Dow Jones futures fell slightly but other index future rose Tuesday morning amid a flood of key economic data, including new home sales and consumer confidence numbers. Walgreens (WBA) dived after an earnings miss.
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On the economic front Tuesday, durable goods orders unexpectedly rose 1.7% in May after April’s 1.1% rise. They were expected to fall 1% in May.
Meanwhile, the Case-Shiller home price index and the FHFA house price index are both due out at 9 a.m. New home sales follow at 10 a.m.
Further, the consumer confidence index is expected to rebound slightly in June, with a 103.7 reading vs. May’s 102.3.
Walgreens shares tumbled 7% premarket Tuesday after the company missed earnings estimates and slashed its full-year outlook, citing “challenging consumer and macroeconomic conditions.”
Later this week, Dow Jones stock Nike (NKE) will report its quarterly results on Thursday.
Stock Market Today
Meta Platforms (META) rallied 1.3% Tuesday premarket after Citi Research raised its price target from 315 to 360. EV giant Tesla (TSLA) bounced 1.2% following Monday’s big loss.
Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were both modestly higher ahead of today’s stock market open.
Chipotle Mexican Grill (CMG), McKesson (MCK), MongoDB (MDB) and Lam Research (LRCX) — as well as Dow Jones stocks JPMorgan Chase (JPM), Merck (MRK) and Salesforce (CRM) — are among the best stocks to watch in the ongoing stock market pullback.
Tesla is an IBD Leaderboard stock, Floor & Decor an IBD SwingTrader stock, while MongoDB is featured in this week’s Stocks Near A Buy Zone column.
Dow Jones Today: Oil Prices, Treasury Yields
Ahead of Tuesday’s opening bell, Dow Jones futures dropped 0.2% vs. fair value. S&P 500 futures gained 0.1%, while Nasdaq 100 futures rose 0.3% in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) traded up 0.4%, while the SPDR S&P 500 ETF (SPY) moved up 0.1% early Tuesday.
The 10-year U.S. Treasury yield ticked higher to 3.72%. The yield recently has been bobbing in a range between 3.57% and 3.85%, settling lower Monday at 3.71%.
Oil prices fell sharply Tuesday morning, heading back to their recent lows. West Texas Intermediate futures declined nearly 2%, to around $68 a barrel.
Stock Market Action
On Monday, the Dow Jones Industrial Average inched lower, while the S&P 500 lost nearly 0.5%. The tech-heavy Nasdaq composite slid 1.2%, ending at the day’s lows. On the upside, the small-cap Russell 2000 edged higher.
Monday’s Big Picture column commented, “The Nasdaq is on course to test its 21-day exponential moving average. That could be the first area of support for the index. If the composite breaches that level, the next possible bottom could be around 13,200. The index nearly topped this price level in August. And 13,000 is a major round number that can act as a psychological magnet of sorts.”
Now is an important time to read IBD’s The Big Picture column as the stock market remains in an uptrend but is pulling back.
Five Best Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Watch: JPMorgan, Merck, Salesforce
Dow Jones banking leader JPMorgan is about 3% below a 143.37 flat-base buy point after Monday’s 0.2% rise. Shares are right at their 50-day line, as they inched higher premarket Tuesday.
Drug giant Merck is forming a flat base with a 119.65 buy point, even as the stock dropped 1.3% Monday, falling back under the 50-day line. MRK stock dipped 0.1% Tuesday.
Salesforce managed to steady itself after slumping following earnings. It is now testing support at the 50-day line. The megacap tech previously moved past a pair of alternative entries at 194.01 and at 200.10, according to IBD Leaderboard analysis.
In recent weeks, shares reached the 20% profit zone from a 178.94 cup-with-handle entry. CRM stock rose 0.3% Tuesday morning.
4 Top Growth Stocks To Buy And Watch In The Stock Market Rally
Best Stocks To Buy And Watch: Chipotle, McKesson, MongoDB, Lam Research
IBD Leaderboard watchlist stock Chipotle is testing support at its 10-week line and building a flat base with a 2,139.88 buy point, according to IBD MarketSmith pattern recognition. Chipotle was Wednesday’s IBD Stock Of The Day. CMG stock fell a fraction Tuesday morning.
IBD SwingTrader stock McKesson is in buy range past a 401.53 cup-with-handle entry. The 5% buy zone goes up to 421.61. Shares were off 0.7% Tuesday.
MongoDB is trading tightly after its recent earnings-fueled gap up, offering a new entry. The three-weeks-tight formation shows a buy point at 398.89, while aggressive investors could use a trendline-entry around 386. MDB stock rose 0.8% Tuesday morning.
Lam Research moved above a 615.80 early buy point Monday after a 1.9% rally. Meanwhile, a three-weeks-tight pattern also shows a 630.72 entry. LRCX stock gained 0.5% premarket Tuesday.
Learn How To Time The Market With IBD’s ETF Market Strategy
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 |
| Salesforce | (CRM) | 200.00 | Consolidation |
| Cloudflare | (NET) | 66.20 | Double bottom |
| Roku | (ROKU) | 75.45 | Cup with handle |
Source: IBD Data As Of June 26, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
IBD Leaderboard stock Tesla skidded 6.1% Monday after Goldman Sachs downgraded the stock from buy to neutral, upping the price target to 248 from 185. Despite recent losses, Tesla shares remain sharply out of buy range beyond a double-bottom’s 207.79 buy point.
TSLA stock looked to bounce back after Monday’s losses, rising 1.2% Tuesday.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock hit another record high Monday, trading as high as 188.05. Shares reversed down 0.8%, as they continue to hold sharply above a 157.38 buy point. Early Tuesday, AAPL stock was up 0.2%.
Microsoft shares dropped 1.9% Monday, adding to Friday’s losses. On June 16, MSFT stock hit an all-time high at 351.47. In recent weeks, the stock reached the 20%-25% profit zone from a 276.76 flat-base buy point, so investors could have taken at least some profits there. And on Tuesday morning, Microsoft shares were up 0.5%.
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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