Dow Jones futures were lower ahead of Tuesday's open after the Dow Jones Industrial Average climbed 76 points Monday. Tesla stock hit a 2023 high after the company announced that it had completed its first Cybertruck at the Austin, Texas plant. Meanwhile, telecom giants AT&T and Verizon Communications plunged on reports of lead-sheathed cables installed in phone networks.
On the economic calendar, June retail sales data, out 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 morning. United Airlines and Delta Air Lines also report, along with Dow Jones names like Goldman Sachs and Johnson & Johnson.
Stock Market Today: Dow Jones Rises
On Monday, the Dow Jones Industrial Average rose 0.2%, while the S&P 500 gained 0.4%. The tech-heavy Nasdaq composite climbed 0.9%.
AT&T shares dived 6.7%, while VZ stock plunged 7.5%, as the sell-off in telecom stocks continued Monday. Last week, The Wall Street Journal reported telecom companies installed potentially dangerous lead-covered cables overhead on poles, in soil and underwater. They will likely need to take steps to make areas environmentally safe, the Journal said.
EV giant Tesla rallied 3.2% on Monday. Dow Jones tech giants Apple and Microsoft finished mixed in today's stock market action, with AAPL stock up 1.7% and Microsoft only up 0.1%.
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.
Dow Jones Today: Oil Prices, Treasury Yields
Ahead of Tuesday's opening bell, Dow Jones futures inched lower vs. fair value, while S&P 500 futures lost 0.1%. Nasdaq 100 futures dropped 0.15% vs. fair value. Remember that overnight action in Dow 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 lower to 3.79%. Oil prices pulled back nearly 2% Monday, falling from their recent highs. West Texas Intermediate futures traded just above $74 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 at their 2023 highs.
As the stock market holds at this year's highs, IBD's recommended exposure level sits at 80% to 100%. However, investors should take care when adding exposure, taking stock of current market levels and increasing at a measured pace. It is also key to remain nimble in case there is another pullback.
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 are still below their buy trigger, even after a 1.2% rise Monday. Second-quarter earnings are due out Friday.
Industrial giant Caterpillar is in buy range past a 250.89 buy point in a cup with handle, according to IBD MarketSmith pattern recognition.
Salesforce is in a buy range past a flat base's 225 buy point, according to IBD Leaderboard analysis. CRM stock fell 0.6% Monday, still above the entry.
Best Stocks To Buy And Watch: Allegro, Cloudflare, On Holding, Monolithic Power
Allegro MicroSystems surged past a new buy point last week, finishing just of the buy area after Monday's 4.2% rally. The buy range ran up from the 48.72 buy point to 51.16. The company reports fiscal first-quarter results Aug. 1.
Cloudflare is currently in a consolidation and trades about 1% below a traditional entry point at 72. But Cloudflare stock was 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. Second-quarter earnings are due Aug. 3.
On Holding is again breaking out past a 33.68 buy point in a cup with handle, according to IBD MarketSmith pattern recognition. Shares closed in the 5% buy area that runs up to 35.36. ONON stock rallied 6.4% Monday after TD Cowen started coverage with an outperform rating and a 38 price target.
Chip leader Monolithic Power moved beyond the 5% buy range past a 553.64 buy point in a flat base, rallying 4.2% 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
Source: IBD Data As Of July 17, 2023
IBD Leaderboard stock Tesla rallied 3.2% Monday, extending a win streak to five 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 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 1.7% Monday, moving up for a fourth-straight session. 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.
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, Microsoft shares were up 0.1%, closing just off their 2023 highs.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.