The Dow Jones Industrial Average rallied as much as 300 points Monday, as China-based Tesla rival Xpeng Motors soared on news it plans to buy the smart vehicle unit of ride-hailing app Didi Global.
Xpeng Motors surged 5.5% Monday morning after the company said it is buying Didi's smart electric car development business in a deal worth up to $744 million. XPEV shares are rebounding from their 50-day line after a big advance in recent months.
On the markets front, Friday's jobs report will take center stage heading into the final week of August. A solid report for the month would not assure a rate hike. But a surprisingly soft report — with payroll gains closer to 100,000 — would likely take a hike off the table. Meanwhile, the Commerce Department's July personal income and spending data comes out Thursday.
And several software stocks also are on the earnings calendar, including MongoDB Nutanix and Samsara, along with security software stocks CrowdStrike and Okta.
Stock Market Today
Electric-vehicle giant Tesla traded up 0.5% Monday, while Nvidia fell 1.5%. Dow Jones tech icons Apple and Microsoft were modestly higher after today's stock market open.
Other stock market leaders include Alphabet and Meta Platforms. GOOGL stock gained 1% while Meta shares rose 0.6% in early action.
Baker Hughes, Fastly, Oracle and Tidewater — as well as Dow Jones stocks Merck and Visa — are among the best stocks to watch in the ongoing stock market correction.
Baker Hughes is an IBD Leaderboard watch list stock.
Dow Jones Today: Oil Prices, Treasury Yields
After Monday's opening bell, the Dow Jones Industrial Average rose 0.7%, while the S&P 500 climbed 0.6%. The tech-heavy Nasdaq composite gained 0.6% in morning action.
Global markets traded higher, with European bourses holding in positive territory despite hawkish rate-hike comments in Jerome Powell's Jackson Hole speech Friday. China's markets rallied early, after a series of market support measures by regulators. But sellers swept in and dragged markets well off their early highs, leaving Hong Kong's Hang Seng Index up less than 1% and the Shanghai composite with a 1.1% gain.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust was up 0.7%, while the SPDR S&P 500 ETF rose 0.5% early Monday.
Also on Monday, the 10-year U.S. Treasury yield ticked lower to 4.2% Monday after modest losses last week.
West Texas Intermediate oil prices were little changed in morning trade Monday, following a two-day bounce. WTI futures held right around the $80-a-barrel mark.
Stock Market Action
On Friday, the Dow Jones Industrial Average rebounded 0.7%, while the S&P 500 also reversed from early losses to gain 0.7%.
Friday's Big Picture column commented, "The Nasdaq composite managed to reverse higher to end the session up 0.9%. It also netted a weekly gain of more than 2%. Nevertheless, it remains below the key 50-day moving average. The tech-heavy index is now up almost 31% so far in 2023."
Now is an important time to read IBD's The Big Picture column as the stock market tries to stabilize after a sharp pullback from this year's highs.
Five Best Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks: Merck, Visa
Drug giant Merck fought to stay above its 50-day line with a 0.7% rise on Friday. MRK stock is tracing a flat base with a 119.65 buy point and a 115.61 early entry. Shares inched lower early Monday.
And Dow Jones payments leader Visa continues to hold in a buy range past a 235.57 flat-base buy point, according to IBD MarketSmith pattern recognition. Meanwhile, another entry is available, with the stock forming another flat base that has a 245.37 entry. V stock gained 0.2% Monday.
4 Top Growth Stocks To Buy And Watch In The Stock Market Correction
Stocks To Watch: Baker, Fastly, Oracle, Tidewater
Oilfield services and equipment leader Baker Hughes has been trading tightly the past five weeks and has a buy point at its 2023 high of 36.48, according to IBD MarketSmith. BKR stock edged higher in early morning trade.
Software leader Fastly broke out past an ascending base's 21.54 buy point on Friday, rallying nearly 8%. Shares are in the 5% buy area, but the market correction should keep investors on the sidelines. FSLY stock traded up 2.6% in early trade.
Oracle continues to trace a flat base with a 127.54 buy point. An early entry at 118.06 is also in play, as the software leader holds below the 50-day line. ORCL stock rose 0.8% in morning trade.
IBD Leaderboard stock Tidewater is rebounding from support around its 10-week line, placing the energy leader in a new buy area. TDW stock was up 0.1% early Monday.
Learn How To Time The Market With IBD's ETF Market Strategy
Best Stocks In 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 |
|---|---|---|---|
| Oracle | 127.54 | Flat base | |
| Visa | 235.57 | Flat base | |
| SLB | 58.70 | Cup with handle | |
| Fastly | 21.54 | Ascending base |
Source: IBD Data As Of Aug. 28, 2023
Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live
Tesla Stock
Tesla stock rallied 3.7% Friday, rebounding from Thursday's skid. Shares remain well below their 50-day line. Amid the recent spate of selling, it's clear that the stock requires more time to consolidate before a new entry emerges. Wait for a decisive move back above the 21- and 50-day moving averages before considering a new purchase of TSLA stock.
Early Monday, Tesla stock looked to add to Friday's gain, rising around 0.5%.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock climbed 1.3% Friday, recovering a part of Thursday's sell-off. The stock remains squarely below the 50-day line following sharp losses in recent weeks. AAPL stock rose 0.5% early Monday.
Microsoft shares also are trying to rebound from their recent lows, but the stock needs more time to consolidate before a new buy point emerges. The stock remains below its 21- and 50-day lines, so there isn't a buy signal yet. And on Monday morning, the stock moved up 0.6%.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
