The Dow Jones industrial average fell earlier Tuesday Meeting with President Joe Biden With Congress leaders on debt ceiling. Late Monday, Treasury Secretary Janet Yellen again warned of “economic disaster” if the U.S. fails to raise its debt ceiling in the coming weeks.
President Biden and House and Senate Democrats have been at odds with House Republicans on raising the debt ceiling. House Republicans, supported by Republicans in the Senate, Demands deep spending cuts In exchange for raising the debt ceiling. President Biden and Democrats in Congress believe federal borrowing should be raised without conditions.
In economic terms this week, the Consumer Price Index for April was released at 8:30 a.m. ET on Wednesday. Inflation data will be closely watched throughout May after the Federal Reserve last week hinted at a possible pause in rate-hike policy in June, which would have eased inflation but worsened financial sector volatility. Regulators said they would “closely monitor incoming data and assess the implications for monetary policy”.
Earners: Palantir, PayPal
Contract chipmaker GlobalFoundries beat the Street’s targets for the first quarter, but lowered its outlook for the current period. GFS shares fell more than 6% in early trading.
Lucid missed Wall Street’s estimates late Monday as several electric-vehicle startups reported earnings. LCID stock fell 11% in early trade.
PayPal shares fell more than 8% after posting strong first-quarter earnings, revenue and total payment volume. But Wall Street remains unsatisfied with the firm’s raised 2023 outlook.
Shares of Shockwave rose more than 3% early on, and trailed off nearly 10% after Skyworks Solutions opened.
Advanced Micro Devices (AMD), the IBD Leaderboard share Nvidia (NVDA), the IBD SwingTrader idea Netflix (NFLX) and Uber Technologies (UBER) — as well as Dow Jones stocks Nike (OF) and visa (V) — is still one of the best stocks to watch in a struggling stock market rally.
Visa was featured in this week’s Stocks Near a Buy Zone column. Netflix and Nvidia are the latest IBD Stock of the Day headlines.
Dow Jones today: Oil prices, Treasury yields
After the opening hours on Tuesday, the Dow Jones industrial average fell 0.1%, and the S&P 500 was down 0.4%. The tech-heavy Nasdaq composite was down 0.5% in morning action.
The 10-year U.S. Treasury yield traded at 3.51% on Tuesday, pulling back after two consecutive big gains.
US oil prices were suspended on Tuesday morning, with West Texas Intermediate futures above $72 a barrel. Last week, WTI futures fell below $64 a barrel on Thursday.
The stock market is 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%.
In Monday’s Big Picture column, “The S&P 500, Nasdaq, and Dow all found support at their 50-day moving averages despite rallying delivery days over the past two weeks. The weekly chart for the Nasdaq and S&P 500 doesn’t look particularly threatening. Both closed near weekly highs over the past two weeks. March A rise from the mid-term lows is modest but not overwhelming.”
Now is an important time to read IBD’s The Big Picture column, as the stock market is still struggling to hold its highs.
Five Best Dow Jones Stocks to Buy and Watch Now
Dow Jones Stocks to Buy and Watch: Nike, Visa
Nike shares rose 0.2% on Monday, below the cup-with-handle’s 127.59 buy point after last week’s breakout attempt. NKE shares lost 1.6% in early Tuesday trading.
Visa shares are in a buy range above the 230.15 cup-with-handle buy point amid Monday’s slight rally. The buy limit goes up to 241.66. V stock was down 0.3% on Tuesday.
4 Best Growth Stocks to Watch Stock market rally
Best stocks to buy and watch: AMD, Nvidia, Netflix, Uber
Chip leader Advanced Micro Devices rose 5.8% on Monday, retracing a 50-day bullish streak. Using Thursday’s high of 91.64 as a buy point, shares rallied above the initial trendline entry. According to IBD MarketSmith model recognition, shares continue to form a cup base with a buy point of 102.53. AMD stock fell 1.4% on Tuesday.
Shares of IBD Leaderboard stock Nvidia ended Monday in a narrow consolidation after rising 1.6% in the session to a further 280.10 buy point. 5% buy zone goes up to 294.11. NVDA was down 1.5% in early Tuesday trading.
Monday’s IBD Stock Of The Day, Netflix, rose above its 50-day moving average line. That positive move created a buying opportunity for aggressive investors. Also, Netflix shares are now near a buy point of 349.90 on a cup-with-handle basis. NFLX stock was down 0.2% on Tuesday morning.
Uber Technologies rallied 2.9% on Monday to a 37.68 buy point on a per cup basis. 5% buy area goes up to 39.56. Uber shares fell 1.8% on Tuesday.
Learn how to time the market with IBD’s ETF Market Strategy
Best stocks to buy and watch in the stock market
These are four of the best stocks to buy and watch in today’s stock market, including two Dow Jones leaders.
|Name of the company||Symbol||Perfect buying point||Type of point of purchase|
|Nike||(OF)||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
Tesla shares rose another 1% on Monday, adding to Friday’s sharp gains. However, shares are below their 50-day range as they make a new base. The stock closed 45% off its 52-week high on Monday.
TSLA stock threatened to give up Monday’s gains, falling 1.9% early Tuesday.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares were flat on Monday after a 4.7% rise on Friday. They closed off their 52-week highs that were hit back in mid-August. The stock continues to add gains above the 157.48 buy point and is outside the buy range running up to 165.35. AAPL shares fell 0.5% premarket on Tuesday.
Microsoft shares are above a flat base’s 276.86 buy point after hitting a 52-week high on Friday. They were down 0.6% on Monday at 308.65. 5% buy area rose from the buy point to 290.70. On Tuesday morning, MSFT stock lost 0.55%.
Don’t forget to follow Scott Lehtonen on Twitter @IBD_SLehtonen Learn more about growth stocks and the Dow Jones Industrial Average.
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