In overnight trading, S&P 500 futures and Nasdaq 100 futures, as well as Dow Jones futures, were down early Tuesday. Tesla stock snapped a losing streak on Monday as Wall Street braced for the EV giant’s third-quarter deliveries.
x
Key inflation data is in the headlines this week, including Friday’s personal income and outlays report from the Commerce Department. Personal spending is expected to rise a solid 0.5% after a strong 0.8% gain in July. The Fed’s primary inflation gauge, 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 homebuilding stocks rose as the Federal Reserve prepared for a longer season of higher rates. That puts August new home sales data and pending home sales numbers — expected on Wednesday and Friday, respectively — on investors’ radar.
Finally, Dow Jones members Nike (NKE) reported fiscal first quarter 2024 results late Thursday. Analysts expect a 19% decline in profits and Nike’s third consecutive quarter of earnings decline. Revenue growth also slowed for the third consecutive quarter to 2.6% growth.
Stock market today: Dow Jones rose
On Monday, the Dow Jones Industrial Average gained modestly, while the S&P 500 climbed 0.4%. The tech-heavy Nasdaq Composite gained 0.45%.
Electric-vehicle giant Tesla (TSLA) traded up 0.9% on Monday NVIDIA (NVDA) rose 1.5%. dow jones tech icon Apple (AAPL) and Microsoft (MSFT) closed higher on the stock market today, with AAPL stock up 0.7% and Microsoft up 0.2%.
airbnb (ABNB), draftkings (DKNG), IBD Leaderboard Stock meta platform (Meta) and Uber Technologies (UBER) – as well as Dow Jones stock amgen (AMGN) and Kamla (CAT) – is one of the stocks to keep an eye on in the ongoing correction in the stock market.
META is an IBD Leaderboard stock, and is featured in the Stocks Near a Buy Zone column. Airbnb was the most recent IBD stock of the day.
IBD’s latest newsletter MarketDiem brings you actionable ideas for stocks, options and crypto straight to your inbox
Dow Jones Today: Oil Prices, Treasury Yields
Before Tuesday’s opening bell, Dow Jones futures fell 0.35% against fair value, while S&P 500 futures fell 0.4%. Nasdaq 100 futures were 0.5% below fair value. Remember that overnight action on Dow Jones futures and elsewhere does not translate into actual trading in the next regular stock market session.
On Monday, the 10-year US Treasury yield hit a new high at 4.54%. Oil prices fell, still at 2023 highs. West Texas Intermediate futures closed near $90 a barrel.
Stock Market Rally Clashes: What to Do Now
Now is an important time to read IBD’s The Big Picture column, with major stock indexes attempting to bounce off new correction lows.
With the stock market now in the grip of a correction, investors need to focus on reducing market risk to a range of 0%-20% while building a strong watch list of strong stocks that will be the leaders when the next uptrend begins. Can emerge as.
One way to do this is to use the relative strength line. The RS line measures a stock’s price performance versus the S&P 500. Keep an eye on a stock chart in which the line is moving upward, which means the stock is outperforming the S&P.
The RS line is in all IBD charts and IBD MarketSmith. Additionally, the IBD Stock Screener includes a list of top-rated stocks hitting new highs. MarketSmith also has a “RS Blue Line Dot” list, which screens the RS lines at new highs.
Two useful MarketSmith lists to check right now are “Breaking Out Today” and “Near Pivot”. The latter shows stocks close to the buy point in the base, and stocks with other flags move beyond the buy point during the session.
Check out IBD MarketSmith’s extended access offer: 4 weeks for $24.95
Dow Jones Stocks: Amgen, Caterpillar
Drug giant Amgen ended Monday just below a 268.24 buy point in a cup with handles, according to IBD MarketSmith pattern recognition.
Dow Jones leader Caterpillar continues to form a flat base with a 293.88 buy point after strong gains since the beginning of June. CAT stock rose 0.4% on Monday, and closed just below the 50-day line.
4 Top Growth Stocks Worth Watching stock market correction
Stocks to Watch: Airbnb, DraftKings, META, Uber
The most recent IBD Stock of the Day, Airbnb, continues to form a cup-with-handle base with a buy point of 151.16. But despite Monday’s 1.5% rise, ABNB stock remains below its 50-day range.
IBD Leaderboard Watchlist Stock DraftKings is forming a cup with a handle that has a 32.65 buy point according to IBD MarketSmith pattern identification. Shares are consolidating below their 50-day moving average, which is an important level to watch.
The social media giant Meta Platform is finding a cup with handle whose buy point is 312.87.
Uber Technologies continues to consolidate below its key 50-day range, rising 1.1% on Monday. UBER is forming a flat base with a 49.49 entry.
Learn how to time the market with IBD’s ETF Market Strategy
Best Stocks in Today’s Stock Market Action
These are four of the best stocks to watch in today’s stock market, including a Dow Jones leader.
company’s name | Sign | correct purchase point | type of purchase point |
---|---|---|---|
Uber Technologies | (Recover) | 143.63 | flat base |
Kamla | (Cat) | 293.88 | flat base |
airbnb | (ABNB) | 154.95 | cup base |
draftkings | (DKNG) | 32.65 | cup with handle |
Source: IBD data as of September 25, 2023
Join IBD experts as they analyze the stocks leading the current stock market correction on IBD Live
tesla stock
Tesla stock rose 0.9% on Monday, but remains well below its 50-day range. TSLA stock’s official cup-with-handle base is at 278.98 with a buy point, but shares are about 11% away from that entry.
With Tesla likely to report its third-quarter deliveries on Monday, October 2, Wall Street is predicting the number will fall short of the EV giant’s record-setting 466,140 vehicles in the second quarter. Since late July, analysts had predicted that Tesla’s third quarter would outperform the second quarter.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock rose 0.7% on Monday, still below its 50-day line after sharp losses in recent weeks. AAPL stock continues to form a flat base with a 198.23 buy point.
Microsoft shares remain below their 50-day range, up 0.2% on Monday, after Guggenheim upgraded MSFT stock from sell to neutral.
Be sure to follow Scott Lehtonen on Twitter @IBD_SLehtonen For more information on Growth Stocks and the Dow Jones Industrial Average.
You may also like:
Top Growth Stocks to Buy and Watch
Learn how to time the market with IBD’s ETF Market Strategy
Find the best long-term investments with IBD Long-Term Leaders
MarketSmith: Research, charts, data and coaching all in one place
How to Research Growth Stocks: Why This IBD Tool Simplifies Finding Top Stocks