The Dow Jones Industrial Average dropped Tuesday, as the stock market looked to add to Monday's gains. Among the companies rallying was Tesla stock, while Nvidia shares reversed lower.
The National Association of Realtors delivered July existing home sales numbers Tuesday morning. Sales of existing homes dropped to 4.07 million, well below the 4.15 million estimate, vs. June's 4.16 million.
Early Tuesday, Baidu, Dick's Sporting Goods, Fabrinet, Lowe's, Macy's and Zoom Video were key earnings movers.
Baidu shares rallied 1.5% in morning trade, while DKS stock crashed 21% on weak earnings. Meanwhile, Fabrinet shares soared 28%, as Lowe's advanced 2.2% in early action. Macy's declined nearly 8%. Finally, Zoom stock skidded nearly 3%.
Elsewhere, S&P Global downgraded credit ratings and revised its outlook on multiple U.S. banks, including Comerica Bank and Keycorp. Comerica dropped 1% while KEY stock shed around 1.1%.
Stock Market Today
Graphics-chip maker Nvidia fell modestly Tuesday morning after giving up early gains ahead of the chip designer's earnings report late Wednesday. Nvidia surged Monday on more price-target hikes from Wall Street analysts.
Electric-vehicle giant Tesla traded up 2.8% Tuesday morning. Dow Jones tech icons Apple and Microsoft moved higher after today's stock market open.
Other stock market leaders include Alphabet and Meta Platforms. GOOGL stock gained 0.3%, while Meta shares rose 0.6% in early action.
Costco Wholesale, Lululemon, Arista Networks and Oracle — as well as Dow Jones stocks Boeing and Visa — are among the best stocks to watch in the ongoing stock market correction.
Tesla and Costco are IBD Leaderboard stocks, while Boeing was a recent IBD Stock Of The Day pick. Arista was featured in this Stocks Near A Buy Zone column.
Dow Jones Today: Oil Prices, Treasury Yields
After Tuesday's opening bell, the Dow Jones Industrial Average fell 0.1%, while the S&P 500 gained 0.2%. The tech-heavy Nasdaq composite advanced 0.5% in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust was up 0.5%, while the SPDR S&P 500 ETF rose 0.20.3% early Tuesday.
Also on Tuesday, the 10-year U.S. Treasury yield ticked higher near 4.35%, after settling at 4.34% Monday, its highest level since 2007.
West Texas Intermediate oil prices threatened to add to Monday's losses, falling 0.5% Tuesday. WTI futures held right around $80 a barrel in morning trade.
Stock Market Action
On Monday, the Dow Jones Industrial Average fell 0.1%, while the S&P 500 gained 0.7%. The tech-heavy Nasdaq composite finished up 1.6%.
Monday's Big Picture column commented, "Friday's close in the Nasdaq and S&P 500 near session highs counted as the first day of a rally attempt. Monday's action added to that emerging rally. As long as the Nasdaq and S&P 500 don't undercut their Friday lows, the market has chance for a follow-through rally confirmation as early as this week."
Now is an important time to read IBD's The Big Picture column as the stock market tries to stabilize after a sharp pullback from this year's highs.
Five Best Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks: Boeing, Visa
Aerospace giant Boeing broke out in recent weeks, topping a 223.91 flat-base entry. Shares are testing their buy point and 50-day line, as they added 0.25% Monday. BA stock rose 0.7% Tuesday morning.
And Dow Jones payments leader Visa continues to hold in buy range past a 235.57 flat-base buy point, according to IBD MarketSmith pattern recognition. Shares are trying to find support around their 50-day line. V stock tacked on 0.3% Tuesday.
4 Top Growth Stocks To Buy And Watch In The Stock Market Correction
Stocks To Watch: Arista, Lululemon, Costco, Oracle
AI stock leader Arista Networks is testing its 178.36 buy point in a consolidation, and is in buy range after a July 31 breakout move. Its RS line is at its highest level since late March, which is a sign of big outperformance in recent weeks. ANET stock rose 0.5% Tuesday morning.
Lululemon has seen continued support around its 50-day line in recent weeks, even after a breakout sputtered past a 389.06 buy point. LULU's RS line is at its highest level since May, according to IBD MarketSmith. LULU shares dropped 2.6% in morning trade.
On the IBD Leaderboard, Costco was added as a half-size position in recent weeks. The megacap retailer is testing its 50-day support level. Meanwhile, a handle entry looms at 571.16. COST stock lost nearly 1% early Tuesday.
Oracle continues to trace a flat base with a 127.54 buy point. An early entry at 118.06 is also in play, as the software leader tries to maintain support around the 50-day line. ORCL stock rose 0.5% in morning trade.
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 |
|---|---|---|---|
| Oracle | 127.54 | Flat base | |
| Visa | 235.57 | Flat base | |
| SLB | 58.70 | Cup with handle | |
| Costco | 571.16 | Cup with handle |
Source: IBD Data As Of Aug. 22, 2023
Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live
Tesla Stock
IBD Leaderboard stock Tesla raced 7.3% higher Monday, snapping a six-day losing streak. Still, shares are sharply below their 50-day line. Amid the recent spate of selling, it's clear that the stock requires more time to consolidate before a new entry emerges. Wait for a decisive move back above the 21- and 50-day moving averages before considering a new purchase of TSLA stock.
Early Tuesday, Tesla stock looked to add to Monday's gains, rising nearly 3% in early trade.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock climbed 0.8% Monday, adding to Friday's gains. The stock remains squarely below the 50-day line following sharp losses in recent weeks. AAPL stock climbed 0.5% early Tuesday.
Microsoft shares also trade near their recent lows, a sign the stock needs more time to consolidate before a new buy point emerges. While Monday's gains were bullish, the stock remains below its 21- and 50-day lines, so there isn't a buy signal yet. And on Tuesday morning, the stock added 1%.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
