Rally Attempt Continues As Nvidia Rebounds; Big Inflation, Jobs Data Due

Dow Jones futures were little changed ahead of Tuesday’s open, along with S&P 500 futures and Nasdaq 100 futures.


The stock market rally attempt continues this week, as Friday’s jobs report will take center stage in the final week of August. A solid report for the month would not assure a rate hike. But a surprisingly soft report — with payroll gains closer to 100,000 — would likely take a hike off the table. Meanwhile, the Commerce Department’s July personal income and spending data, which includes the Fed’s favorite inflation indicator, comes out Thursday.

On the earnings front, Dow Jones software giant Salesforce.com (CRM) delivers its second-quarter earnings report on Wednesday. CRM’s report leaves only Nike (NKE) and Walgreens (WBA) yet to report on the Dow Jones Industrial Average.

Stock Market Today: Dow Jones Rises

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%.

Electric-vehicle giant Tesla (TSLA) traded up 0.1% Monday, while Nvidia (NVDA) rebounded 1.8%. Dow Jones tech icons Apple (AAPL) and Microsoft (MSFT) were higher in today’s stock market open. AAPL stock rose 0.9%, while Microsoft shares climbed 0.2%.

Other stock market leaders include Alphabet (GOOGL) and Meta Platforms (META). GOOGL stock gained 0.9% while Meta shares rose 1.7%.

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, along with S&P 500 futures and Nasdaq 100 futures, were little changed vs. fair value. Remember that overnight action in Dow Jones futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

On Monday, the 10-year U.S. Treasury yield ticked lower to 4.21%. Oil prices rose modestly, holding near their 2023 highs. West Texas intermediate futures settled above $80 a barrel.

Stock Market Rally Attempt: What To Do Now

Now is an important time to read IBD’s The Big Picture column, with the major stock indexes in their ongoing stock market rally attempt.

IBD’s market outlook remains in a stock market correction, with a 0%-20% recommended exposure range. That means that investors should be mostly in cash, in preparation for a follow-through day.

A follow-through day is still possible any day. And as long as the Nasdaq remains above its Aug. 18 lows, the rally attempt remains intact.

But until that occurs, investors should be in preservation mode with their capital. They should be building watchlists of top stocks near buy points to act on once the market status shifts.

One way to do this is by using the relative strength line. The RS line measures a stock’s price performance vs. the S&P 500. Look for stock charts in which the line is trending upward, which means the stock is outperforming the S&P.

The RS line is in all IBD charts and IBD MarketSmith. In addition, the IBD Stock Screener includes a list of top-rated stocks with lines at new highs. MarketSmith also has the “RS Blue Line Dot” list, which screens for RS lines at new highs.

Two useful MarketSmith lists to check once a follow-through happens are “Breaking Out Today” and “Near Pivot.” The latter shows stocks nearing buy points in bases, and the other flags stocks rising past buy points during the session.

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.

Drug giant Merck fought to stay above its 50-day line amid a 1.2% fall on Monday. MRK stock is tracing a flat base with a 119.65 buy point and a 115.61 early entry.

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.

4 Top Growth Stocks To 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.

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.

Software leader Fastly broke out past an ascending base’s 21.54 buy point on Friday, rallying nearly 8%. Shares are in the 5% buy area Monday, but the market correction should keep investors on the sidelines.

IBD Leaderboard stock Tidewater is rebounding from support around its 10-week line, placing the energy leader in a new buy area.

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
Cadence Design Systems (CDNS) 248.16 Flat base
Visa (V) 235.57 Flat base
Baker Hughes (BKR) 36.48 Tight area
Fastly (FSLY) 21.54 Ascending base
Source: IBD Data As Of Aug. 28, 2023

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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 spate of selling, 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.

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.

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.

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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