The Dow Jones Industrial Average fell Tuesday after weak economic data out of China. U.S. oil prices jumped after Saudi Arabia and Russia extended their production cuts. Meanwhile, Tesla stock was in focus after news the electric-vehicle giant's August China sales jumped.
Late Monday, a private survey of business activity in China's services sector for August dropped to its lowest level in eight months.
"The slowdown in business activity coincided with a weaker increase in overall new business. New orders increased modestly, and at a pace that was below the average seen for 2023 to date," Caixin Media and S&P Global said in a press release.
Corresponding data from S&P Global showed Eurozone growth in August declining at its fastest rate in nearly three years.
U.S. economic news Tuesday is scarce, with the Commerce Department's factory orders falling 2.1% in July. They were expected to fall 2.6% in July vs. June's 2.3% rise.
Meanwhile, key earning reports out late Tuesday include AeroVironment, Asana, GitLab and Zscaler.
Dow Jones Today: Oil Prices, Treasury Yields
After Tuesday's opening bell, the Dow Jones Industrial Average lost 0.2%, while the S&P 500 fell 0.3%. Tech-heavy Nasdaq composite moved down 0.35% in morning action.
China's markets slumped after the weak August services data. Hong Kong's Hang Seng Index ended down 2.1%. Markets in Europe were tightly mixed.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust was down 0.3%, while the SPDR S&P 500 ETF traded down 0.1% early Tuesday.
Early action Tuesday also showed the 10-year U.S. Treasury yield at 4.25%, and looking to add to Friday's jump.
Last week, West Texas Intermediate oil prices broke above early August highs to their strongest level in nine months. WTI futures raced higher Tuesday morning, rising more than 2% to trade above $87 a barrel. Early Tuesday, Saudi Arabia and Russia extended their production cuts until the end of the year.
Stock Market Trend
On Friday, the Dow Jones Industrial Average rose 0.3%, while the S&P 500 moved up 0.2%. The tech-heavy Nasdaq composite edged lower.
Friday's Big Picture column commented, "Longtime IBD readers know that when the major averages trade above their 10-week lines — or 50-day moving averages on the daily charts — then individual investors stand a much better chance of making money in growth stocks."
Now is an important time to read IBD's The Big Picture column as the stock market tries to extend its recent gains after a sharp pullback from this year's highs.
Tesla Stock
EV giant Tesla traded up more than 3% Tuesday.
On Monday, Tesla sold 84,159 China-made EVs in August, a 9.3% rise from a year earlier, according to data from the China Passenger Car Association. Sales of China-made Model 3 and Model Y cars surged nearly 31% vs. July.
Tesla stock dived more than 5% Friday, closing sharply below its 50-day line after finding stout resistance there. Still, investors could use Thursday's high of 261.18 as an early entry. And TSLA stock has a 299.29 official buy point.
Five Best Dow Jones Stocks To Buy And Watch Now
Stock Market Today
Nvidia dropped nearly 1% while Dow Jones tech icons Apple and Microsoft were mixed after today's stock market open.
Other stock market leaders include Alphabet and Meta Platforms. GOOGL stock dipped 0.6% and Meta shares rose 0.5% in early action.
Adobe, Baker Hughes, Cadence Design Systems, Shopify and0.3 Synopsys — as well as Dow Jones stocks IBM, Merck and Visa — are among the best stocks to watch in the ongoing stock market rebound.
Adobe is an IBD Leaderboard stock. Merck is featured in this Stocks Near A Buy Zone column.
Dow Jones Stocks: IBM, Merck, Visa
Dow Jones leader IBM is breaking out past a cup-with-handle's 146.50 buy point. IBM stock edged higher Tuesday, after a solid rise Friday.
Drug giant Merck continues to hold near its 50-day line, with a 0.8% rise Friday. MRK stock is tracing a flat base with a 119.65 buy point and a 115.61 early entry. Shares were slightly lower early Tuesday.
And Dow Jones payments leader Visa is breaking out past its latest entry, a flat base's 245.37 buy point, according to IBD MarketSmith pattern recognition. V stock dropped 0.9% Tuesday.
4 Top Growth Stocks To Buy And Watch In The Stock Market Rally
Stocks To Watch: Adobe, Baker, Cadence, Shopify, Synopsys
IBD Leaderboard stock Adobe is breaking out past a 552.94 buy point in a short consolidation amid a six-day win streak. ADBE stock fell 0.5% early Tuesday.
Oil field services and equipment leader Baker Hughes cleared a 36.48 buy point in a tight pattern, according to IBD MarketSmith. BKR stock moved up 1.7% in early morning trade.
Cadence Design Systems is in a flat base with a 248.16 buy point. Shares moved above an early entry at 237.91 last week and are about 2% away from their next entry. CDNS was off 1.2% Tuesday.
Last week, Shopify shares jumped above their 50-day line in big volume. A 71.43 buy point in a cup base is about 7% away. The stock has broken out past a downward trendline drawn from its July top. SHOP stock moved down 1.5% Tuesday morning.
Recent IBD 50 Stocks To Watch pick, Synopsys, is trading in a flat base with a 468.03 entry. Meanwhile, an extra entry at 465.67 is also in play. SNPS stock edged lower Tuesday.
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 |
|---|---|---|---|
| Adobe | 552.94 | Consolidation | |
| Visa | 235.57 | Flat base | |
| SLB | 58.70 | Cup with handle | |
| Synopsys | 468.03 | Flat base |
Source: IBD Data As Of Aug. 30, 2023
Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock rose 0.85% Friday, extending a win streak to six sessions. Shares regained their key 50-day line last week in bullish fashion. AAPL stock is building a cup base with a 198.23 buy point. AAPL stock dropped 0.6% early Tuesday.
Microsoft shares also are rebounding from their recent lows, but the stock continues to face resistance around its 50-day line. A decisive retake of that level would be a big positive for the stock's immediate prospects. And on Tuesday morning, the stock moved up 0.1%.
Be sure to follow Scott Lehtonen on X/Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
