Dow Jones Futures: Market Rally at 2023 Highs as Tesla Shares Rise; Job report looms

Dow Jones futures were little changed as the stock market closed early for Tuesday’s July 4 holiday. The major stock indexes ended right at 2023 highs, as Tesla shares rose to new highs on record deliveries in the second quarter. Meanwhile, a key June jobs report looms on Friday.


On Monday, the Dow Jones Industrial Average rose, while the S&P 500 gained 0.1%. The technology-heavy Nasdaq composite rose 0.2 percent.

On the economic front this week, the Labor Department’s Friday jobs report takes the spotlight. Economists predict an increase of around 200,000 jobs and a drop in the unemployment rate to 3.6%.

Ahead of the central jobs report, there will be minutes from the Fed’s meeting on 13-14. June Wednesday at 2 p.m. They may shed light on why policymakers’ projections included two more rate hikes.

Thursday will bring a large dose of data. Payroll processor ADP publishes its estimate for job growth in the private sector in June at 08.15. The first unemployment claims fall due at 08.30. Both reports are seen as precursors to the monthly salary report. The ISM services index is out at 10.00 along with the Ministry of Labour’s monthly survey of vacancies and labor turnover.

The stock market today

EV giant Tesla ( TSLA ) rose nearly 7% after the company reported record second-quarter shipments that topped estimates. Dow Jones technology giants apple (AAPL) and Microsoft (MSFT) fell 0.8% and 0.75% respectively in today’s stock market action.

Chipotle Mexican Grill (CMG), Dynatrace (DT), MongoDB (MDB), Lamb Research (LRCX) and Nvidia (NVDA) – as well as Dow Jones stocks JPMorgan Chase (JPM), Visa (V) and Salesforce (CRM) – are among the best stocks to watch in the ongoing stock market rally.

Tesla is an IBD Leaderboard stock, Lam Research remains an IBD SwingTrader stock, while Nvidia this week featured in the Stocks Near a Buy Zone column. Dynatrace was a recent IBD Stock Of The Day.

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Dow Jones today: Oil prices, Treasury yields

The exchange is closed on Tuesday, with limited futures trading.

Ahead of Wednesday’s opening bell, Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, were little changed relative to fair value. Keep in mind that overnight action in Dow futures and elsewhere does not necessarily translate into actual trading in the next regular session.

On Monday, the 10-year US Treasury yield ticked up to 3.85%. Oil prices fell almost 1% on Monday, staying near recent lows. West Texas Intermediate futures traded around $70.50 a barrel.

Stock Market Action: What to Do Now

Now is an important time to read IBD’s The Big Picture column with the major stock indexes at their 2023 highs.

As the stock market remains at year’s highs, IBD’s recommended exposure levels are 80% to 100%. However, investors should be cautious when adding exposure, taking note of current market levels and increasing at a measured pace. It is also key to remain nimble in case there is another pullback.

Five Best Dow Jones Stocks to Buy and Watch Now

Dow Jones stocks to watch: JPMorgan, Salesforce, Visa

Dow Jones bank leader JPMorgan moved further above a 143.37 flat-base buy point during Monday’s rally. The 5% buy zone goes up to 150.54.

Salesforce managed to stabilize after post-earnings decline. It is now testing support at the 50-day line. A decisive bounce would offer a new entry.

The megacap tech earlier edged past a pair of alternative entries at 194.01 and at 200.10, according to IBD Leaderboard analysis. Over the past few weeks, shares reached the 20% profit zone from a 178.94 cup-with-handle entry.

Payments leader Visa topped a flat-base 235.57 buy point last week and added to those gains on Monday, rising 0.2%. The buy range tops out at 247.35.

4 top growth stocks to watch Stock market rally

Best stocks to buy and watch: Chipotle, Dynatrace, MongoDB, Lam Research, Nvidia

IBD Leaderboard Watchlist stock Chipotle is trying to break out past a flat-base buy point at 2,139.88, according to IBD MarketSmith pattern recognition. An early entry at 2,092.51 was also available due to a trend line. Chipotle was a recent IBD Stock Of The Day.

Software maker Dynatrace has formed a three-week tight chart pattern, representing a brief consolidation where institutional investors are stopping their buying. Shares are about 3% off their last entry of 52.99.

IBD SwingTrader stock Lam Research moved above an early buy point at 615.80 and a three-week tight pattern with an entry at 630.72 during last week’s rally. The stock rose 1.3 percent on Monday.

MongoDB traded closely following its recent earnings-driven jump, which produced a new entry. Shares are above the three-week tight formation that showed a buy point at 398.89, while aggressive investors could have used a trendline entry around 386.

After the earnings-driven gap up on May 25, Nvidia shares have trended consistently higher. Amid a decline since June 20, the stock offers another opportunity to buy shares. It has formed a trendline entry at 418 after the stock found support at its 21-day exponential moving average. Nvidia is an IBD Leaderboard stock.

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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
Dynatrace (DT) 52.99 Narrow area
Visa (V) 235.57 Flat base
Cloudflare (NET) 66.20 Double bottom
Nvidia (NVDA) 418.00 Trend line
Source: IBD data as of July 3, 2023

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Tesla shares

IBD Leaderboard stock Tesla extended a winning streak to five sessions on Monday. Amid the recent rally, Tesla shares remain well outside buy territory beyond a double-bottom buy point at 207.79.

TSLA shares rose 6.9% on Monday after the company said it delivered more than 466,000 vehicles to customers worldwide in the April to June period, a record quarter for sales. Price cuts and discounts drove demand far above Wall Street’s forecasts.

Dow Jones Leaders: Apple, Microsoft

Among the Dow Jones stocks, Apple shares fell from Friday’s record high of 194.48, and fell 0.8% on Monday. Shares continue to hold sharply above a buy point of 157.38.

Microsoft shares lost 0.75% on Monday, giving back some of Friday’s gains. Still, the stock is just 4% off its June 16 record high of 351.47.

In recent weeks, the stock reached the 20% to 25% profit zone from a buy point of 276.76, so investors could have taken at least some profit there.

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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