Dow Jones futures turned lower Monday morning, as investors prepared for big week of retail earnings. Meanwhile, Cathie Wood’s Ark Innovation ETF (ARKK) sold more than 31,000 shares of Tesla stock. The EV giant skidded after lowering the starting prices of its Model Y car in China.
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On the economic front this week, July retail sales on Tuesday will be closely watched, after June’s report showed a smaller-than-expected increase as sales slowed for service stations and building materials stores. Home building markets get a solid dose of data, with builder sentiment from the National Association of Homebuilders on Tuesday and the Commerce Department’s July housing starts and permits on Wednesday.
Retail earnings take the spotlight this week, with results from Dow Jones names Walmart (WMT) and Home Depot (HD). Outside of retail, Cardinal Health (CAH) Cisco Systems (CSCO), On Holding (ONON) and Palo Alto Networks (PANW) will be several names to watch.
Early Monday, a key earnings mover was AI stock Monday.com (MNDY). Shares jumped nearly 6% in premarket trade.
Stock Market Today
Electric-vehicle giant Tesla (TSLA) traded down 2.3% early Monday. Cathie Wood continued to sell Tesla stock Friday, per ARK Invest’s daily trade disclosure, selling 31,312 shares. On Thursday, Cathie Wood’s Ark Invest sold more than 76,000 shares for about $18.75 million, based on TSLA’s closing price of 245.34.
U.S. Steel (X) soared 27% Monday after the company rejected a $7.3 billion takeover offer from Cleveland-Cliffs (CLF). CLF stock dropped around 2%.
Dow Jones tech icons Apple (AAPL) and Microsoft (MSFT) were higher ahead of today’s stock market open.
Other stock market leaders include Alphabet (GOOGL) and Meta Platforms (META). GOOGL stock and Meta shares both traded up 0.3% in early action.
Expro (XPRO), SLB (SLB), MercadoLibre (MELI) and Interactive Brokers (IBKR) — as well as Dow Jones stocks Boeing (BA), Intel (INTC) and Visa (V) — are among the best stocks to watch as the market’s uptrend comes under increasing pressure.
Tesla is an IBD Leaderboard stock, while SLB is an IBD SwingTrader stock and a recent IBD Stock Of The Day. MercadoLibre is featured in the Stocks Near A Buy Zone column.
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Dow Jones Today: Oil Prices, Treasury Yields
Ahead of Monday’s opening bell, Dow Jones futures edged lower vs. fair value, while S&P 500 futures lost 0.1%. The tech-heavy Nasdaq 100 futures also moved down 0.1% in morning action, with Okta (OKTA) leading the index on an upgrade to buy from Goldman Sachs.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) was off 0.1%, while the SPDR S&P 500 ETF (SPY) dipped 0.1% early Monday.
Early Monday, the 10-year U.S. Treasury yield ticked lower to 4.15%, after settling at 4.16% Friday on hot PPI inflation data.
West Texas Intermediate oil prices remain just off their 2023 highs, as WTI futures dipped Monday to trade just below $83 a barrel.
Stock Market Action
On Friday, the Dow Jones Industrial Average rose 0.3%. The S&P 500 edged lower, while the Nasdaq composite moved down 0.7%.
Friday’s Big Picture column commented, “With the stock market uptrend remaining under pressure, IBD is recommending investors to hold exposure at the 60% to 80% level. Keep alert to any sell signals in your portfolio, such as round-trips or breaches of the 50-day moving average.”
Now is an important time to read IBD’s The Big Picture column as the stock market pulls back from this year’s highs.
Five Best Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks: Boeing, Intel, Visa
Aerospace giant Boeing broke out in recent weeks, topping a 223.91 flat-base entry. Shares are just out of the 5% buy area that went up to 235.11. BA stock inched higher Monday morning.
Chip giant Intel continues to etch a handle onto a cup base, offering a 37.19 buy point. Shares are about 6% below that buy point, and 3% above their previous entry. INTC stock was up 0.5% Monday morning.
Finally, 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 edged up Monday morning.
4 Top Growth Stocks To Buy And Watch In The Stock Market Rally
Stocks To Watch: Expro, SLB, MercadoLibre, Interactive Brokers
Offshore drilling services provider Expro is trying to break out past a cup with handle’s 23.72 buy point, according to IBD MarketSmith pattern recognition. Shares undercut that entry during Friday’s 2.7% drop. XPRO stock was down another 1.5% early Monday.
IBD SwingTrader stock SLB, formerly known as Schlumberger, is breaking out past a 58.70 buy point in a cup with handle. Shares are in the buy area. SLB stock traded a fraction higher Monday morning.
MercadoLibre jumped last week to break out past a cup base’s 1,365.64 buy point. But MELI stock is under the buy point, as it tumbled more than 4% Friday. Shares dropped 0.7% Monday.
Interactive Brokers broke out last week past a 90.19 buy point in a consolidation. The stock is above that buy trigger, with a 1.3% gain Friday. Shares were up 0.4% Monday morning.
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Best Stocks 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 |
|---|---|---|---|
| SLB | (SLB) | 58.70 | Cup with handle |
| Salesforce | (CRM) | 225.00 | Flat base |
| Broadcom | (AVGO) | 921.78 | Consolidation |
| Skechers | (SKX) | 54.77 | Flat base |
Source: IBD Data As Of Aug. 10, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
IBD Leaderboard stock Tesla slipped 1.1% Friday, hitting a recent low and closing further below its 50-day line. A rebound from here would be a positive for the stock’s near-term prospects, and would eventually lead to a new buy point. But the ongoing weakness means the stock requires more time to consolidate before a new entry.
TSLA stock threatened to add to Friday’s gains, falling more than 2% Monday morning.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple inched lower Friday, holding near its recent lows. Shares are sharply below their 50-day line. While AAPL stock is still above its 157.38 buy point, recent weakness was a sell signal, which means investors should lock in gains. Shares climbed 0.2% early Monday.
Microsoft shares hit a fresh recent low, moving down 0.6% Friday. With shares squarely below their 50-day line, the stock needs more time to consolidate before a new buy point emerges. And on Monday morning, Microsoft shares were up 0.5%.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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