Dow Jones futures were lower ahead of Tuesday’s open after the Dow Jones Industrial Average extended its losing streak on Monday. Apple shares traded off for a fourth straight session and are nearing new lows, while Tesla shares hit a new 52-week low following CEO Elon Musk’s Twitter poll.
late monday Heiko (BUH) rose 1.5% after the company’s profit and sales numbers beat analysts’ estimates. More earnings reports this week include: General Mills (GIS), Micro technology (MU) and Dow Jones stocks Nike: (NKE).
The stock market today
On Monday, the Dow Jones Industrial Average fell 0.5%, or 163 points, and the S&P 500 lost 0.9%. The tech-heavy Nasdaq composite traded up 1.5%. Among exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust ( QQQ ) fell 1.6% and the SPDR S&P 500 ( SPY ) fell 0.85%.
The electric transport giant Tesla ( TSLA ) traded up 0.2% on Monday. Among the Dow Jones stocks. Apple: ( AAPL ) lost 1.6% and Microsoft (MSFT) is down 1.7% on the stock market today.
The IBD Leads Fund Neurocrine Biology (NBIX), KLA: (KLAC), O’Reilly Automotive (ORLEY) and: United Rentals: (URI) — as well as Dow Jones names Caterpillar (CAT), Main Depot (HD) and: UnitedHealth Group ( UNH ) is one of the best stocks to consider on investors’ watch lists.
Neurocrine and United Rentals are IBD Leaderboard stocks. UnitedHealth was featured in last week’s stock near-buy zone column. Caterpillar and United Rentals were recent IBD Stock Of The Day companies.
4 Best Growth Stocks to Buy and Watch in The Curer:ent Stock Market Rally
Dow Jones futures today. oil prices
Dow Jones futures lost 0.3% below par before the opening bell on Tuesday, while S&P 500 futures fell 0.35%. Technology Nasdaq 100 futures were down 0.3% in real terms. Remember that overnight action in Dow Jones futures and elsewhere does not necessarily translate into real trading in the next regular stock market session.
The 10-year Treasury yield jumped to 3.58% on Monday, the highest since Dec. 12. U.S. oil prices rose nearly 2% on Monday, ending a two-day losing streak. West Texas Intermediate futures were trading at $76 per barrel.
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What to do in a struggling stock market rally?
Now is an important time to read IBD’s The Big Picture column, where the stock market is trending back to an “uptrend under pressure.”
While the Nasdaq and S&P 500 continue to trend higher, the stock market’s rally is under increasing pressure amid sharp losses over the past few trading sessions. That means investors should consider reducing their already reduced exposure. It is clear that protection is the priority in the current market when buying cracks.
However, it’s a good time to find out which stocks can weather the stock market’s volatility. As IBD readers know, stocks that perform best in weak markets can become big winners in the future when the market turns.
An easy way to measure stock strength is to use the relative strength line. The RS line compares a stock’s price action to the S&P 500. A rising line indicates that the stock is outperforming the benchmark index. Even if the stock is falling in price, if the S&P 500 falls more strongly, the stock’s RS line still rises.
(For stock ideas, check IBD stock lists like the IBD 50 and Stocks Near the Buy Zone.)
Five Dow Jones Stocks to Buy and Watch Now
To view Dow Jones Stocks. Caterpillar, Home Depot, UnitedHealth
Dow Jones member Caterpillar nears flat base at 238 buy point following Monday’s 0.2% decline, according to IBD MarketSmith’s pattern recognition. CAT stock scores a strong 97 out of a perfect 99 IBD Composite Rating, according to the IBD Stock Checkup.
Home improvement retailer Home Depot ended lower on Monday with a 329.77 buy point in a cup-handle base after falling 1.9% on the session.
Healthcare giant UnitedHealth Group is looking for a flat base with a buy point at 558.20. The stock gave up its 50-day support level last week, but is holding its 200-day line for now.
The best stocks to watch. KLA, Neurocrine, O’Reilly, United Rentals
Chip equipment leader KLA was mostly flat amid market weakness and is about 3% below the 392.60 cup entry after Monday’s 0.5% loss.
IBD Leaderboard Stock Neurocrine is trying to find support at its 50-day level amid a two-week losing streak. A strong pullback would be bullish for the stock’s immediate outlook and likely lead to a new base forming. Meanwhile, a sharp breakout could mean the stock needs more time to consolidate. NBIX shares were up 0.6% on Monday.
O’Reilly Automotive also retreated to its 50-day line last week, where it found much-needed support on Monday, rising 0.6%. A big pullback from the 50-day line could provide the next entry point, but the market’s uptrend is under pressure right now, increasing the risk of buying the stock. Shares remain just above a flat base of 750.98.
United Rentals is holding just below a 368.04 buy point with a cup handle. The stock is about 5% below a buy point, and further weakness would trigger the 7%-8% loss rule. Shares of URI were down 0.6% on Monday.
Join IBD experts as they analyze the top stocks on the current stock market rally on IBD Live
Tesla shares fell as much as 2.9% on Monday before paring losses to just 0.2%. Shares of TSLA hit a new 52-week low of 145.82.
Over the weekend, CEO Elon Musk launched a Twitter poll, tweeting, “Should I step down as head of Twitter? I will follow the results of this survey.” The poll closed with 57.5% saying he should step down as head of the company. Meanwhile, Oppenheimer downgraded the stock to outperform.
TSLA shares hit their lowest level since November 2020 on Monday. The stock closed about 63% off its 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among the Dow Jones stocks, Apple shares traded up 1.6% on Monday, hitting their lowest level since mid-June. AAPL shares hit a 52-week low set on June 16 at 129.04. The stock is down about 27% from its 52-week high.
Microsoft fell 1.7% on Monday as the stock looked to find support around its 50-day line amid a three-day losing streak. The software giant remains about 30% off its 52-week high.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen to learn more about growth stocks and the Dow Jones Industrial Average.
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