Dow Jones futures were lower ahead of Tuesday's open after the Dow Jones Industrial Average surged more than 400 points Monday. Apple and Tesla stock skidded Monday, extending their recent losses, while AI stock Palantir Technologies briefly plunged on a sales miss before reversing higher.
On the economic front this week, investors are looking ahead to Thursday's consumer price index for July, which is expected to give the Fed another month of benign data. Both the overall CPI and core prices are forecast to rise 0.2%. The CPI inflation rate is expected to pick up to 3.2% from 3%, as a flat reading from July 2022 drops out of the 12-month tally. Core CPI inflation should dip to 4.7% from 4.8%.
Late Monday, Lucid Group, Palantir, Shockwave Medical and Skyworks Solutions are key earnings movers.
Lucid shares raced 4.5% higher. SWAV stock tumbled more than 6%, as Skyworks dropped 2% in extended trade.
Palantir plunged as much as 12% late Monday before reversing 3% higher after the company's earnings results. Quarterly earnings met estimates, while sales fell short of forecasts. The company also authorized a new $1 billion share buyback plan.
Stock Market Today: Dow Jones Rises
On Monday, the Dow Jones Industrial Average rallied 1.2%, while the S&P 500 gained 0.9%. The tech-heavy Nasdaq composite finished up 0.6% after a late-day rally.
EV giant Tesla skidded 1% on Monday. Dow Jones tech giants Apple and Microsoft finished sharply mixed in today's stock market action, with AAPL stock down 1.7% and Microsoft up 0.7%.
Broadcom, Skechers, MercadoLibre and Interactive Brokers — as well as Dow Jones stocks Boeing, Intel and Salesforce — are among the best stocks to watch in the still-struggling stock market rally.
Tesla is an IBD Leaderboard stock, while Boeing and Skechers were recent IBD Stocks Of The Day. And MercadoLibre featured in this Stocks Near A Buy Zone column. Interactive Brokers is an IBD SwingTrader stock.
Dow Jones Today: Oil Prices, Treasury Yields
Ahead of Tuesday's opening bell, Dow Jones futures dropped 0.6%, while S&P 500 futures lost 0.7%. Nasdaq 100 futures were off 0.7% vs. fair value. Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
On Monday, the 10-year U.S. Treasury yield ticked higher to 4.07%. Oil prices slipped 0.5%, still near their highest level since mid-April. West Texas Intermediate futures settled above $82 a barrel.
Stock Market Action: What To Do Now
Now is an important time to read IBD's The Big Picture column, with the major stock indexes pulling back from their 2023 highs.
Amid the recent weakness, it's a good time to lock in some gains after the tremendous rally so far in 2023. It is also key that investors keep on top of any sell signals, such as stocks round-tripping double-digit gains or big breaches of the 50-day moving average.
With the uptrend under pressure, IBD recommends a 60%-80% exposure range for your portfolio.
Five Best Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks: Boeing, Intel, Salesforce
Aerospace giant Boeing broke out last week, topping a 223.91 flat-base entry. Shares briefly fell back into the 5% buy area that went up to 235.11 before Monday's 3% rally sent them back out of the buy zone.
Chip giant Intel is holding close to a 37.19 buy point out of a cup-with-handle base, according to IBD MarketSmith pattern recognition. Shares are about 5% away from their latest entry.
Salesforce's recent breakout continues to struggle, with the stock below the flat base's 225.00 entry and 50-day line, according to IBD Leaderboard analysis.
4 Top Growth Stocks To Watch In The Stock Market Rally
Stocks To Watch: Broadcom, MercadoLibre, Skechers, Interactive Brokers
Chip giant Broadcom is eyeing a 921.78 buy point in a consolidation, according to IBD MarketSmith pattern recognition. Shares are just 3% away from their latest entry, as they pull back to their 50-day line. Earnings are due Aug. 31.
MercadoLibre surged Monday, breaking out past a cup base's 1,365.64 buy point. Meanwhile, an early entry at 1,326.61 was also in play. MELI stock advanced 4.8% Monday in above-average volume.
Skechers broke out in recent weeks when it surged above a 54.77 buy point after the company's strong quarterly earnings results. But shares gave up their entry during last week's losses. SKX stock is about 1% below the entry.
IBD SwingTrader stock Interactive Brokers broke out Thursday, rising 2.4% to close above a 90.19 buy point in a consolidation, but the stock is back below that buy trigger. Shares last week also topped a handle entry at 87.09.
Learn How To Time The Market With IBD's ETF Market Strategy
Best Stocks To Buy And Watch In Stock Market Rally
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 |
|---|---|---|---|
| MercadoLibre | 1,365.64 | Cup base | |
| Salesforce | 225.00 | Flat base | |
| Broadcom | 921.78 | Consolidation | |
| Skechers | 54.77 | Flat base |
Source: IBD Data As Of Aug. 7, 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% Monday, closing below its 50-day line for the first time since May 18. But shares closed sharply off their lows. A decisive rebound from here would place the electric-vehicle leader in a new buy area.
Conversely, a further weakness would mean the stock requires more time to consolidate before a new entry.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock sold off 1.7% Monday, extending a losing streak to five sessions and falling further below the 50-day line. While AAPL stock is still above its 157.38 buy point, Friday's weakness was a sell signal, which means investors should lock in gains.
Microsoft shares remain squarely below their 50-day line, a sign the stock needs more time to consolidate before a new buy point emerges.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
