Dow Jones futures were lower ahead of Tuesday's open, along with S&P 500 futures and Nasdaq 100 futures, in overnight trade, after the Dow Jones Industrial Average rallied more than 300 points Monday.
Netflix and Tesla earnings headline this week's key earnings results. Both are set to report late Wednesday.
Further, Bank of America, Goldman Sachs, Johnson & Johnson and Lockheed Martin are key earnings reporters Tuesday morning.
Along with earnings season, the economic calendar this week includes retail sales results for September, due Tuesday at 8:30 a.m. ET. Wall Street economists expect a mild 0.2% rise after gains of 0.6% in August and 0.5% in July.
Stock Market Today: Dow Jones Rallies
On Monday, the Dow Jones Industrial Average rallied 0.9%, while the S&P 500 jumped 1.1%. The tech-heavy Nasdaq composite advanced 1.2%.
Electric-vehicle giant Tesla traded up 1.1% Monday, while Nvidia gained 1.4%. Dow Jones tech icons Apple and Microsoft ended sharply mixed =in today's stock market, with AAPL stock lower and Microsoft up 1.5%.
Arista Networks, Lululemon Athletica, Meta Platforms, IBD Leaderboard member Nvidia and Regeneron Pharmaceuticals — as well as Dow Jones stocks JPMorgan Chase and Salesforce — are among the best stocks to buy and watch in the now-struggling stock market uptrend.
Meta is an IBD SwingTrader stock, while Nvidia is featured in this Stocks Near A Buy Zone column. Regeneron was IBD's Stock Of The Day on Friday.
Dow Jones Today: Oil Prices, Treasury Yields
Ahead of Tuesday's opening bell, Dow Jones futures fell 0.2% vs. fair value, while S&P 500 futures lost 0.3%. Nasdaq 100 futures were down 0.4% vs. fair value. Remember that overnight action in Dow Jones 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 rebounded, settling at 4.71%. Meanwhile, oil prices slipped nearly 1% after last week's sharp gains. West Texas Intermediate futures closed around $87 a barrel.
Struggling Stock Market Rally: What To Do Now
Now is an important time to read IBD's The Big Picture column, as the stock market outlook was downgraded to an "uptrend under pressure" Friday.
Amid the recent weakness, IB D investors should remain very cautious about taking on new positions. Plus, Friday's disappointing move spurred a change in guidance on stock market exposure to a 0%-20% level, down from 20%-40%.
In the meantime, look for new stock market leadership to emerge over the coming weeks. These stocks will hold up better than the broader market.
One way to do this is by using the relative strength line. The RS line measures a stock's price performance vs. the S&P 500. Keep an eye on stock charts in which the line is trending upward, which means the stock is outperforming the S&P.
The RS line is in all IBD charts and IBD MarketSmith. In addition, the IBD Stock Screener includes a list of top-rated stocks with lines at new highs. MarketSmith also has the "RS Blue Line Dot" list, which screens for RS lines at new highs.
Two useful MarketSmith lists to check right now are "Breaking Out Today" and "Near Pivot." The latter shows stocks nearing buy points in bases, and the other flags stocks rising past buy points during the session.
Dow Jones Stocks: JPMorgan, Salesforce
Dow Jones banking giant JPMorgan dropped 0.1% Monday, giving back a sliver of Friday's earnings-fueled surge. Shares are trying to decisively regain their 50-day line, as they build a flat base with a 159.38 buy point, according to IBD MarketSmith chart analysis. An early entry looms at 153.11, using Friday's high as the buy trigger.
Software leader Salesforce is battling resistance around its key 50-day line. If the stock retakes that key level, then it would move closer to a 228.79 buy point in a double-bottom base.
4 Top Growth Stocks To Watch In The Stock Market Rally
Stocks To Buy And Watch: Nvidia Tests Key Level
Arista jumped 3.7% Monday, just shy of a 198.70 buy point in a flat base. A recent bullish rebound from the 50-day line in recent sessions placed the stock in a new buy area. The company reports third-quarter results Oct. 30.
Lululemon surged past a flat base's 406.94 buy point Monday, with a 10.3% advance. Shares are in the 5% buy area that goes up to 427.29.
Social media giant Meta Platforms is finding support around a 312.87 buy point following Monday's 2.05% rise. Meanwhile, Meta stock is still below a cup base's official buy point at 326.20. The company reports third-quarter results Oct. 25.
IBD Leaderboard stock Nvidia rose 1.4% Monday, rebounding from support at its key 50-day line. Shares are building a cup base with a 502.66 buy point, but a potential handle could be forming now with an early entry at 476.09.
Biotech leader Regeneron is trying to break out past a flat base's 847.50 buy point, according to IBD MarketSmith pattern recognition. Earnings are due out Nov. 2.
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 |
|---|---|---|---|
| Meta Platforms | 312.87 | Handle entry | |
| Salesforce | 228.79 | Double bottom | |
| Nvidia | 502.66 | Cup base | |
| Arista Networks | 198.70 | Flat base |
Source: IBD Data As Of Oct. 16, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock Hits Buy Point
Tesla stock snapped a three-day losing streak Monday, with a 1.1% gain. Shares are finding support around their 50-day line, an important level to watch.
TSLA stock has an official cup-with-handle base with a buy point at 278.98, and shares are about 9% away from that entry.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple cut losses to just 0.1% Monday, still falling for a second-straight session. Shares are bouncing back from their recent lows. If AAPL stock can continue its rebound, then it's likely to form a double-bottom base with a 189.98 buy point.
Microsoft shares gained 1.5% Monday, snapping back from two days of losses. Shares are moving further above their 50-day line. A new base is forming, with an early entry at 340.86.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
