The Dow Jones Industrial Average and other major stock indexes traded higher Monday as markets look toward a possible signal this week from Federal Reserve Chairman Jerome Powell about interest rates. Nvidia rival Advanced Micro Devices rallied on the stock market today after it agreed to acquire an artificial intelligence hardware maker.
After the opening bell, the Dow Jones Industrial Average rose 0.3%, while the S&P 500 gained 0.2%. The tech-focused Nasdaq composite moved up 0.1% in morning action.
Early Monday, the 10-year Treasury yield ticked higher to 3.9%. Oil prices held steady, as West Texas Intermediate futures traded around $75.50 per barrel.
Among exchange traded funds, the Invesco QQQ Trust rose 0.1%, as the SPDR S&P 500 ETF gained 0.2% after the open.
Early Monday, shares of Nvidia rival AMD rallied almost 1% after the company agreed to acquire ZT Systems in a cash-and-stock deal valued at $4.9 billion.
AMD Chief Executive Lisa Su said in the press release that the purchase "will enable AMD to deliver end-to-end data center AI infrastructure at scale."
Wake-Up Calls Still Ringing For Nvidia, Google, Meta And More
Stock Market Today: Jackson Hole Meeting
The spotlight this week will shift to Jackson Hole, Wyo., for the Kansas City Federal Reserve's annual economic symposium, which runs Thursday through Saturday.
Fed Chair Powell, set to speak Friday morning, is generally expected to signal a 25-basis-point cut to the federal funds rate in September. Markets, however, figure almost a 26% probability of a half-point decrease.
Key earnings movers this week include Target, Burlington Stores, TJX and Ross Stores. Meanwhile, Baidu heads up a heavy contingent of reports from China-based leaders. Toll Brothers highlights a big week for the real estate industry.
Onslaught Of Selling Hammers Nvidia Stock And More. But Rays Of Hope Emerge.
Dow Jones Extends Rally
On Friday, the Dow Jones Industrial Average, S&P 500 and the tech-heavy Nasdaq composite all gained 0.2%.
During Friday'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.
Nvidia Cracks Deepen. Don't Ignore Earlier Wake-Up Calls.
Stock Market Today: Best Stocks To Watch
Among the best companies to watch on the stock market today are Birkenstock, Cava, Ferrari and Shake Shack.
Also on the list are Dow Jones components Amazon, Apple, IBM, Microsoft and UnitedHealth.
There was one new stock on IBD MarketSurge's "Breaking Out Today" list Friday. Fortinet broke out past a 73.91 buy point. Shares added 0.1% Monday.
Further, there are a handful of stock ideas on the site's "Near Pivot" list. These are top stocks nearing new buy points, like Intuit. Intuit stock is just below a 674.34 cup-with-handle entry. Shares rose 0.3% Monday.
To find more stock ideas, check IBD Stock Lists like IBD 50, Big Cap 20 and Stocks Near A Buy Zone.
Get Real-Time Buy And Sell Alerts On Stock Market Leaders With IBD Leaderboard
Dow Jones: IBM, UnitedHealth
Among Dow Jones components, UnitedHealth is in buy range above a 554.70 buy point in a cup base, according to MarketSurge pattern recognition. Shares added 0.2% Monday morning.
Meanwhile, IBM is approaching its latest entry, a cup-with-handle buy point at 196.26. IBM stock gained 0.4% Monday.
Outside the Dow Jones index, Mediterranean restaurant chain Cava bullishly regained its 50-day line last week. That also offers a buying opportunity for more aggressive investors. Shares are just above a 98.69 entry. Cava stock fell 1% early Monday. It is a stock on the IBD SwingTrader list.
Birkenstock is in buy range past a 61.83 flat-base buy point following last week's breakout move. Shares gained 0.5% early Monday.
Shares of automaker Ferrari are breaking out past a 442.80 buy point from a flat base. Ferrari is an IBD Leaderboard stock. Shares added 0.2% Monday morning.
Shake Shack is breaking out past a cup-with-handle entry at 105.68. But shares slipped more than 1% Monday morning on a Piper Sandler downgrade.
Find The Best Stocks To Buy And Watch With IBD Stock Screener And IBD Screen Of The Day
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 |
|---|---|---|---|
| Ferrari | 442.80 | Flat base | |
| Shake Shack | 111.29 | Cup base | |
| ServiceNow | 806.52 | Handle entry | |
| Birkenstock | 61.83 | Flat base |
Source: IBD Data as of Aug. 15
Join IBD Experts As They Analyze Leading Stocks In The Stock Market Today On IBD Live
Magnificent Seven Stocks: Nvidia, Tesla
Among Magnificent Seven stocks, Nvidia fell 0.2%, while Tesla rose 0.5% in morning trading.
Nvidia stock climbed another 1.4% Friday, extending a win streak to five days and moving further above its critical 50-day line. If Nvidia can hold above this level, then it will soon offer an additional proper entry. But if the stock gives it up in heavy volume, then further weakness is likely.
Tesla stock raced added 0.9% Friday, further above the 50-day line for the first time since Aug. 2. Shares of the electric-vehicle giant could be tracing the right side of a new base, but it is early in the process.
Dow Jones Leaders: Amazon, Apple, Microsoft
Among Dow Jones components in the Magnificent Seven, Amazon, Apple and Microsoft traded mixed after Monday's stock market open.
Amazon shares decisively reclaimed their long-term 200-day line during recent gains. The stock rose 0.3% Monday morning.
Apple stock is back above its 50-day line amid a seven-day win streak. Last week, shares triggered the round-trip sell rule from a 199.62 buy point. Apple fell 0.7% Monday.
Microsoft shares are back above the 200-day line despite Friday's losses. And on Monday morning, the stock inched higher.
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.
