Dow Jones futures were lower ahead of Tuesday's open after the Dow Jones Industrial Average rose 26 points Monday. Tesla stock skidded after the company again cut prices in China on two Model Y vehicle trims, threatening to restart an EV price war.
On the economic front this week, July retail sales on Tuesday will be closely watched, after June's report showed a smaller-than-expected increase as sales slowed for service stations and building materials stores. Home building markets get a solid dose of data, with builder sentiment from the National Association of Homebuilders on Tuesday and the Commerce Department's July housing starts and permits on Wednesday.
Meanwhile, minutes from the Federal Reserve's latest policy meeting are out Wednesday afternoon.
Retail earnings take the spotlight this week, with results from Dow Jones names Walmart and Home Depot. Outside of retail, Cardinal Health Cisco Systems, On Holding and Palo Alto Networks will be several names to watch.
Stock Market Today: Dow Jones Rises
On Monday, the Dow Jones Industrial Average rose 0.1%, while the S&P 500 gained 0.6%. The tech-heavy Nasdaq composite finished up 1.05%.
EV giant Tesla skidded 1.2% on Monday. On the upside, Nvidia surged more than 7% to regain its 50-day line in bullish fashion. Dow Jones tech giants Apple and Microsoft finished higher in today's stock market action, with AAPL stock and Microsoft both rising nearly 1%.
Costco Wholesale, Expro, SLB and MercadoLibre — as well as Dow Jones stocks Boeing, Intel and Visa — are among the best stocks to watch as the market's uptrend comes under increasing pressure.
Costco and Tesla are IBD Leaderboard stocks, while Boeing and SLB were recent IBD Stock Of The Day picks. Costco featured in this Stocks Near A Buy Zone column. SLB is also an IBD SwingTrader stock.
Dow Jones Today: Oil Prices, Treasury Yields
Ahead of Tuesday's opening bell, Dow Jones futures lost 0.6% vs. fair value, while S&P 500 futures dropped 0.55%. Nasdaq 100 futures fell 0.5% vs. fair value. Remember that overnight action in Dow Jones futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
On Monday, the 10-year U.S. Treasury yield ticked higher to 4.18%. Oil prices slipped 1%, still near their 2023 highs. West Texas Intermediate futures settled near $83 a barrel.
Stock Market Action: What To Do Now
Now is an important time to read IBD's The Big Picture column, with the major stock indexes pulling back from their 2023 highs.
Amid the recent weakness, IBD is recommending investors to hold exposure at the 60% to 80% level. Keep alert to any sell signals in your portfolio, such as round-trips or breaches of the 50-day moving average.
Five Best Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks: Boeing, Intel, Visa
Aerospace giant Boeing broke out in recent weeks, topping a 223.91 flat-base entry. Shares are just out of the 5% buy area that went up to 235.11.
Chip giant Intel continues to etch a handle onto a cup base, offering a 37.19 buy point. Shares are about 4% away from their latest entry, with a 2.3% rally Monday.
Finally, Dow Jones payments leader Visa continues to hold in buy range past a 235.57 flat-base buy point, according to IBD MarketSmith pattern recognition.
4 Top Growth Stocks To Watch In The Stock Market Rally
Stocks To Watch: Costco, Expro, SLB, MercadoLibre
Offshore drilling services provider Expro is trying to break out past a cup with handle's 23.72 buy point, according to IBD MarketSmith pattern recognition.
IBD SwingTrader stock SLB, formerly known as Schlumberger, is breaking out past a 58.70 buy point in a cup with handle. Shares are in the buy area that tops out at 61.64.
MercadoLibre jumped last week to break out past a cup base's 1,365.64 buy point. But MELI stock is under the buy point, as it dropped another 2.5% Monday.
In IBD Leaderboard, Costco was a new half-size position Thursday. The megacap retailer is approaching a handle entry at 571.16, but it's already surpassed a mini trendline near 559-560.
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 |
|---|---|---|---|
| MercadoLibre | 1,365.64 | Cup base | |
| Visa | 235.57 | Flat base | |
| SLB | 58.70 | Cup with handle | |
| Costco | 571.16 | Cup with handle |
Source: IBD Data As Of Aug. 14, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
IBD Leaderboard stock Tesla skidded another 1.2% Monday, closing further below its 50-day line. Amid the continued selling, it's clear that the stock requires more time to consolidate before a new entry.
On Sunday, Tesla announced prices in China for the Model Y Long Range and Performance variants have been reduced by RMB14,000 ($1,930). This represents about a 4% price cut, Tesla's third Model Y price trim in China. Tesla left prices for its base Model Y, the most popular variant in China, unchanged.
Chinese rivals Li Auto and Nio slid 1.3% and 2.95%, respectively.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock climbed 0.9% Monday, ending a three-day losing streak. The stock remains squarely below the 50-day line following sharp losses in recent weeks.
Microsoft shares remain squarely below their 50-day line, a sign the stock needs more time to consolidate before a new buy point emerges.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
