Biden-McCarthy Debt Ceiling Meeting Imminent; Tesla Stock Has New Buy Point

Dow Jones stock futures were little changed ahead of Tuesday’s open after the Dow Jones Industrial Average fell 140 points Monday. President Joe Biden and House Speaker Kevin McCarthy were set to meet at 5:30 p.m. ET over the debt ceiling. Meanwhile, Tesla (TSLA) stock shows a new buy point amid a five-day win streak.


Over the weekend, debt-ceiling talks broke down, with President Joe Biden saying Sunday in a news conference in Hiroshima, Japan, that it was “time for the other side to move from their extreme positions because much of what they’ve already proposed is simply, quite frankly, unacceptable.” Biden and McCarthy are attempting to reach a deal that would see the U.S. avoid a default on its sovereign debt.

Key earnings movers late Monday include Heico (HEI) and Zoom Video Communications (ZM).

Heico shares declined 1.5% in extended trade, while ZM stock surged as much as 9.65% after the close before slashing those gains.

Stock Market Today

On Monday, the Dow Jones Industrial Average fell 0.4%. The S&P 500 gained less than 0.1%, while the tech-heavy Nasdaq composite climbed 0.5%.

EV leader Tesla traded up 4.85% Monday. Among Dow Jones stocks, Apple (AAPL) fell 0.5% on a downgrade and Microsoft (MSFT) rose 0.9% in today’s stock market action to hit a new high.

Advanced Micro Devices (AMD), IBD Leaderboard stock ASML (ASML), Cadence Design Systems (CDNS) and IBD SwingTrader idea Shopify (SHOP) — as well as Dow Jones stocks Boeing (BA), Salesforce (CRM) and Visa (V) — are among the best stocks to buy and watch in the stock market uptrend.

ASML and Salesforce are IBD Leaderboard stocks, Shopify a new IBD SwingTrader idea, while Boeing was featured in this week’s Stocks Near A Buy Zone column.

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Dow Jones Stock Futures 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 vs. fair value in overnight trading. Remember that overnight action in Dow Jones futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

The 10-year U.S. Treasury yield rose to 3.71% Monday, climbing for a seventh-straight session. Meanwhile, U.S. oil prices moved up almost 1% Monday, as West Texas Intermediate futures settled just above $72 a barrel.

IBD’s latest newsletter, MarketDiem, gives you actionable ideas for stocks, options and crypto right in your inbox.

What To Do In The Stock Market Rally

Now is an important time to read IBD’s The Big Picture column with the stock market trend in a “confirmed uptrend.”

A confirmed uptrend gives IBD readers the green light to purchase top stocks breaking out past new buy points. Due to the bullish action in recent sessions, IBD’s recommended exposure in stocks is at 40% to 60% of your portfolio, with the Nasdaq and S&P 500 at new 2023 highs.

Two useful IBD MarketSmith lists to check right now are “Breaking Out Today” and “Near Pivot.” The latter shows stocks nearing buy points in bases, and the other flags stocks rising past buy points during the session.

To find more stock ideas, check IBD Stock Lists, like IBD 50, Big Cap 20 and Stocks Near A Buy Zone. These features identify bullish patterns and buy points and should be checked every day.

Learn How To Time The Market With IBD’s ETF Market Strategy

Dow Jones Stocks To Buy And Watch: Boeing, Salesforce, Visa

Dow Jones aerospace giant Boeing rose 0.2% Monday, still holding above its 50-day line and trading near a flat base’s 221.43 buy point, according to IBD MarketSmith pattern recognition.

Salesforce rallied past alternative entries at 194.01 and 200.10 in recent sessions despite a two-day drop. Meanwhile, the RS line hit a new high last week, a bullish signal.

Visa shares remain in buy range above a 230.15 cup-with-handle buy point amid Monday’s 0.9% fall. The buy range goes up to 241.66.

Best Stocks To Buy And Watch: AMD, ASML, Cadence, Shopify

Chip leader Advanced Micro Devices moved back out of buy range above a cup base’s 102.53 buy point, according to IBD MarketSmith pattern recognition, with a 2.1% ascent Monday. The 5% buy area goes up to 107.66.

IBD Leaderboard stock ASML broke above a 683.28 buy point in a cup with handle last week and is in the 5% buy zone that tops out at 717.44. ASML moved up 0.7% Monday.

Cadence Design Systems is trying to break out past a 217.77 buy point in a flat base, but fell further below the entry with a 2.3% drop Monday.

Shopify joined IBD Leaderboard Monday, as it made a bullish move above a trendline entry near 62. Shares rallied 3.1% Monday.

Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live

Tesla Stock

Tesla stock rallied another 4.85% Monday, extending a win streak to five sessions and moving further above its 50-day line. Shares are building the right side of a new base that has a 207.89 buy point for now. Keep an eye out for a handle to offer a lower entry.

Shares closed Monday 40% off their 52-week high.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares slipped 0.5% Monday on an analyst downgrade, falling from Friday’s 52-week high at 176.39. The stock continues to add to gains above a 157.48 buy point and is out of the buy range that ran up to 165.35.

Microsoft shares rose 0.9% Monday, hitting a new 52-week high at 322.59. Shares are significantly above a 276.86 flat-base buy point.

Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for top stocks to buy and watch and Dow Jones Industrial Average action.


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