Dow Jones futures were lower after Monday's stock market action. On Wednesday, a key inflation report — the Labor Department's consumer price index — is due out. And Nvidia stock dived more than 6% after the chip giant issued a revenue warning in the current quarter.
American International, Novavax, Shockwave Medical and Take-Two Interactive were key earnings movers after the close Monday.
AIG shares rose almost 1%. Vaccine maker Novavax crashed 33% after cutting its 2022 revenue guidance due to lack of demand for its Covid-19 vaccine. Shockwave jumped nearly 8% in early trade. Video game maker Take-Two tumbled around 7%.
Meanwhile, Perrigo, Planet Fitness and Ralph Lauren will report ahead of Tuesday's open.
Stock Market Today: Nvidia Stock Dives
On Monday, the Dow Jones Industrial Average rose 0.1%, while the S&P 500 moved down 0.1%. The tech-heavy Nasdaq composite declined 0.1%, extending Friday's mild losses.
Among exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust dropped 0.3%, and SPDR S&P 500 fell 0.1%.
Graphics-chip maker Nvidia sparked a sell-off in chip stocks Monday after warning that its revenue outlook for its fiscal second quarter would fall short of previous estimates. The company announced preliminary sales of $6.7 billion for its quarter ended July 31. It previously forecast sales of $8.1 billion for the period. It will announce official results on Aug. 24. The Vaneck Semiconductor ETF declined 1.7% Monday. Fellow chip stock Advanced Micro Devices dropped more than 2%.
Elsewhere, Tesla slashed gains to 0.8% Monday. Among Dow Jones leaders, Apple and Microsoft lost 0.3% and 0.9%, respectively, in today's stock market.
In the strengthening stock market environment, Dow Jones stocks Coca-Cola and UnitedHealth — as well as Monolithic Power Systems, Ollie's Bargain Outlet and Vertex Pharmaceuticals — are among the top stocks to buy and watch.
UnitedHealth and Vertex are IBD Leaderboard stocks. Ollie's and Vertex were featured in this week's Stocks Near A Buy Zone column. Vertex is also an IBD SwingTrader idea.
Dow Jones Futures Today: Treasury Yields, Oil Prices, Inflation Report
Ahead of Tuesday's open, Dow Jones futures fell 0.15% vs. fair value, while S&P 500 futures lost 0.4%. Nasdaq 100 futures dropped 0.7%. 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 ticked lower Monday, closing at 2.76% and giving up a part of Friday's surge. The 10-year yield is trying to rebound after hitting its lowest level since early April. Meanwhile, U.S. oil prices rebounded more than 1.5%, with West Texas Intermediate futures trading above $90 per barrel.
The Labor Department's consumer price index will come out early Wednesday. Consumer prices are expected to rise 0.2% in July, down from June's 1.3% jump, per Econoday estimates. Still, inflation is expected to surge 8.7% in July from a year ago, easing from June's 9.1% year-over-year rise.
What To Do In The Current Stock Market Rally
In recent weeks, IBD upgraded its market outlook from "uptrend under pressure" to "confirmed uptrend" due to improving stock market conditions.
With the market showing signs of strength, investors have the green light to increase exposure, but keep positions small to start. If a new buy starts making headway, increase exposure methodically. There's still plenty of uncertainty for the stock market to navigate, so having a fair amount of cash on hand still makes sense.
Friday's The Big Picture column commented, "It was another resilient performance for the stock market Friday, making the bulls feel pretty good about the confirmed uptrend."
If you're new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one key to the investment guidelines. IBD offers a broad range of growth-stock lists, such as Leaderboard and SwingTrader.
Investors also can create watchlists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.
Five Dow Jones Stocks To Watch Now
Dow Jones Stocks To Watch: Coca-Cola, UnitedHealth
Dow Jones soda giant Coca Cola is building the right side of a flat base that has a 67.30 buy point. Shares are testing their 50-day line amid a three-day losing streak, as they fell 0.65% Monday.
Health insurance giant and IBD Leaderboard stock UnitedHealth is in buy range above its double-bottom-with-handle base's 518.80 buy point after Monday's 0.3% rise, according to IBD MarketSmith chart analysis.
UNH stock shows a solid 94 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. Investors can use the IBD Composite Rating to easily gauge the quality of a stock's fundamental and technical metrics.
4 Top Growth Stocks To Watch In The Current Stock Market Rally
Top Stocks To Watch: Monolithic, Ollie's, Vertex
Thursday IBD Stock Of The Day Monolithic Power Systems continues to build the right side of a consolidation with a 580.10 buy point. Meanwhile, shares are about 3% above a 514.80 early entry. Keep an eye out for a potential handle to offer another alternate buy point. Shares gained 0.6% Monday.
Ollie's Bargain Outlet is rebounding from its 10-week line — a critical support level — placing the top discount retailer in a new buy zone. Shares are also carving a handle after a large cup base, putting the latest buy point at 72.37. Current price action is about 10% away from that entry.
IBD SwingTrader stock Vertex Pharmaceuticals rallied 2.1% Monday, moving out of buy range past a cup with handle's entry at 279.23. The 5% chase zone goes up 293.19. The stock's June 23 breakout is back on track following last week's Q2 earnings results.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock pared gains to 0.8% Monday, recovering a small part of Friday's 6.6% skid. Last week, shares reached their highest level since early May, but are now finding resistance around their 200-day line, which is a key level to watch. On Friday, the company announced that a 3-for-1 stock split will occur on Aug. 24.
The stock is about 30% off its 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares fell 0.3% Monday, extending a losing streak to three sessions. In recent sessions, the stock regained its 200-day line for the first time since May 5.
Microsoft dropped 0.9% Monday, falling for a second straight day. The software giant is still ranging below its long-term 200-day line. The stock closed about 20% 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.
