Dow Jones futures rose Monday morning, as investors braced for this week’s updates on inflation. Further, second-quarter earnings season kicks off Friday, with earnings reports from big banks JPMorgan Chase (JPM), Citigroup (C) and Wells Fargo (WFC).
Economic data is abundant this week, with the spotlight on Wednesday’s Consumer Price Index inflation data. Economists are expecting 0.3% monthly increases in both the overall and core CPI, which strips out food and energy prices. The core CPI inflation rate could fall from May’s 5.3% to 5% or possibly lower as the hefty 0.6% monthly rise in June 2022 falls out of the 12-month calculation.
Stock Market Today
Alphabet, Chipotle Mexican Grill (CMG), Dynatrace (DT), MongoDB (MDB) and Nvidia (NVDA) — as well as Dow Jones stocks American Express (AXP), Visa (V) and Salesforce (CRM) — are among the best stocks to watch in the current stock market pullback.
Dow Jones Today: Oil Prices, Treasury Yields
Heading into Monday’s opening bell, Dow Jones futures rose 0.15% vs. fair value. S&P 500 futures shed early losses and turned positive, while Nasdaq 100 futures inched lower in morning action.
The 10-year U.S. Treasury yield was unchanged at 4.05%, as it continues to hold above its recent highs. The yield settled Friday at 4.05%, its highest level since early March.
Oil prices pulled back modestly Monday morning, after last week’s firm rebound from lows. West Texas Intermediate futures traded down around 0.5%, to just below $73.50 a barrel.
Stock Market Action
On Friday, the Nasdaq composite saw gains fade as it ended the day down 0.1%, meaning it finished the week with a nearly 1% decline. The S&P 500 also saw gains evaporate as it skidded 0.3%. The benchmark index fell just over 1% for the week and now sits at the 10-day moving average. It remains up nearly 15% so far in 2023.
The Dow Jones Industrial Average fared worst among the major indexes, dropping 0.6% on Friday. A test of the 50-day moving average now looks imminent.
Friday’s Big Picture column commented, “It was not all bad news, though. Advancers outnumbered decliners by more than 2-to-1 on the NYSE and about 2-to-1 on the Nasdaq. Volume was lower on both indexes, a positive on a down day. At this stage, the stock market uptrend continues to show resilience.”
Now is an important time to read IBD’s The Big Picture column as the stock market holds near this year’s highs.
Dow Jones Stocks To Watch: American Express, Salesforce, Visa
American Express is building a cup-with-handle base that has a 177.04 buy point. Shares are 4% away from their entry following a 0.7% drop on Friday. AXP stock inched higher Monday morning.
Salesforce is trying to steady itself after its post-earnings slump. It is now testing support at the 50-day line and a decisive rebound would create a new buying opportunity. Meanwhile, a flat base with a 225 buy point in also in play, according to IBD Leaderboard analysis. CRM stock fell a fraction Monday morning.
Payments leader Visa closed just above a flat base’s 235.57 buy point Friday, with a 1% loss. The buy range tops out at 247.35. V stock rose 0.2% early Monday.
Best Stocks To Buy And Watch: Alphabet, Chipotle, Dynatrace, MongoDB, Nvidia
Wednesday’s IBD Stock Of The Day, Alphabet, is trying to find support around its 50-day line. Last week, investors could have used the June 30 high of 121.08 as a buy point. But shares are below that buy trigger after two straight days of losses. Plus, Alphabet shares have a flat base with a 129.04 buy point. GOOGL stock moved down 0.5% Monday morning.
IBD Leaderboard watchlist stock Chipotle continues to fall further below a flat base’s 2,139.88 buy point, according to IBD MarketSmith pattern recognition. An early entry at 2,092.51 was also available due to a trendline. Chipotle was a recent IBD Stock Of The Day. CMG stock was unchanged Monday morning.
Software maker Dynatrace has formed a three-weeks-tight chart pattern, representing a brief consolidation in which institutional investors pause their buying. Shares are about 3% away from their latest entry at 52.99. DT stock was unchanged Monday morning.
MongoDB traded tightly after its recent earnings-fueled jump, which offered a new entry. Shares are just below the three-weeks-tight formation that showed a buy point at 398.89 after three straight days of losses. Meanwhile, aggressive investors could have used a trendline entry around 386. MDB stock moved down 0.5% Monday morning.
Following its May 25 earnings-fueled gap-up, Nvidia shares have been trending consistently higher. Amid a pullback since June 20, the stock is offering another opportunity to buy shares. It formed a trendline entry at 418 after the stock found support at its 21-day exponential moving average. Nvidia is an IBD Leaderboard stock. Shares rose 0.7% Monday.
Best Stocks To Buy And Watch 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|
|ASML||(ASML)||683.18||Cup with handle|
|Roku||(ROKU)||75.45||Cup with handle|
Source: IBD Data As Of July 5, 2023
IBD Leaderboard stock Tesla declined for a second consecutive session Friday, down 0.8%. Still, the stock finished 4.8% higher for the week, leaving Tesla shares remain sharply out of buy range beyond a double-bottom’s 207.79 buy point and just off their 2023 highs.
TSLA stock looked to rebound from Friday’s losses, climbing 0.7% Monday.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock continued to hold just off last week’s record high at 194.48, falling 0.6% Friday. Shares continue to hold sharply above a 157.38 buy point. Early Monday, shares fell 0.3% in morning action.
Microsoft shares dropped 1.2% Friday, ending a two-day win streak. They are holding about 4% away from their June 16 all-time high at 351.47. The stock is still in the 20% to 25% profit zone from a 276.76 flat-base buy point, so investors are able to take at least some profits here. And on Monday morning, Microsoft shares were down 0.7%.
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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