Dow Jones futures were lower ahead of Tuesday's open after the Dow Jones Industrial Average extended a losing streak Monday. Apple shares sold off for a fourth straight session and are approaching new lows, while Tesla stock hit a fresh 52-week low amid Chief Executive Elon Musk's Twitter poll.
Late Monday, Heico rallied 1.5% after the company's earnings and sales numbers topped analyst estimates. More earnings reports this week include General Mills, Micron Technology and Dow Jones stock Nike.
Stock Market Today
On Monday, the Dow Jones Industrial Average fell 0.5%, or 163 points, and the S&P 500 lost 0.9%. The tech-heavy Nasdaq composite sold off 1.5%. Among exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust moved down 1.6% and the SPDR S&P 500 fell 0.85%.
Electric-vehicle giant Tesla traded down 0.2% Monday. Among Dow Jones stocks, Apple lost 1.6 % and Microsoft declined 1.7% in today's stock market.
IBD Leaderboard stock Neurocrine Biosciences, KLA, O'Reilly Automotive and United Rentals — as well as Dow Jones names Caterpillar, Home Depot and UnitedHealth Group — are among the top stocks to consider for investor watchlists.
Neurocrine and United Rentals are IBD Leaderboard stocks. UnitedHealth was featured in last week's Stocks Near A Buy Zone column. Caterpillar and United Rentals were recent IBD Stock Of The Day companies.
4 Top Growth Stocks To Buy And Watch In The Current Stock Market Rally
Dow Jones Futures Today: Oil Prices
Ahead of Tuesday's opening bell, Dow Jones futures lost 0.1% vs. fair value, while S&P 500 futures fell 0.2%. Tech-heavy Nasdaq 100 futures declined 0.4% 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.
The 10-year Treasury yield jumped to 3.58% Monday, its highest level since Dec. 12. U.S. oil prices rose about 2% Monday, ending a two-day losing streak. West Texas Intermediate futures traded at $76 a barrel.
What To Do In The Struggling Stock Market Rally
Now is an important time to read IBD's The Big Picture column with the stock market trend back at "uptrend under pressure."
Even though the Nasdaq and S&P 500 indexes remain in uptrends, the stock market rally is under increasing pressure amid sharp losses over the last few trading sessions. That means investors should consider cutting back their already reduced exposure. It's clear that defense is the priority over buying breakouts in the current market.
Still, it's a good time to find out which stocks will shrug off the stock market volatility. As IBD readers know, stocks that hold up the best during weak markets can become big winners in the future when the market turns around.
An easy way to gauge a stock's strength is to use the relative strength line. The RS line compares a stock's price action to that of the S&P 500. A rising line tells you the stock is outperforming the benchmark index. Even if a stock falls in price, if the S&P 500 falls harder, the stock's RS line still rises.
(Check out IBD Stock Lists like the IBD 50 and Stocks Near A Buy Zone, for stock ideas.)
Five Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Watch: Caterpillar, Home Depot, UnitedHealth
Dow Jones member Caterpillar is moving closer to a flat base's 238 buy point, according to IBD MarketSmith pattern recognition, in the wake of Monday's 0.2% fall. CAT stock shows a strong 97 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup.
Home improvement retailer Home Depot ended Monday further below a cup-with-handle base's 329.77 buy point following the session's 1.9% drop.
Health care giant UnitedHealth Group is tracing a flat base with a 558.20 buy point. Shares gave up their 50-day support level last week, but are holding their 200-day line for now.
Top Stocks To Watch: KLA, Neurocrine, O'Reilly, United Rentals
Chip equipment leader KLA has been mostly holding up amid the market weakness, and is about 3% under a cup-with-handle's 392.60 entry after Monday's 0.5% loss.
IBD Leaderboard stock Neurocrine is attempting to find support at its 50-day level amid a two-week losing streak. A strong rebound would be bullish for the stock's immediate prospects and would likely lead to the formation of a new base. Meanwhile, a sharp breach could mean the stock needs more time to consolidate. NBIX stock rallied 0.6% Monday.
O'Reilly Automotive also pulled back to its 50-day line last week, where it found much-needed support Monday, with a 0.6% climb. A big rebound off the 50-day line could bring a follow-on entry point, but the market uptrend is under pressure right now, which increases the risk of buying stocks. Shares remain squarely above a 750.98 flat-base entry.
United Rentals is holding just below a 368.04 buy point in a cup-with-handle pattern. Shares are about 5% below the buy point, and further weakness would trigger the 7%-8% loss rule. URI stock declined 0.6% Monday.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock fell as much as 2.9% Monday before slashing losses to just 0.2%. TSLA stock hit a new 52-week low at 145.82.
Over the weekend, CEO Elon Musk launched a Twitter poll, tweeting "Should I step down as head of Twitter? I will abide by the results of this poll." The poll closed with 57.5% saying he should leave as head of the company. Meanwhile, Oppenheimer downgraded the stock from outperform to perform.
On Monday, TSLA stock hit its lowest level since November 2020. Shares closed about 63% off their 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares sold off 1.6% Monday, hitting their lowest level since mid June. AAPL stock finished just off its 52-week low, which was set on June 16 at 129.04. The stock is around 27% off its 52-week high.
Microsoft declined 1.7% Monday, as shares looked to find support around their 50-day line amid a three-day losing streak. The software giant remains about 30% off its 52-week high.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
