The Dow Jones Industrial Average reversed higher Monday, amid early gains from Apple and Intel. Meanwhile, Tesla stock raced higher, as the company announced its first Cybertruck produced at its Austin, Texas plant.
On the economic calendar, June retail sales data — due Tuesday — is one of the week's key headlines. The first read on June's consumer activity, it is expected to show a moderate overall 0.5% increase, following May's 0.3% rise, per Econoday estimates.
Tesla and Netflix headline the earnings lineup this week. Lockheed Martin reports Tuesday. United Airlines and Delta Air Lines also report, along with Dow Jones names like Goldman Sachs and Johnson & Johnson.
Stock Market Today
Electric-vehicle giant Tesla gained 3.3% early Monday. Dow Jones tech giants Apple and Microsoft were higher after today's stock market open.
Other stock market leaders include Alphabet and Meta Platforms. GOOGL stock rose a fraction, while Meta shares dropped 0.4% in early action.
Allegro MicroSystems, Cloudflare, On Holding and Monolithic Power Systems — as well as Dow Jones stocks American Express, Caterpillar and Salesforce — are among the best stocks to watch in the current stock market rally.
Tesla is an IBD Leaderboard stock, while American Express was featured in this Stocks Near A Buy Zone column. On Holdings was a recent IBD Stock Of The Day. Cloudflare was also a recent pick for IBD Stock Of The Day.
Dow Jones Today: Oil Prices, Treasury Yields
After Monday's opening bell, global markets were under moderate pressure following weak second-quarter GDP data out of China. The Dow Jones Industrial Average reversed higher after modest losses, while the S&P 500 rose 0.2%. The tech-heavy Nasdaq composite moved up 0.5% in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust was up 0.5%, while the SPDR S&P 500 ETF gained 0.2% early Monday.
The 10-year U.S. Treasury yield traded at 3.81% Monday morning. On Friday, the 10-year Treasury yield settled at 3.81%, with a big weekly loss.
West Texas Intermediate oil prices pulled back Monday morning, giving back a portion of last week's solid gains. WTI futures traded more than 1% lower, to around $74.50 a barrel.
Stock Market Action
On Friday, the Dow Jones Industrial Average rose 0.3%, while the S&P 500 and Nasdaq composite both reversed slightly lower.
Friday's Big Picture column commented, "Decliners outnumbered advancers by around 3-to-1 on the NYSE and more than 2-to-1 on the Nasdaq. Volume was also mixed. At this stage, the stock market uptrend continues to show resilience. IBD recommends sticking at 80% to 100% exposure, but be ready to take action on any sell signals in case there is a pullback."
Now is an important time to read IBD's The Big Picture column as the stock market is at this year's highs.
Dow Jones Stocks To Watch: American Express, Caterpillar, Salesforce
American Express is trying to break out past a cup-with-handle base's 177.04 buy point. Shares closed further below their buy trigger after a third-straight decline Friday. Second-quarter earnings are due out Friday. AXP stock fell 0.3% Monday morning.
Industrial giant Caterpillar is in buy range past a 250.89 buy point in a cup with handle, according to IBD MarketSmith pattern recognition. CAT stock lost 0.6% early Monday.
Salesforce is in a buy range past a flat base's 225 buy point, according to IBD Leaderboard analysis, following last week's big advance. CRM stock was down 0.2% Monday morning.
Stocks To Buy And Watch: Allegro, Cloudflare, On Holding, Monolithic Power
Allegro MicroSystems surged past a new buy point last week, finishing in a buy area after Friday's 3.2% drop. The buy range runs up from the 48.72 buy point to 51.16. ALGM stock was up 0.8% Monday. The company reports fiscal first-quarter results Aug. 1.
Cloudflare is currently in a consolidation and trades about 7% below a traditional entry point at 72. But Cloudflare stock is actionable at 69.61, its intraday high on July 12 before shares sold off on Microsoft worries. Also, the entry point lines up with a trendline going back to June 2. NET stock moved up 0.2% Monday morning. Second-quarter earnings are due Aug. 3.
On Holding is trying to break out past a 33.68 buy point in a cup with handle, according to IBD MarketSmith pattern recognition. Shares closed just below their entry. If ONON stock retakes the buy point, the 5% buy area will run up to 35.36. ONON stock gained 0.5% Monday morning after TD Cowen started coverage with an outperform rating and a 38 price target.
Chip leader Monolithic Power is still above its 553.64 buy point in a flat base, despite a 2% drop Friday. Shares are in the buy area that goes up to 581.32. MPWR stock rose 0.55% early Monday.
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.
|Correct Buy Point
|Type Of Buy Point
|Cup with handle
Source: IBD Data As Of July 167, 2023
IBD Leaderboard stock Tesla rallied 1.25% Friday, extending a win streak to four sessions. Amid the recent gains, Tesla shares remain sharply out of buy range beyond a double bottom's 207.79 buy point. They hit a new 2023 high on Friday.
TSLA stock looked to extend that win streak, trading up more than 3% Monday. On Saturday, the company announced that it had completed its first Cybertruck at the Austin, Texas plant. Tesla will report its second-quarter results on Wednesday.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock tacked on 0.1% Friday, adding to Thursday's gains. AAPL stock continues to hold sharply above a 157.38 buy point. The tech giant's fiscal third-quarter results are expected on Aug. 3. Early Monday, shares rose 0.9% in morning action.
Microsoft shares found support at their 50-day line last week, placing the stock in a new buy area. The software giant is set to report its earnings results on July 25. And on Monday morning, Microsoft shares were up 0.2%.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.