The Dow Jones Industrial Average fell Tuesday morning, as Wall Street reacted to key economic data with the early release of two housing reports, consumer confidence numbers and job openings. Meanwhile, Magnificent Seven stocks Alphabet and Microsoft, along with Advanced Micro Devices, are due to report earnings after the close.
After the opening bell, the Dow Jones Industrial Average dropped 0.1%, while the S&P 500 inched lower. The tech-heavy Nasdaq composite lost 0.2% in morning action.
Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust was down 0.2%, while the SPDR S&P 500 ETF lost 0.1%.
The 10-year Treasury yield dipped to 4.08% Tuesday. Further, oil prices threatened to extend Monday's losses, but West Texas Intermediate futures reversed slightly higher. WTI futures traded around $77 a barrel.
Economic Data, Big Earnings Reports
Early Tuesday, the Case-Shiller index rose 0.1% on the month for November, with a 5.4% annual increase, below estimates for a 0.4% monthly rise and a 5.8% annual increase. Further, the Federal Housing Finance Agency index rose 0.3% in November, in line with estimates, with a 6.6% year-over-year rise.
Meanwhile, the Conference Board's consumer confidence index topped estimates, rising to 114.8 in January vs. 110.7 in December.
Finally, the Labor Department's Job Openings and Labor Turnover Survey, or JOLTS, surprisingly jumped to 9.026 million in December. It was expected to fall to 8.7 million in December vs. 8.79 million in November.
Key earnings movers Tuesday include General Motors, Pfizer, PulteGroup, Super Micro Computer and United Parcel Service.
General Motors shares raced 9% higher, while Pfizer stock climbed almost 3% in early morning trade. PulteGroup moved up 1.9%, while Super Micro surged 8%. And UPS shares dived 6% in early trading.
Elsewhere, streaming giant Netflix sold off 1.6% after Seaport Global Securities downgraded the stock from buy to neutral.
Dow Jones Hits New High
On Monday, the Dow Jones Industrial Average moved up 0.6% and the S&P 500 rallied 0.8%. The tech-heavy Nasdaq composite advanced 1.1%.
Monday's Big Picture column commented, "The bad part is that the big advance has left indexes extended. The Nasdaq, for instance, is more than 5% above its 50-day moving average. Also, the S&P 500 has piled up seven distribution days, including a couple of stalling sessions. The S&P 500, however, lost its Dec. 20 distribution day because 25 sessions have passed since then."
Now is an important time to read IBD's The Big Picture column amid the continuing stock market rally. Be sure to read how to adjust to changing market conditions, with IBD's new exposure levels.
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Best Stocks To Buy And Watch
DraftKings, KKR, Novo Nordisk, Snowflake and Spotify — plus Dow Jones components Amgen, Merck and Walmart — are among the best stocks to buy and watch in the current market rally.
KKR and Walmart were featured in this Stocks Near A Buy Zone column.
Get Real-time Buy And Sell Alerts On Stock Market Leaders With IBD Leaderboard
Dow Jones: Walmart Breaks Out
Biotech leader Amgen rose 0.5% Monday, further out of the 5% buy range past a 288.46 official buy point in a flat base. The 5% buy area went up to 302.88. Amgen shares were down 0.7% Tuesday.
Drugmaker Merck is breaking out past a cup base's 119.65 buy point, according to IBD MarketSmith pattern recognition. Shares finished further above their entry amid a 0.4% climb Monday. Merck stock fell 0.5% Tuesday.
Discount retail giant Walmart is in buy range past a 163.57 entry in a cup with handle, amid a three-day win streak. The stock was down 0.5% early Tuesday.
4 Top Growth Stocks To Watch In The Stock Market Rally
DraftKings Breaks Out
IBD Leaderboard watchlist stock DraftKings rallied 3.7% Monday, decisively breaking out past a double-bottom base's official buy point at 38.97. DraftKings stock inched lower Tuesday morning.
IBD SwingTrader stock KKR broke out Friday, moving above an 85.66 flat-base entry. Shares fell 0.6% Tuesday morning.
Novo Nordisk, the maker of weight-loss drugs, ended Monday up 0.9%, further above its 105.69 flat-base buy point. Novo shares edged higher early Tuesday.
Software leader Snowflake is breaking out past a 202.83 buy point in a flat base with its 3.5% rally Monday, according to IBD MarketSmith. Snowflake shares fell 0.5% Tuesday.
Spotify closed Monday out of buy range past a 202.88 buy trigger in a flat base, with a 2% rise. The stock rallied 2% early Tuesday after UBS upgraded the stock from neutral to buy, with a raised price target to 274 from 170.
Best Bets In Today's Action
These are four best stocks to watch in today's stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Novo Nordisk | 105.69 | Flat base | |
| Merck | 119.65 | Cup base | |
| DraftKings | 39.35 | Cup base | |
| Spotify | 202.88 | Flat base |
Source: IBD Data As Of Jan. 29, 2024
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Magnificent Seven Stocks: Nvidia, Tesla
Magnificent Seven stocks Nvidia and Tesla were up 1.4% and 2.2%, respectively, in morning action Tuesday.
Nvidia rallied 2.35% Monday, more than 20% past a a 505.48 buy point in a flat base after a Jan. 8 breakout move. Shares are just shy of their record highs.
Tesla rebounded 4.2% Monday, recovering a part of last week's 13% dive. Shares are around 35% off their 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks in the Magnificent Seven, Apple and Microsoft traded mixed after Tuesday's stock market open.
Apple stock fell 0.4% Monday, extending a losing streak to four sessions and closing right at its 50-day line. Shares are about 4% away from their flat base's 199.62 buy point. Shares lost 0.8% early Tuesday.
Microsoft stock moved up 1.4% Monday, further extended past a flat base's 384.30 buy point. The software giant moved up 0.2% Tuesday morning.
Be sure to follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
