The Dow Jones Industrial Average rose Monday, as Wall Street braced for another week of inflation data. Warren Buffett’s Berkshire Hathaway (BRKB) rallied after the company reported second-quarter results over the weekend. Meanwhile, Tesla stock slid after CFO Zachary Kirkhorn stepped down.
On the economic front this week, investors are looking ahead to Thursday’s consumer price index for July, which is expected to give the Fed another month of benign data. Both the overall CPI and core prices are forecast to rise 0.2%. The CPI inflation rate is expected to pick up to 3.2% from 3%, as a flat reading from July 2022 drops out of the 12-month tally. Core CPI inflation should dip to 4.7% from 4.8%.
Early Monday, Berkshire Hathaway, Freshpet (FRPT) and Tyson Foods (TSN) were key earnings movers.
Warren Buffett-led Berkshire rallied more 1.5% early Monday. Berkshire’s operating earnings rose to just over $10 billion from $9.3 billion a year earlier. The company’s “B” shares are extended beyond a 333.81 cup-with-handle buy point and are just off their all-time high.
Freshpet shares gained 3.6%, while Tyson stock dived 10% in early action.
Later, Lucid Group (LCID), Palantir Technologies (PLTR), Shockwave Medical (SWAV) and Skyworks Solutions (SWKS) are on tap for earnings after the close.
Stock Market Today
Electric-vehicle giant Tesla (TSLA) traded down 3% early Monday. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were sharply mixed after today’s stock market open.
Other stock market leaders include Alphabet (GOOGL) and Meta Platforms (META). GOOGL stock climbed 0.9%, and Meta shares rose 1% in early action.
Broadcom (AVGO), Skechers (SKX), MercadoLibre (MELI) and Interactive Brokers (IBKR) — as well as Dow Jones stocks Boeing (BA), Intel (INTC) and Salesforce (CRM) — are among the best stocks to watch in the still-struggling stock market rally.
Tesla is an IBD Leaderboard stock, while Boeing and Skechers were recent IBD Stocks Of The Day. And Skechers featured in this Stocks Near A Buy Zone column. Interactive Brokers is an IBD SwingTrader stock.
IBD’s latest newsletter MarketDiem gives you actionable ideas for stocks, options and crypto right in your inbox
Dow Jones Today: Oil Prices, Treasury Yields
After Monday’s opening bell, the Dow Jones Industrial Average rose 0.7%, while the S&P 500 climbed 0.4%. The tech-heavy Nasdaq composite reversed down 0.1% in morning action, with a rebounding Monster (MNST) at the top of the list.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) was down 0.2%, while the SPDR S&P 500 ETF (SPY) rose 0.4% early Monday.
The 10-year U.S. Treasury yield edged up to 4.08% Monday morning. The 10-year Treasury yield settled at 4.06% Friday after the July jobs report showed that the U.S. economy added 187,000 jobs last month, below economist estimates and down from June’s 209,000 increase. Meanwhile, wage pressures remained and the unemployment rate dipped to 3.5% from 3.6%.
Last week, West Texas Intermediate oil prices extended a win streak to six weeks. WTI futures reversed 1% lower Monday morning, trading around $82 barrel.
Stock Market Action
On Friday, the Dow Jones Industrial Average closed down 0.4%. Despite this, it remains above its 21-day exponential moving average. Apple was the key loser here, falling 4.8%. It breached its 50-day moving average in high volume, a sell signal, after a negative response to earnings.
After being up more than 1%, the Nasdaq composite fell 0.4%. The S&P 500 struggled more, falling 0.5%. The benchmark index suffered a weekly drop of more than 2% and failed to get support at the 21-day line. The S&P remains up around 17% for the year despite its broader exposure to the overall economy.
Friday’s Big Picture column commented, “Now is a good time to lock in some gains after the tremendous rally so far in 2023. It is also key that investors keep on top of any sell signals, such as stocks round-tripping double-digit gains or big breaches of the 50-day moving average.”
Now is an important time to read IBD’s The Big Picture column as the stock market pulls back from this year’s highs.
Five Best Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks: Boeing, Intel, Salesforce
Aerospace giant Boeing broke out last week, topping a 223.91 flat-base entry. Shares are falling back into the 5% buy area that goes up to 235.11. BA stock rose 1.3% Monday morning.
Chip giant Intel is holding close to a 37.19 buy point out of a cup-with-handle base, according to IBD MarketSmith pattern recognition. Shares are about 5% away from their latest entry. INTC stock moved up 0.9% Monday morning.
Salesforce’s recent breakout continues to struggle, with the stock falling further below the flat base’s 225.00 entry and 50-day line, according to IBD Leaderboard analysis. CRM stock climbed 0.4% Monday.
4 Top Growth Stocks To Buy And Watch In The Stock Market Rally
Stocks To Watch: Broadcom, MercadoLibre, Skechers, Interactive Brokers
Chip giant Broadcom is eyeing a 921.78 buy point in a consolidation, according to IBD MarketSmith pattern recognition. Shares are just 3% away from their latest entry, as they pull back to their 50-day line. Earnings are due Aug. 31. AVGO stock traded slightly higher Monday morning.
MercadoLibre surged last week, bullishly retaking its key 50-day line. Shares are forming a cup base with a 1,365.64 buy point. Meanwhile, an early entry at 1,326.61 is also in play. MELI stock tacked on 0.2% early Monday.
Skechers broke out in recent weeks when it surged above a 54.77 buy point after the company’s strong quarterly earnings results. But shares gave up their entry during last week’s losses. SKX stock was up 0.7% Monday.
IBD SwingTrader stock Interactive Brokers broke out Thursday, rising 2.4% to close above a 90.19 buy point in a consolidation, but the stock is back below that buy trigger. Shares last week also topped a handle entry at 87.09. Shares edged higher Monday morning.
Learn How To Time The Market With IBD’s ETF Market Strategy
Best Stocks In Stock Market Rally
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|
|UiPath||(PATH)||19.03||Cup with handle|
Source: IBD Data As Of Aug. 7, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
IBD Leaderboard stock Tesla skidded 2.1% Friday, closing just above its 50-day line. A decisive rebound would place the electric-vehicle leader in a new buy area. Conversely, a sharp breach of that level would mean the stock requires more time to consolidate before a new entry.
TSLA stock threatened to extend Friday’s losses, skidding 3% Monday.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock tumbled 4.8% Friday, extending a losing streak to four sessions and giving up the 50-day line. While AAPL stock is still above its 157.38 buy point, Friday’s weakness was a sell signal, which means investors should lock in gains. Shares dropped 1.6% Monday.
Microsoft shares remain squarely below their 50-day line, a sign the stock needs more time to consolidate before a new buy point emerges. And on Monday morning, Microsoft shares were up 0.9%.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
YOU MAY ALSO LIKE:
Top Growth Stocks To Buy And Watch
Learn How To Time The Market With IBD’s ETF Market Strategy
Find The Best Long-Term Investments With IBD Long-Term Leaders
MarketSmith: Research, Charts, Data And Coaching All In One Place
How To Research Growth Stocks: Why This IBD Tool Simplifies The Search For Top Stocks