The Dow Jones Industrial Average reversed higher on Monday, rebounding from last week’s stock market losses. google-parent Alphabet (GOOGL) and Tesla stock fell on analyst downgrades.
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On the economic front this week, new home sales are expected on Tuesday. Pending home sales are expected on Thursday, along with first-time jobless claims.
Friday’s personal income and spending report for May will highlight resilience in consumer spending and update the Federal Reserve’s favorite gauge of inflation: the personal consumption expenditure price index.
cruise operator Carnival (CCL) fell 7% after announcing its results on Monday morning. CCL stock closed Friday sharply above a buy point of 12.62 cups.
Later this week, Dow Jones stocks Nike (NKE) and Walgreens (WBA) will publish their quarterly results. Nike’s results are released Thursday, while Walgreens will report Tuesday.
Stock market today: Alphabet and Tesla downgraded
Alphabet shares traded down 1.1% on Monday morning after UBS downgraded the stock from buy to neutral. The company raised its price target from 123 to 132. Meanwhile, the electric vehicle giant You’re here (TSLA) slipped more than 2% on Monday after Goldman Sachs downgraded the buy action to neutral, pushing the price target to 248 from 185.
Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were mixed after the stock market opened today.
Chipotle Mexican Grill (GCM), McKesson (MCK), MongoDB (MDB) and Roku (ROKU) – as well as Dow Jones stocks JPMorgan Chase (JPM) and Selling power (CRM) – are among the best stocks to watch in the ongoing stock market downturn.
Tesla is an IBD stock. McKesson is an IBD SwingTrader stock, while Chipotle was listed as Wednesday’s Stock Of The Day as well as the last Stocks Near A Buy Zone column.
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Dow Jones Today: Oil Price, Treasury Yields
After Monday’s opening bell, the Dow Jones Industrial Average rose 0.2%, while the S&P gained 0.3%. And the tech-heavy Nasdaq composite also climbed 0.1% in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) traded up 0.3%, while the SPDR S&P 500 ETF (SPY) rose 0.35% early Monday.
The 10-year US Treasury yield fell to 3.71%. The yield has recently been hovering between 3.57% and 3.85%, settling Friday lows at 3.73%.
Oil prices rebounded slightly on Monday morning, rebounding from last week’s losses, but remain near recent lows. West Texas Intermediate futures rose nearly 1% to around $69.50 a barrel.
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Market share
On Friday, the Dow Jones Industrial Average fell almost 0.7%, while the S&P 500 lost 0.8%. The tech-heavy Nasdaq composite was the worst, down 1%.
Friday’s Big Picture column commented: “As the market pulls back, the action remains constructive. Taking a break now means that the indices may strengthen for further advances. For this reason, IBD continues to recommend an exposure of 60 % to 80%. But it’s a good opportunity to look at your portfolio and maybe lock in some profits in your big winners.”
Now is an important time to read IBD’s The Big Picture column, as the stock market remains in an uptrend but is pulling back.
Five Best Dow Jones Stocks to Buy and Watch Now
Dow Jones stocks to watch: JPMorgan, Salesforce
Dow Jones banking leader JPMorgan is about 3% below a fixed base buy point of 143.37 after Friday’s 0.5% decline. Stocks are right at their 50-day line. JPM stock rose 0.3% on Monday morning.
Salesforce managed to stabilize after a post-earnings slump. It is now testing support at the 21-day exponential moving average. Tech megacap previously topped a pair of alternative entries at 194.01 and 200.10, according to IBD Leaderboard analysis.
Over the past few weeks, stocks have reached the 20% profit zone from an entry of 178.94 cup with handle, and are now trying to rebound from the support at the 10-week line. CRM stock was down 0.4% on Monday morning.
4 best growth stocks to buy and watch in the market Stock market rally
Best stocks to buy and watch: Chipotle, McKesson, MongoDB, Roku
Watchlist IBD Leaderboard Chipotle stock bounces off its 10-week line and builds a flat base with a buy point of 2,139.88, according to IBD MarketSmith Pattern Recognition. Chipotle was Wednesday’s IBD stock of the day. CMG stock rose 0.2% on Monday morning.
IBD SwingTrader McKesson stock is in the buy range past an entry of 401.53 cup with handle. The 5% buy zone rises to 421.61. Shares rose 0.3% on Monday.
MongoDB is trading tight after its recent earnings-fueled gap, offering fresh entry. The tight three-week formation shows a buy point at 398.89, while aggressive investors could use a trendline entry around 386. MDB stock fell 1.6% on Monday morning.
Streaming giant Roku is building a cup-and-handle base with a buy point of 75.45, according to pattern recognition IBD MarketSmith, even as the stock extended a losing streak to seven sessions on Friday. Roku shares are trying to stop their slide around their 50-day line, a key support level to watch. The stock fell 1% on Monday 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 June 26, 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 slipped 3% on Friday after an analyst downgrade for the third time in as many days. Stocks remain heavily extended above the 207.79 buy point of a double bottom basis. They closed Friday 18% off their 52-week high.
TSLA stock threatened to add to Friday’s losses, cutting losses to 0.5% on Monday. Last week, stocks rode a five-week winning streak, down 1.5% on the week.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock hit an all-time high on Friday before falling 0.2%. Last week the shares traded as high as 187.56. The stock continues to hold well above a buy point of 157.38. Early Monday, AAPL stock rose 0.4%.
Microsoft shares slid 1.4% on Friday, continuing a recent decline. Last week, the stock hit a record high of 351.47. Despite recent losses, MSFT stock remains in the 20%-25% profit-taking zone from a fixed-base buy point of 276.76, so investors can take at least a few profits. And on Monday morning, Microsoft shares were down 0.2%.
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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