The Dow Jones Industrial Average reversed lower Monday, ahead of a slew of critical earnings reports and a two-day Federal Reserve policy meeting this week. One of the early winners on the stock market today was electric-vehicle giant Tesla, which was named a "top pick" at Morgan Stanley.
After the opening bell, the Dow Jones Industrial Average fell 0.1%, while the S&P 500 added 0.3%. The tech-focused Nasdaq composite climbed 0.8% in morning action.
Early Monday, the 10-year Treasury yield ticked lower to 4.15%. Oil prices eased, with West Texas Intermediate futures trading around $77 a barrel.
Among exchange traded funds, the Invesco QQQ Trust was up 0.8%, while the SPDR S&P 500 ETF gained 0.4% after the open.
Tesla stock rallied 4.6% Monday morning after it became Morgan Stanley's new "Top Pick" among U.S. automakers, replacing Ford. The brokerage cited 40% upside to the firm's 310 price target, "more managed" expectations on autos and powerful emerging value stimulants.
Morgan Stanley, however, added that it believes near-term expectations around full self-driving vehicles and robotaxis may be too high. It holds an overweight rating on Tesla shares.
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Stock Market Today: Fed Meeting, Jobs Report Loom
This week's biggest news is expected from the two-day Federal Reserve meeting that begins Tuesday with a policy announcement expected Wednesday. The Labor Department is due to report July payrolls on Friday.
Big earnings reports this week include Dow Jones tech titans Apple, Intel and Microsoft, while blue-chip components Boeing, Merck, Pfizer and Procter & Gamble are also expected to announce.
Other are expected from Magnificent Seven players Amazon and Meta Platforms.
Key earnings movers Monday include McDonald's, On Semiconductor and Philips.
McDonald's shares fell 0.1% in morning trading, while On climbed surged more than 11%. And Philips stock soared over 13% in early action.
Adjust To Changing Market Conditions, With IBD's New Exposure Levels
Dow Jones Bounces
On Friday, the Nasdaq composite rallied 1%, while the S&P 500 surged 1.1%. And the Dow Jones Industrial Average fared best among the major indexes on the stock market, popping 1.6%.
Investor's Business Daily's Big Picture column commented, "While Friday's bounce was encouraging, it was not enough to stave off painful weekly losses for the S&P 500 and Nasdaq. With some noteworthy events in the coming week, including a slew of tech earnings, it remains prudent to hold exposure to the 40% to 60% level for now."
During Friday'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.
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Stock Market Today: Best Stocks To Watch
Among the best companies to watch on the stock market today are Badger Meter, GE Aerospace, ServiceNow, Tenet Healthcare and Toll Brothers.
Also on the list are Dow Jones components Amazon, American Express, Apple, IBM and Microsoft.
IBD MarketSurge's Breaking Out Today list included Installed Building Products. Shares topped a 257.45 double-bottom entry Friday. Shares inched 0.4% higher in morning trades 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: American Express, IBM
Among Dow components, payments giant American Express regained a flat base's 244.41 entry, according to MarketSurge pattern recognition, following Friday's gains. Meanwhile, IBM staged a breakout Thursday following the company's earnings report. Shares are above a 189.47 cup-with-handle entry. IBM stock fell 0.3% early Monday.
Outside the Dow Jones index, Badger Meter is breaking out above a 202.81 entry in a flat base, as it climbed 2.4% Friday. Shares were up another 1.6% Monday morning.
GE stock's recent breakout past a 170.80 buy point remains under pressure, but shares are rebounding. Shares rose 0.2% early Monday.
ServiceNow surged last week on second-quarter earnings results, topping a 806.52 handle entry. ServiceNow fell 0.6% early Monday.
Tenet Healthcare added 1.4% Friday, further extended above a flat base's 142.35 entry. Shares added 1.2% Monday.
Finally, homebuilder Toll Brothers broke out past a 135.37 cup-base entry, with a 5.1% advance Friday. And on Monday morning, Toll Brothers stock moved up 0.9%.
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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 |
|---|---|---|---|
| Tenet Healthcare | 142.35 | Flat base | |
| KB Home | 74.66 | Flat base | |
| ServiceNow | 806.52 | Handle entry | |
| Newmont | 44.59 | Flat base |
Source: IBD Data as of July 25
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Magnificent Seven Stocks: Nvidia
Magnificent Seven stock Nvidia rose 2.1% in morning trade.
Nvidia stock, an IBD Leaderboard name, closed below its 50-day line Friday, with sharp losses last week.
Dow Jones Leaders: Amazon, Apple, Microsoft
Among Dow Jones components in the Magnificent Seven, Amazon, Apple and Microsoft traded higher after Monday's stock market open.
Amazon triggered the 7% loss rule last week after falling well below a 191.70 buy point in a flat base. Shares are also below their 50-day line. Amazon stock rose 0.7% Monday.
Apple stock inched higher, but still remains squarely off its record high, which was set on July 15. Shares gained 0.4% Monday.
Microsoft shares rebounded 1.6% Friday, still below their flat base's 430.82 buy point and 50-day line. And early Monday, the stock was up 0.7%.
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.
