Dow Jones Futures: Market Rally At 2023 Highs As Tesla Stock Surges; Jobs Report Looms
Dow Jones futures were little changed as the stock market closed early for Tuesday's July 4 holiday. The major stock indexes finished right at their 2023 highs, as Tesla stock surged to new highs on record Q2 deliveries. Meanwhile, a pivotal June jobs report looms on Friday.
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On Monday, the Dow Jones Industrial Average inched higher, while the S&P 500 gained 0.1%. The tech-heavy Nasdaq composite rose 0.2%.
On the economic front this week, the Labor Department's jobs report on Friday takes the spotlight. Economists are forecasting a gain of around 200,000 jobs and a dip in the jobless rate to 3.6%.
Ahead of that pivotal jobs report, minutes from the Fed's June 13-14 meeting are due out Wednesday at 2 p.m. They could shed light on why policymaker projections penciled in two more rate hikes.
Thursday will bring a heavy dose of data. Payroll processor ADP issues its estimate of private-sector job growth in June at 8:15 a.m. Initial jobless claims are due at 8:30 a.m. Both reports are seen as precursors to the monthly payrolls report. The ISM services index is out at 10 a.m. along with the Labor Department's monthly Job Openings and Labor Turnover Survey.
Stock Market Today
EV giant Tesla (TSLA) surged nearly 7% after the company reported record Q2 deliveries that topped estimates. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) dropped 0.8% and 0.75%, respectively, in today's stock market action.
Chipotle Mexican Grill (CMG), Dynatrace (DT), MongoDB (MDB), Lam Research (LRCX) and Nvidia (NVDA) — as well as Dow Jones stocks JPMorgan Chase (JPM), Visa (V) and Salesforce (CRM) — are among the best stocks to watch in the ongoing stock market advance.
Tesla is an IBD Leaderboard stock, Lam Research remains an IBD SwingTrader stock, while Nvidia this week featured in the Stocks Near A Buy Zone column. Dynatrace was a recent IBD Stock Of The Day.
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Dow Jones Today: Oil Prices, Treasury Yields
The stock market is closed Tuesday, with limited futures trading.
Ahead of Wednesday'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 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 higher to 3.85%. Oil prices fell nearly 1% Monday, remaining near their recent lows. West Texas Intermediate futures traded around $70.50 a barrel.
Stock Market Action: What To Do Now
Now is an important time to read IBD's The Big Picture column with the major stock indexes at their 2023 highs.
As the stock market holds at this year's highs, IBD's recommended exposure levels sits at 80% to 100%. However, investors should take care when adding exposure, taking stock of current market levels and increasing at a measured pace. It is also key to remain nimble in case there is another pullback.
Five Best Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Watch: JPMorgan, Salesforce, Visa
Dow Jones banking leader JPMorgan moved further above a 143.37 flat-base buy point during Monday's gains. The 5% buy zone goes up to 150.54.
Salesforce managed to steady itself after slumping following earnings. It is now testing support at the 50-day line. A decisive bounce would offer a new entry.
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.
Payments leader Visa topped a flat base's 235.57 buy point last week, and added to those gains Monday, rising 0.2%. The buy range tops out at 247.35.
4 Top Growth Stocks To Watch In The Stock Market Rally
Best Stocks To Buy And Watch: Chipotle, Dynatrace, MongoDB, Lam Research, Nvidia
IBD Leaderboard watchlist stock Chipotle is trying to break out past 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.
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.
IBD SwingTrader stock Lam Research moved above a 615.80 early buy point and a three-weeks-tight pattern with a 630.72 entry during last week's gains. Shares tacked on 1.3% Monday.
MongoDB traded tightly after its recent earnings-fueled jump, which offered a new entry. Shares are above the three-weeks-tight formation that showed a buy point at 398.89, while aggressive investors could have used a trendline entry around 386.
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's formed a trendline entry at 418 after the stock found support at its 21-day exponential moving average. Nvidia is an IBD Leaderboard stock.
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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 Dynatrace (DT) 52.99 Tight area Visa (V) 235.57 Flat base Cloudflare (NET) 66.20 Double bottom Nvidia (NVDA) 418.00 Trendline
Source: IBD Data As Of July 3, 2023
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Tesla Stock
IBD Leaderboard stock Tesla extended a win streak to five sessions Monday. Amid the recent rebound, Tesla shares remain sharply out of buy range beyond a double-bottom's 207.79 buy point.
TSLA stock surged 6.9% Monday after the company said it delivered more than 466,000 vehicles to customers worldwide in the April-to-June period, a record quarter for sales. Price cuts and discounts propelled demand well above Wall Street forecasts.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock faded from Friday's record high at 194.48, declining 0.8% Monday. Shares continue to hold sharply above a 157.38 buy point.
Microsoft shares lost 0.75% Monday, giving back a part of Friday's gains. Still, the stock is just 4% away from its June 16 all-time high at 351.47.
In recent weeks, the stock reached the 20% to 25% profit zone from a 276.76 flat-base buy point, so investors could have taken at least some profits there.
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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Source: Investor's Business Daily
