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Investors Business Daily

Dow Jones Rises After Key Economic Data; Caterpillar, Merck, Uber Lead 9 Big Earnings Movers

The Dow Jones Industrial Average climbed Tuesday after key economic data, with the release of two manufacturing gauges and a critical Labor Department report. Meanwhile, Caterpillar, Merck and Uber Technologies were among nine big earnings movers Tuesday morning.

Early Tuesday, the Purchasing Managers' Manufacturing Index met estimates at 49.0, unchanged from the mid-month estimate. Meanwhile, the Institute for Supply Management Manufacturing Index remained in a contraction, with a 46.9 reading.

Lastly, key employment data came out with the release of the Labor Department's 's Job Openings and Labor Turnover Survey. June job openings eased to 9.582 million vs. May's 9.824 million.

Friday's jobs report will be in the spotlight this week. Economists forecast a steady 3.6% unemployment rate for July and see employers adding 190,000 jobs, down from June, with a moderate gain in average hourly earnings.

Early Tuesday, Allegro MicroSystemsArista Networks, Caterpillar, DoubleVerify, Lattice Semiconductor, Merck, Monolithic Power, Rambus and Uber Technologies are key earnings movers.

ALGM stock dived 7.7% in early trade, as Arista shares surged 15%. Caterpillar shares soared 7%, while DV stock tumbled 15%.

Lattice shares dropped nearly 1% early, while MPWR stock skidded around 5%. Merck rose 0.3% in morning action, but Rambus shares dived around 12% after the market open.

Finally, UBER stock skidded more than 4% in morning trade.

Stock Market Today

Electric-vehicle giant Tesla traded down 1.8% early Tuesday. Dow Jones tech giants Apple and Microsoft were mixed after today's stock market open.

Other stock market leaders include Alphabet and Meta Platforms. GOOGL stock dropped 1.1%, while Meta shares fell 0.7% in early action.

Allegro MicroSystems, Broadcom, Skechers — as well as Dow Jones stocks Boeing, Caterpillar and Salesforce — are among the best stocks to watch in the current 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.

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 Tuesday's opening bell, the Dow Jones Industrial Average inched higher, while the S&P 500 lost 0.4%. The tech-heavy Nasdaq composite declined 0.75% in morning action.

Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust was down 0.7%, while the SPDR S&P 500 ETF fell 0.3% early Tuesday.

The 10-year U.S. Treasury yield ticked higher to 4.02% Tuesday morning.

West Texas Intermediate oil prices paused after their recent torrid gains Tuesday morning, at their highest level since mid-April. WTI futures traded modestly lower, around $81.50 a barrel.

Stock Market Action

On Monday, the Dow Jones Industrial Average rose 0.3% after a late-day advance, while the S&P 500 gained 0.15%. The tech-heavy Nasdaq composite finished up 0.2%.

Monday's Big Picture column commented, "Up 37% year to date, the Nasdaq just had its best first seven months of any year since 1975. And the Nasdaq 100 index is up 44.2% so far in 2023, which is its best first seven months in its entire history, according to Dow Jones Market Data."

Now is an important time to read IBD's The Big Picture column as the stock market is at this year's highs.

Five Best Dow Jones Stocks To Buy And Watch Now

Dow Jones Stocks To Watch: Boeing, Caterpillar, Salesforce

Aerospace giant Boeing broke out last week, surpassing a 223.91 flat-base entry. Shares are just out of the 5% buy area that went up to 235.11. BA stock dipped 0.1% Tuesday morning.

Industrial giant Caterpillar finished Monday just out of the buy range past a 250.89 entry in a cup with handle, according to IBD MarketSmith pattern recognition. CAT stock rose more than 2% early Tuesday after the company's earnings results ahead of the opening bell.

Salesforce's recent breakout continues to struggle, with the stock holding just above the flat base's 225.00 entry, according to IBD Leaderboard analysis. Shares dropped 1.4%, below that entry in morning action Tuesday.

4 Top Growth Stocks To Buy And Watch In The Stock Market Rally

Stocks To Buy And Watch: Allegro, Broadcom, Skechers

Allegro MicroSystems surged past a new entry in recent weeks, in the buy range that runs up from the 48.72 entry to 51.16. And on Tuesday, ALGM stock dived in the wake of the company's earnings results.

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. AVGO stock gained 0.5% Tuesday morning.

Skechers broke out Friday, surging above a 54.77 buy point after the company's strong quarterly earnings results. Shares are in the buy area that runs up to 57.51. SKX stock was down 0.4% early Tuesday.

Learn How To Time The Market With IBD's ETF Market Strategy

Best Stocks To Buy And Watch 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
Allegro 48.72 Cup base
Salesforce 225.00 Flat base
Broadcom 921.78 Consolidation
Skechers 54.77 Flat base
Source: IBD Data As Of July 31, 2023

Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live

Tesla Stock

IBD Leaderboard stock Tesla inched higher Monday, rising for a second-straight session. Amid the recent pullback, Tesla shares are trying to find support around their key 50-day line. A decisive rebound would place the electric-vehicle leader in a new buy area.

TSLA stock threatened to give up Monday's gains, trading down 1.8% Tuesday morning.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple stock added 0.3% Monday, holding near its recent highs. AAPL stock continues to hold sharply above a 157.38 buy point. Apple will report fiscal third-quarter results late Thursday. Early Tuesday, shares rose 0.2% in morning action.

Microsoft shares closed Monday right at their 50-day line. Look for a strong rebound to place the stock in a new buy area. And on Tuesday morning, Microsoft shares were down 0.3%.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.

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