The Dow Jones Industrial Average and other major stock indexes moved higher Tuesday, as investors reacted positively to a cooler-than-expected inflation report. Two of the early earnings movers on the stock market today were retailers Home Depot and On Holding, while Nvidia extended its rebound.
After the opening bell, the Dow Jones Industrial Average rose 0.6%, while the S&P 500 added 1%. The tech-focused Nasdaq composite climbed 1.4% in morning action.
Early Tuesday, the 10-year Treasury yield sank to 3.87%. Oil prices eased, with West Texas Intermediate futures trading around $79.80 a barrel.
Among exchange traded funds, the Invesco QQQ Trust rose 1.4%, as the SPDR S&P 500 ETF gained 1% after the open.
Nvidia stock rallied another 4% Tuesday morning, set to add to Monday's 4.1% rebound. Shares closed just shy of their 21-day exponential moving average. Last week, the artificial intelligence giant hit its lowest level since mid-May before bouncing.
Also, Starbucks surged more than 21% Tuesday after the company announced it had named Brian Niccol as its next chief executive. Niccol was the CEO of Chipotle Mexican Grill. Chipotle shares plunged more than 12%.
Wake-Up Calls Still Ringing For Nvidia, Google, Meta And More
Stock Market Today: PPI Inflation Report
The Labor Department's producer price index showed a monthly increase of 0.1% for July, with an annual rise of 2.2%. Econoday had expected a monthly increase of 0.2% for July, with an annual rise of 2.6%. The core PPI, excluding food and energy, was unchanged on the month, with a 2.4% year-over-year increase. Wall Street had anticipated the core PPI to rise 0.2% on the month, with a year-over-year increase of 3%.
Meanwhile, key earnings movers Tuesday morning include Home Depot, On Holding and Tencent Music.
On stock slipped more than 1% after the company missed earnings estimates, but maintained its full-year sales growth outlook. Home Depot shares reversed slightly higher in morning action, while Tencent Music stock tumbled more than 13%.
Onslaught Of Selling Hammers Nvidia Stock And More. But Rays Of Hope Emerge.
Dow Jones Falls
On Monday, the Dow Jones Industrial Average dropped 0.4%, while the S&P 500 inched higher and tech-heavy Nasdaq composite rose 0.2%.
During Monday's IBD Live show, the IBD Live team discussed the current trading conditions and how investors should handle the stock market today.
Now is an important time to read The Big Picture column amid the ongoing market action. Also, be sure to read how to adjust to changing market conditions, with IBD's new exposure levels.
Nvidia Cracks Deepen. Don't Ignore Earlier Wake-Up Calls.
Stock Market Today: Best Stocks To Watch
Among the best companies to watch on the stock market today are Cava, Ferrari, ServiceNow and Shake Shack.
Also on the list are Dow Jones components Amazon, Apple, IBM, Microsoft and UnitedHealth.
There were no new stocks on IBD MarketSurge's "Breaking Out Today" list Monday. Check out the MarketSurge "Near Pivot" list for 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.
Get Real-Time Buy And Sell Alerts On Stock Market Leaders With IBD Leaderboard
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. Shares were up 0.3% Tuesday morning.
Meanwhile, IBM is approaching its latest entry, a cup-with-handle buy point at 196.26. IBM stock gained 0.4% Tuesday.
Outside the Dow Jones index, Mediterranean restaurant chain Cava bullishly regained its 50-day line last week. That also offers a buying opportunity for more aggressive investors. Shares are building the right side of a new base. Cava stock added 0.6% early Tuesday.
Shares of automaker Ferrari were trying to find support around their 50-day line. Further, the stock sat about 5% away from a 442.80 buy point out of a flat base. Shares edged up Tuesday morning.
ServiceNow held above a 806.52 handle entry, as it bounces from support at the 50-day line. ServiceNow rose 0.8% early Tuesday.
Shake Shack added a handle to a cup base, placing the new entry at 105.68. Shares were up 0.6% Tuesday morning.
Find The Best Stocks To Buy And Watch With IBD Stock Screener And IBD Screen Of The Day
Stock Market Today: Companies To Watch
These are four stocks in or near buy zones in today's stock market.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Ferrari | 442.80 | Flat base | |
| Shake Shack | 111.29 | Cup base | |
| ServiceNow | 806.52 | Handle entry | |
| Spotify | 331.08 | Flat base |
Source: IBD Data as of Aug. 5
Join IBD Experts As They Analyze Leading Stocks In The Stock Market Today On IBD Live
Magnificent Seven Stocks: Tesla
Among Magnificent Seven stocks, Tesla gained 2.6% in morning trading.
Tesla stock slipped 1.3% Monday, still below its 50- and 200-day lines.
Dow Jones Leaders: Amazon, Apple, Microsoft
Among Dow Jones components in the Magnificent Seven, Amazon, Apple and Microsoft traded higher after Tuesday's stock market open.
Amazon shares continue to hold below their long-term 200-day line after recent losses. The stock rose 0.6% Tuesday morning.
On Monday, Apple stock rose 0.7%, closing back above the 50-day line. Last week, shares triggered the round-trip sell rule from a 199.62 buy point. Apple was up 1.3% Tuesday.
Microsoft shares are trying to get back above the 200-day line. And on Tuesday morning, the stock rose 1.1%.
Be sure to follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on growth stocks, the Dow Jones Industrial Average and the stock market today.
