Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, were little changed ahead of Tuesday’s stock market open. Magnificent Seven stock Nvidia (NVDA) rallied sharply, but the stock market rally attempt is still missing one key factor.
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This Is How To Determine What To Buy On A Follow-Through Day
Former President Donald Trump was set 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 difficulties in the X Space and users were having issues joining the Space before being resolved.
Musk posted on X, “There appears to be a massive DDOS attack on 𝕏. Working on shutting it down. Worst case, we will proceed with a smaller number of live listeners and post the conversation later.”
Early Monday, Trump began posting on X again for the first time since Aug. 24, 2023, when he posted a copy of his mug shot accompanied with a link to his reelection campaign website.
Tesla stock slipped 1.3% Monday, while Trump Media (DJT) tumbled more than 5%.
Meanwhile, key economic data this week includes two critical inflation gauges: Tuesday’s producer price index and Wednesday’s consumer price index. Further, U.S. retail sales data for July will be announced Thursday. There have been signs that consumer purchases are weakening, so the retail report could provide further insight.
Onslaught Of Selling Hammers Nvidia Stock And More. But Rays Of Hope Emerge.
Stock Market Today
On Monday, the Dow Jones Industrial Average moved down 0.4%, while the S&P 500 ended essentially unchanged. The tech-heavy Nasdaq composite rose 0.2%.
Among the best companies to watch on the stock market today are Cava (CAVA), Ferrari (RACE), ServiceNow (NOW) and Shake Shack (SHAK).
Also on the list are Dow Jones components Amazon (AMZN), Apple (AAPL), IBM (IBM), Microsoft (MSFT) and UnitedHealth (UNH).
IBM and Shake Shack are featured in this Stocks Near A Buy Zone column.
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Dow Jones Today: Oil Prices, Treasury Yields
Ahead of Tuesday’s opening bell, Dow Jones futures, along with S&P 500 futures and tech-heavy Nasdaq 100 futures, were little changed vs. fair value. Remember that overnight action in Dow Jones 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 lower to 3.9%. And oil prices extended their recent gains, as West Texas intermediate futures settled around $79.60 a barrel.
What To Do Now
The stock market still hasn’t confirmed its rally attempt with a follow-through day. That could happen any time now. Remember, not all confirmed rallies succeed, so gradually increase your exposure as the market improves.
Investors should still largely be in cash, awaiting a follow-through day. For now, focus on building watchlists. Have a list of stocks showing promising action, while concentrating on a smaller list of top potential targets.
Now is an important time to read IBD’s The Big Picture column amid the ongoing stock market action. Following Monday’s session, be sure to check out today’s The Big Picture and today’s updated exposure level.
On Monday’s “IBD Live” show, the team discussed current trading conditions amid the recent stock market bounce.
An essential resource for daily breakouts is IBD MarketSurge’s “Breaking Out Today” list. It shows MarketSurge Growth 250 stocks that are breaking out past buy points. Meanwhile, the MarketSurge “Near Pivot” list shows more stocks nearing buy points in bases.
To find more stock ideas, check 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 Ringing For Nvidia, Google, Meta And More
Dow Jones: IBM, UnitedHealth
Among Dow Jones components, UnitedHealth is in buy range above a 554.70 buy point in a cup base, according to MarketSurge pattern recognition. And IBM is approaching its latest entry, a cup-with-handle buy point at 196.26.
Outside the Dow Jones index, Mediterranean restaurant Cava bullishly regained its 50-day line last week. That offers a buying opportunity for more aggressive investors. Shares are building the right side of a new base.
Automaker Ferrari’s shares were trying to find support around their 50-day line, and sat about 5% away from a 442.80 buy point out of a flat base.
ServiceNow is just above an 806.52 handle entry, as it bounces from support at the 50-day line. Finally, Shake Shack added a handle to a cup base, placing the new entry at 105.68.
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Stock Market Today: Companies To Watch
These are four stocks in or near buy zones in today’s stock market.
| Company | Symbol | Buy point | Type of buy point |
|---|---|---|---|
| MercadoLibre | (MELI) | 1,792.05 | Cup with handle |
| Shake Shack | (SHAK) | 111.29 | Cup base |
| ServiceNow | (NOW) | 806.52 | Handle entry |
| Spotify | (SPOT) | 331.08 | Flat base |
Source: IBD Data as of Aug. 12
Among Dow Jones stocks in the Magnificent Seven, Amazon, Apple and Microsoft finished mixed Monday.
Amazon shares fell 0.1%, ending a four-day win streak. They remain below their long-term 200-day line.
On Monday, Apple stock rose 0.6%, extending a win streak to four sessions and closing further above the 50-day line.
Microsoft shares gained 0.2%, as they try to recover their 200-day line.
Be sure to follow Scott Lehtonen on X/Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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