The Dow Jones Industrial Average gave up early gains to turn lower on Monday, as the stock market appeared to rebound from last week’s losses. The gains came as tech giant Nvidia jumped in on a pair of targeted price increases.
This week, investors will be looking for more clues about monetary policy when Fed Chair Powell delivers his annual economic symposium address in Jackson Hole, WY, on Friday. On top of that, a busy week of retail earnings reports, from Dick’s Sporting Goods (DKS), kohl (KSS), Messi (M) and others, they can update views on consumer spending amid the back-to-school shopping season.
Cyber security giant Palo Alto Networks (Banu) was the main earnings driver on Monday morning. Shares rose 12% after the company reported adjusted earnings of $1.44 per share for the quarter ended July 31. Analysts polled by FactSet had expected earnings of $1.29 per share. Palo Alto reported results at an unusual time, after closing on Friday.
stock market today
Graphics Slideshow Maker nvidia (NVDA) rose 4.5% after HSBC and KeyBanc raised their price targets ahead of the chip designer’s earnings report late Wednesday. HSBC raised its price target to 780 from 600, while KeyBanc raised its estimate to 620 from 550. Rosenblatt last week raised its target on the stock to 800.
Costco wholesale (it costs), lululemon (Lulu), slb (slb) And inspiration (ORCL) – as well as Dow Jones shares Boeing (Bachelor’s) And visa (Fifth) – among the best stocks to watch in the ongoing market correction.
Tesla and Costco are IBD Leaderboard stocks, while Boeing and SLB were recently IBD Stock Picks Of The Day. Costco appeared in the stock column near the buy zone.
Dow jones today: oil prices and treasury yields
After Monday’s opening bell, the Dow Jones Industrial Average fell 0.1%, while the S&P 500 rose 0.5%. The Nasdaq Technology Composite advanced 1.1% in the morning move.
Early Monday, the 10-year US Treasury yield rose to 4.32%, after settling at 4.25% on Friday, far from its highest level since 2007.
WTI oil prices angled towards a third straight advance, rising more than 1% on Monday. West Texas Intermediate crude futures were trading above $81.50 a barrel in morning trading.
Stock market action
On Friday, the Dow Jones Industrial Average closed 0.1% higher, while the S&P 500 fell. The tech-heavy Nasdaq Composite fell 0.2% on Friday.
The Big Picture column commented on Friday, “The stock market is currently in the grip of a correction, but Friday’s action could be the beginning of an attempted rally. This is because we consider a bearish day close in the upper half of its true range rosy on the day of the rally. 40%.But it is essential to stay involved and build a solid watch list in case market conditions change again.”
Now is an important time to read IBD’s Big Picture column as the stock market attempts to stabilize after a sharp pullback from this year’s highs.
The five best Dow stocks to buy and watch right now
Dow Jones shares: Boeing, Visa
Aerospace giant Boeing has erupted in recent weeks, eclipsing its entry point with a flat base of 223.91. Stocks are testing their buy point and 50-day line, rebounding 0.9% on Friday. Bibliotheca Alexandrina shares rose 0.1% Monday morning.
Visa, the payments leader at Dow Jones, continues to hold a buy range above 235.57 fixed-base buy points, according to IBD MarketSmith pattern recognition. Stocks are trying to find support around the 50 day line. V shares were up 0.6% early on Monday.
4 growth stocks to buy and watch Stock market rise
Stocks to watch: SLB, Lululemon, Costco, Oracle
Energy giant SLB, formerly Schlumberger, is still just below its buy point of 58.70 in a cup with handle with a gain of 0.2% on Friday, according to IBD MarketSmith. SLB stock rose 1% early on Monday.
Lululemon has seen continued support around the 50-day line in recent weeks, even after breaching the buy point of 389.06. LULU’s RS line has reached its highest level since June, according to IBD MarketSmith. LULU stock was up 0.5% Monday morning.
On the IBD Leaderboard, Costco has been added as a half-size stand in recent weeks. The megacap retailer is just shy of entering the handle at 571.16, and is back below the mini trendline near 559-560. Costco stocks are testing the 50-day streak. On Monday morning, Costco stock was down 0.1%.
Oracle continues to follow the flat base at 127.54 buy points. Early entry also takes place at 121.36, where the program leader tries to maintain support around the 50-day line. ORCL stock rose 0.5% early Monday.
Learn how to time the market with IBD’s ETF market strategy
The best stocks in the stock market rally
These are the top four stocks to buy and watch in the stock market today, including leader Dow Jones.
|Company Name||Code||The right point of purchase||Point of purchase type|
|slb||(slb)||58.70||mug with handle|
|Costco||(it costs)||571.16||mug with handle|
Source: IBD data as of August 16, 2023
IBD Leaderboard Tesla stock fell another 1.7% on Friday, closing further below its 50-day line and extending its losing streak into six sessions. Amidst the continued selling, the stock clearly requires more time to consolidate before a new entry. Tesla stock is down about 28% from its July 19 high.
The electric car giant is looking to recover from Friday’s losses, as it rose more than 5% early Monday.
Dow Jones leaders: Apple and Microsoft
Among Dow Jones stocks, Apple shares snapped a three-day losing streak, rising 0.3% on Friday. Stocks posted another decline recently and stayed below the 50-day line after sharp losses in recent weeks. Shares traded up 0.1% on Monday.
Microsoft shares are also trading below the 50-day line, and at recent lows indicate that the stock needs more time to consolidate before a new buy point emerges. And Monday morning, the stock was up 0.3%.
Be sure to follow Scott Lehtonen on Twitter at @tweet Learn more about developing stocks and the Dow Jones Industrial Average.
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