The Dow Jones Industrial Average gave up early gains to turn lower Monday, as the stock market looked to bounce back from last week's losses. The gains came as tech titan Nvidia jumped on a pair of price-target hikes.
This week, investors will be looking for further clues on monetary policy when Fed Chair Powell makes his annual speech at the Economic Symposium in Jackson Hole, Wyo., on Friday. Further, a busy week of retail earnings reports, from Dick's Sporting Goods, Kohl's, Macy's and others, could update views on consumer spending amid the back-to-school shopping season.
Cybersecurity giant Palo Alto Networks was a key earnings mover Monday morning. Shares surged 12% after the company reported adjusted earnings of $1.44 per share for the quarter ending July 31. Analysts polled by FactSet expected earnings of $1.29 per share. Palo Alto reported results at an unusual time, after the close on Friday.
Stock Market Today
Graphics-chip maker Nvidia rallied 4.5% after HSBC and KeyBanc upped their price targets ahead of the chip designer's late-Wednesday earnings report. HSBC raised its price target to 780 from 600, while KeyBanc upped its estimate to 620 from 550. Rosenblatt last week hiked its target on the stock to 800.
Electric-vehicle giant Tesla traded up 6% Monday morning. Dow Jones tech icons Apple and Microsoft traded higher after today's stock market open.
Other stock market leaders include Alphabet, Meta Platforms. GOOGL stock inched higher, while Meta shares slumped 0.2% in early action.
Costco Wholesale, Lululemon, SLB and Oracle — as well as Dow Jones stocks Boeing and Visa — are among the best stocks to watch in the ongoing market correction.
Tesla and Costco are IBD Leaderboard stocks, while Boeing and SLB were recent IBD Stock Of The Day picks. Costco was featured in this Stocks Near A Buy Zone column.
Dow Jones Today: Oil Prices, Treasury Yields
After Monday's opening bell, the Dow Jones Industrial Average fell 0.25%, while the S&P 500 gained 0.3%. The tech-heavy Nasdaq composite advanced 0.9% in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust was up 0.9%, while the SPDR S&P 500 ETF rose 0.3% early Monday.
Early Monday, the 10-year U.S. Treasury yield ticked higher to 4.34%, after settling at 4.25% Friday, just off its highest level since 2007.
West Texas Intermediate oil prices angled toward a third straight advance, rising more than 1% Monday. WTI futures traded above $81.50 a barrel in morning trade.
Stock Market Action
On Friday, the Dow Jones Industrial Average closed up 0.1%, while the S&P 500 inched lower. The tech-heavy Nasdaq composite moved down 0.2% Friday.
Friday's Big Picture column commented, "The stock market is currently in the grip of a correction, but Friday's action could be the start of a rally attempt. This is because we consider a down day closing in the upper half of its true range a pink rally day. IBD is recommending an exposure range of 20%-40%. But it is crucial to stay engaged and to build up a robust watchlist in case the market conditions change once again."
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 bounced 0.9% higher Friday. BA stock moved up 0.1% Monday 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 was up 0.6% early Monday.
4 Top Growth Stocks To Buy And Watch In The Stock Market Rally
Stocks To Watch: SLB, Lululemon, Costco, Oracle
Energy giant SLB, formerly known as Schlumberger, remains just below its 58.70 buy point in a cup with handle with a 0.2% rise Friday, according to IBD MarketSmith. SLB stock climbed 1% early Monday.
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 June, according to IBD MarketSmith. LULU stock moved up 0.5% Monday morning.
On the IBD Leaderboard, Costco was added as a half-size position in recent weeks. The megacap retailer is just shy of a handle entry at 571.16, and back below a mini-trendline near 559-560. Costco shares are testing their 50-day line. On Monday morning, Costco stock edged 0.1% lower.
Oracle continues to trace a flat base with a 127.54 buy point. An early entry at 121.36 is also in play, as the software leader tries to maintain support around the 50-day line. ORCL stock moved up 0.5% early Monday.
Learn How To Time The Market With IBD's ETF Market Strategy
Best Stocks In Stock Market Today
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. 16, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
IBD Leaderboard stock Tesla skidded another 1.7% Friday, closing further below its 50-day line and extending a losing streak to six sessions. Amid the unabated selling, it's clear that the stock requires more time to consolidate before a new entry. Tesla stock is around 28% off its July 19 high.
The electric-vehicle giant looked to rebound from Friday's losses, moving up more than 6% early Monday.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock snapped a three-day losing streak, rising 0.3% Friday. Shares hit another recent low and they remain squarely below the 50-day line following sharp losses in recent weeks. Shares traded up 0.1% Monday.
Microsoft shares also trade below their 50-day line and at recent lows, signs the stock needs more time to consolidate before a new buy point emerges. And on Monday morning, the stock added 0.3%.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
