Biden, McCarthy Fail To Reach Debt Ceiling Deal; Tesla Stock Has New Buy Point
Dow Jones stock futures were higher ahead of Tuesday's open after the Dow Jones Industrial Average fell 140 points Monday. President Joe Biden and House Speaker Kevin McCarthy failed to reach a deal in their highly anticipated meeting over the debt ceiling. Meanwhile, Tesla (TSLA) stock shows a new buy point amid a five-day win streak.
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At the start of the meeting, Biden said, "We still have some disagreements but I think we may be able to get where we have to go. We both know we have a significant responsibility."
After the meeting, McCarthy told reporters that the meeting was "productive," adding, "I think the tone tonight was better than any other time we've had discussions."
He continued, "I believe we can still get there. I believe we can get it done," and that he expects to talk to Biden every day.
Over the weekend, debt-ceiling talks broke down, with President Joe Biden saying Sunday in a news conference in Hiroshima, Japan, that it was "time for the other side to move from their extreme positions because much of what they've already proposed is simply, quite frankly, unacceptable." Biden and McCarthy are attempting to reach a deal that would see the U.S. avoid a default on its sovereign debt.
Key earnings movers late Monday include Heico (HEI) and Zoom Video Communications (ZM).
Heico shares declined 1.5% in extended trade, while ZM stock surged as much as 9.65% after the close before slashing those gains.
Stock Market Today
On Monday, the Dow Jones Industrial Average fell 0.4%. The S&P 500 gained less than 0.1%, while the tech-heavy Nasdaq composite climbed 0.5%.
EV leader Tesla traded up 4.85% Monday. Among Dow Jones stocks, Apple (AAPL) fell 0.5% on a downgrade and Microsoft (MSFT) rose 0.9% in today's stock market action to hit a new high.
Advanced Micro Devices (AMD), IBD Leaderboard stock ASML (ASML), Cadence Design Systems (CDNS) and IBD SwingTrader idea Shopify (SHOP) — as well as Dow Jones stocks Boeing (BA), Salesforce (CRM) and Visa (V) — are among the best stocks to buy and watch in the stock market uptrend.
ASML and Salesforce are IBD Leaderboard stocks, Shopify a new IBD SwingTrader idea, while Boeing was featured in this week's Stocks Near A Buy Zone column.
4 Top Growth Stocks To Buy And Watch In The Current Stock Market Rally
Dow Jones Stock Futures Today: Oil Prices, Treasury Yields
Ahead of Tuesday's opening bell, Dow Jones futures rose 0.25% vs. fair value, and S&P 500 futures were up 0.3%. Nasdaq 100 futures also rose 0.4% vs. fair value in overnight trading. Remember that overnight action in Dow Jones futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
The 10-year U.S. Treasury yield rose to 3.71% Monday, climbing for a seventh-straight session. Meanwhile, U.S. oil prices moved up almost 1% Monday, as West Texas Intermediate futures settled just above $72 a barrel.
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What To Do In The Stock Market Rally
Now is an important time to read IBD's The Big Picture column with the stock market trend in a "confirmed uptrend."
A confirmed uptrend gives IBD readers the green light to purchase top stocks breaking out past new buy points. Due to the bullish action in recent sessions, IBD's recommended exposure in stocks is at 40% to 60% of your portfolio, with the Nasdaq and S&P 500 at new 2023 highs.
Two useful IBD MarketSmith lists to check right now 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.
To find more stock ideas, check IBD Stock Lists, like IBD 50, Big Cap 20 and Stocks Near A Buy Zone. These features identify bullish patterns and buy points and should be checked every day.
Learn How To Time The Market With IBD's ETF Market Strategy
Dow Jones Stocks To Buy And Watch: Boeing, Salesforce, Visa
Dow Jones aerospace giant Boeing rose 0.2% Monday, still holding above its 50-day line and trading near a flat base's 221.43 buy point, according to IBD MarketSmith pattern recognition.
Salesforce rallied past alternative entries at 194.01 and 200.10 in recent sessions despite a two-day drop. Meanwhile, the RS line hit a new high last week, a bullish signal.
Visa shares remain in buy range above a 230.15 cup-with-handle buy point amid Monday's 0.9% fall. The buy range goes up to 241.66.
Best Stocks To Buy And Watch: AMD, ASML, Cadence, Shopify
Chip leader Advanced Micro Devices moved back out of buy range above a cup base's 102.53 buy point, according to IBD MarketSmith pattern recognition, with a 2.1% ascent Monday. The 5% buy area goes up to 107.66.
IBD Leaderboard stock ASML broke above a 683.28 buy point in a cup with handle last week and is in the 5% buy zone that tops out at 717.44. ASML moved up 0.7% Monday.
Cadence Design Systems is trying to break out past a 217.77 buy point in a flat base, but fell further below the entry with a 2.3% drop Monday.
Shopify joined IBD Leaderboard Monday, as it made a bullish move above a trendline entry near 62. Shares rallied 3.1% Monday.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock rallied another 4.85% Monday, extending a win streak to five sessions and moving further above its 50-day line. Shares are building the right side of a new base that has a 207.89 buy point for now. Keep an eye out for a handle to offer a lower entry.
Shares closed Monday 40% off their 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares slipped 0.5% Monday on an analyst downgrade, falling from Friday's 52-week high at 176.39. The stock continues to add to gains above a 157.48 buy point and is out of the buy range that ran up to 165.35.
Microsoft shares rose 0.9% Monday, hitting a new 52-week high at 322.59. Shares are significantly above a 276.86 flat-base buy point.
Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for top stocks to buy and watch and Dow Jones Industrial Average action.
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Source: Investor's Business Daily
