The Dow Jones Industrial Average and other major stock indexes were mixed in morning action Tuesday, as investors digested comments from key Federal Reserve speakers. One company on the negative side was artificial intelligence leader Palo Alto Networks, which dropped on the stock market today after filing its earnings report.
After the opening bell, the Dow Jones Industrial Average rose 0.1%, while the S&P 500 lost 0.1%. The tech-focused Nasdaq composite dropped 0.2% in morning action.
Early Tuesday, the 10-year Treasury yield ticked lower to 4.41%. Further, oil prices declined as West Texas Intermediate futures traded around $78.70 a barrel.
Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust ETF was down 0.2%, while the SPDR S&P 500 ETF edged lower.
Stock Market Today
Cybersecurity stock Palo Alto plunged more than 5% in morning trading after the company reported fiscal third-quarter earnings and revenue late Monday. Palo Alto modestly beat Wall Street targets while billings again missed amid slowing growth in its core network firewall market.
Other key earnings movers Tuesday include AutoZone, Lowe's, Macy's and Zoom Video Communications.
AutoZone shares dropped 2% in morning action, while Lowe's stock lost more than 2%. Macy's stock moved up 1.1% in early trading. And Zoom stock fell 1.8%.
The economic calendar lightens up Tuesday, but Wall Street will be focused on speeches from Thomas Barkin, John Williams and Raphael Bostic Monday morning. All three are Fed bank presidents.
Then, on Wednesday, the Fed minutes for May are due. Investors will be looking for further clues into the thoughts of Chairman Jerome Powell and other central bankers on the future path of interest rates.
Be sure to read how to adjust to changing market conditions, with IBD's new exposure levels.
Dow Jones Falls
On Monday, the Dow Jones Industrial Average moved down 0.5% and the S&P 500 rose 0.1%. The tech-heavy Nasdaq composite climbed 0.7%.
Investor's Business Daily's Big Picture column on Monday said, "The technology sector led the Nasdaq composite to another record high Monday, while a spate of breakouts among high-quality stocks gave the stock market more ammunition for buyers."
During Monday's IBD Live show, the IBD Live team discussed the current trading conditions and how investors should handle the ongoing stock market rally.
Now is an important time to read The Big Picture column amid the ongoing stock market action. Also, be sure to read how to adjust to changing market conditions, with IBD's new exposure levels.
Learn How To Time The Stock Market With IBD's ETF Market Strategy
Stock Market Today: Best Stocks To Watch
Robinhood Markets, PDD, Taiwan Semiconductor Manufacturing, Trade Desk and Tradeweb Markets — plus Dow Jones components JPMorgan Chase and Merck — are among the best companies to watch on the stock market today.
Microsoft and Trade Desk are featured in this Stocks Near A Buy Zone column.
An essential resource for daily breakouts is IBD MarketSurge's "Breaking Out Today" list. It shows MarketSurge Growth 250 stocks that are breaking out past new buy points. Notably, Abercrombie & Fitch broke out past a consolidation's 140.28 buy point. Check out the MarketSurge "Near Pivot" list for more stocks nearing buy points in bases.
To find more stock ideas, check IBD Stock Lists like IBD 50, Big Cap 20 and Stocks Near A Buy Zone. These features identify bullish patterns and buy points and are available to check every day.
Get Real-Time Buy And Sell Alerts On Stock Market Leaders With IBD Leaderboard
Dow Jones: JPMorgan, Merck
JPMorgan gave up its flat base's 200.94 entry during Monday's decline of 4.5%. Shares bounced 0.8% on the stock market today.
Drug giant Merck is building a flat base that has a 133.10 entry. The stock added 0.6% Tuesday morning.
4 Top Growth Stocks To Watch In The Stock Market Today
Outside the Dow Jones index, Temu-parent PDD is breaking out past a cup-with-handle's 142.32 buy point, according to IBD MarketSurge. PDD shares lost 0.6% after the open on Tuesday.
Robinhood Markets rallied 3.7% Monday, breaking out past a 20.55 buy point in a cup base. Shares fell 0.3% Tuesday.
Chipmaker Taiwan Semiconductor is in buy range above a 148.43 buy point in a double-bottom base in the wake of strong recent gains. The stock dipped 0.3% Tuesday.
Trade Desk climbed 2.9% Monday, further above a 94 entry in a consolidation. Trade Desk lost 1.2% Tuesday morning.
Tradeweb is squarely in its buy range past a flat base's 108.04 buy point, with a 1.8% drop Monday. The stock inched higher Tuesday.
Find The Best Stocks To Buy And Watch With IBD Stock Screener And IBD Screen Of The Day
Stock Market Today: Companies To Watch
These are four stocks in or near buy zones in today's stock market.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| American Express | 231.69 | Consolidation | |
| Texas Roadhouse | 157.12 | Flat base | |
| Chipotle | 3,023.98 | Consolidation | |
| Tradeweb Markets | 108.04 | Flat base |
Source: IBD Data As Of May 6, 2024
Join IBD experts as they analyze leading stocks in the stock market today on IBD Live
Magnificent Seven Stocks: Nvidia, Tesla
Among Magnificent Seven stocks, Nvidia fell 1.1%, while Tesla rose 2.4% Tuesday morning.
Nvidia stock rallied further above the 50-day line Monday. Shares of the AI giant are above a handle buy point at 922.20. It also is an IBD Leaderboard stock.
Nvidia earnings are due out Wednesday after the market closes. Analysts polled by FactSet expect the graphics-chip maker to earn an adjusted $5.60 a share, up 414% year over year, on sales of $24.59 billion, up 242% in the quarter ended April 28. That would mark its fourth straight quarter of triple-digit percentage growth in sales and earnings.
Tesla stock ended a two-day win streak Monday. Shares are trying to find support around their 50-day line.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks in the Magnificent Seven, Apple and Microsoft traded mixed after Tuesday's stock market open.
Apple stock added 0.6% Monday, extending a win streak to six sessions. Shares are forming a cup base that has a 199.62 buy point, but keep an eye out for a potential handle to offer a lower entry. The stock was up 0.7% Tuesday morning.
Microsoft shares moved up 1.2% Monday, moving closer to a flat base's 430.82 buy point. And Microsoft stock rose 0.5% Tuesday.
Be sure to follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on growth stocks, the Dow Jones Industrial Average and the stock market today.
