Dow Jones Futures Rise As Inflation Data Looms; Tesla Stock Surges On Upgrade, Eyes Buy Point

Dow Jones futures climbed Monday morning, along with S&P 500 and Nasdaq futures. Tesla stock surged on a Morgan Stanley upgrade and is on pace to break out past an early buy point.


On the economic front, inflation data takes center stage with the August reading for the Consumer Price Index due Wednesday. CPI is seen rising 3.6% year-over-year while core CPI is expected to pop 4.3%. Producer Price Index data is due the following day.

U.S. retail sales are set to be released Thursday, with economists expecting them to rise 0.1% year-over-year. This report will offer crucial clues into the current health of the U.S. consumer.

Key earnings reports this week include Adobe (ADBE), Copart (CPRT), Lennar (LEN) and Oracle (ORCL).

Stock Market Today

Electric-vehicle giant Tesla (TSLA) traded up nearly 6% Monday, while Nvidia (NVDA) rallied 1.1%. Qualcomm (QCOM) jumped 8% after reaching a three-year deal with Apple to supply the iPhone maker with 5G chips.

Dow Jones tech icons Apple (AAPL) and Microsoft (MSFT) traded higher, ahead of today’s stock market open.

Other stock market leaders include Alphabet (GOOGL) and Meta Platforms (META). GOOGL stock rose 0.3% and Meta shares jumped 1.4% in early action.

Adobe (ADBE), Cadence Design Systems (CDNS), Netflix (NFLX) and Shopify (SHOP) — as well as Dow Jones stocks Caterpillar (CAT), Intel (INTC) and Visa (V) — are among the best stocks to watch in the struggling stock market uptrend.

Adobe is an IBD Leaderboard stock and was featured in this Stocks Near A Buy Zone column. Netflix is an IBD SwingTrader stock.

Dow Jones Today: Oil Prices, Treasury Yields

Ahead of Monday’s opening bell, Dow Jones futures rose 0.2% vs. fair value, while S&P 500 futures were up 0.4%. Tech-heavy Nasdaq 100 futures climbed 0.7% in morning trades.

Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) was up 0.7%, while the SPDR S&P 500 ETF (SPY) traded up 0.4% early Monday.

Early action Monday also showed the 10-year U.S. Treasury yield at 4.29%, again approaching its 52-week high.

Also, oil prices continue to hold near their 2023 highs. West Texas Intermediate futures dipped in morning action, trading around $87 a barrel Monday.

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Stock Market Struggles

On Friday, the Dow Jones Industrial Average rose 0.2%, while the S&P 500 rose 0.1%. The tech-heavy Nasdaq composite inched higher, ending a four-day losing streak.

Friday’s Big Picture column commented, “The stock market ended the week on another bum note as the market uptrend continued to struggle. Now investors have to worry about more inflation data and retail figures in the week ahead.”

Now is an important time to read IBD’s The Big Picture column as the stock market tries to extend its recent gains after a sharp pullback from this year’s highs.

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Dow Jones Stocks: Caterpillar, Intel, Visa

Dow Jones leader Caterpillar is approaching a new flat base’s 293.88 buy point after strong gains since early June. CAT stock edged higher Monday, just 4% away from the latest buy point.

Chip giant Intel is in buy range past a 37.19 flat-base entry, after last week’s breakout move. Shares rose 0.4% Monday morning.

And Dow Jones payments leader Visa is still above its latest entry, a flat base’s 245.37 buy point, according to IBD MarketSmith pattern recognition. V stock traded up a fraction Monday.

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Stocks To Watch: Adobe, Cadence, Netflix, Shopify

IBD Leaderboard stock Adobe is breaking out past a 552.94 buy point in a short consolidation amid recent gains. Shares are in the 5% buy area, according to IBD MarketSmith. ADBE stock rose 0.7% early Monday. Adobe announces its fiscal third-quarter results on Thursday.

Cadence Design Systems is in a flat base with a 248.16 buy point. Shares moved above an early entry at 237.91 last week and are about 4% away from their next entry. CDNS was up 0.6% Monday.

Streaming giant and IBD SwingTrader stock Netflix continues to build a cup base with a 485 buy point. An early entry at last week’s high of 453.45 is also in play. NFLX stock rose 0.4% Monday.

Shopify shares are adding a handle to a cup base, taking the buy point to 67.60. They are setting up for a test of their key 50-day line. SHOP stock advanced nearly 1% Monday morning.

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Best Stocks In Stock Market Action

These are four best stocks to buy and watch in today’s stock market, including a Dow Jones leader.

Company Name Symbol Correct Buy Point Type Of Buy Point
Adobe (ADBE) 552.94 Consolidation
Visa (V) 235.57 Flat base
Netflix (NFLX) 485.00 Cup base
Synopsys (SNPS) 468.03 Flat base
Source: IBD Data As Of Sept. 11, 2023

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Tesla Stock

Tesla stock extended a losing streak to three sessions Friday, falling 1.2%. Shares continue to bounce between resistance around its 50-day line and support at its 21-day exponential moving average. For now, investors can use a recent high of 261.18 as an early entry. And TSLA stock has a 299.29 official buy point.

On Monday morning, TSLA stock surged nearly 6% on the Morgan Stanley upgrade, looking to snap the three-day losing streak and move above that early entry.

On Sunday, Morgan Stanley upgraded Tesla stock from hold to buy, with a Wall Street high price target of 400, up from 250.

Morgan Stanley analyst Adam Jonas wrote, “The autonomous car has been described as the mother of all AI projects. In its quest to solve for autonomy, Tesla has developed an advanced supercomputing architecture that pushes new boundaries in custom silicon and may put Tesla at an asymmetric advantage in a $10 trillion total addressable market.”

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple stock halted a two-day slide Friday, still squarely below its 50-day line after sharp weekly losses. Despite the recent weakness, AAPL stock is building a flat base with a 198.23 buy point. AAPL stock rose 1% early Monday.

Apple plans to introduce its iPhone 15 family Tuesday and may also debut its Apple Watch Series 9.

Microsoft shares are still testing resistance at their 50-day line, with a 1.3% rise Friday. And on Monday morning, the stock moved up nearly 1%.

Be sure to follow Scott Lehtonen on X/Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.


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