September 21, 2023

Dow Jones futures rise as CPI inflation data looms; 8 best stocks to buy and watch

Dow Jones futures rose modestly Tuesday morning as second-quarter earnings began to trickle and Wall Street awaits Wednesday’s release of the consumer price index, or CPI. The best stocks to buy and watch include tech titans Meta platforms (META) and Nvidia (NVDA).


As of Wednesday, Wall Street expects monthly increases of 0.3% in both general and core CPI. Core CPI inflation, which excludes food and energy prices, could fall from 5.3% yoy in May to 5% or possibly lower, as the strong monthly increase of 0.6% in June 2022 from the 12-month calculation.

Also, the second quarter earnings season kicks off this week Delta Airlines (VALLEY), Cintas (CTAS) and Confirmation (FAST) will report on Thursday. Earnings reports from major banks mark the official start of the season on Friday JPMorgan Chase (J.P.M.), Citi group (C) and Wells Fargo (WFC) due to report.

Fair today

Giant of electric vehicles Tesla (TSLA) climbed 0.4% Tuesday morning. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were modestly higher leading up to today’s stock market open.

Other stock market leaders include Alphabet (GOOGL) and meta platforms. GOOGL shares gained 0.5%, while Meta shares rose 0.3% in premarket trading.

Chipotle Mexican Grill (CMG), Dynatrace (DT), meta platforms, MongoDB (MDB) and Nvidia — as well as Dow Jones stock American Express (AXP), Visa (V) and Sales team (CRM) – are among the best stocks to watch in the current stock market downturn.

Tesla is an IBD Leaderboard stock, while American Express was seen in this column Stocks near a buy zone. Alphabet and Dynatrace were recent picks for IBD Stock Of The Day.

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Dow Jones Today: Oil Prices, Treasury Yields

Prior to Tuesday’s opening bell, Dow Jones futures were up 0.4% from fair value, while S&P 500 futures were up 0.3%. Nasdaq 100 futures rose 0.35% from fair value. Remember that overnight action in Dow futures and elsewhere does not necessarily translate into actual trading in the next regular trading session.

Among US exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) was up 0.3%, while the SPDR S&P 500 ETF (SPY) was up 0.25% Tuesday morning.

The 10-year US Treasury yield ticked lower to 3.96%, threatening to add to Monday’s losses. The yield was set at 4.0% on Monday, ending a four-day profit streak.

Oil prices rallied Tuesday morning after retreating from their highest since early June on Monday. West Texas Intermediate futures were up nearly 1% to just under $73.50 a barrel.

Stock market action

On Monday, the Dow Jones Industrial Average rose 0.6%, while the S&P 500 gained 0.2%. The tech-heavy Nasdaq composite also climbed 0.2%. Finally, the small-cap Russell 2000 rose 1.6%.

Monday’s Big Picture column noted, “It’s OK to let your winners run in the current stock market environment, but be critical with new buys and be careful not to chase expanded stocks. It can be tempting to leader as Super micro computer (SMCI), but it is about 20% above the 10-week moving average. At this point, it’s best to wait for SMCI to form a new base.”

This is an important time to read IBD’s The Big Picture column as the stock market is close to this year’s highs.

Five best Dow Jones stocks to buy and watch right now

Dow Jones stocks to watch: American Express, Salesforce, Visa

American Express is building a cup-with-handle base with a buy point of 177.04. Shares are 4% off their entry after gaining 1.15% on Monday. AXP shares rose 0.2% on Tuesday morning.

Salesforce is trying to stabilize itself after the post revenue slump. It is now testing support at the 50-day line and a decisive rally would create another buying opportunity. Meanwhile, a flat base with a buy point of 225 is also in play, according to IBD Leaderboard analysis. CRM shares added 0.3% Tuesday morning.

Payments leader Visa closed further above a flat base of 235.57 buy points on Monday with a gain of 0.7%. The buy range comes out at 247.35. V stock moved up early Tuesday.

4 Top Growth Stocks to Buy and Watch in the Stock market rally

Best stocks to buy and watch: Chipotle, Dynatrace, Meta, MongoDB, Nvidia

IBD Leaderboard watchlist stock Chipotle ended a four-day losing streak Monday, still below the 2,139.88 buy point from a flat base, 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. CMG shares rose 0.3% on Tuesday.

Software maker Dynatrace has formed a three-week chart pattern, representing a brief consolidation in which institutional investors pause their purchases. Shares are very close to their last entry at 52.99. DT shares were up 0.4% on Tuesday morning.

Facebook parent company Meta Platforms has been solidly consolidating over the past three weeks and has posted a new listing at 298.12. Now that the stock has expanded this far from the previous base, this buy point should be used as an add-on. Metashares added 0.3% premarket on Tuesday.

MongoDB traded briskly after its recent profit-driven jump, which offered another entry. Shares are just short of the tight three-week formation that showed a buy point at 398.89 after recent declines. Meanwhile, aggressive investors could have used a trendline around 386. MDB shares rose 0.3% early Tuesday.

After the May 25 earnings-fueled gap-up, Nvidia shares have moved consistently higher. Amid a pullback since June 20, the stock is once again offering an opportunity to buy shares. It formed a trendline entry at 418 after the stock found support near its 21-day exponential moving average. Nvidia is an IBD Leaderboard stock. Nvidia shares gained 0.7% Tuesday morning.

Learn how to time the market with IBD’s ETF market strategy

Best stocks to buy and watch in stock market rally

Here are the top four stocks to buy and watch in the current stock market, including a Dow Jones leader.

Company Name Symbol Correct point of purchase Point of sale type
ASML (ASML) 683.18 Cup with handle
Sales team (CRM) 200.00 Consolidation
Cloud Flame (NET) 66.20 Double bottom
Roku (ROKU) 75.45 Cup with handle
Source: IBD data as of July 10, 2023

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Tesla stock

Tesla’s IBD Leaderboard share fell for a third consecutive session on Monday, down 1.8%. Still, Tesla shares remain well out of the buy range past the 207.79 buy point with a double bottom and just outside their 2023 highs.

TSLA stock appeared to be recovering from Monday’s losses, rising 0.4% on Tuesday.

Dow Jones leaders: Apple, Microsoft

Among Dow Jones stocks, Apple stock remains just outside last week’s all-time high of 194.48, down 1.1% on Monday. AAPL shares, down in four of the last five trading sessions, remain sharply above a buy point of 157.38. On Tuesday morning, shares were up 0.4% in the morning action.

Microsoft shares fell 1.6% on Monday, a sharp drop for the second consecutive session. They pull back to their 50-day support level. An increase in large volume would result in a new buying area. And on Tuesday morning, Microsoft shares were slightly higher.

Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more information on growth stocks and the Dow Jones Industrial Average.


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