The Dow Jones Industrial Average dropped 200 points Tuesday ahead of the start of the Federal Reserve's two-day meeting on monetary policy. Meanwhile, the Instacart IPO will debut shortly.
August's housing starts and permits from the Commerce Department were mixed compared to Wall Street's estimates. Starts fell to 1.283 million vs. the 1.435 million target, while permits rose to 1.543 million vs. an expected fall to 1.44 million.
The Fed's meeting concludes Wednesday with a policy statement and new quarterly projections. Chances are that the Fed will not raise its interest rate target after 11 straight increases since early 2022. Wall Street places a 99% chance of holding interest rates steady, per the CME FedWatch Tool.
Maplebear's Instacart IPO will start trading Tuesday under the ticker symbol CART. Late Monday, the Instacart IPO priced at $30 a share, the high end of its expected range and valuing the company at nearly $10 billion.
Last week, the grocery-delivery company raised its target price for its initial public offering to a range of $28 to $30 a share after the successful debut of Arm. The company had been seeking a price of between $26 and $30 a share.
Stock Market Today
AutoZone declined 3.7% after the company's earnings results Tuesday morning.
EV giant Tesla traded down 0.6% Tuesday morning, while Nvidia lost 0.7%. Dow Jones tech icons Apple and Microsoft traded lower, after today's stock market open.
Other stock market leaders include Alphabet and Meta Platforms. GOOGL stock and Meta shares both inched lower in early action.
Airbnb, Amazon, Axon Enterprises and IBD Leaderboard stock Quanta Services and — as well as Dow Jones stocks Caterpillar and Intel — are among the best stocks to watch in the struggling stock market uptrend.
Quanta is an IBD Leaderboard stock, while Airbnb featured in this Stocks Near A Buy Zone column. Airbnb was IBD's Stock of the Day on Wednesday.
Dow Jones Today: Oil Prices, Treasury Yields
After Tuesday's opening bell, the Dow Jones Industrial Average dropped 0.55%, while the S&P 500 was down 0.5%. The tech-heavy Nasdaq composite declined 0.7% in morning trade.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust was down 0.4%, while the SPDR S&P 500 ETF edged down 0.3% early Tuesday.
Early action Tuesday also showed the 10-year U.S. Treasury yield at 4.34%, just off its 52-week high.
Oil prices continue to trade near their 2023 highs as West Texas Intermediate futures rose around 0.5% in morning action. WTI futures traded near $92 a barrel Tuesday.
Five Best Dow Jones Stocks To Buy And Watch Now
Stock Market Struggles
On Monday, the Dow Jones Industrial Average edged up a fraction, while the S&P 500 climbed 0.1%. The tech-heavy Nasdaq composite inched higher.
Monday's Big Picture column commented, "The three main indexes remained below their 50-day moving averages. Whenever morning gains evaporate into the close, it's a sign of a flagging stock market. But Monday's small price ranges made it harder to gain clarity on market trends. For now, defensive trading needs to take priority."
Now is an important time to read IBD's The Big Picture column as the stock market looks to rebound from recent losses.
Dow Jones Stocks: Caterpillar, Intel
Dow Jones leader Caterpillar is approaching a new flat base's 293.88 buy point after strong gains since early June. CAT stock climbed 0.6% Monday, just 4% away from the latest buy point. Shares lost a fraction Tuesday morning.
Chip giant Intel is in buy range past a 37.19 flat-base entry, after last week's breakout move. Shares added 0.3% Monday. INTC stock moved down 0.3% early Tuesday, as the company's two-day Intel Innovation event kicked off.
4 Top Growth Stocks To Buy And Watch In The Stock Market Rally
Stocks To Watch: Airbnb, Amazon, Axon, Quanta
Wednesday's IBD Stock Of The Day, Airbnb, is tracing a cup-with-handle base with a buy point of 151.16. ABNB stock is about 5% away from its latest entry. Airbnb shares fell 0.4% Tuesday morning.
E-commerce giant Amazon is back below a 143.63 buy point in a flat base following a short-lived breakout move last week. AMZN stock dropped 1.3% early Tuesday.
Axon Enterprises rebounded 1% Monday, trading about 4% away from a cup with handle's 217.61 buy point. AXON stock moved down 0.5% Tuesday.
IBD Leaderboard stock Quanta Services finished Monday below a 206.43 buy point in a short consolidation, according to IBD MarketSmith. Shares are also below their 50-day support level, a key area to watch. PWR stock was down another 0.6% Tuesday morning.
Learn How To Time The Market With IBD's ETF Market Strategy
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 |
|---|---|---|---|
| Amazon | 143.63 | Flat base | |
| Caterpillar | 293.88 | Flat base | |
| Airbnb | 154.95 | Cup base | |
| Shopify | 67.60 | Cup base |
Source: IBD Data As Of Sept. 18, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock skidded 3.3% Monday after Goldman Sachs reiterated Tesla with a neutral rating and a 275 price target.
Early Monday, Goldman Sachs analyst Mark Delaney commented on Tesla, "We believe that Tesla could further lower prices in 2024 to support higher volumes which we believe will mitigate the earnings per share benefit from cost reductions."
Shares remain above an early entry at 261.18, though gains are fading. And TSLA stock has a 299.29 official cup-base buy point, but could look to add a handle amid the recent weakness.
On Tuesday morning, TSLA stock lost 0.6%, threatening to extend Monday's losses.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock jumped 1.7% Monday, still below its 50-day line after sharp losses in recent weeks. AAPL stock continues to build a flat base with a 198.23 buy point. Shares lost 0.1% Tuesday morning.
Microsoft shares are moving further below their 50-day line, with a 0.35% drop Monday. Shares are moving up the right side of a cup base that has a 366.78 buy point. And on Tuesday morning, the stock dropped 1.2%.
Be sure to follow Scott Lehtonen on X/Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
