Dow Jones futures rose slightly Tuesday morning as second-quarter earnings begin to trickle in and Wall Street awaits Wednesday’s release of the consumer price index, or CPI. The best stocks to buy and watch include tech titans Metaplatforms (META) and Nvidia (NVDA).
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Early Wednesday, Wall Street expects monthly increases of 0.3% in headline and core CPI. The core CPI inflation rate, which excludes food and energy prices, could drop from May’s annual rate of 5.3% to 5% or possibly less, as the sharp monthly rise by 0.6% in June 2022 falls on the 12- month calculation.
Additionally, the second quarter earnings season kicks off this week, with Delta Airlines (DAL), cintas (CTAS) and Attached (FAST) is expected to report on Thursday. Earnings reports from major banks mark the official start of the season on Friday, with JPMorgan Chase (JMP), Citigroup (This Wells Fargo (WFC) due to a report.
stock market today
Electric vehicle giant You’re here (TSLA) climbed 0.4% on Tuesday morning. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were slightly higher ahead of today’s stock market open.
Other stock market leaders include Alphabet (GOOGL) and meta-platforms. GOOGL stock gained 0.5%, while Meta stock rose 0.3% in premarket trading.
Chipotle Mexican Grill (GCM), Dynatrace (DT), Meta Platforms, MongoDB (MDB) and Nvidia – as well as Dow Jones stocks American Express (AXP), Visa (V) and Selling power (CRM) – are among the best stocks to watch in the current stock market downturn.
Tesla is an IBD rank stock, while American Express was in this Stocks Near a Buy Zone column. Alphabet and Dynatrace were recent picks for IBD Stock Of The Day.
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Dow Jones Today: Oil Price, Treasury Yields
Before Tuesday’s opening bell, Dow Jones futures were up 0.4% relative to fair value, while S&P 500 futures gained 0.3%. Nasdaq 100 futures climbed 0.35% from fair value. Remember that overnight action on futures contracts on Dow Jones and elsewhere does not necessarily translate into actual trading in the next regular trading session.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.3%, while the SPDR S&P 500 ETF (SPY) rose 0.25% early Tuesday.
The 10-year US Treasury yield fell to 3.96%, threatening to add to Monday’s losses. The yield came in at 4.0% on Monday, ending a four-day winning streak.
Oil prices rebounded Tuesday morning, after falling Monday from their highest level since early June. West Texas Intermediate futures traded up nearly 1% to just under $73.50 a barrel.
Market share
On Monday, the Dow Jones Industrial Average rebounded 0.6%, while the S&P 500 gained 0.2%. The tech-heavy Nasdaq composite also climbed 0.2%. Finally, the small cap Russell 2000 gained 1.6%.
Monday’s Big Picture column commented: “It’s fine to let your winners run in the current stock market environment, but exercise good judgment with new purchases and be careful not to chase extended stocks. It could be tempted to buy a leader like super microcomputer (SMCI), but it is about 20% above its 10-week moving average. At this point, it is best to wait for SMCI to form a new base.”
Now is an important time to read IBD’s The Big Picture column as the stock market continues near this year’s highs.
Five Best Dow Jones Stocks to Buy and Watch Now
Dow Jones stocks to watch: American Express, Salesforce, Visa
American Express builds a mug base with handle that has a buy point of 177.04. Shares are 4% off their entry after a 1.15% gain on Monday. AXP stock rose 0.2% on Tuesday morning.
Salesforce is trying to stabilize after its post-earnings slump. It is now testing support at the 50-day line, and a decisive bounce would create a new buying opportunity. Meanwhile, a flat base with a buy point of 225 is also in play, according to the IBD rankings analysis. CRM stock added 0.3% on Tuesday morning.
Payments leader Visa closed above the buy point of 235.57 on a flat basis on Monday with a gain of 0.7%. The buy range peaks at 247.35. V stock rose slightly early on Tuesday.
4 best growth stocks to buy and watch in the market Stock market rally
Best stocks to buy and watch: Chipotle, Dynatrace, Meta, MongoDB, Nvidia
Watchlist IBD Leaderboard Chipotle stock ended a four-day losing streak on Monday, still below the buy point of 2,139.88 on a flat basis, according to IBD MarketSmith pattern recognition. Early entry at 2,092.51 was also available due to a trendline. Chipotle was a recent IBD Stock of the Day. CMG stock rose 0.3% early Tuesday.
Software maker Dynatrace formed a tight three-week chart pattern, representing a brief consolidation in which institutional investors paused their buying. The shares are within striking distance of their last entry at 52.99. DT stock edged 0.4% on Tuesday morning.
Facebook’s parent Meta Platforms has consolidated tightly over the past three weeks, putting in a fresh entry at 298.12. With the stock extended so far from its previous base, this buy point should be used as a complementary entry. Meta shares added 0.3% before trade on Tuesday.
MongoDB traded tight after its recent earnings-fueled jump, which offered fresh entry. Stocks are just below the tight three-week formation that showed a buy point at 398.89 after the recent declines. Meanwhile, aggressive investors could have used a trendline entry around 386. MDB stock rose 0.3% early on Tuesday.
After its May 25 earnings-fueled gap, Nvidia shares have been trending steadily higher. Amid a pullback since June 20, the stock offers a fresh opportunity to buy stocks. It formed a trendline entry at 418 after the stock found support at its 21-day exponential moving average. Nvidia is an IBD rating stock. Nvidia shares gained 0.7% on Tuesday morning.
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Best stocks to buy and watch during the stock market rally
These are the four best stocks to buy and watch in today’s stock market, including a leader in the Dow Jones.
| Company Name | Symbol | Correct point of purchase | Point of purchase type |
|---|---|---|---|
| ASML | (ASML) | 683.18 | Mug with handle |
| Selling power | (RCMP) | 200.00 | Consolidation |
| Cloudy | (NET) | 66.20 | Double bottom |
| Roku | (ROKU) | 75.45 | Mug with handle |
Source: IBD data as of July 10, 2023
Join IBD experts as they analyze the top stocks of the current stock market rally on IBD Live
Tesla Stock
IBD Leaderboard Tesla stock fell for a third consecutive session on Monday, down 1.8%. Still, Tesla shares remain well outside the buy range past the 207.79 buy point of a double bottom and just off their 2023 highs.
TSLA stock appeared to rebound from Monday’s losses, climbing 0.4% on Tuesday.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock remains just off last week’s high at 194.48, down 1.1% on Monday. AAPL stock, down in four of the last five trading sessions, continues to hold well above a buy point of 157.38. Early Tuesday, shares gained 0.4% in morning action.
Microsoft shares fell 1.6% on Monday, falling sharply for a second consecutive session. They are reverting to their 50-day support level. A bounce in big volume would result in a new buy zone. And on Tuesday morning, Microsoft shares were slightly higher.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen to learn more about growth stocks and the Dow Jones Industrial Average.
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