The Dow Jones Industrial Average rallied 145 points Tuesday after the release of key economic data. Tesla stock rival Nio dived after reporting weak Q2 results.
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Early Tuesday, the Case-Shiller Home Price Index and the Federal Housing Finance Agency Price Index came out. The Case-Shiller index for June rose 0.9%, shy of estimates that called for a 1.1% rise. Year over year, the Case-Shiller index dropped 1.2%.
The FHFA index rose 0.3% on the month in June, with a 3.1% year-over-year rise.
Further, August consumer confidence numbers from the Conference Board fell to 106.1 in August, down from July’s 117.0. Finally, the Labor Department’s July JOLTS — Job Openings and Turnover Survey — came in much lower than expected, at 8.827 million vs. the 9.559 million estimate.
Tuesday morning, Best Buy (BBY), BYD (BYDDF), Nio (NIO) and Pinduoduo (PDD) were key earnings movers.
BBY stock climbed more than 5% in morning trade, while BYD, China’s electric-vehicle and battery giant, posted near-record profits for its second quarter on the back of robust deliveries of electric vehicles. Nio shares dived 10%. Finally, Pinduoduo shares soared 17% in morning action, topping a 92.79 buy point.
Stock Market Today
Electric-vehicle giant Tesla (TSLA) traded up 3.9% Tuesday morning, while Nvidia (NVDA) climbed 2.4%. Dow Jones tech icons Apple (AAPL) and Microsoft (MSFT) were higher after today’s stock market open.
Other stock market leaders include Alphabet (GOOGL) and Meta Platforms (META). GOOGL stock gained 2.3% while Meta shares inched higher in early action.
Baker Hughes (BKR), Cadence Design Systems (CDNS), Fastly (FSLY) and Tidewater (TDW) — as well as Dow Jones stocks IBM (IBM), Merck (MRK) and Visa (V) — are among the best stocks to watch in the ongoing stock market correction.
Baker Hughes is an IBD Leaderboard watchlist stock. Merck featured in this Stocks Near A Buy Zone column.
Dow Jones Today: Oil Prices, Treasury Yields
After Tuesday’s opening bell, the Dow Jones Industrial Average rose 0.4%, while the S&P 500 gained 0.7%. The tech-heavy Nasdaq composite advanced 1% in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) was up 1%, while the SPDR S&P 500 ETF (SPY) rose 0.7% early Tuesday.
Also on Tuesday, the 10-year U.S. Treasury yield ticked lower to 4.14%, as it continues to hold near its 2023 highs.
West Texas Intermediate oil prices revived their rebound Tuesday, following Monday’s pause. WTI futures rose nearly 1%, trading near $81 a barrel.
Stock Market Trend
On Monday, the Dow Jones Industrial Average rose 0.6%, while the S&P 500 also climbed 0.6%. The Nasdaq composite rallied 0.8%.
Monday’s Big Picture column commented, “Despite its difficulties, the stock market remains in a rally attempt. All it would take to confirm the move is a big index rally with an increase in daily volume. As long as the Nasdaq and S&P stay above their August lows, a follow-through signal remains in play.”
Now is an important time to read IBD’s The Big Picture column as the stock market tries to rebound after a sharp pullback from this year’s highs.
Five Best Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks: IBM, Merck, Visa
Dow Jones leader IBM is trying to break out past a cup-with-handle’s 146.50 buy point, with a 0.5% rise Monday. IBM stock rose 0.4% Tuesday.
Drug giant Merck fought to stay above its 50-day line with a 0.7% rise on Monday. MRK stock is tracing a flat base with a 119.65 buy point and a 115.61 early entry. Shares gained 0.6% early Tuesday.
And Dow Jones payments leader Visa continues to hold in a buy range past a 235.57 flat-base buy point, according to IBD MarketSmith pattern recognition. Meanwhile, another entry is available, with the stock forming another flat base that has a 245.37 entry. V stock moved up 0.3% Tuesday.
4 Top Growth Stocks To Buy And Watch In The Stock Market Correction
Stocks To Watch: Baker, Cadence, Fastly, Tidewater
Oil field services and equipment leader Baker Hughes has been trading tightly the past five weeks and has a buy point at its 2023 high of 36.48, according to IBD MarketSmith. BKR stock moved down 0.1% in early morning trade.
Cadence Design Systems is in a flat base with a 248.16 buy point. Shares are right at their 50-day line, just shy of a 237.91 early entry. CDNS was up 0.8% Tuesday.
Software leader Fastly moved further past an ascending base’s 21.54 buy point on Monday, with a 2.3% gain. Shares are in the 5% buy area Monday, but the market correction should keep investors on the sidelines. FSLY stock traded up 1% in early trade.
IBD Leaderboard stock Tidewater is rebounding from support around its 10-week line, placing the energy leader in a new buy area. TDW stock was up 0.4% early Tuesday.
Learn How To Time The Market With IBD’s ETF Market Strategy
Best Stocks In Stock Market Action
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 |
|---|---|---|---|
| Oracle | (ORCL) | 127.54 | Flat base |
| Visa | (V) | 235.57 | Flat base |
| SLB | (SLB) | 58.70 | Cup with handle |
| Fastly | (FSLY) | 21.54 | Ascending base |
Source: IBD Data As Of Aug. 28, 2023
Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live
Tesla Stock
Tesla stock edged higher Monday, adding to Friday’s gain. Despite their recent rebound, shares remain well below their 50-day line. Amid the recent weakness, it’s clear that the stock requires more time to consolidate before a new entry emerges. Wait for a decisive move back above the 21- and 50-day moving averages before considering a new purchase of TSLA stock.
Early Tuesday, Tesla stock looked to extend its two-day win streak, gaining almost 4%.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock climbed 0.9% Monday, near its recent high. The stock remains squarely below the 50-day line following sharp losses in recent weeks. AAPL stock is building a flat base with a 198.23 buy point. AAPL stock rose 1% early Tuesday.
Microsoft shares also are trying to rebound from their recent lows, but the stock needs more time to consolidate before a new buy point emerges. The stock remains below its 21- and 50-day lines, so there isn’t a buy signal yet. And on Tuesday morning, the stock moved up 0.8%.
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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