Stock market decline continues, what to do now; Nvidia and Tesla sell out

Dow Jones futures were little changed ahead of Tuesday’s stock market open as major stock indices continued to slide on Monday. Nvidia (NVDA) and You’re here (TSLA) sold off strongly on Monday.


On Monday, the Dow Jones Industrial Average fell slightly, while the S&P 500 lost 0.45%. The tech-heavy Nasdaq composite fell 1.2%, ending the day’s low. On the upside, the small cap Russell 2000 rose slightly.

Tech titan Nvidia sold 3.7% on Monday, closing at its lowest level since June 12. Electric vehicle giant Tesla slipped 6.1% after another downgrade, this one from Goldman Sachs.

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

Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) fell 0.8% and 1.9%, respectively, in today’s stock action.

Chipotle Mexican Grill (GCM), Floor and decor (NDF), Research (LRCX) and MongoDB (MDB) — as well as Dow Jones stocks Merck (MRK), JPMorgan Chase (JPM) and Selling power (CRM) – are among the best stocks to buy or watch in the uptrend of the stock market.

Tesla is an IBD Leaderboard stock, Floor & Decor an IBD SwingTrader stock, while MongoDB is featured in this week’s Stocks Near A Buy Zone column.

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Dow Jones Today: Oil Price, Treasury Yields

Before Tuesday’s opening bell, Dow Jones futures, as well as S&P 500 and Nasdaq 100 futures, were little changed from fair value.

On Monday, the 10-year US Treasury yield fell to 3.71%.

Oil prices rebounded slightly on Monday, rebounding from last week’s losses, but remain near recent lows. West Texas Intermediate futures rose nearly 1% to around $69.50 a barrel.

Stock market action: what to do now?

Now is an important time to read IBD’s The Big Picture column as major equity indices extend their pullback from their 2023 highs.

While the market pulls back, the action generally remains normal. Taking a break now means 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 examine your portfolio and perhaps lock in some profits in your big winners. Conversely, feel free to sell breakout stocks that don’t work. For example, Integration device (INTA) plunged almost 14% on Monday, triggering the 7% loss rule from a buy point of 47.04.

Five Best Dow Jones Stocks to Buy and Watch Now

Dow Jones stocks to buy and watch: JPMorgan, Merck, Salesforce

Dow Jones banking leader JPMorgan is about 3% below a fixed base buy point of 143.37 after rising 0.3% on Monday. Stocks are right at their 50-day line.

Pharma giant Merck is approaching the buy point of 119.65 on a flat basis amid a four-day winning streak that has seen stocks recover their 50-day line. But the stock fell 1.3% on Monday, falling back below the 50-day line.

Salesforce managed to stabilize after falling after earnings. It is currently testing support on the 50 day line. 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, shares have reached the 20% profit zone from an entry of 178.94 cup with handle.

4 growth stocks to watch in the Stock market rally

Best stocks to buy and watch: Chipotle, Floor & Decor, Lam Research, MongoDB

IBD Leaderboard Watch List Stock Chipotle retests its 10-week line and builds a flat base with a buy point of 2,139.88, according to IBD MarketSmith Model Recognition. Chipotle was Wednesday’s IBD stock of the day.

IBD SwingTrader Floor & Decor stock is within striking distance of the 101.49 buy point of a cup with a handle despite falling 0.8% on Monday.

Lam Research broke above the early buy point of 615.80 on Monday, rallying 1.9%. Meanwhile, a tight three-week setup also shows an entry at 630.72.

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.

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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
Fortinet (FTNT) 69.07 Flat bottom
Source: IBD data as of June 26, 2023

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Tesla Stock

IBD Leaderboard Tesla stock slipped 6.1% on Monday after Goldman Sachs downgraded the stock to buy to neutral, pushing the price target to 248 from 185.

Despite recent losses, Tesla shares remain significantly out of the buy range beyond the 207.79 buy point of a double-bottom basis.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple stock hit a new high on Monday, trading as high as 188.05. Shares fell 0.8% as they continue to hold well above a buy point of 157.38.

Microsoft shares fell 1.9% on Monday, adding to Friday’s losses. On June 16, MSFT stock hit an all-time high of 351.47. Over the past few weeks, the stock has hit the 20%-25% profit zone from a fixed base buy point of 276.76, so investors could have taken at least a few profits.

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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