Dow Jones Futures Fall After Last Week’s Loss; Tesla shares slide when downgraded
Dow Jones futures fell on Monday morning, continuing lower after last week’s losses. Google Parent Alphabet (GOOGL) and Tesla shares fell on analyst downgrades.
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On the economic front this week, new home sales come out Tuesday, while pending home sales are out Thursday, along with first-time jobless claims.
Friday’s personal income and spending report for May will shed light on how spending is holding up, and it will update the Federal Reserve’s favorite inflation indicator: the personal consumption expenditure price index.
Cruise ship operator carnival (CCL) is set to report its earnings results on Monday morning. CCL stock on Friday closed strongly above a buy point of 12.62 cups.
Later this week Dow Jones shares Nike (OF) and Walgreens (WBA) will report its quarterly results. Nike earnings are out Thursday, while Walgreens will report Tuesday.
The stock market today: Alphabet, Tesla downgraded
Alphabet shares were down 1.4% early Monday after UBS downgraded the stock from buy to neutral. The firm raised its price target from 123 to 132. Meanwhile, the EV giant Tesla ( TSLA ) slid more than 2% Monday after Goldman Sachs downgraded the stock from buy to neutral, raising its price target to 248 from 185.
Dow Jones technology giants apple (AAPL) and Microsoft (MSFT) was down a fraction before today’s stock market opening.
Chipotle Mexican Grill (CMG), McKesson (MCK), MongoDB (MDB) and Year (ROKU) — as well as Dow Jones stocks JPMorgan Chase (JPM) and Salesforce (CRM) – are among the best stocks to watch in the ongoing pullback in the stock market.
Tesla is an IBD Leaderboard stock. McKesson is an IBD SwingTrader stock, while Chipotle was featured as Wednesday’s Stock of the Day as well as in the last Stocks Near a Buy Zone column.
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Dow Jones today: Oil prices, Treasury yields
Ahead of Monday’s opening bell, Dow Jones futures fell against real value. S&P 500 futures lost 0.1%. And Nasdaq 100 futures edged lower in morning action.
Among U.S. exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust ( QQQ ) was trading down 0.2%, while the SPDR S&P 500 ETF ( SPY ) was down 0.1% early Monday.
The 10-year US Treasury yield ticked down to 3.68%. The yield has recently fallen in a range between 3.57% and 3.85%, settling lower on Friday at 3.73%.
Oil prices bounced modestly on Monday morning, recovering from last week’s losses, but remain near recent lows. West Texas Intermediate futures rose nearly 1%, to around $69.50 a barrel.
Stock market action
On Friday, the Dow Jones Industrial Average fell nearly 0.7%, while the S&P 500 lost 0.8%. The tech-heavy Nasdaq composite fared worst, down 1%.
Friday’s Big Picture column commented: “While the market pulls back, the action remains constructive. Taking a break now means the indexes can gather strength for further advances. Because of this, IBD continues to recommend 60% to 80% exposure. But this is a good opportunity to review your portfolio and perhaps lock in some profit in your big winners.”
Now is an important time to read IBD’s The Big Picture column as the stock market remains in an uptrend but pulls back.
Five Best Dow Jones Stocks to Buy and Watch Now
Dow Jones stocks to watch: JPMorgan, Salesforce
Dow Jones bank leader JPMorgan is approx. 3% below a 143.37 flat base buy point after Friday’s 0.5% drop. The stock is right at its 50-day line. The JPM share rose early on Monday.
Salesforce managed to stabilize after post-earnings decline. It is now testing support at the 21-day exponential moving average. The megacap tech earlier edged past a pair of alternative entries at 194.01 and at 200.10, according to IBD Leaderboard analysis.
In recent weeks, shares have reached the 20% profit zone from a 178.94 cup-with-handle entry, and are now trying to bounce off support at the 10-week line. CRM stock fell 0.1% on Monday morning.
4 top growth stocks to buy and watch Stock market rally
Best stocks to buy and watch: Chipotle, McKesson, MongoDB, Roku
IBD Leaderboard Watchlist stock Chipotle is rebounding from its 10-week line and building a flat base with a buy point of 2,139.88, according to IBD MarketSmith pattern recognition. Chipotle was Wednesday’s IBD Stock Of The Day. CMG shares fell a fraction on Monday morning.
IBD SwingTrader stock McKesson is in buy territory past a 401.53 cup-with-handle entry. The 5% buy zone goes up to 421.61. The shares fell 0.5 percent on Monday.
MongoDB is trading closely following its recent earnings-driven gap up, offering a new entry. The three-week tight formation shows a buy point at 398.89, while aggressive investors can use a trendline entry around 386. MDB stock rose 0.1% on Monday morning.
Streaming giant Roku is building a cup-with-handle base with a buy point of 75.45, according to IBD MarketSmith pattern recognition, even as the stock extended a losing streak to seven sessions on Friday. Roku shares are trying to stop the slide around the 50-day line, a key support level to watch. The stock fell 0.2 percent early Monday.
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 a Dow Jones leader.
| company name | Symbol | Right point of purchase | Type of point of purchase |
|---|---|---|---|
| ASML | (ASML) | 683.18 | Cup with handle |
| Salesforce | (CRM) | 200.00 | Consolidation |
| Cloudflare | (NET) | 66.20 | Double bottom |
| Year | (YEAR) | 75.45 | Cup with handle |
Source: IBD data as of June 26, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla shares
IBD Leaderboard stock Tesla slid 3% Friday after a third analyst downgrade in as many days. Shares are still strongly extended above a double-bottom base buy point of 207.79. They closed Friday 18% off their 52-week high.
TSLA stock threatened to extend Friday’s losses, falling 2.2% on Monday. Last week, shares snapped a five-week winning streak, falling 1.5% on the week.
Dow Jones Leaders: Apple, Microsoft
Among the Dow Jones stocks, Apple stock hit a record high on Friday before reversing 0.2% lower. Last week the shares traded as high as 187.56. The share continues to hold well above a buy point of 157.38. Early Monday, AAPL shares fell 0.1 percent.
Microsoft shares fell 1.4% on Friday, continuing a recent decline. Last week the stock reached a record high of 351.47. Despite the recent losses, MSFT stock remains in the 20%-25% profit-taking zone from a 276.76 flat-base buy point, so investors are at least taking some profits. And on Monday morning, Microsoft shares were down 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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