Dow Jones futures were lower ahead of Tuesday’s open, along with S&P 500 futures and Nasdaq 100 futures, in overnight trade. Tesla stock surged above a buy point Monday, while Apple (AAPL) is in focus before Tuesday’s iPhone 15 event.
The stock market’s uptrend remains challenged this week, as key inflation reports take center stage with the August reading for the Consumer Price Index due Wednesday. CPI is seen rising 3.6% year-over-year while core CPI is expected to pop 4.3%. Producer Price Index data is due the following day.
U.S. retail sales are set to be released Thursday, with economists expecting them to rise 0.1% year-over-year. This report will offer crucial clues into the current health of the U.S. consumer.
Oracle (ORCL) reported mixed results late Monday, sending shares down 5% in extended trade. Oracle shares closed Monday just 1% away from a 127.54 cup-base entry.
Stock Market Today: Dow Jones Rises
On Monday, the Dow Jones Industrial Average rose 0.25%, while the S&P 500 climbed 0.7%. The tech-heavy Nasdaq composite rallied 1.1%.
Electric-vehicle giant Tesla (TSLA) traded up 10% Monday, while Nvidia (NVDA) slipped 0.9%. Dow Jones tech icons Apple (AAPL) and Microsoft (MSFT) ended higher in today’s stock market, closing up 0.7% and 1.1%, respectively.
Adobe (ADBE), Amazon (AMZN), Netflix (NFLX) and Shopify (SHOP) — as well as Dow Jones stocks Caterpillar (CAT), Intel (INTC) and Visa (V) — are among the best stocks to watch in the struggling stock market uptrend.
Dow Jones Today: Oil Prices, Treasury Yields
Ahead of Tuesday’s opening bell, Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, were down about 0.15% 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 4.28%. Oil prices fell modestly, still holding near their 2023 highs. West Texas intermediate futures settled above $87 a barrel.
Stock Market Rally Attempt: What To Do Now
Now is an important time to read IBD’s The Big Picture column, with the major stock indexes struggling to regain traction after last week’s losses.
The IBD current outlook still calls for a recommended stock market exposure of 20% to 40%, but that’s only if your recent purchases are holding up. Right now, it makes sense to move back into defense until the overall environment improves.
Keep an eye out for leading stocks during a volatile market environment.
One way to do this is by using the relative strength line. The RS line measures a stock’s price performance vs. the S&P 500. Look for stock charts in which the line is trending upward, which means the stock is outperforming the S&P.
The RS line is in all IBD charts and IBD MarketSmith. In addition, the IBD Stock Screener includes a list of top-rated stocks with lines at new highs. MarketSmith also has the “RS Blue Line Dot” list, which screens for RS lines at new highs.
Two useful MarketSmith lists to check right now are “Breaking Out Today” and “Near Pivot.” The latter shows stocks nearing buy points in bases, and the other flags stocks rising past buy points during the session.
Dow Jones Stocks: Caterpillar, Intel, Visa
Dow Jones leader Caterpillar is approaching a new flat base’s 293.88 buy point after strong gains since early June. CAT stock edged lower Monday, just 4% away from the latest buy point.
Chip giant Intel is in buy range past a 37.19 flat-base entry, after last week’s breakout move.
And Dow Jones payments leader Visa is still above its latest entry, a flat base’s 245.37 buy point, according to IBD MarketSmith pattern recognition.
Stocks To Watch: Adobe, Amazon, Netflix, Shopify
IBD Leaderboard stock Adobe is in buy range past a 552.94 buy point in a short consolidation amid recent gains. Shares are in the 5% buy area, according to IBD MarketSmith. Adobe announces its fiscal third-quarter results on Thursday.
E-commerce giant Amazon is approaching a 143.63 buy point in a flat base. Shares are in a new buy area, as they rebound from their 50-day line and move above a trendline entry just below 140. The IBD SwingTrader stock rose 3.5% Monday.
Streaming giant Netflix continues to build a cup base with a 485 buy point. An early entry at last week’s high of 453.45 is also in play.
Shopify shares are adding a handle to a cup base, taking the buy point to 67.60. They are rebounding from support around their key 50-day line.
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|
Source: IBD Data As Of Sept. 11, 2023
Tesla stock surged 10% Monday after Morgan Stanley upgraded Tesla stock from hold to buy, with a Wall Street high price target of 400, up from 250.
Morgan Stanley analyst Adam Jonas wrote, “The autonomous car has been described as the mother of all AI projects. In its quest to solve for autonomy, Tesla has developed an advanced supercomputing architecture that pushes new boundaries in custom silicon and may put Tesla at an asymmetric advantage in a $10 trillion total addressable market.”
Shares jumped above a recent high of 261.18, which was an early entry. And TSLA stock has a 299.29 official buy point.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock rebounded for a second session Monday, still below its 50-day line after last week’s sharp losses. Despite the recent weakness, AAPL stock is building a flat base with a 198.23 buy point.
Apple plans to introduce its iPhone 15 family Tuesday and may also debut its Apple Watch Series 9. The iPhone 15 Pro models will include more technology upgrades and could see price increases over the current iPhone 14 Pro. The top-of-the-line Pro Max model is said to include an upgraded camera with a periscope lens for greater optical zoom capability.
Microsoft shares are moving further above their 50-day line, with a 1.1% rise Monday. Shares are rallying up the right side of a cup base that has a 366.78 buy point.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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