The Dow Jones Industrial Average dived more than 300 points Tuesday after the early release of August JOLTS data. Meanwhile, Cathie Wood's Ark Invest ETFs sold nearly $4 million worth of Nvidia stock.
The Labor Department's Job Openings and Labor Turnover Survey, or JOLTS, jumped to 9.61 million. JOLTS data was expected to fall to 8.75 million in August vs. 8.827 million in July.
Further, Friday's September jobs report is the highlight of this week's economic reports. Wall Street expects moderate strength, with 150,000 new jobs. The jobless rate is expected to tick down to 3.7% from 3.8%. Average hourly wages are seen growing 0.3%.
Nvidia edged higher after Keybanc maintained its overweight rating, upping the price target from 670 to 750.
On Monday, Cathie Wood's Ark Genomic Revolution ETF sold 8,983 shares of Nvidia stock, according to daily trade disclosures. NVDA stock is making a move to recapture its 50-day line, which could lead to an early buy trigger.
Stock Market Today
Electric-vehicle giant Tesla declined nearly 2% Tuesday morning, while Dow Jones tech icons Apple and Microsoft moved squarely lower after today's stock market open.
IBD Leaderboard stock Arista Networks, Duolingo, DraftKings, and IBD SwingTrader stock Zscaler — as well as Dow Jones stocks Caterpillar and Chevron — are among the stocks to watch in the ongoing stock market correction.
Arista is an IBD Leaderboard stock, and featured in this Stocks Near A Buy Zone column. Cybersecurity leader Zscaler is an IBD SwingTrader stock.
Dow Jones Today: Oil Prices, Treasury Yields
After Tuesday's opening bell, the Dow Jones Industrial Average fell 0.9%, while the S&P 500 declined 1%. The tech-heavy Nasdaq composite lost 1.3% in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust dropped 0.6%, while the SPDR S&P 500 ETF fell 0.5% early Tuesday.
Early action also showed the 10-year U.S. Treasury yield rising to 4.72%, set to hit another long-term high.
Oil prices rebounded from Monday's losses, moving up 0.5% Tuesday morning. West Texas Intermediate futures traded above $89 a barrel.
Stock Market Correction
On Monday, the Dow Jones Industrial Average dropped 0.2%, while the S&P 500 inched higher. The tech-heavy Nasdaq composite gained 0.7%.
Monday's Big Picture column commented, "Historically, the stock market does best in the fourth quarter of the year. The S&P 500 averages a 2.8% increase, compared with gains of 1.3%-2.3% in the other quarters. The Nasdaq averages a 4.4% fourth-quarter gain, according to Dow Jones Market Data. That compares with 0.4%-3.6% gains for the first three quarters."
Tuesday is Day 5 of a rally attempt, so a follow-through day is possible any day. A follow-through day signals the start of a new uptrend.
Now is an important time to read IBD's The Big Picture column, with the stock market outlook in a correction. Be sure to read how to handle the ongoing stock market weakness and prepare for a new uptrend.
Dow Jones Stocks: Caterpillar, Chevron
Dow Jones leader Caterpillar continues to form a flat base with a 293.88 buy point after strong gains since early June. CAT stock rose 0.4% Monday, closing just below the 50-day line. Shares dipped 0.1% early Tuesday.
Dow Jones oil and gas giant Chevron dropped 1.2% Monday, extending a losing streak to three sessions. Last week, CVX stock broke out past a short handle entry at 168.96. Meanwhile, a cup base within a larger consolidation continues to show a 172.88 buy point, according to IBD MarketSmith chart analysis. Chevron shares edged lower Tuesday morning.
4 Top Growth Stocks To Buy And Watch In The Stock Market Correction
Stocks To Watch: Arista, DraftKings, Duolingo, Zscaler
IBD Leaderboard stock Arista rallied 2.1% Monday, continuing to rebound from the key 50-day line. A bullish rebound from that level places the stock in a new buy area, but the market outlook still shows a correction. So, investors should stay in cash. ANET stock rose 0.1% early Tuesday.
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 dropped 0.3% in morning trades Tuesday.
IPO Leader Duolingo is trying to break out past its latest buy point at 167.35 with strong recent gains. The new entry is the result of a handle forming on a double-bottom base. DUOL stock lost 1.4% early Tuesday.
Recent IBD Stock Of The Day Zscaler continues to rebound from its key 50-day line, as shares added 3.4% Monday. ZS stock declined 0.9% Tuesday morning.
Learn How To Time The Market With IBD's ETF Market Strategy
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 Oct. 2, 2023
Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live
Tesla stock rebounded another 0.55% Monday despite weak third-quarter deliveries, extending a win streak to three sessions. Shares closed right at their 50-day line. TSLA stock has an official cup-with-handle base with a buy point at 278.98, but shares are about 10% away from that entry.
Shares dropped 1.8% early Tuesday, threatening to snap the win streak. Tesla launched a cheaper Model Y variant in the U.S. on Monday.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple moved up for a third straight session, rising 1.5% Monday, moving off its recent lows. Shares are sharply below their 50-day line after sharp losses in September. If AAPL stock can rebound, it would likely have a double-bottom base with a 189.98 buy point. Shares dropped 0.7% early Tuesday.
Microsoft shares rebounded another 1.9% Monday, up for a fourth consecutive session after hitting a recent low during Thursday's session. And on Tuesday morning, MSFT stock lost 0.5%.
Be sure to follow Scott Lehtonen on X/Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
