Dow Jones futures were higher ahead of Tuesday's open after the Dow Jones Industrial Average rallied 209 points Monday.
The "Magnificent Seven" stocks — Amazon.com, Alphabet, Meta Platforms, Microsoft, Nvidia and Tesla — mostly faltered Monday, with the Nasdaq 100 set to adjust the weighting of its 100 components.
Alphabet shares fell below their 50-day line in average volume, while AMZN stock dropped more than 2%.
A key inflation report looms on Wednesday, with the release of the consumer price index, or CPI. Economists are expecting 0.3% monthly increases in both the overall and core CPI, which strips out food and energy prices. The core CPI inflation rate could drop from May's year-over-year rate of 5.3% to 5% or possibly lower, as the hefty 0.6% monthly rise in June 2022 falls out of the 12-month calculation.
Stock Market Today: Dow Jones Rallies
On Monday, the Dow Jones Industrial Average rallied 0.6%, while the S&P 500 gained 0.2%. The tech-heavy Nasdaq composite also climbed 0.2%. Finally, the small-cap Russell 2000 advanced 1.6%.
EV giant Tesla dropped nearly 2% on Monday. Dow Jones tech giants Apple and Microsoft declined 1.1% and 1.6%, respectively, in today's stock market action.
Chipotle Mexican Grill, Dynatrace, Meta Platforms, MongoDB and Nvidia — as well as Dow Jones stocks American Express, Visa and Salesforce — are among the best stocks to watch in the current stock market pullback.
Tesla is an IBD Leaderboard stock, while American Express was featured in this Stocks Near A Buy Zone column. Alphabet and Dynatrace were recent picks for IBD Stock Of The Day.
Dow Jones Today: Oil Prices, Treasury Yields
Ahead of Tuesday's opening bell, Dow Jones futures rose 0.2% vs. fair value, while S&P 500 futures gained 0.25%. Nasdaq 100 futures also gained 0.25% vs. fair value. Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
On Monday, the 10-year U.S. Treasury yield ticked lower to 4%. Oil prices pulled back nearly 1% Monday, falling from their recent highs. West Texas Intermediate futures traded above $73 a barrel.
Stock Market Action: What To Do Now
Now is an important time to read IBD's The Big Picture column, with the major stock indexes near their 2023 highs.
As the stock market holds at this year's highs, IBD's recommended exposure level sits at 80% to 100%. However, investors should take care when adding exposure, taking stock of current market levels and increasing at a measured pace. It is also key to remain nimble in case there is another pullback.
Five Best Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Watch: American Express, Salesforce, Visa
American Express is building a cup-with-handle base that has a 177.04 buy point. Shares are 4% away from their entry following a 1.15% gain on Monday.
Salesforce is trying to steady itself after its post-earnings slump. It is now testing support at the 50-day line, and a decisive rebound would create a new buying opportunity. Meanwhile, a flat base with a 225 buy point is also in play, according to IBD Leaderboard analysis.
Payments leader Visa closed further above a flat base's 235.57 buy point Monday with a 0.7% gain. The buy range tops out at 247.35.
4 Top Growth Stocks To Watch In The Stock Market Rally
Best Stocks To Buy And Watch: Chipotle, Dynatrace, Meta, MongoDB, Nvidia
IBD Leaderboard watchlist stock Chipotle ended a four-day losing streak Monday, still below a flat base's 2,139.88 buy point, according to IBD MarketSmith pattern recognition. An early entry at 2,092.51 was also available due to a trendline. Chipotle was a recent IBD Stock Of The Day.
Software maker Dynatrace has formed a three-weeks-tight chart pattern, representing a brief consolidation in which institutional investors pause their buying. Shares are within striking distance of their latest entry at 52.99.
Facebook parent Meta Platforms has been tightly consolidating for the last three weeks, putting a new entry at 298.12. With the stock so far extended from its previous base, this buy point should be used as an add-on entry.
MongoDB traded tightly after its recent earnings-fueled jump, which offered a new entry. Shares are just below the three-weeks-tight formation that showed a buy point at 398.89 after recent declines. Meanwhile, aggressive investors could have used a trendline entry around 386.
Following its May 25 earnings-fueled gap-up, Nvidia shares have been trending consistently higher. Amid a pullback since June 20, the stock is offering another opportunity to buy shares. It formed a trendline entry at 418 after the stock found support at its 21-day exponential moving average. Nvidia is an IBD Leaderboard stock.
Learn How To Time The Market With IBD's ETF Market Strategy
Best Stocks To Buy And Watch In Stock Market Rally
These are four best stocks to buy and watch in today's stock market, including a Dow Jones leader.
| Company | Symbol | Correct buy point | Type of buy point |
|---|---|---|---|
| Dynatrace | 52.99 | Tight area | |
| Visa | 235.57 | Flat base | |
| Cloudflare | 66.20 | Double bottom | |
| Nvidia | 418.00 | Trendline |
Source: IBD Data As Of July 10, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
IBD Leaderboard stock Tesla declined for a third straight session Monday, down 1.8%.
Still, Tesla shares remain sharply out of buy range beyond a double bottom's 207.79 buy point and just off their 2023 highs.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock remains just off last week's record high at 194.48, falling 1.1% Monday. AAPL stock, down in four of the last five trading sessions, continues to hold sharply above a 157.38 buy point.
Microsoft shares dropped 1.6% Monday, falling sharply for a second straight session. They are pulling back to their 50-day support level. A bounce in heavy volume would result in a new buy area.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
