The Dow Jones Industrial Average and the other major stock indexes were higher Tuesday, as the Federal Reserve's two-day policy meeting kicked off. Two of the early earnings losers on the stock market today were blue chip stocks Merck and Procter & Gamble, while Magnificent Seven player Microsoft is expected to report after the close.
After the opening bell, the Dow Jones Industrial Average rose 0.4%, while the S&P 500 gained 0.3%. The tech-focused Nasdaq composite pared gains to 0.1%.
Early Tuesday, the 10-year Treasury yield held steady at 4.17%. Oil prices dropped, with West Texas Intermediate futures trading around $75 a barrel.
Among exchange traded funds, the Invesco QQQ Trust was up 0.1%, while the SPDR S&P 500 ETF gained 0.3% after the open.
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Stock Market Today: Fed Meeting Starts
This week's biggest news is expected from the two-day Federal Reserve meeting that begins Tuesday with a policy announcement expected Wednesday. Markets see just a 4.7% chance of a rate cut on Wednesday, according to CME Group's FedWatch tool.
Markets have fully priced in a quarter-point Fed rate cut at the following meeting in September, with expectations of up to three cuts for the full year.
Meanwhile, there is plenty of economic data for investors to examine Tuesday morning, including two housing reports, consumer confidence numbers and jobs data.
The Case-Shiller home price index rose 0.4% for the month of May, with an annual increase of 7.2%. It was expected to rise 0.5% in May, with a 6.8% annual rise. Meanwhile, the Federal Housing Financial Agency house price index was unchanged in May, below the 0.3% estimate. The FHFA index climbed 5.7% year over year.
The Conference Board's consumer confidence index is anticipated to fall to 99.5 in July vs. 100.4 in June. And the Labor Department's Job Openings and Labor Turnover Survey is estimated to fall to 8 million in June, down from May's 8.14 million reading. Those reports are expected at 10 a.m. ET.
Key earnings movers Tuesday include Howmet Aerospace, Merck, PayPal, Pfizer, Procter & Gamble and Sprouts Farmers Market.
Howmet stock rallied more than 11% early Tuesday, breaking out past a 85.52 cup-base entry. Merck stock sold off 3.3%. PayPal jumped 8%, as Pfizer shares climbed 0.8%. P&G stock tumbled more than 5%. And Sprouts soared nearly 21% in early trading.
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Dow Jones Eases
On Monday, the Dow Jones Industrial Average moved down 0.1%, while the S&P 500 gained 0.1%. The tech-heavy Nasdaq composite inched higher.
Investor's Business Daily's Big Picture column commented, "The stock market today lost initial gains, but the pullback wasn't necessarily bearish. Monday's action perhaps signaled that equity traders preferred to take a cautious stance ahead of some economic reports and earnings results from some of the largest companies on the planet."
During Monday's IBD Live show, the IBD Live team discussed the current trading conditions and how investors should handle the stock market today.
Now is an important time to read The Big Picture column amid the ongoing market action. Also, be sure to read how to adjust to changing market conditions, with IBD's new exposure levels.
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Stock Market Today: Best Stocks To Watch
Among the best companies to watch on the stock market today are Badger Meter, GE Aerospace, ServiceNow and Toll Brothers.
Also on the list are Dow Jones components Amazon, American Express, Apple, IBM and Microsoft.
IBD MarketSurge's Breaking Out Today list included LandBridge, which briefly broke out past a 32.91 buy point in an IPO base. Shares climbed 2% Tuesday morning.
Check out the MarketSurge "Near Pivot" list for more stocks nearing buy points in bases. To find more stock ideas, check IBD Stock Lists like IBD 50, Big Cap 20 and Stocks Near A Buy Zone.
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Dow Jones: American Express, IBM
Among Dow components, payments giant American Express moved further above a flat base's 244.41 entry, according to MarketSurge pattern recognition, following Monday's gains. Shares ticked up 0.8% Tuesday.
Meanwhile, IBM staged a breakout last week following the company's earnings report and shares are above a 189.47 cup-with-handle entry. IBM stock was up 0.2% early Tuesday.
Outside the Dow Jones index, Badger Meter is breaking out above a 202.81 entry in a flat base. Shares were up 0.9% Tuesday morning.
GE stock's recent breakout past a 170.80 buy point remains under pressure, but shares are rebounding. Shares rose 0.9% early Tuesday.
ServiceNow surged last week on second-quarter earnings results, topping a 806.52 handle entry but gave up that entry Monday. ServiceNow bounced 0.3% early Tuesday.
Finally, homebuilder Toll Brothers added to a recent breakout past a 135.37 cup-base entry, with a 1.9% advance Monday. And on Tuesday morning, Toll Brothers stock moved up 0.4%.
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Stock Market Today: Companies To Watch
These are four stocks in or near buy zones in today's stock market.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Tenet Healthcare | 142.35 | Flat base | |
| KB Home | 74.66 | Flat base | |
| ServiceNow | 806.52 | Handle entry | |
| Newmont | 44.59 | Flat base |
Source: IBD Data as of July 25
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Magnificent Seven Stocks: Nvidia, Tesla
Magnificent Seven stocks Nvidia and Tesla dropped 2.4% and 1.6%, respectively, in morning trading.
Tesla stock raced 5.6% higher Monday, recovering a part of last week's sharp decline.
Nvidia stock, an IBD Leaderboard name, closed below its 50-day line Monday, with sharp losses last week.
Dow Jones Leaders: Amazon, Apple, Microsoft
Among Dow Jones components in the Magnificent Seven, Amazon, Apple and Microsoft traded higher after Tuesday's stock market open.
Amazon triggered the 7% loss rule last week after falling well below a 191.70 buy point in a flat base. Shares are also below their 50-day line. Amazon stock rose 0.6% Tuesday.
Apple stock inched higher, but still remains squarely off its record high, which was set on July 15. Shares gained 0.9% Tuesday.
Microsoft stock gained 0.3% Monday, still below its 50-day line and a flat base's 430.82 buy point. The software giant's earnings are due out late Tuesday. The company is expected to earn $2.94 per share on revenue of $64.4 billion, per IBD MarketSurge. And early Tuesday, the stock was up 0.3%.
Be sure to follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on growth stocks, the Dow Jones Industrial Average and the stock market today.
