Dow futures were little changed ahead of Tuesday’s open. Nvidia and Tesla jumped in, giving the new stock market a much-needed bull run.
This week, investors will be looking for more clues about monetary policy when Fed Chair 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 (KSS), Messi (M) and others – Views on consumer spending can be refreshed in the midst of the back-to-school shopping season.
Meanwhile, the Titan chip nvidia (NVDA) rose 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.
Vaprent shares jumped 10.5% in extended trading, while Zoom shares climbed 5.5%.
Stock Market Today: Dow Jones Falls
On Monday, the Dow Jones Industrial Average fell 0.1%, while the S&P 500 rose 0.7%. The tech-heavy Nasdaq Composite finished 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 Leaderboard stocks, while Boeing was among IBD’s most recently selected stocks. Arista is displayed in the stocks column near the Buy area.
Dow jones today: oil prices and treasury yields
Before the opening bell on Tuesday, the Dow Jones, S&P 500 and Nasdaq 100 futures contracts changed little against fair value. Remember that overnight action in Dow Jones futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.
On Monday, the 10-year US Treasury yield rose to 4.34%. Oil prices are down around 1%, still near their 2023 highs. West Texas Intermediate futures settled near $80 a barrel.
Stock Market Actions: What to do now
Now is an important time to read IBD’s The Big Picture column, as major stock indices are making a fresh bid to rally in the stock market.
A day after Thursday’s action corrected the stock market, Friday marked the beginning of a new bullish attempt. This is because IBD considers a bearish day’s close in the upper half of its true range to be a rosy rising day. We recommend an exposure of 20% to 40% at this time.
Monday was the second day of the rally attempt, so a follow-up day could happen as soon as Wednesday.
But you can find several following uptrend leaders before the follow-up happens.
One way to do this is to use the relative strength line. The RS line measures a stock’s price performance against the S&P 500. Look for stock charts in which the line is trending upwards, meaning the stock is outperforming the S&P.
The RS line is 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” list, which monitors RS lines at new highs.
Two useful MarketSmith checklists to check once follow-up has occurred are Breaking Out Today and Near Pivot. The latter shows stocks approaching buy points in the bases, while other sponsor stocks are rising 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 buy point and the 50-day line, where they added 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 in stock market correction
Stocks to watch: Arista, Lululemon, Costco, and Oracle
AI stock leader Arista Networks is testing its buy point of 178.36 in a consolidation, and is in a buy range after the breakout move on July 31st. The RS line is at its highest level since late March, showing 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. Megacap retailer is testing the support level for 50 days. At the same time, a handle entry at 571.16 looms.
Oracle continues to follow the flat base at 127.54 buy points. An early entry is also in place at 118.06, where the program leader tries 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 leader Dow Jones.
|a company||Code||Correct 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
Shares of IBD Leaderboard Tesla rose 7.3% Monday, snapping a six-day losing streak. However, stocks are still sharply below the 50-day line. Amid the recent sell-off, the stock clearly requires 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, Kallo added that TSLA could be pushed higher by the launch of the Cybertruck — expected in Q3 — 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 stock rose 0.8% on Monday, adding to Friday’s gains. The stock is still below its 50-day line after sharp losses in recent weeks.
Microsoft shares remain squarely 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 @tweet Learn more about developing stocks and the Dow Jones Industrial Average.
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