The Dow Jones Industrial Average and other major stock indexes rose on Monday as markets watched Federal Reserve Chairman Jerome Powell for possible interest rate signals this week. Nvidia (NVDA) rival Advanced Micro Devices (AMD) rose in the stock market today after it agreed to buy the artificial intelligence hardware maker.
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How this week changed our outlook: Focus on Ferrari, Costco, and DaVita
After the open, the Dow Jones Industrial Average rose 0.3%, while the S&P 500 added 0.2%. The tech-heavy Nasdaq Composite Index was up 0.1% in morning trading.
The yield on the 10-year Treasury rose to 3.9% early Monday. Oil prices were stable, with West Texas Intermediate oil futures trading around $75.50 a barrel.
Among exchange-traded funds, the Invesco QQQ Trust (QQQ) rose 0.1%, and the SPDR S&P 500 ETF (SPY) rose 0.2% after the open.
Shares of ZT Systems rose nearly 1% early Monday after Nvidia rival AMD agreed to buy the company in a $4.9 billion cash-and-stock deal.
AMD CEO Lisa Su said in a press release that the acquisition “positions AMD to deliver end-to-end data center AI infrastructure at scale.”
Alarm bells are ringing for Nvidia, Google, Meta and others
Stock Market Today: Jackson Hole Conference
This week’s attention shifts to Jackson Hole, Wyoming, for the Federal Reserve Bank of Kansas City’s annual economic symposium, held Thursday through Saturday.
Fed Chairman Powell, who is scheduled to speak on Friday morning, is widely expected to signal the possibility of a 25 basis point cut in the federal funds rate in September, but the market is pricing the chances of a half-point cut at about 26%.
Leading the earnings swings this week are Target (TGT), Burlington Stores (BURL), TJX (TJX), and Ross Stores (ROST), while Baidu (BIDU) leads a slew of reports from large China-based companies. Toll Brothers (TOL) represents a big week for the real estate industry.
The selling spree hit shares of Nvidia and others hard, but there are some rays of hope.
Dow Jones continues to rise
The Dow Jones Industrial Average, the S&P 500 and the tech-heavy Nasdaq Composite Index all rose 0.2% on Friday.
On Friday’s IBD Live show, the IBD Live team discussed the current trading situation and how investors should approach today’s stock market.
As market action continues, now is an important time to read “The Big Picture” column, and be sure to read about how IBD’s new exposure levels can help you adapt to changing market conditions.
The rift at Nvidia is widening. Don’t ignore previous warnings.
Stock Market Today: Best Stocks to Watch
Some companies to watch in the stock market today include Birkenstock (BIRK), Cava (CAVA), Ferrari (RACE), and Shake Shack (SHAK).
The list also includes Dow Jones components Amazon (AMZN), Apple (AAPL), IBM (IBM), Microsoft (MSFT), and UnitedHealth (UNH).
One new stock was added to IBD MarketSurge’s “Breakouts of the Day” list on Friday: Fortinet (FTNT) broke out above a 73.91 buy point. Shares were up 0.1% on Monday.
Additionally, the site features several stock ideas in its “Near Pivot” list. These are top names approaching new buy points, like Intuit (INTU). Intuit shares are just below a 674.34 cup-with-handle entry. The stock was up 0.3% on Monday.
To find more stock ideas, check out IBD stock lists like the IBD 50, Big Cap 20 and Stocks Near A Buy Zone.
Get real-time buy and sell alerts for stock market leaders with IBD Leaderboard
Dow Jones: IBM, UnitedHealth
Among Dow components, UnitedHealth is in a buy range above a 554.70 buy point in a cup fashion, according to MarketSurge Pattern Recognition. Shares were up 0.2% on Monday morning.
Meanwhile, IBM is approaching a buy point at 196.26, its latest entry point. IBM shares rose 0.4% on Monday.
Outside of the Dow Jones indexes, Mediterranean restaurant chain Cava bullishly reclaimed its 50-day line last week. This also presents a buying opportunity for more aggressive investors. The stock is just above its 98.69 entry. Cava shares were down 1% early Monday. It is a stock on the IBD SwingTrader list.
Birkenstock is in buying range above a flat-base buy point at 61.83 following last week’s breakout. Shares were up 0.5% early Monday morning.
Shares of automaker Ferrari are trading sideways and nearing a buy point of 442.80. Ferrari is an IBD Leaderboard stock. The stock was up 0.2% on Monday morning.
Shake Shack has broken out above the 105.68 cup-and-handle entry, but shares were down more than 1% Monday morning following a downgrade by Piper Sandler.
Find the best stocks to buy and watch with IBD Stock Screener and IBD Screen of the Day
Stock Market Today: Companies to Watch
These are four stocks that are in or near the buy zone on the stock market today.
Company Name Symbol Correct Buy Point Buy Point Type Ferrari (RACE) 442.80 Flat Base Shake Shack (SHAK) 111.29 Cup Base Service Now (NOW) 806.52 Handle Entry Birkenstock (BIRK) 61.83 Flat Base Source: IBD Data, as of August 15th
Watch IBD Live as IBD experts break down the biggest stocks on the stock market today.
7 Great Stocks: NVIDIA, Tesla
Among the Magnificent Seven stocks, Nvidia was down 0.2% in morning trading, while Tesla (TSLA) was up 0.5%.
Nvidia shares rose another 1.4% on Friday, extending its five-day winning streak and propelling it further above its crucial 50-day line. If Nvidia continues to trade above this level, we may soon see more suitable entry opportunities. However, if the stock declines on heavy volume, further declines are likely.
Tesla shares rose 0.9% on Friday, climbing above their 50-day line for the first time since Aug. 2. The electric-vehicle giant’s shares may be teetering on the right side of a new bottom, but they’re still early in the process.
Dow Jones Leaders: Amazon, Apple, Microsoft
Among the Dow Jones “Magnificent Seven” stocks, Amazon, Apple and Microsoft traded mixed after the stock market opened on Monday.
Amazon shares’ recent rally has seen them decisively reclaim their long-term 200-day line, with shares trading up 0.3% on Monday morning.
Apple shares have risen for a seventh straight day, re-surfacing above their 50-day moving average. Last week, the stock triggered a round-trip sell rule from a buy point of 199.62. Apple fell 0.7% on Monday.
Microsoft shares stayed above their 200-day mark despite a selloff on Friday, and were trading slightly higher on Monday morning.
For more information on growth stocks, the Dow Jones Industrial Average and today’s stock market, follow Scott Lehtonen on X (formerly Twitter) @IBD_SLehtonen.
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