The Dow Jones Industrial Average dropped more than 250 points Tuesday amid the release of key housing data. The fall came as sports betting giant DraftKings rose on an analyst upgrade.
The Case-Shiller Home Price Index rose 0.6% in July, slightly below the 0.7% estimate. And the FHFA House Price Index rose 0.8% in July, with an annual increase of 4.6%.
Further, new home sales from the Commerce Department slowed to 675,000 in August, down from July's 714,000 annual rate.
Finally, consumer confidence fell to 103.0 in September, below estimates and down from August's 106.1 reading.
Key earnings reports Tuesday morning include Cintas and Thor Industries.
Cintas dropped 0.3%, while THO stock declined 5.5% in morning trade after the recreational vehicle maker beat views, but offered a so-so outlook.
Stock Market Today
DraftKings rallied 3% Tuesday after JPMorgan upgraded the stock from neutral to overweight. The analyst also upped the price target from 26 to 37.
Electric-vehicle giant Tesla traded down 0.7% Tuesday, while Nvidia fell 0.8%. Dow Jones tech icons Apple and Microsoft both sold off sharply, after today's stock market open.
Airbnb, DraftKings, IBD Leaderboard stock Meta Platforms and Uber Technologies — as well as Dow Jones stocks Amgen and Caterpillar — are among the stocks to watch in the ongoing stock market correction.
Meta is an IBD Leaderboard stock, and featured in this Stocks Near A Buy Zone column. Airbnb was a recent IBD Stock of the Day.
Dow Jones Today: Oil Prices, Treasury Yields
After Tuesday's opening bell, the Dow Jones Industrial Average fell 0.8%, while the S&P 500 lost 1.1%. The tech-heavy Nasdaq composite moved down 1.2% in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust lost 1.2%, while the SPDR S&P 500 ETF dropped 1.1% early Tuesday.
Early action Tuesday also showed the 10-year U.S. Treasury yield falling to 4.51%, retreating slightly from new long-term highs set Monday.
Oil prices dropped 1% Tuesday morning, but continue to hold near their 2023 highs. West Texas Intermediate futures traded at $89 a barrel.
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Stock Market Correction
On Monday, the Dow Jones Industrial Average inched higher, snapping a four-day losing streak. The S&P 500 rose 0.4%, while the tech-heavy Nasdaq composite gained 0.45%.
Monday's Big Picture column commented, "While Monday's moderate reversals at prior support levels give the stock market something to work with, there's no clear sign of a new rally attempt."
Now is an important time to read IBD's The Big Picture column as the stock market tries to rebound from its recent correction lows. Be sure to read how to handle the ongoing stock market weakness and prepare for a new uptrend.
Dow Jones Stocks: Amgen, Caterpillar
Drug giant Amgen finished Monday just below a 268.24 buy point in a cup with handle, per IBD MarketSmith pattern recognition. Shares inched lower Tuesday morning.
Dow Jones leader Caterpillar continues to form a flat base with a 293.88 buy point from strong gains dating back to early June. CAT stock rose 0.4% Monday, closing just below the 50-day line. Shares lost 1.1% Tuesday morning.
4 Top Growth Stocks To Buy And Watch In The Stock Market Correction
Stocks To Watch: Airbnb, DraftKings, Meta, Uber
Recent IBD Stock Of The Day, Airbnb, continues to build a cup-with-handle base with a buy point of 151.16. But ABNB stock remains below its 50-day line despite Monday's 1.5% climb. Airbnb shares fell 0.7% Tuesday morning.
DraftKings is building a cup with handle that has a 32.65 buy point, per IBD MarketSmith pattern recognition. Shares are consolidating below their 50-day moving average, a key level to watch. DKNG stock was up 5% early Tuesday after the upgrade.
IBD Leaderboard stock and social media giant Meta Platforms is tracing a cup with handle that has a 312.87 buy point. META stock dipped 1.1% early Tuesday.
Uber Technologies continues to consolidate below its key 50-day line, rising 1.1% Monday. UBER is forming a flat base with a 49.49 entry. Shares ticked down 0.2% Tuesday.
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Best Stocks In Today's 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 |
|---|---|---|---|
| Uber Technologies | 143.63 | Flat base | |
| Caterpillar | 293.88 | Flat base | |
| Airbnb | 154.95 | Cup base | |
| DraftKings | 32.65 | Cup with handle |
Source: IBD Data As Of Sept. 25, 2023
Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live
Tesla Stock
Tesla stock moved up 0.9% Monday, but remains significantly below its 50-day line. TSLA stock has an official cup-with-handle base with a buy point at 278.98, but shares are about 11% away from that entry.
With Tesla likely to report its third-quarter deliveries on Monday, Wall Street is now predicting the number will undercut the EV giant's record-setting 466,140 vehicles in the second quarter. Since the end of July, analysts had forecast Tesla's third quarter would outpace the second quarter.
On Tuesday morning, TSLA stock fell 0.7%, threatening to give up Monday's gains.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock rose 0.7% Monday, still below its 50-day line after sharp losses in recent weeks. AAPL stock continues to build a flat base with a 198.23 buy point. Shares dropped 1.7% Tuesday morning.
Microsoft shares remain sharply below their 50-day line, with a 0.2% rise Monday. And on Tuesday morning, the stock lost 1.4% in early trades.
Be sure to follow Scott Lehtonen on X/Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
