Dow futures fell on Tuesday morning after President Joe Biden and House Speaker Kevin McCarthy failed to reach an agreement in their recent debt ceiling debates. Meanwhile, a major retailer Louie (a little) sold after the company cut its full-year outlook.
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Before Monday night’s meeting, Biden stuck to a cautiously optimistic tone, saying, “We still have some disagreements but I think we may be able to get where we need to go. We both know we have a huge responsibility.”
But they are Failed to reach an agreement to raise the debt ceiling, with talks centering around setting a higher level of spending for next year and determining how long to raise the debt ceiling before having to raise it again. After the meeting, McCarthy told reporters that the meeting had been “productive,” adding, “I think the tone tonight was better than any other time we’ve had discussions.”
He added, “I think we can still get there. And I think we can get that done,” and that he expected to talk to Biden every day.
On the earnings front, shares of Lowe’s fell nearly 2% after the home improvement retailer cut its full-year outlook due to waning demand for home improvement projects. Lowe’s beat first-quarter earnings and sales targets.
Other major drivers of earnings include AutoZone (AZO), Wholesale BJ’s (BJ), Dick’s Sporting Goods (DKS), Hey there (here) And Zoom for visual communications (ZM).
AutoZone shares fell 2.4% in early trade, while BJ shares lost 1.4%. Dick’s Sporting Goods rose about 2%, with Heico shares down 0.5% in premarket trading.
Finally, ZM stock was up 9.65% late Monday but was down nearly 1% Tuesday morning.
Finally, new home sales numbers are due at 10 a.m. ET. New Home Sales in April are expected to drop to 670,000 vs. the March jump to 683,000.
stock market today
electric car giant Tesla (TSLA) fell 0.3% on Tuesday morning. Dow Jones Tech Giants apple (AAPL) And Microsoft (MSFT) were mixed before the stock market opened today.
advanced micro devices (AMD), IBD Stock Leaderboard ASML (ASML), Cadence Design Systems (CDNS) and the idea of IBD SwingTrader Shopify (Shop) – as well as Dow Jones shares Boeing (Bachelor’s), sales force (CRM) And visa (Fifth) – Among the best stocks to buy and watch in an uptrend of the stock market.
ASML and Salesforce are IBD Leaderboard stocks, Shopify is a new idea for IBD SwingTrader, while Boeing featured in this week’s column Stocks Near the Buy Zone.
Dow jones today: oil prices and treasury yields
Before the opening bell on Tuesday, Dow Jones futures were down 0.3% against fair value. Energy heavy weight chevron (CVX) topped the index, up more than 1% after the promotion to buy from HSBC.
S&P 500 futures lost 0.4%, while futures for the heavy Nasdaq 100 fell 0.5% in the morning’s move.
Among the US ETFs, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ(down 0.5%, SPDR S&P 500 ETF trades)spy) fell 0.4% early Tuesday.
The 10-year US Treasury yield traded higher on Tuesday at 3.75%, on track to extend a seven-day winning streak that has seen it rebound to its highest level since mid-March.
US oil prices continued to trade between $70 and $73 per barrel. West Texas Intermediate crude futures rose about 1% Tuesday morning, settling just below $73 a barrel.
Stock market action
And on Monday, the Dow Jones Industrial Average fell 0.4%. The S&P 500 rose less than 0.1%, while the Nasdaq Technology Composite gained 0.5%.
The Big Picture column commented Monday, “In an unusual development, the S&P 500 is still saddled with six distribution days. But the Nasdaq has given up all distribution days thanks to a combination of the index’s gains and the time that has passed since the distribution occurred.”
Now is an important time to read IBD’s The Big Picture column after the recent upward change in market expectations.
Top five Dow stocks to buy and watch right now
Dow Jones stock to buy and watch: Boeing, Salesforce, Visa
Boeing, the Dow Jones aerospace giant, rose 0.2% Monday, still holding above its 50-day line and trading near the 221.43 flat buy point, according to IBD MarketSmith pattern recognition. BA shares fell 0.2% early on Tuesday.
Salesforce has risen on previous alternate entries at 194.01 and 200.10 in recent weeks, according to Leaderboard analysis. Meanwhile, the RS line hit a new high last week, in a bullish sign. Salesforce reports first-quarter results after the market closes on May 31. CRM stock rose 0.1% Tuesday morning.
Visa shares remain in a buy range above the 230.15 cup handle buy cup, after falling 0.9% on Monday. The buying range rises to 241.66. V stock remained unchanged on Tuesday.
4 top growth stocks to watch in Stock market rise
Best stocks to buy and watch: AMD, ASML, Cadence, and Shopify
Chip leader Advanced Micro Devices pulled back from buying range above the 102.53 cup bottom buy point, according to IBD MarketSmith pattern recognition, up 2.1% on Monday. The Buy Zone rose by 5% to 107.66. AMD shares lost 0.2% at the start of the market on Tuesday.
IBD Leaderboard ASML stock broke above 683.28 buy points in a cup with handle last week and is in the 5% buy zone which tops at 717.44. ASML fell 0.6% Tuesday morning.
Cadence Design Systems is trying to break through the 217.77 buy point in a flat base, but fell below entry with a 2.3% drop on Monday. CDNS stock was flat early Tuesday.
Shopify joined the IBD Leaderboard on Monday, making an upward move above trendline entry near 62. Shares rose 3.1% on Monday. SHOP stock was higher on Tuesday.
Learn how to time the market with IBD’s ETF market strategy
Best stocks to buy and watch the stock market rise
These are the top four stocks to buy and watch in the stock market today, including two Dow leaders.
| Company Name | Code | The right point of purchase | Point of purchase type |
|---|---|---|---|
| ASML | (ASML) | 683.28 | mug with handle |
| sales force | (CRM) | 200.10 | merge |
| visa | (Fifth) | 230.15 | mug with handle |
| advanced micro devices | (AMD) | 102.53 | cup base |
Source: IBD data as of May 23, 2023
Join IBD experts as they analyze the leading stocks of the current stock market rally on IBD Live
Tesla stock
Tesla stock rose another 4.85% on Monday, extending its winning streak to five sessions and moving further above the 50-day line. Stocks are building the right side of the new base which has 207.89 buys at the moment. Watch for a handle to make a lower entrance. On Monday, the shares closed 40% off their 52-week high.
TSLA stock threatened to give up a small portion of Monday’s gains, falling by a fraction Tuesday morning.
Dow Jones leaders: Apple and Microsoft
Among Dow Jones stocks, Apple shares fell 0.5% Monday on the back of an analyst downgrade, pulling back from Friday’s 52-week high of 176.39. The stock continues to increase gains above 157.48 buying points, and is outside the buying range that reached 165.35. AAPL shares fell 0.2 percent in pre-market trading on Tuesday.
Shares of Microsoft rose 0.9% Monday, hitting a 52-week high of 322.59. The stock is well above 276.86 points buy flat base. On Tuesday morning, MSFT 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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