Stock market pullback continues, what to do now; Nvidia, Tesla sold
Dow Jones futures were little changed before Tuesday’s open, as the major stock indexes continued to retreat on Monday. Nvidia (NVDA) and Tesla (TSLA) sold off sharply on Monday.
X
On Monday, the Dow Jones Industrial Average fell, while the S&P 500 lost 0.45%. The technology-heavy Nasdaq composite fell 1.2%, ending at the lowest level of the day. On the upside, the small-cap Russell 2000 moved higher.
Tech titan Nvidia sold off 3.7% on Monday, closing at its lowest level since June 12. EV giant Tesla skidded 6.1% after another downgrade, this one from Goldman Sachs.
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
Dow Jones technology giants apple (AAPL) and Microsoft (MSFT) fell 0.8% and 1.9% respectively in today’s stock market action.
Chipotle Mexican grill (CMG), Flooring and furnishings (FND), Lamb Research (LRCX) and MongoDB (MDB) – as well as Dow Jones stocks Merck (MRK), JPMorgan Chase (JPM) and Salesforce (CRM) – is among the best stocks to buy or watch in the stock market trend.
Tesla is an IBD Leaderboard stock, Floor & Decor an IBD SwingTrader stock, while MongoDB is featured in this week’s Stocks Near A Buy Zone column.
IBD’s latest newsletter MarketDiem brings you actionable ideas for stocks, options and crypto straight to your inbox
Dow Jones today: Oil prices, Treasury yields
Ahead of Tuesday’s opening bell, Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, were little changed relative to fair value.
On Monday, the 10-year US Treasury yield ticked down to 3.71%.
Oil prices bounced modestly on Monday, 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: What to Do Now
Now is an important time to read IBD’s The Big Picture column as the major stock indexes extend their pullback from their 2023 highs.
While the market pulls back, the action remains largely normal. Taking a breather now means the indices can gather strength for further progress.
Because of this, IBD continues to recommend 60% to 80% exposure. But this is a good opportunity to review your portfolio and maybe lock in some profit in your big winners. Conversely, don’t hesitate to sell breakout stocks that aren’t performing. For example, Integration device (INTA) dived nearly 14% Monday, triggering the 7% stop loss rule from a buy point at 47.04.
Five Best Dow Jones Stocks to Buy and Watch Now
Dow Jones stocks to buy and watch: JPMorgan, Merck, Salesforce
Dow Jones bank leader JPMorgan is about 3% below a buy point at 143.37 after Monday’s 0.3% gain. The stock is right at its 50-day line.
Drug giant Merck is nearing a flat-base buy point at 119.65 amid a four-day winning streak that saw shares reclaim their 50-day line. But the stock fell 1.3% on Monday, falling back below its 50-day line.
Salesforce managed to stabilize after post-earnings decline. It is now testing support at the 50-day line. 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.
4 top growth stocks to watch Stock market rally
Best stocks to buy and watch: Chipotle, Floor & Decor, Lam Research, MongoDB
IBD Leaderboard Watchlist stock Chipotle is retesting 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.
IBD SwingTrader stock Floor & Decor is within striking distance of a cup-with-handle buy point at 101.49 despite Monday’s 0.8% drop.
Lam Research moved above a 615.80 early buy point on Monday, rallying 1.9%. Meanwhile, a three-week tight pattern also shows an entry at 630.72.
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.
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 |
| Fortinet | (FTNT) | 69.07 | Flat base |
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 6.1% Monday after Goldman Sachs downgraded the stock from buy to neutral, raising its price target to 248 from 185.
Despite recent losses, Tesla shares remain firmly outside buy territory beyond a double-bottom buy point at 207.79.
Dow Jones Leaders: Apple, Microsoft
Among the Dow Jones stocks, Apple stock hit another record high on Monday, trading as high as 188.05. Shares reversed down 0.8% as they continue to hold strong above a buy point at 157.38.
Microsoft shares fell 1.9% on Monday, adding to Friday’s losses. On June 16, MSFT shares reached a record high of 351.47. In recent weeks, the stock reached the 20%-25% profit zone from a 276.76 flat-base buy point, 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.
YOU MIGHT ALSO LIKE:
Top Growth Stocks to Buy and Watch
Learn how to time the market with IBD’s ETF Market Strategy
Find the best long-term investments with long-term IBD managers
MarketSmith: Research, charts, data and coaching in one place
How to research growth stocks: Why this IBD tool simplifies the search for top stocks
