Dow Jones Futures Fall On Weak Retail Sales; Charles Schwab Surges On Earnings
Dow Jones futures edged lower Tuesday after weaker-than-expected June retail sales data. That came as big banks and other financial stocks continued to roll out earnings, with Bank of America (BAC), Charles Schwab (SCHW) and Morgan Stanley (MS) delivering results.
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The Commerce Department's June retail sales data came in lower than expected Tuesday morning, with sales up 0.2% vs. the expected 0.5% increase.
Meanwhile, Bank of America, Charles Schwab, Lockheed Martin (LMT) and Morgan Stanley were key earnings reporters Tuesday morning.
BAC stock dropped 1.3% in premarket trade after the company's second-quarter results topped estimates. Schwab jumped nearly 8% following its second-quarter results.
Lockheed Martin shares advanced 1% in morning trade, while Morgan Stanley stock rose 0.3% after the bank beat earnings and sales estimates.
Stock Market Today
Electric-vehicle giant Tesla traded down a fraction early Tuesday. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were mixed before today's stock market open.
Other stock market leaders include Alphabet (GOOGL) and Meta Platforms (META). GOOGL stock dipped 0.1%, while Meta shares dropped 0.5% in early action.
Allegro MicroSystems (ALGM), Cloudflare (NET), On Holding (ONON) and Monolithic Power Systems (MPWR) — as well as Dow Jones stocks American Express (AXP), Caterpillar (CAT) and Salesforce (CRM) — are among the best stocks to watch in the current stock market rally.
Tesla is an IBD Leaderboard stock, while Caterpillar was featured in this Stocks Near A Buy Zone column. On Holdings was a recent IBD Stock Of The Day. Cloudflare was also a recent pick for IBD Stock Of The Day.
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Dow Jones Today: Oil Prices, Treasury Yields
Ahead of Tuesday's opening bell, Dow Jones futures inched lower vs. fair value, while S&P 500 futures lost 0.1%. Nasdaq 100 futures dropped 0.2% in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) was down 0.2%, while the SPDR S&P 500 ETF (SPY) fell 0.1% early Tuesday.
The 10-year U.S. Treasury yield ticked lower to 3.76% Tuesday morning. On Monday, the 10-year U.S. Treasury yield settled lower at 3.79%.
West Texas Intermediate oil prices bounced modestly Tuesday morning, rebounding from Monday's losses. WTI futures traded 0.5% higher, to around $74.50 a barrel.
Stock Market Action
On Monday, the Dow Jones Industrial Average rose 0.2%, while the S&P 500 gained 0.4%. The tech-heavy Nasdaq composite climbed 0.9%.
Monday's Big Picture column said Monday's action signaled institutional investors so far holding steady on their accumulation strategies. "However, looking at the sell-offs in a few companies, IBD readers may want to remain vigilant for signs of that inevitable pullback. And the next three to four weeks' worth of earnings news may provide that catalyst for profit-taking."
Now is an important time to read IBD's The Big Picture column as the stock market is at this year's highs.
Five Best Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Watch: American Express, Caterpillar, Salesforce
American Express is trying to break out past a cup-with-handle base's 177.04 buy point. Shares are still below their buy trigger, even after a 1.2% rise Monday. Second-quarter earnings are due Friday. AXP stock moved up a fraction Tuesday morning.
Industrial giant Caterpillar is in buy range past a 250.89 entry in a cup with handle, according to IBD MarketSmith pattern recognition. CAT stock was unchanged early Tuesday.
Salesforce is in a buy range past a flat base's 225 entry, according to IBD Leaderboard analysis. CRM stock fell 0.6% Monday, still above the entry. Shares tacked on 0.2% Tuesday morning.
4 Top Growth Stocks To Buy And Watch In The Stock Market Rally
Stocks To Buy And Watch: Allegro, Cloudflare, On Holding, Monolithic Power
Allegro MicroSystems surged past a new entry last week, finishing just above the buy area after Monday's 4.2% rally. The buy range ran up from the 48.72 entry to 51.16. The company reports fiscal first-quarter results Aug. 1. And on Tuesday, ALGM stock inched higher.
Cloudflare is currently in a consolidation and trades about 1% below a traditional buy point at 72. But Cloudflare stock was actionable at 69.61, its intraday high on July 12 before shares sold off on Microsoft worries. Also, the entry point lines up with a trendline going back to June 2. Second-quarter earnings are due Aug. 3. NET stock rose 0.5% early Tuesday.
On Holding is again breaking out past a 33.68 buy point in a cup with handle, according to IBD MarketSmith pattern recognition. Shares closed in the 5% buy area that runs up to 35.36. ONON stock rallied 6.4% Monday after TD Cowen started coverage with an outperform rating and a 38 price target. ONON stock moved up 0.4% Tuesday morning.
Chip leader Monolithic Power moved beyond the 5% buy range past a 553.64 entry in a flat base, rallying 4.2% Monday. And shares moved up 0.4% 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) 747.13 Flat base Salesforce (CRM) 225.00 Flat base Cloudflare (NET) 72.00 Consolidation Roku (ROKU) 75.45 Cup with handle
Source: IBD Data As Of July 167, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
IBD Leaderboard stock Tesla rallied 3.2% Monday, extending a win streak to five sessions. Amid the recent gains, Tesla shares remain sharply out of buy range beyond a double bottom's 207.79 entry. They hit a new 2023 high on Monday.
TSLA stock threatened to end that win streak, trading slightly Tuesday. Tesla will report its second-quarter results on Wednesday after the close.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock tacked on 1.7% Monday, moving up for a fourth-straight session. AAPL stock continues to hold sharply above a 157.38 buy point. The tech giant's fiscal third-quarter results are expected on Aug. 3. Early Tuesday, shares edged lower in morning action.
Microsoft shares found support at their 50-day line last week, placing the stock in a new buy area. The software giant is set to report its earnings results on July 25. On Monday, Microsoft shares were up 0.1%, closing just off their 2023 highs. And on Tuesday morning, Microsoft shares were down a fraction.
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
