The Dow Jones Industrial Average reversed lower Monday, as Wall Street braced for pivotal inflation reports later in the week. One of the early earnings winners on the stock market today was artificial intelligence stock Monday.com.
After the opening bell, the Dow Jones Industrial Average fell 0.6%, or 200 points, while the S&P 500 dropped 0.2%. The tech-focused Nasdaq composite fell 0.1% in morning action.
Early Monday, the 10-year Treasury yield ticked higher to 3.95%. Oil prices continued to rise, with West Texas Intermediate futures trading around $77.95 a barrel.
Among exchange traded funds, the Invesco QQQ Trust fell 0.1%, as the SPDR S&P 500 ETF lost 0.2% after the open.
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Stock Market Today: Inflation Reports
Key economic data this week include two critical inflation gauges: Tuesday's producer price index and Wednesday's consumer price index. Further, U.S. retail sales data for July will be announced Thursday. There have been signs that consumer purchases are weakening, so the retail report could provide further insight.
Meanwhile, a big earnings mover Monday morning is Monday.com. Shares surged nearly 9% after the company reported strong second-quarter results and raised its 2024 revenue outlook.
Later this week, noteworthy earnings reports are due from Walmart, Deere and On Holding.
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Dow Jones Rises
On Friday, the Dow Jones Industrial Average inched higher, while the S&P 500 and tech-heavy Nasdaq composite both climbed 0.5% each.
According to Friday's IBD's Big Picture, "The currently rally attempt is still in play and has cleared its fourth day. A follow-through day could signal the start of a new stock market uptrend and an appropriate increase of exposure from the current levels. If the market undercuts Monday's low, however, the rally attempt would be null and investors would need to wait for a new attempt to transpire."
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 Cava, Ferrari, ServiceNow and Shake Shack.
Also on the list are Dow Jones components Amazon, Apple, IBM, Microsoft and UnitedHealth.
There were two new stocks on IBD MarketSurge's Breaking Out Today list Friday, including Natera. Shares topped a 117.23 buy point and dipped 0.3% in early action 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 ticked 0.5% higher Monday morning.
Meanwhile, IBM is approaching its latest entry, a cup-with-handle buy point at 196.26. IBM stock edged up Monday.
Outside the Dow Jones index, Mediterranean restaurant Cava bullishly regained its 50-day line last week. That offers a buying opportunity for more aggressive investors. Shares are building the right side of a new base. Cava stock fell 0.5% early Monday.
Automaker Ferrari shares were trying to find support around their 50-day line, and sat about 5% away from a 442.80 buy point out of a flat base. Shares gained 0.5% Monday morning.
ServiceNow regained a 806.52 handle entry, as it bounces from support at the 50-day line. ServiceNow rose 0.5% early Monday.
Shake Shack added a handle to a cup base, placing the new entry at 105.68. Shares were down 0.2% Monday 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: Nvidia, Tesla
Among Magnificent Seven stocks, Nvidia rose 2.8%, while Tesla dropped 2.2% in morning trading.
Last week, Nvidia shares hit their lowest level since mid-May before bouncing.
Tesla stock bounced another 0.6% Friday, 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 mixed after Monday's stock market open.
Amazon shares continue to hold below their long-term 200-day line after recent losses. The stock rose 0.3% Monday morning.
On Friday, Apple stock added 1.4%, 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 0.4% Monday.
Microsoft shares are trying to get back above the 200-day line. And on Monday morning, the stock fell 0.4%.
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.
