Dow Jones futures rose Monday, along with S&P 500 futures and Nasdaq futures. China-based Tesla rival Xpeng Motors (XPEV) soared after saying it is buying ride-hailing app Didi Global‘s smart vehicle unit.
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Heading into the final week of August, Friday’s jobs report will take centerstage. A solid report for August would not assure a rate hike. But a surprisingly soft report — with payroll gains closer to 100,000 — would likely take a hike off the table. Meanwhile, the Commerce Department’s July personal income and spending data comes out Thursday.
Stock Market Today
Xpeng Motors surged 5% Monday morning after the company said it is buying Didi’s smart electric car development business in a deal worth up to $744 million. XPEV shares are rebounding from their 50-day line after a big advance in recent months.
Electric-vehicle giant Tesla (TSLA) traded up 1.7% Monday morning, while Nvidia (NVDA) rose 0.2%. Dow Jones tech icons Apple (AAPL) and Microsoft (MSFT) were modestly higher ahead of today’s stock market open.
Other stock market leaders include Alphabet (GOOGL) and Meta Platforms (META). GOOGL stock gained 0.4% and Meta shares rose 0.3% in early action.
Baker Hughes (BKR), Fastly (FSLY), Oracle (ORCL) and Tidewater (TDW) — as well as Dow Jones stocks Merck (MRK) and Visa (V) — are among the best stocks to watch in the ongoing stock market correction.
Baker Hughes is an IBD Leaderboard watch list stock.
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Dow Jones Today: Oil Prices, Treasury Yields
Ahead Monday’s opening bell, Dow Jones futures rose 0.45%, while S&P 500 futures climbed 0.5%. The tech-heavy Nasdaq 100 futures gained 0.7% in morning action.
Global markets traded higher, with European bourses holding in positive territory despite hawkish rate-hike comments in Jerome Powell’s Jackson Hole speech Friday. China’s markets rallied early, after a series of market support measures by regulators. But sellers swept in and dragged markets well off their early highs, leaving Hong Kong’s Hang Seng Index up less than 1% and the Shanghai composite with a 1.1% gain.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) was up 0.35%, while the SPDR S&P 500 ETF (SPY) rose 0.2% early Monday.
Also on Monday, the 10-year U.S. Treasury yield held steady at 4.23% Monday after modest losses last week.
West Texas Intermediate oil prices were little changed in morning trade Monday, following a two-day bounce. WTI futures held right around the $80-a-barrel mark.
Stock Market Action
On Friday, the Dow Jones Industrial Average rebounded 0.7%, while the S&P 500 also reversed from early losses to gain 0.7%.
Friday’s Big Picture column commented, “The Nasdaq composite managed to reverse higher to end the session up 0.9%. It also netted a weekly gain of more than 2%. Nevertheless, it remains below the key 50-day moving average. The tech-heavy index is now up almost 31% so far in 2023.”
Now is an important time to read IBD’s The Big Picture column as the stock market tries to stabilize after a sharp pullback from this year’s highs.
Five Best Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks: Merck, Visa
Drug giant Merck fought to stay above its 50-day line with a 0.7% rise on Friday. MRK stock is tracing a flat base with a 119.65 buy point and a 115.61 early entry. Shares inched lower early Monday.
And Dow Jones payments leader Visa continues to hold in a buy range past a 235.57 flat-base buy point, according to IBD MarketSmith pattern recognition. Meanwhile, another entry is available, with the stock forming another flat base that has a 245.37 entry. V stock gained 0.2% Monday.
4 Top Growth Stocks To Buy And Watch In The Stock Market Correction
Stocks To Watch: Baker, Fastly, Oracle, Tidewater
Oilfield services and equipment leader Baker Hughes has been trading tightly the past five weeks and has a buy point at its 2023 high of 36.48, according to IBD MarketSmith. BKR stock was unchanged in early morning trade.
Software leader Fastly broke out past an ascending base’s 21.54 buy point on Friday, rallying nearly 8%. Shares are in the 5% buy area, but the market correction should keep investors on the sidelines. FSLY stock traded up 0.3% in early trade.
Oracle continues to trace a flat base with a 127.54 buy point. An early entry at 118.06 is also in play, as the software leader holds below the 50-day line. ORCL stock rose modestly in morning trade.
IBD Leaderboard stock Tidewater is rebounding from support around its 10-week line, placing the energy leader in a new buy area. TDW stock was flat early Monday.
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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 |
|---|---|---|---|
| Oracle | (ORCL) | 127.54 | Flat base |
| Visa | (V) | 235.57 | Flat base |
| SLB | (SLB) | 58.70 | Cup with handle |
| Fastly | (FSLY) | 21.54 | Ascending base |
Source: IBD Data As Of Aug. 28, 2023
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Tesla Stock
Tesla stock rallied 3.7% Friday, rebounding from Thursday’s skid. Shares remain well below their 50-day line. Amid the recent spate of selling, it’s clear that the stock requires more time to consolidate before a new entry emerges. Wait for a decisive move back above the 21- and 50-day moving averages before considering a new purchase of TSLA stock.
Early Monday, Tesla stock looked to add to Friday’s gain, rising around 2%.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock climbed 1.3% Friday, recovering a part of Thursday’s sell-off. The stock remains squarely below the 50-day line following sharp losses in recent weeks. AAPL stock rose 0.2% early Monday.
Microsoft shares also are trying to rebound from their recent lows, but the stock needs more time to consolidate before a new buy point emerges. The stock remains below its 21- and 50-day lines, so there isn’t a buy signal yet. And on Monday morning, the stock moved up 0.2%.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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