Dow Jones futures rose ahead of Tuesday’s open, while S&P 500 and Nasdaq 100 futures also rose in overnight trading.
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The stock market’s attempt to rally continues this week as Friday’s jobs report takes center stage in the final week of August. This month’s strong report is no guarantee of rate hikes. But a shockingly soft report with pay increases close to 100,000 would likely avoid rate hikes. Meanwhile, the Commerce Department’s personal income and expenditure data for July, including the Fed’s favorite inflation gauge, will be released on Thursday.
Stock Market Today: Dow Jones Rising
The Dow Jones Industrial Average rose 0.6% on Monday, while the S&P 500 rose 0.6%. The tech-heavy Nasdaq Composite Index rose 0.8%.
electric car giant Tesla (TSLA) rose 0.1% on Monday, Nvidia (NVDA) rebounded 1.8%.Dow Jones tech icon apple (AAPL) and microsoft (MSFTMore) rose at today’s stock market opening. AAPL shares were up 0.9%, while Microsoft shares were up 0.2%.
Other stock market leaders include: alphabet (Google) and meta platform (meta). GOOGL shares were up 0.9%, while Meta stocks were up 1.7%.
baker fuse (BKRMore), cadence design system (CDNS), quickly (FSLY) and tide (TDW) — as well as Dow Jones stocks IBM (IBM), Merck (MRK) and visa (V.) — one of the most notable stocks in the ongoing stock market correction.
Baker Hughes is a watchlist stock on the IBD Leaderboard. Merck is featured in this Stocks Close to the Buy Zone column.
Dow Jones Today: Oil Prices, Treasury Yields
Dow Jones futures rose less than 0.1% to fair value ahead of Tuesday’s opening bell. S&P 500 futures and Nasdaq 100 futures edged up 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 fell to 4.21%. Oil prices edged higher and remained near 2023 highs. West Texas Intermediate futures settled above $80 a barrel.
Stock Market Rise Attempts: What to Do Now
It’s an important time to read IBD’s “The Big Picture” column, which features major stock indices that are looking to rally the stock market.
The market outlook for IBD is still in a stock market correction, with a recommended exposure range of 0%-20%. That means investors should have most of their cash ready for the follow-through date.
A follow-through day is always possible. And as long as the Nasdaq remains above its Aug. 18 lows, the attempt to move higher will not be compromised.
But until that happens, investors should put their capital in conservation mode. They should create a watchlist of top stocks close to the buy point so that they can act when market conditions change.
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: IBM, Merck, Visa
Dow Jones leader IBM is up 0.5% on Monday and is about to break the cup-with-handle buy point of 146.50.
Pharmaceutical giant Merck struggled to break above the 50-day line as it fell 1.2% on Monday. MRK shares are following a flat base with buy points at 119.65 and early entries at 115.61.
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. Meanwhile, another entry is available and the stock forms another flat base with 245.37 entries.
4 Top Growth Stocks to Watch stock market fix
Stocks to watch: Baker, Cadence, Fastly, Tidewater
Oilfield services and equipment giant Baker Hughes has been trading solidly for the past five weeks, with a 2023 high of 36.48 a buying point, according to IBD Marketsmith.
Cadence Design Systems is flat at 248.16 buy points. The stock is right on the 50-day line, just short of early entry at 237.91.
Software leader Fastly climbed nearly 8% on Friday after breaking its buy point of 21.54. Shares are in a 5% buying zone on Monday, but a market correction should keep investors on the sidelines.
IBD leaderboard stocks Tidewater have rebounded from support near the 10-week line, positioning the energy leaders as a new buying setup.
Learn how to time the market with IBD’s ETF Market Strategy
Best stocks for stock market action
These are the four best stocks to buy and watch on the stock market today, including the Dow Jones leader.
Company Name | symbol | correct purchase point | Purchase point type |
---|---|---|---|
Cadence design system | (CDNS) | 248.16 | flat base |
visa | (V.) | 235.57 | flat base |
baker fuse | (BKRMore) | 36.48 | narrow area |
quickly | (FSLY) | 21.54 | rise base |
Source: IBD data as of 28 August 2023
IBD experts analyze the leading stocks in the current stock market rally on IBD Live.
tesla stock
Tesla shares edged higher on Monday, fueling Friday’s rally. Despite the recent rally, the stock is still well below the 50-day line.
With the recent selloff, it’s clear that stocks will take longer to stabilize before new entrants emerge. Wait for a decisive move above the 21-day and 50-day moving averages before considering any new purchases of TSLA stock.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock rose 0.9% on Monday, near its recent high. The stock is still well below the 50-day line after the sharp declines of recent weeks. AAPL shares are building a flat base at the buy point of 198.23.
Microsoft shares are also recovering from recent lows, but the stock will need more time to rebound before new buying points emerge. The stock is still below the 21-day and 50-day lines, so no buy signal yet.
Follow Scott Lehtonen on Twitter. @IBD_SLehtonen Learn more about growth stocks and the Dow Jones Industrial Average here.
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