Dow Jones Industrial Average rose on Tuesday following a flood key economic data including new home sales, consumer confidence and other important figures. Walgreens (WBA), meanwhile, plunged following a disappointing earnings report.
The economic front reported that durable goods ordered unexpectedly increased 1.7% in April after a 1.1% increase. It was expected that they would fall by 1% in May.
Case-Shiller's home price index also grew more than expected in April, rising 0.9% versus an estimated 0.5%. The FHFA home price index rose 0.7% in April, which was higher than the 0.4% expected. The number of new home sales exceeded expectations, with 763,000 units sold compared to the estimated 667,000.
The consumer confidence index rose more than expected to 109.7 in June compared to May's reading of 102.3.
Walgreens' shares fell 9% on Tuesday, after the company missed its earnings forecasts and cut its outlook for the full year. The company cited "challenging macroeconomic and consumer conditions."
On Thursday, Dow Jones' stock Nike (NKE), will release its quarterly results.
Stock Market Today
Meta Platforms (META), a company that develops software platforms, rose 1.8% on Tuesday morning after Citi Research increased its price target to 360 from 315. Tesla (TSLA), the electric vehicle company, bounced back 1.7% after Monday's huge loss.
The best stocks to watch during the current stock market correction include McKesson, MongoDB, and Salesforce.
Floor & Decor is still an IBD SwingTrader, and MongoDB appears in the Stocks Near A Buy Zone this week.
Dow Jones Today: Oil prices, Treasury Yields
The Dow Jones Industrial Average gained 0.2% after Tuesday's opening, while the S&P 500 rose by 0.3%. In morning trading, the tech-heavy Nasdaq Composite rose 0.45%.
The Nasdaq-100 tracker Invesco QQQ Trust, (QQQ), traded at a 0.7% gain, while the SPDR S&P500 ETF, (SPY), moved up by 0.4% on Tuesday morning.
The yield on the 10-year U.S. Treasury ticked down to 3.7%. Recently, the yield has fluctuated between 3.57% to 3.85%. It was lower on Monday, at 3.71%.
Tuesday morning oil prices dropped sharply, returning to recent lows. West Texas Intermediate futures fell nearly 1% to $69 per barrel.
Stock Market Action
The Dow Jones Industrial Average fell a smidge on Monday, while the S&P 500 dropped nearly 0.5%. The Nasdaq Composite, which is dominated by technology companies, fell 1.2% to its day-low. The small-cap Russell 2000 index edged up.
The Big Picture column on Monday will include a 21-day exponential moving mean. This could be the first support area for the index. If the composite breaks that level, then the next possible bottom may be around 13,200. In August, the index almost reached this price level. "And 13,000 can be a powerful round number which acts as a sort of psychological magnet."
Dow Jones Stocks To Watch: JPMorgan, Merck, Salesforce
After Monday's 0.2% increase, JPMorgan is 3% below the 143.37 buy-point with a flat base. The shares are at their 50-day level, after rising 0.3% on Tuesday.
Merck, the world's largest drug company, is forming a base at 119.65, despite the fact that the stock fell 1.3% on Monday and dropped below the 50-day line. MRK stock rose 0.4% on Tuesday.
Salesforce has managed to stabilize itself following a slump in earnings. Now, it is testing support on the 50-day line. According to IBD's Leaderboard analysis, the megacap tech had previously surpassed two alternative entries at 194.01 y 200.10.
Chipotle Stocks to Buy and Watch: McKesson, MongoDB
IBD MarketSmith's pattern recognition indicates that Chipotle, the stock on IBD Leaderboard Watchlist, is building a flat basis with a buy point of 2,139.88. IBD Stock of the Day was Chipotle on Wednesday. CMG shares rose 0.7% on Tuesday morning.
IBD SwingTrader McKesson stock is now in a buy range after a cup with handle entry of 401.53. The 5% zone of buy goes up to 421.61. Tuesday, shares were down 0.8%.
MongoDB's recent earnings-driven gap up has tightened the market, allowing for a new entry. The tight formation of three weeks shows a buying point at 398.89. Aggressive investors can use a trendline to enter around 386. The MDB stock rose by 0.9% on Tuesday morning.
Here are the four best stocks in today's market to watch and buy, including one Dow Jones leader.
Roku (ROKU 75.45 cup with handle)
Source: IBD Data As Of June 26, 2023
IBD Leaderboard's stock Tesla fell 6.1% on Monday, after Goldman Sachs upgraded the stock to neutral from buy and raised the price target from 185 to 248, a move that was accompanied by a downgrade from Goldman Sachs. Tesla shares are still out of the buy range despite recent losses. The 207.79 double-bottom buy point is the next buy point.
TSLA's stock rose 1.7% on Tuesday, after Monday's loss.
Apple, one of the Dow Jones stocks, hit a new record high on Monday. The stock traded as high as 188.05. The shares reversed downwards by 0.8% as they continued to hold strongly above the 157.38 purchase point. AAPL's stock rose 0.5% in the early hours of Tuesday.
Microsoft shares fell 1.9% on Monday, adding to the losses of Friday. MSFT's stock reached an all-time record high of 351.47 on June 16. Investors could have made some profit in recent weeks when the stock hit the 20%-to-25% profit zone at a flat-base purchase point of 276.76. On Tuesday morning, Microsoft's shares rose 1.2%.