Dow Jones futures were little changed ahead of Tuesday’s open, along with S&P 500 futures and Nasdaq 100 futures, in overnight trade. The stock market correction deepened Monday, as the Dow Jones Industrial Average dropped nearly 200 points.
Tech titans Amazon (AMZN), Alphabet (GOOGL), Meta Platforms (META) and Microsoft (MSFT) highlight this week’s busy earnings calendar. Alphabet and Microsoft earnings are due out Tuesday evening, while Meta is set to report after the close Wednesday. Finally, Amazon earnings are late Thursday.
Along with earnings season, this week’s economic calendar includes Thursday’s first official estimate of third-quarter GDP growth, expected to top 4%, fueled by an acceleration in consumer spending.
Further, Friday’s personal income and outlays data for September will show how the Fed’s primary inflation rate, the core PCE price index, finished the quarter. After three tame months through August, economists are expecting an accelerated 0.3% rise.
Stock Market Today: Dow Jones Falls
On Monday, the Dow Jones Industrial Average fell 0.6%, while the S&P 500 lost 0.2%. The tech-heavy Nasdaq composite rose 0.3% after reversing up from early losses. All three major stock indexes set new correction lows.
Electric-vehicle giant Tesla (TSLA) inched higher Monday, while stock market leader Nvidia (NVDA) gained 3.8%. Meanwhile, Dow Jones tech icons Apple (AAPL) and Microsoft traded higher in today’s stock market, with AAPL stock up 0.1% and Microsoft shares up 0.8%.
IBD Leaderboard member Arista Networks (ANET), Lululemon Athletica (LULU), Meta Platforms and Zscaler (ZS) — as well as Dow Jones stocks JPMorgan Chase (JPM) and Salesforce (CRM) — are among the best stocks to buy and watch in the new stock market correction.
JPMorgan is featured in this Stocks Near A Buy Zone column.
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 eased from long-term highs, settling at 4.83%. The 10-year Treasury yield briefly topped 5% Monday morning. Meanwhile, oil prices tumbled more than 2%, as West Texas Intermediate futures closed just below $86 a barrel.
Stock Market Rally Attempt: What To Do Now
Now is an important time to read IBD’s The Big Picture column, as the stock market outlook was downgraded to a market correction Friday.
Amid the recent weakness, IBD investors should remain very cautious about taking on new positions, with a recommended stock market exposure at a 0%-20% level.
A new stock market rally attempt kicked off Monday, with the Nasdaq’s upside reversal. That means a follow-through day can occur on the Nasdaq as soon as Thursday, or Day 4, of the rally attempt.
In the meantime, look for new stock market leadership to emerge over the coming weeks if the Dow Jones and other indexes can rebound. Watch for stocks holding up better than the broader market.
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. Keep an eye on 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.
A MarketSmith list to find stocks during market downturns is “Near Pivot.” It shows stocks nearing buy points in bases.
Dow Jones Stocks: JPMorgan, Salesforce
Dow Jones banking giant JPMorgan dropped 1.4% Monday. Shares are squarely below their 50-day line, as they build a flat base with a 159.38 buy point, according to IBD MarketSmith chart analysis. An early entry looms at 153.11, using the Oct. 13 high as the buy trigger.
Software leader Salesforce is battling for support around its long-term 200-day line. Up next is the 50-day line, which looms as a key resistance area to watch. If the stock retakes that key level, then it would move closer to a 228.79 buy point in a double-bottom base.
4 Top Growth Stocks To Watch In The Stock Market Correction
Stocks To Buy And Watch: Meta Retakes Buy Point
Arista rebounded 0.2% Monday, closing right at the 50-day line and about 5% away from a 198.70 buy point in a flat base. The company reports third-quarter results Oct. 30.
Lululemon jumped 1.7% Monday, closing just below a flat base’s 406.94 buy point, according to IBD MarketSmith pattern recognition. Wait for another sustained move past that entry as a buy signal.
Facebook-parent Meta Platforms moved back above a 312.87 buy point during the stock’s 1.7% advance Monday. Meanwhile, Meta stock is still below a cup base’s official buy point at 326.20. The social media giant reports third-quarter results late Wednesday.
Cybersecurity leader Zscaler is rebounding from support around its 50-day line, with a 0.2% rise Monday. Another decisive bounce would place the stock in a new buy area.
Learn How To Time The Market With IBD’s ETF Market Strategy
Best Stocks In Today’s 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|
|Meta Platforms||(META)||312.87||Handle entry|
|Arista Networks||(ANET)||198.70||Flat base|
Source: IBD Data As Of Oct. 23, 2023
Tesla stock bounced less than 0.1% Monday, snapping a three-day losing streak that saw the stock close below the 200-day line for the first time since May 26.
Shares are trying to find support around that long-term level, and are nearly 30% off their 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple reversed slightly higher Monday, snapping a six-day losing streak. Shares are trying to stem their recent slide around the 200-day line. Apple delivers its fiscal fourth-quarter report on Nov. 2.
Microsoft stock gained 0.8% Monday, as shares continue to hold to find support around their 50-day line. A new base is forming ahead of the company’s first-quarter earnings report on Tuesday. The base shows an early entry at 340.86. Another early entry, at the Oct. 16 high of 336.14, is also in play.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
YOU MAY ALSO LIKE:
Top Growth Stocks To Buy And Watch
Learn How To Time The Market With IBD’s ETF Market Strategy
Find The Best Long-Term Investments With IBD Long-Term Leaders
MarketSmith: Research, Charts, Data And Coaching All In One Place
How To Research Growth Stocks: Why This IBD Tool Simplifies The Search For Top Stocks
Barbara Terrio is a seasoned business journalist, delving into the world of finance, startups, and entrepreneurship. With a knack for demystifying complex economic trends, she helps readers navigate the business landscape. Outside of her reporting, Barbara is an advocate for financial literacy and enjoys mentoring aspiring entrepreneurs.