Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, were little changed ahead of the stock market’s open on Tuesday. Magnificent Seven stocks Nvidia (NVDA) recovered strongly, but the attempt at a stock market rally is still missing one important factor.
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How to Determine What to Buy on a Follow-Through Day
Former President Donald Trump is said to have a conversation with Tesla (TSLA) CEO Elon Musk on Musk’s X platform, starting at 8 p.m. ET Monday night. However, there were technical issues in the X Space and users had trouble joining the Space before it was resolved.
Musk posted on X: “There appears to be a massive DDOS attack on 𝕏. We are working to stop it. Worst case scenario, we will continue with a smaller number of live listeners and post the conversation later.”
On Monday morning, Trump began posting on X for the first time since August 24, 2023, posting a copy of his arrest photo along with a link to his re-election campaign website.
Tesla shares fell 1.3% on Monday, while Trump media (DJT) fell more than 5%.
Meanwhile, the key economic data this week includes two crucial inflation gauges: Tuesday’s producer price index and Wednesday’s consumer price index. Also, U.S. retail sales for July are due out Thursday. There are signs that consumer spending is slowing, so the retail sales report could provide more insight.
Selling onslaught hammers Nvidia stock and more. But there are bright spots.
Stock Market Today
On Monday, the Dow Jones Industrial Average fell 0.4%, while the S&P 500 ended essentially unchanged. The tech-heavy Nasdaq composite rose 0.2%.
Some of the best companies to watch on the stock market today include: Cava (CAVA number), Ferrari (RACE), ServiceNow (NOW) and Shake hut (SHAKE).
Also on the list are Dow Jones components Amazon (AMZN), Apple (AAPL certificate), IBM (IBM), Microsoft (MSFT) and UnitedHealth (VNH).
IBM and Shake Shack are highlighted in this column, “Stocks Near a Buy Zone.”
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Dow Jones Today: Oil Prices, Government Bond Yields
Before Tuesday’s opening bell, Dow Jones futures, along with S&P 500 futures and tech-heavy Nasdaq 100 futures, were little changed from fair value. Keep in mind that overnight action in Dow Jones futures and elsewhere doesn’t necessarily translate into actual trading in the next regular trading session.
On Monday, the 10-year U.S. Treasury yield fell to 3.9%. And oil prices extended their recent gains as West Texas intermediate futures closed around $79.60 a barrel.
What to do now
The market has yet to confirm its rally attempt with a follow-through day. This could happen at any time. Remember that not all confirmed rallies succeed, so gradually increase your exposure as the market improves.
Investors should still be largely in cash, awaiting a follow-through day. Now focus on building watch lists. Have a list of stocks showing promising action, while you concentrate on a smaller list of potential top targets.
This is an important time to read IBD’s The Big Picture column amid the ongoing stock market action. After Monday’s session, be sure to check out today’s The Big Picture and today’s updated exposure level.
On Monday’s “IBD Live” episode, the team discussed current trading conditions in light of the recent stock market rally.
A key resource for daily breakouts is IBD MarketSurge’s “Breaking Out Today” list. This shows MarketSurge Growth 250 stocks breaking out past buy points. Meanwhile, the MarketSurge “Near Pivot” list shows more stocks approaching buy points in bases.
For more stock ideas, check out IBD Stock Lists like IBD 50, Big Cap 20 and Stocks Near A Buy Zone. These features identify bullish patterns and buy points and are available to check every day.
Wake-up calls still ring for Nvidia, Google, Meta and more
Dow Jones: IBM, UnitedHealth
Among Dow Jones components, UnitedHealth is in buying range above a 554.70 buy point in a cup base, according to MarketSurge pattern recognition. And IBM is nearing its latest entry, a cup-with-handle buy point at 196.26.
Outside the Dow Jones index, Mediterranean restaurant Cava bullishly reclaimed its 50-day line last week, offering a buying opportunity for more aggressive investors. Stocks are building the right side of a new base.
Shares of automaker Ferrari struggled to find support around their 50-day line and were about 5% away from a buy point of 442.80, after a flat base.
ServiceNow is just above an 806.52 handle entry as it bounces back from support at the 50-day line. Finally, Shake Shack added a handle to a cup base, bringing its new entry to 105.68.
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Stock Market Today: Companies to Watch
These are four stocks that are in or near the buy zone on the current stock market.
| Company | Symbol | Buy point | Point of sale type |
|---|---|---|---|
| Free Market | (MELIE) | 1,792.05 | Cup with handle |
| Shake hut | (SHAKE) | 111.29 | Cup base |
| ServiceNow | (NOW) | 806.52 | Process input |
| Spotify | (PLACE) | 331.08 | Flat base |
Source: IBD data as of August 12
Of the Dow Jones Magnificent Seven stocks, Amazon, Apple and Microsoft closed mixed on Monday.
Amazon shares fell 0.1%, ending a four-day winning streak. They remain below their long-term 200-day line.
Apple shares rose 0.6% on Monday, extending a four-session winning streak and closing higher than its 50-day line.
Shares of Microsoft rose 0.2% as the company attempts to reestablish its 200-day trend.
Be sure to follow Scott Lehtonen on X/Twitter via @IBD_SLehtonen for more information about growth stocks and the Dow Jones Industrial Average.
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