Dow Jones Futures Fall Ahead Of Biden Debt Ceiling Meeting; PayPal Dives On Earnings
Dow Jones futures dropped more than 125 points Tuesday morning ahead of President Joe Biden's meeting with congressional leaders on the debt ceiling. Late Monday, Treasury Secretary Janet Yellen once again warned of "economic catastrophe" if the United States failed to raise its debt ceiling in the coming weeks.
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President Biden and House and Senate Democrats are at odds with House Republicans over raising the debt ceiling. House Republicans, backed by Republicans in the Senate, demand deep spending cuts in exchange for raising the debt ceiling. President Biden and Democrats in Congress believe that federal borrowing should be raised without conditions.
On the economic front this week, the consumer price index for April is out at 8:30 a.m. ET on Wednesday. Inflation data will be keenly watched throughout May, after the Federal Reserve last week hinted at a possible pause, in June, to the rate-hike regimen that is slowing inflation but aggravating financial sector instability. Regulators said they "will closely monitor incoming information and assess the implications for monetary policy."
Biden's Approval Rating Falls Sharply; It's The Economy: IBD/TIPP
Earnings Movers: Palantir, PayPal
Early Tuesday, GlobalFoundries (GFS), Lucid (LCID), Palantir Technologies (PLTR), PayPal (PYPL), Shockwave Medical (SWAV) and Skyworks Solutions (SWKS) were on the move after earnings.
Contract chipmaker GlobalFoundries beat the Street's targets for the first quarter but lowered its outlook for the current period. GFS stock slid almost 4% early trading.
Lucid missed Wall Street's estimates late Monday, as several electric-vehicle startups tee up to report earnings. LCID stock tanked 10% in early trading.
Palantir reported first-quarter earnings and revenue that topped Wall Street targets. PLTR stock soared 16% as the company's chief executive outlined plans to capitalize on rising business interest in artificial intelligence.
PayPal stock plunged nearly 8% after reporting first-quarter earnings, revenue and total payment volume that topped views. But Wall Street appeared unsatisfied with the size of the company's raised 2023 outlook.
Shockwave shares jumped more than 3% early, and Skyworks Solutions was off nearly 10% before the open.
Stock Market Today EV giant Tesla (TSLA) traded down 1.1% Tuesday morning. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were lower ahead of today's stock market open.
Advanced Micro Devices (AMD), IBD Leaderboard stock Nvidia (NVDA), IBD SwingTrader idea Netflix (NFLX) and Uber Technologies (UBER) — as well as Dow Jones stocks Nike (NKE) and Visa (V) — are among the best stocks to watch in the still-struggling stock market uptrend.
Visa was featured in this week's Stocks Near A Buy Zone column. Netflix and Nvidia were recent IBD Stock Of The Day topics.
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Dow Jones Today: Oil Prices, Treasury Yields
Ahead of Tuesday's opening bell, Dow Jones futures fell 0.4% vs. fair value, and S&P 500 futures moved down 0.45%. The tech-heavy Nasdaq 100 futures dropped 0.5% in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) lost 0.5%, while the SPDR S&P 500 ETF (SPY) traded down 0.45% early Tuesday.
The 10-year U.S. Treasury yield on Tuesday traded down to 3.49%, pulling back after two straight days of big gains.
U.S. oil prices paused Tuesday morning, as West Texas Intermediate futures held above $72 a barrel. Last week, WTI futures briefly fell below $64 a barrel on Thursday before bouncing.
Stock Market Rally Still Under Pressure
On Monday, the Dow Jones Industrial Average fell 0.2%. The S&P 500 rose less than 0.1%, while the tech-heavy Nasdaq composite gained 0.2%.
Monday's Big Picture column commented, "The S&P 500, Nasdaq and Dow held support at their 50-day moving averages despite distribution days piling up over the past two weeks. The weekly chart of the Nasdaq and S&P 500 don't look particularly threatening. Both closed the past two weeks near weekly highs. An uptrend from the mid-March low has moderated but hasn't failed."
Now is an important time to read IBD's The Big Picture column with the stock market still struggling to maintain its uptrend.
Five Best Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Buy And Watch: Nike, Visa
Nike shares rose 0.2% Monday, still below a cup-with-handle's 127.59 buy point after last week's breakout attempt. NKE stock lost 0.5% early Tuesday.
Visa shares remain in buy range above a 230.15 cup-with-handle buy point amid Monday's slight rise. The buy range goes up to 241.66. V stock was down 0.3% Tuesday.
4 Top Growth Stocks To Watch In The Stock Market Rally
Best Stocks To Buy And Watch: AMD, Nvidia, Netflix, Uber
Chip leader Advanced Micro Devices surged 5.8% Monday, bullishly retaking the 50-day line. Shares climbed above an early trendline entry, using Thursday's high of 91.64 mark as the buy point. The stock continues to build a cup base with a 102.53 buy point, according to IBD MarketSmith pattern recognition. AMD stock fell 0.9% Tuesday.
IBD Leaderboard stock Nvidia's shares finished Monday further above a 280.10 buy point in a short consolidation after the session's 1.6% rise. The 5% buy zone goes up to 294.11. NVDA was off 0.7% early Tuesday.
Monday's IBD Stock Of The Day, Netflix, popped above its 50-day moving average line. That positive action created a buying opportunity for aggressive investors. Further, Netflix shares now are nearing a buy point of 349.90 out of a cup-with-handle base. NFLX stock dropped 0.4% Tuesday morning.
Uber Technologies decisively moved above a 37.68 buy point in a cup base, rallying 2.9% Monday. The 5% buy area goes up to 39.56. Uber stock moved down 0.9% 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 two Dow Jones leaders.
Company Name Symbol Correct Buy Point Type Of Buy Point Nvidia (NVDA) 280.10 Consolidation Nike (NKE) 127.59 Cup with handle Visa (V) 230.15 Cup with handle Advanced Micro Devices (AMD) 102.53 Cup base
Source: IBD Data As Of May 8, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock rallied another 1% Monday, adding to Friday's sharp gains. Still, shares remain below their 50-day line, as they look to build a new base. The stock closed Monday 45% off its 52-week high.
TSLA stock threatened to give up Monday's gains, trading down 1.1% early Tuesday.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares paused Monday after Friday's 4.7% surge. They closed just off their 52-week highs, which were set back in mid-August. The stock continues to add to gains above a 157.48 buy point and it is out of the buy range that ran up to 165.35. AAPL stock fell 0.5% premarket Tuesday.
Microsoft shares are sharply above a flat base's 276.86 buy point, after they hit a 52-week high Friday. They dipped 0.6% Monday to 308.65. The 5% buy area went up from the buy point to 290.70. On Tuesday morning, MSFT stock lost 0.55%.
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
