Dow Jones Futures Fall Amid Key Economic Data; Nio Skids, Pinduoduo Soars On Earnings

Dow Jones futures fell Tuesday morning, along with the S&P 500 and Nasdaq futures, amid the early release of key economic data.


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, and the Labor Department’s July JOLTS — Job Openings and Turnover Survey — are due at 10 a.m. ET.

On the earnings front, Dow Jones software giant Salesforce (CRM) delivers its second-quarter earnings report late Wednesday. And several software stocks also are on the earnings calendar, including MongoDB (MDB) Nutanix (NTNX) and Samsara (IOT), along with security software stocks CrowdStrike (CRWD) and Okta (OKTA).

Tuesday morning, Best Buy (BBY), BYD (BYDDF), Nio (NIO) and Pinduoduo (PDD) were key earnings movers.

BBY stock climbed more than 1% 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 skidded 4.4%. Finally, Pinduoduo shares soared 14% in premarket action, nearing a 92.79 buy point.

Stock Market Today

Electric-vehicle giant Tesla (TSLA) traded down 0.3% Tuesday morning, while Nvidia (NVDA) dropped 0.5%. Dow Jones tech icons Apple (AAPL) and Microsoft (MSFT) were mixed ahead of today’s stock market open.

Other stock market leaders include Alphabet (GOOGL) and Meta Platforms (META). GOOGL stock gained 0.7% while Meta shares inched lower 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.

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Dow Jones Today: Oil Prices, Treasury Yields

Ahead of Tuesday’s opening bell, Dow Jones futures dipped 0.15% vs. fair value, while S&P 500 futures lost 0.2%. The tech-heavy Nasdaq 100 futures dropped 0.3% in morning action.

Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) was down 0.3%, while the SPDR S&P 500 ETF (SPY) traded down 0.2% early Tuesday.

Also on Tuesday, the 10-year U.S. Treasury yield held steady at 4.21%, 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 tech-heavy 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 0.2% 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 inched higher 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 gained 0.1% 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 up 0.9% 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 flat 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 down 0.8% 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 flat 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 threatened to snap its two-day win streak, losing 0.3%.

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 inched higher 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 down 0.2%.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.


Top Growth Stocks To Buy And Watch

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Find The Best Long-Term Investments With IBD Long-Term Leaders

MarketSmith: Research, Charts, Data And Coaching All In One Place

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