The Dow Jones Industrial Average dropped Tuesday after the early release of stronger-than-expected U.S. retail sales data. Meanwhile, Tesla stock fell after the company recalled nearly 55,000 Model X vehicles, while Nvidia dived on an expanded ban on artificial-intelligence chip exports to China.
The Commerce Department said retail sales for September jumped 0.7%. They were expected to rise 0.2% after gains of 0.6% in August and 0.5% in July.
Further, Bank of America, Goldman Sachs, Johnson & Johnson and Lockheed Martin were key earnings reporters Tuesday morning.
Bank of America shares gained 0.4%, while GS stock declined 1.5% in early trade. JNJ stock declined 1%. And Lockheed Martin shares were up 2% in morning trade.
Electric-vehicle giant Tesla dropped 1% Tuesday after the National Highway and Traffic Safety Administration, or NHTSA, said Tesla will recall 54,676 Model X vehicles. The car's vehicle controller is likely to fail to detect low brake fluid, NHTSA said. Tesla released a free over-the-air software update to fix the issue.
Dow Jones Today: Oil Prices, Treasury Yields
After Tuesday's opening bell, the Dow Jones Industrial Average dropped 0.1%, while the S&P 500 lost 0.2%. The tech-heavy Nasdaq composite dropped 0.4% in morning action.
Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust fell 0.4%, while the SPDR S&P 500 ETF moved down 0.2% early Tuesday.
The yield on the 10-year U.S. Treasury bond jumped to 4.83% Tuesday morning, on pace to extend Monday's rebound.
Oil prices were quietly higher Tuesday morning, as they try to hold support around their 50-day line. West Texas Intermediate futures traded just below $87 a barrel.
Struggling Stock Market Rally
On Monday, the Nasdaq composite jumped 1.2% as technology and internet sectors led the market. For the fifth consecutive session, the index met resistance near the 50-day moving average. That's an immediate barrier to watch.
Meanwhile, the S&P 500 climbed 1.1% and is approaching a test of its 50-day moving average that is sloping downward. Finally, the Dow Jones Industrial Average rose 0.9% and closed back above the 200-day moving average.
Monday's Big Picture column commented, "For a market uptrend that came under pressure just last Friday, Monday's rebound was a relief. Yet, the stock market still faces considerable risks. While index gains were satisfying, sellers continue to challenge significant chart levels."
Now is an important time to read IBD's The Big Picture column, with the stock market outlook showing signs of a pressured uptrend. Be sure to read how to handle the changing stock market outlook.
Learn How To Time The Market With IBD's ETF Market Strategy
Stock Market Today
Nvidia dived nearly 5% Tuesday morning after the Biden administration said it plans to halt shipments of more advanced artificial intelligence chips to China.
Meanwhile, Dow Jones tech icons Apple and Microsoft traded lower after today's stock market open.
Arista Networks, Lululemon Athletica, Meta Platforms, IBD Leaderboard member Nvidia and Regeneron Pharmaceuticals — as well as Dow Jones stocks JPMorgan Chase and Salesforce — are among the best stocks to buy and watch in the now-struggling stock market uptrend.
Meta is an IBD SwingTrader stock, while Nvidia is featured in this Stocks Near A Buy Zone column. Regeneron was IBD's Stock Of The Day on Friday.
Dow Jones Stocks: JPMorgan, Salesforce
Dow Jones banking giant JPMorgan dropped 0.1% Monday, giving back a sliver of Friday's earnings-fueled surge. Shares are trying to decisively regain their 50-day line, as they build a flat base with a 159.38 buy point, according to IBD MarketSmith chart analysis. An early entry looms at 153.11, using Friday's high as the buy trigger. JPM stock edged lower Tuesday.
Software leader Salesforce is battling resistance around its key 50-day line. If the stock retakes that key level, then it would move closer to a 228.79 buy point in a double-bottom base. CRM stock fell 0.8% Tuesday morning.
4 Top Growth Stocks To Buy And Watch In The Stock Market Rally
Stocks To Buy And Watch: Nvidia Tests Key Level
Arista jumped 3.7% Monday, just shy of a 198.70 buy point in a flat base. A recent bullish rebound from the 50-day line in recent sessions placed the stock in a new buy area. The company reports third-quarter results Oct. 30. ANET stock fell 0.1% early Tuesday.
Lululemon surged past a flat base's 406.94 buy point Monday, with a 10.3% advance. Shares are in the 5% buy area that goes up to 427.29. LULU stock dipped 0.1% Tuesday morning.
Social media giant Meta Platforms is finding support around a 312.87 buy point following Monday's 2.05% rise. Meanwhile, Meta stock is still below a cup base's official buy point at 326.20. The company reports third-quarter results Oct. 25. Meta shares gained 0.7% Tuesday.
IBD Leaderboard stock Nvidia rose 1.4% Monday, rebounding from support at its key 50-day line. Shares are building a cup base with a 502.66 buy point, but a potential handle could be forming now with an early entry at 476.09. Nvidia stock fell nearly 5% Tuesday morning.
Biotech leader Regeneron is trying to break out past a flat base's 847.50 buy point, according to IBD MarketSmith pattern recognition. Earnings are due out Nov. 2. REGN stock was down 0.6% Tuesday.
Best Stocks In Today's Stock Market Action
These are four best stocks to buy and watch in today's stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Meta Platforms | 312.87 | Handle entry | |
| Salesforce | 228.79 | Double bottom | |
| Duolingo | 167.53 | Double bottom with handle | |
| Arista Networks | 198.70 | Flat base |
Source: IBD Data As Of Oct. 16, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock Awaits Earnings
Tesla stock snapped a three-day losing streak Monday, with a 1.1% gain. Shares are finding support around their 50-day line, an important level to watch. TSLA stock has an official cup-with-handle base with a buy point at 278.98, and shares are about 9% away from that entry.
Tesla reports quarterly results late Wednesday.
Shares moved down more than 1% early Tuesday.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple cut losses to just 0.1% Monday, still falling for a second-straight session. Shares are bouncing back from their recent lows. If AAPL stock can continue its rebound, then it's likely to form a double-bottom base with a 189.98 buy point. Apple delivers its fiscal fourth-quarter report on Nov. 2. Shares lost 1% early Tuesday.
Microsoft shares gained 1.5% Monday, snapping back from two days of losses. Shares are moving further above their 50-day line. A new base is forming, with an early entry at 340.86. Earnings results are out Oct. 24. And on Tuesday morning, MSFT stock was down 0.3%.
Be sure to follow Scott Lehtonen on X/Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
