocks to Buy Now and Watch
Dow Jones stocks: Boeing, Visa
Aerospace giant Boeing has surged in recent weeks, surpassing flat-based entrants at 223.91. Gaining 0.25% on Monday, the stock is testing the buy point and the 50-day line.
Also, according to IBD Marketsmith’s pattern recognition, Dow Jones settlement leader Visa continues to maintain a buy range above the buy point of 235.57 on a flat basis. The stock is trying to find support near the 50-day line.
4 Top Growth Stocks to Watch stock market fix
Stocks to watch: Arista, lululemon, Costco, Oracle
AI stock leader Arista Networks is testing a buy point of 178.36 on the consolidation and is in the buy range after the July 31 breakout. The company’s RS line is at its highest level since late March, a sign of significant outperformance in recent weeks.
Lululemon continues to hold support near the 50-day line after breaking out above the 389.06 buy point in recent weeks. LULU’s RS line is at its highest level since May, according to IBD Marketsmith.
Costco has added half-size positions to the IBD leaderboard in recent weeks. This megacap retailer is testing support levels for 50 days. Meanwhile, the handle entry is closing in at 571.16.
Oracle continues to hold a flat base at the buy point of 127.54. Early entries at 118.06 are also valid as software leaders try to keep support near the 50-day line.
Learn how to time the market with IBD’s ETF Market Strategy
Stocks to watch out for in the stock market Correction
These are the four best stocks to buy and watch on the stock market today, including the Dow Jones leader.
| company | symbol | correct purchase point | Purchase point type |
|---|---|---|---|
| Arista Networks | (ANET) | 178.36 | integration |
| visa | (V.) | 235.57 | flat base |
| SLBs | (SLBs) | 58.70 | cup with handle |
| Costco | (Fee) | 571.16 | cup with handle |
Source: IBD data as of 21st August 2023
IBD experts analyze the leading stocks in the current stock market rally on IBD Live.
tesla stock
IBD leaderboard stock Tesla rose 7.3% on Monday, ending a six-day losing streak. Still, the stock is well below the 50-day line. With the recent selloff, it’s clear that stocks will take longer to stabilize before new entrants emerge.
Earlier Monday, Baird analyst Ben Kallo outlined some of the triggers for the share price in the second half of the year.
Caro wrote on Monday that lower vehicle prices and pressure on Tesla’s gross margins will continue to be major problems for global EV giant Tesla. But Caro added that the expected Cybertruck launch in the third quarter and other factors could drive TSLA higher. Baird maintains an outperform rating on the TSLA, with a price target of 300x, which is 30% higher than the stock’s current trading price.
Dow Jones Leaders: Apple, Microsoft
Among the Dow Jones stocks, Apple shares rose 0.8% on Monday, spurring Friday’s rally. The stock is still well below the 50-day line after the sharp declines of recent weeks.
Microsoft shares are still well below the 50-day line, suggesting the stock needs more time to consolidate before a new buy point emerges.
Be sure to follow Scott Lehtonen on Twitter. @IBD_SLehtonen Learn more about growth stocks and the Dow Jones Industrial Average here.
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