The Dow Jones Industrial Average fell Tuesday, while tech stocks kept running after President Biden and House Speaker Kevin McCarthy reached a deal to raise the debt ceiling over the weekend. Meanwhile, tech titan Nvidia surged Tuesday, hitting the $1 trillion in market capitalization for the first time.
Up next, the House, which appears to be the main obstacle to the deal's passage, is expected to vote Wednesday night. The legislation's first test is Tuesday, when it reaches the House Rule Committee.
On the economic front, housing data came out Tuesday morning, with the S&P Corelogic Case-Shiller home price index and the FHFA House Price Index. The Case-Shiller index, which was expected to fall 0.1%, rose 0.4% in March, while the FHFA index climbed 0.6% for March, more than the expected 0.3% rise.
Further, consumer confidence numbers from the Conference Board rose to 102.3 in May, up from April's 101.3 reading. It was expected to fall to 100.0.
Stock Market Today
Chip leader Nvidia rallied more than 5% Tuesday morning, while electric-vehicle giant Tesla traded more than 3% higher. Dow Jones tech giants Apple and Microsoft rose after today's stock market open.
Arista Networks, IBD Leaderboard stock ASML and Taiwan Semiconductor — as well as Dow Jones stocks Boeing and Salesforce — are among the best stocks to buy and watch in the stock market uptrend.
Arista was a recent IBD Stock Of The Day, while ASML and Salesforce are IBD Leaderboard stocks. And Boeing was featured in last week's Stocks Near A Buy Zone column.
Dow Jones Today: Oil Prices, Treasury Yields
After Tuesday's opening bell, the Dow Jones Industrial Average dropped 0.4%, and the S&P 500 gained 0.1%. The tech-heavy Nasdaq composite slashed gains to 0.4% in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust traded up 0.5%, while the SPDR S&P 500 ETF rose 0.2% early Tuesday.
The 10-year U.S. Treasury yield on Tuesday traded down to 3.72%. Last week, the 10-year yield hit its highest level since mid-March.
U.S. oil prices dropped Tuesday morning, falling after Friday's sharp gains. West Texas Intermediate futures lost 1% Tuesday, sending WTI futures below $72 a barrel.
Stock Market Action
On Friday, the Dow Jones Industrial Average rallied 1%, snapping a five-day losing streak. The S&P 500 climbed 1.3%, while the Nasdaq composite advanced 2.2% to hit a new 2023 high.
Friday's Big Picture column commented, "Fears over a possible Federal default weighed on the market earlier in the week. But debt-ceiling talks made progress Friday. Negotiators could reach a deal over the weekend. The Treasury has said it will not run out of money until at least June 5, buying some breathing space."
Now is an important time to read IBD's The Big Picture column after the recent bullish change in the market's outlook.
Five Best Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Buy And Watch: Boeing, Salesforce
Dow Jones aerospace giant Boeing climbed 1.4% Friday, still below its 50-day line. Shares are still forming a flat base with a 221.43 buy point, according to IBD MarketSmith pattern recognition. BA stock moved up 0.8% early Tuesday. There are reports that Boeing is close to another big jet order from Saudi-based carriers.
Salesforce rallied past alternative entries at 194.01 and 200.10 in recent weeks, according to Leaderboard analysis. Meanwhile, its relative strength line hit a new high last week, a bullish signal. Salesforce reports first-quarter results after the market close on Wednesday. CRM stock jumped 1.8% Tuesday morning.
4 Top Growth Stocks To Watch In The Stock Market Rally
Best Stocks To Buy And Watch: Arista, ASML, TSMC
Networking giant Arista Networks is rapidly approaching a 171.54 buy point, according to IBD MarketSmith pattern recognition, with a 9% surge Friday. ANET stock rose 1% Tuesday morning.
IBD Leaderboard stock ASML shot out of buy range past a 683.28 buy point in a cup with handle during Friday's near-4% advance. ASML added 1% Tuesday morning.
Chip foundry Taiwan Semiconductor rallied another 2.2% Friday, adding to Thursday's breakout move past a 95.92 double-bottom entry. The 5% buy area runs up to 100.72, so the stock is slightly extended. TSM stock rose another 0.4% Tuesday morning.
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 two Dow Jones leaders.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| ASML | 683.28 | Cup with handle | |
| Salesforce | 200.10 | Consolidation | |
| Boeing | 221.43 | Flat base | |
| Arista Networks | 171.54 | Cup base |
Source: IBD Data As Of May 30, 2023
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Tesla Stock
Tesla stock raced 4.7% higher Friday, moving further up the right side of a cup base that has a 207.89 buy point. More aggressive investors could have used an early entry at 193.06. Shares closed Friday 39% off their 52-week high.
TSLA stock looked to add to Friday's gains, moving up more than 3% Tuesday morning. Meanwhile, Tesla Chief Executive Elon Musk is visiting China for the first time in years.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares climbed 1.4% Friday, rising for a third straight day. Shares remain just off their recent 52-week high at 176.39. The stock continues to hold sharply above a 157.48 buy point and is out of the buy range that ran up to 165.35. AAPL stock rose 1% in early trade Tuesday.
Microsoft shares jumped 2.1% Friday, hitting a new 52-week high at 333.40. Shares reached the 20%-25% profit zone from a 276.86 flat-base buy point, so investors could take at least some profits here. On Tuesday morning, MSFT stock was up 0.1%.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
