Dow Jones falls ahead of Biden-McCarthy debt ceiling meeting; Apple slides when downgrading
The Dow Jones Industrial Average fell on Monday ahead of a meeting between President Joe Biden and House Speaker Kevin McCarthy, as debt ceiling negotiations failed over the weekend. Meanwhile, apple ( AAPL ) stock fell after an analyst downgrade.
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On Sunday, President Biden said at a press conference in Hiroshima, Japan, that it was “time for the other side to move away from their extreme positions because a lot of what they’ve already proposed is simply, quite frankly, unacceptable.” Biden and McCarthy agreed to meet Monday afternoon to try to reach an agreement that would see the United States avoid default on its national debt.
On the economic front this week, the Federal Reserve’s meeting minutes from the summit on 2-3 May scheduled to be released on Wednesday at 2 p.m
On Friday, personal income and spending data for April will come from the Commerce Department, which includes the Fed’s favorite inflation measure, the core price index for personal consumption expenditures. Economists expect core inflation to rise 0.3% over the month, with annual core inflation holding steady at 4.6%.
Meanwhile, a line-up of Federal Reserve speakers is on tap for Monday, with speeches from Fed Presidents James Bullard, Thomas Barkin and Mary Daly.
Earnings-wise, chip giant Nvidia (NVDA) will report late Wednesday. This week too, dealers are showing big incomes Lowes (LOW), Dick’s Sports Equipment (DKS), AutoZone (AVOID), Urban Outfitters (URBAN), Dollar tree (DLTR) and Kohl’s (KSS) is also on the timetable.
The stock market today
Meta platforms ( META ) rose 0.3% even after the social media giant was hit with a $1.3 billion fine by the European Union’s data protection watchdog over its handling of user data. Micron technology ( MU ) fell 3.1% after China’s cyberspace regulator banned the sale of Micron’s products after they failed a network security review.
Electric vehicle giant Tesla ( TSLA ) rose 2% Monday morning. Dow Jones technology giants Apple and Microsoft (MSFT) was lower after today’s market opening.
Advanced Micro Devices (AMD), the IBD Leaderboard stock ASML (ASML), the IBD SwingTrader stock Lamb Research (LRCX) and Netflix (NFLX) — as well as Dow Jones stocks Boeing (BA), Salesforce (CRM) and Visa (V) — is among the best stocks to buy and watch in the ongoing uptrend in the stock market.
Lam Research and Netflix were recent IBD Stock Of The Day topics.
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Dow Jones today: Oil prices, Treasury yields
After Monday’s opening bell, the Dow Jones Industrial Average fell 0.3%, while the S&P 500 gained 0.1%. The technology-heavy Nasdaq composite traded up 0.6% in morning action.
Among U.S. exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust (QQQ) traded 0.6% higher, while the SPDR S&P 500 ETF (SPY) rose 0.3% early Monday.
The 10-year US Treasury yield traded up to 3.60% on Monday, extending a six-day winning streak that saw it return to its highest level since mid-March.
The US oil price continued to trade between 70 and 73 dollars a barrel. West Texas Intermediate futures rose slightly on Monday morning, holding just below $72 a barrel.
Stock market action
On Friday, the Dow Jones Industrial Average lost 0.3%, while the S&P 500 declined. And the tech-heavy Nasdaq composite turned a 0.2% loss.
Friday’s Big Picture column commented: “The Nasdaq Composite ended the day 0.2% lower, avoiding distribution on lower volume. Still, it ended with a meaty 3% gain for the week and remains near highs for the year. The tech-heavy index has risen in each of the past four weeks and is up nearly 22% so far in 2023.”
Now is an important time to read IBD’s The Big Picture column following 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, Visa
Dow Jones aerospace giant Boeing fell 0.8% on Friday, still holding above its 50-day line and trading near a flat-base buy point at 221.43, according to IBD MarketSmith’s pattern recognition. The BA share rose 0.5% early Monday.
IBD Leaderboard stock Salesforce outperformed alternative entries of 194.01 and 200.10 in recent weeks, according to Leaderboard analysis. Meanwhile, the RS line hit a new high this week, a bullish signal. CRM shares fell 0.5% on Monday morning.
Visa shares remain in buy territory above a 230.15 cup-with-handle buy point, after declining on Friday. The buying range goes up to 241.66. The V share lost 0.2% on Monday.
4 top growth stocks to watch Stock market rally
Best stocks to buy and watch: AMD, ASML, Lam, Netflix
Chip leader Advanced Micro Devices fell back into buy territory above a cup base’s 102.53 buy point, according to IBD MarketSmith pattern recognition, with a 1.95% drop on Friday. The 5% buy range goes up to 107.66. AMD shares fell 1.7 percent on Monday.
IBD Leaderboard stock ASML broke above a 683.28 buy point in a cup with handle last week and is in the 5% buy zone peaking at 717.44. ASML was down 0.6% on Monday.
Lam Research stock broke out of a flat base with a buy point at 548.95 last week and is slightly extended beyond the buy range. LRCX shares fell 0.7% on Monday.
Streaming giant Netflix broke out past a 349.90 buy point from a cup with handle last week. NFLX stock was down 0.1% on Monday morning.
Learn how to time the market with IBD’s ETF Market Strategy
Best shares to buy and watch in stock market rally
These are the four best stocks to buy and watch in today’s stock market, including two Dow Jones leaders.
| company name | Symbol | Right point of purchase | Type of point of purchase |
|---|---|---|---|
| Lamb Research | (LRCX) | 548.95 | Flat base |
| Salesforce | (CRM) | 200.10 | Consolidation |
| Visa | (V) | 230.15 | Cup with handle |
| Advanced Micro Devices | (AMD) | 102.53 | Cup base |
Source: IBD data as of 22 May 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla shares
Tesla shares rose 1.8% on Friday, bullishly reclaiming its 50-day line for the first time since April 4. Shares are moving up on the right side of a new base that has a buy point at 207.89 for now. Shares closed Friday 43% off their 52-week high.
TSLA stock looked to extend Friday’s gains, rising 2% Monday morning.
Dow Jones Leaders: Apple, Microsoft
Among the Dow Jones stocks, Apple shares rose 0.1% on Friday, hitting a new 52-week high of 176.39. The stock continues to increase its rise above a buy point of 157.48 and is outside the buy range that went up to 165.35. AAPL stock fell 0.6% on Monday after Loop Capital downgraded the stock from buy to hold with a price target of 180.
Microsoft shares fell on Friday, falling from Thursday’s 52-week high of 319.04. MSFT stock continues to extend its rally above a 276.86 flat-base buy point. On Monday morning, MSFT shares fell 0.1%.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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