Dow Jones futures climbed modestly on Tuesday morning as Wall Street awaited the release of Wednesday's consumer price index (CPI). The tech giants Meta Platforms and Nvidia are among the best stocks to watch and buy.
Wall Street expected 0.3% monthly increases for both the core CPI and overall CPI on Wednesday morning. Core CPI inflation, which excludes food and energy costs, may drop from 5.3% in May to 5%, or even lower, because the 0.6% increase per month in June 2022 is not included.
The second quarter earnings season will also begin this week with Delta Air Lines, Cintas, and Fastenal all reporting on Thursday. The official start of the earnings season will be marked by the reports from the big banks on Friday. JPMorgan Chase, Citigroup and Wells Fargo are all due to release their results.
Stock Market Today
Alphabet (GOOGL), Meta Platforms, and other market leaders are Alphabet. GOOGL shares gained 0.5% while Meta shares rose by 0.3% during premarket trading.
The current stock market correction is a good time to pay attention to Dynatrace, Meta Platforms (MDB), MongoDB (MDB), Nvidia and Dow Jones stocks American Express (AXP), Visa(V), and Salesforce (CRM).
IBD Leaderboard stocks include American Express and Tesla. Alphabet, Dynatrace and American Express were recently selected as IBD Stock of the Day.
Dow Jones Today: Oil prices, Treasury Yields
Dow Jones futures rose 0.15 % compared to fair value before Tuesday's opening, while S&P futures gained 0.2%. Nasdaq futures gained 0.2% against fair value. It's important to remember that overnight trading in Dow futures or elsewhere may not translate into the actual stock market session.
The SPDR S&P500 ETF (SPY), which tracks the Nasdaq, rose by 0.25% on Tuesday morning.
The yield on the 10-year U.S. Treasury fell to 3.96% and threatened to increase Monday's losses. The yield ended Monday at 4.0% and ended a four-day winning streak.
The oil prices rebounded Tuesday morning after falling on Monday, from their highest level since early June. West Texas Intermediate futures rose by nearly 1% to just under $73.50 per barrel.
Stock Market Action
The Dow Jones Industrial Average rose 0.6% on Monday while the S&P 500 climbed 0.2%. Nasdaq, which is dominated by tech companies, also rose 0.2%. The Russell 2000, a small-cap index, advanced by 1.6%.
Dow Jones Stocks to Watch: American Express Salesforce Visa
American Express is constructing a base with a 177.04 purchase point. After a 1.15 % gain on Monday, shares are still 4% from entry. AXP shares rose by 0.2% on Tuesday morning.
Salesforce is trying its best to recover from the slump that followed its earnings. The company is testing the support of the 50-day line. A decisive rebound will create a buying opportunity. According to IBD Leaderboard's analysis, there is also a possibility of a flat bottom with a buy point at 225. The CRM stock rose 0.3% on Tuesday morning.
Chipotle Dynatrace Meta MongoDB Nvidia Nvidia
IBD MarketSmith pattern detection showed that Chipotle, a stock on the IBD Leaderboard Watchlist, ended a losing streak of four days Monday. The stock is still below a base buy point of 2,139.88, but above a trendline. A trendline also allowed for an early entry of 2,092.51. Chipotle has been featured as IBD Stock Of The Day. CMG's stock rose by 0.3% on Tuesday morning.
Dynatrace, a software maker, has formed a chart pattern that is tight for three weeks. This represents a short consolidation during which institutional investors have paused their purchases. The shares are close to their 52.99 entry. DT stock climbed 0.4% on Tuesday morning.
Meta Platforms, the parent company of Facebook, has been consolidating over the past three weeks. A new entry was made at 298,12. This buy point is a good addition to the previous entry, as the stock has been so far stretched from its base. Meta shares rose 0.3% in premarket trading on Tuesday.
MongoDB's recent earnings-driven jump offered a new entry. The shares are below the tight formation of three weeks that indicated a buying point at 398.89 following recent declines. Investors who are more aggressive could have entered the market at 386 using a trendline. The MDB stock rose 0.3% on Tuesday morning.
Nvidia's shares have trended consistently higher since their earnings-driven gap-up on May 25. The stock has been on a downward trend since June 20. This is a good time to buy. The stock formed a trendline at 418, after finding support at its 21 day exponential moving average. Nvidia is a stock on the IBD Leaderboard
Roku (ROKU 75.45 cup with handle)
Source: IBD data as of July 10, 2023
IBD Leaderboard's stock Tesla fell for the third consecutive session on Monday, dropping 1.8%. Tesla shares are still well outside the buy range, even though they have risen to 207.79 points. They are also just off their highs of 2023.
TSLA's stock climbed 0.4% on Tuesday, reversing Monday's declines.
Dow Jones Leaders - Apple and Microsoft
Apple's stock, which is part of the Dow Jones index, fell 1.1% on Monday. It remains only a few cents off its record high from last week at 194.48. AAPL, which has been down in four out of five trading sessions over the past week, is still holding strongly above a 157.38 buying point. In early morning trading on Tuesday, the shares rose 0.4%.
Microsoft shares fell 1.6% on Monday, a sharp drop for the second consecutive session. The shares are retracing to the 50-day support. If heavy volume bounces back, a new buying area will be created. On Tuesday morning, Microsoft's shares were slightly higher.