The Dow Jones Industrial Average dropped Monday, as investors brace for this week's Federal Reserve meeting. Meanwhile, DoorDash jumped after Mizuho Securities upgraded the stock.
Early Monday, Treasury Secretary Janet Yellen commented that the U.S. is seeing lower inflation and that she sees no signs that the economy is in a downturn. The comments came in an interview with CNBC.
The Fed's meeting wraps up Wednesday with a policy statement and new quarterly projections. Chances are that the Fed will not raise its interest rate target after 11 straight increases since early 2022. Wall Street places a 99% chance of holding interest rates steady, per the CME FedWatch Tool.
But the committee likely won't go so far as to remove the risk of additional rate hikes in the foreseeable future. Even so, a pause could be enough to start and tilt the battle between hawks and doves toward the doves.
Key earnings reports this week include AutoZone, Darden Restaurants, FedEx, General Mills and KB Home. And investors will stay closed tuned to the ongoing United Auto Workers strike against General Motors, Ford and Stellantis .
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Food delivery giant DoorDash rallied more than 1% Monday after Mizuho Securities upgraded the stock from neutral to buy, raising the price target from 90 to 105. Dow Jones entertainment leader Walt Disney edged lower in early trade, following an upgrade and price target hike from Raymond James, on the heels of the stock's biggest weekly gain since March.
EV giant Tesla traded down 2.8% Monday morning, while Nvidia briefly dropped more than 3%. Dow Jones tech icons Apple and Microsoft traded mixed, after today's stock market open.
Other stock market leaders include Alphabet and Meta Platforms. GOOGL stock and Meta shares both inched lower in early action.
Airbnb, Amazon, IBD Leaderboard stock Quanta Services and Shopify — as well as Dow Jones stocks Caterpillar and Intel — are among the best stocks to watch in the struggling stock market uptrend.
Quanta is an IBD Leaderboard stock and was featured in this Stocks Near A Buy Zone column. Airbnb was IBD's Stock of the Day on Wednesday.
Dow Jones Today: Oil Prices, Treasury Yields
After Mondays opening bell, the Dow Jones Industrial Average dropped 0.1%, while the S&P 500 was up less than 0.1%. The tech-heavy Nasdaq composite rose 0.15% in morning trade.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust was up 0.15%, while the SPDR S&P 500 ETF was up 0.1% early Monday.
Early action Monday also showed the 10-year U.S. Treasury yield at 4.33%, just off its 52-week high, set to add to last week's gains.
Also, oil prices continue to set new 2023 highs as West Texas Intermediate futures rose around 0.5% in morning action. WTI futures traded above $91 a barrel Monday.
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Stock Market Struggles
On Friday, the Dow Jones Industrial Average lost 0.8%, while the S&P 500 gave up 1.2%. The tech-heavy Nasdaq composite sold off 1.6%.
Friday's Big Picture column commented, "The Dow Jones Industrial Average held up best out of the major indexes but still skidded 0.8%. Despite turning in a fractional weekly gain, it reversed back below its 50-day line. Microsoft was the worst performer on the blue chip index, while Disney fared best."
Now is an important time to read IBD's The Big Picture column as the stock market looks to rebound from recent losses.
Dow Jones Stocks: Caterpillar, Intel
Dow Jones leader Caterpillar continues to build a new flat base that has a 293.88 buy point, according to IBD MarketSmith pattern recognition. Shares slipped Friday, moving down 1.2% and ending about 5% away from the new entry. CAT stock dipped 0.1% Monday morning.
Chip giant Intel remains in the 5% buy range past a 37.19 flat-base entry, despite a 2% drop Friday. INTC stock moved down nearly 1% Monday.
4 Top Growth Stocks To Buy And Watch In The Stock Market Rally
Stocks To Watch: Airbnb, Amazon, Quanta, Shopify
Wednesday's IBD Stock Of The Day, Airbnb, is tracing a cup-with-handle base with a buy point of 151.16. ABNB stock dropped 0.7% Monday morning.
E-commerce giant Amazon is back below a 143.63 buy point in a flat base following a short-lived breakout move last week. AMZN stock climbed 0.8% early Monday.
IBD Leaderboard stock Quanta Services finished Friday back below a 206.43 buy point in a short consolidation, according to IBD MarketSmith. Shares are also below their 50-day support level, a key area to watch. PWR stock was slightly lower Monday morning.
Shopify shares are adding a handle to a cup base, taking the buy point to 67.60. They are trying to rebound from support around their key 50-day line. SHOP stock moved down a fraction in morning trade Monday.
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Best Stocks In Today's 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 |
|---|---|---|---|
| Amazon | 143.63 | Flat base | |
| Caterpillar | 293.88 | Flat base | |
| Airbnb | 154.95 | Cup base | |
| Shopify | 67.60 | Cup base |
Source: IBD Data As Of Sept. 18, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock declined 0.6% Friday, ending a two-day win streak. Still, the stock ended with an over-10% weekly advance. Shares remain squarely above an early entry at 261.18. And TSLA stock has a 299.29 official cup-base buy point, but could look to add a handle.
On Monday morning, TSLA stock dropped almost 3%, threatening to add to Friday's losses.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock dropped 0.4% Friday, finishing near its recent lows. Despite the recent weakness, AAPL stock is building a flat base with a 198.23 buy point, but is falling further below the 50-day line. AAPL stock advanced 1.5% early Monday.
Microsoft shares sold off 2.5% Friday, ending back below the 50-day line. MSFT stock is trying to move up the right side of a cup base that has a 366.78 buy point. And on Monday morning, the stock lost 0.7%.
Be sure to follow Scott Lehtonen on X/Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
