Dow Jones futures and other major stock indexes rose on Tuesday as Wall Street reacted to a weaker-than-expected inflation report. Two of the early gainers on the stock market today were retailers Home Depot (HD) and On Holdings (ONON), while Nvidia (NVDA) extended Monday’s rally.
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Focus on Nvidia, Vista Energy, and Curtiss-Wright as they shake things up ahead of CPI release
In morning trading before the market opened, Dow Jones Industrial Average futures rose 0.4% relative to market capitalization, S&P 500 futures rose 0.7% and tech-heavy Nasdaq 100 futures rose 1%.
The 10-year Treasury yield was flat at 3.89% early Tuesday. Oil prices were down, with West Texas Intermediate oil futures trading around $79.60 a barrel.
Among exchange-traded funds, the Invesco QQQ Trust (QQQ) rose 1%, and the SPDR S&P 500 ETF (SPY) rose 0.7% before the open.
Nvidia shares rose another 3.5% in premarket trading on Tuesday, following a 4.1% gain on Monday. The stock closed just below its 21-day exponential moving average. Last week, the artificial intelligence giant hit its lowest price since mid-May before rebounding.
Starbucks (SBUX) soared more than 13% on Tuesday after the company announced it had named Brian Niccol as its next CEO. Niccol was previously CEO of Chipotle Mexican Grill (CMG). Chipotle shares plunged about 9% on Tuesday.
Alarm bells are ringing for Nvidia, Google, Meta and others
Stock Market Today: PPI Inflation Report
The Labor Department’s Producer Price Index rose 0.1% month-on-month and 2.2% year-on-year in July. Econoday had been expecting July increases of 0.2% month-on-month and 2.6% year-on-year. Core PPI, excluding food and energy, was unchanged from the previous month and up 2.4% year-on-year. Wall Street had been expecting core PPI to rise 0.2% month-on-month and 3.0% year-on-year.
Meanwhile, major stocks with earnings changes on Tuesday morning included Home Depot, On Holdings, and Tencent Music (TME).
On shares plunged 6% after the company missed profit expectations but maintained its full-year sales growth outlook. Home Depot shares were down about 2% in morning trading, and Tencent Music shares were down nearly 9%.
The selling spree has hit shares like Nvidia, but there are some rays of hope.
Dow Jones Falls
On Monday, the Dow Jones Industrial Average fell 0.4%, while the S&P 500 rose slightly and the tech-heavy Nasdaq Composite Index added 0.2%.
On Monday’s IBD Live show, the IBD Live team discussed the current trading situation and how investors should approach the stock market today.
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 on the stock market today include Cava (CAVA), Ferrari (RACE), ServiceNow (NOW) and Shake Shack (SHAK).
The list also includes Dow Jones components Amazon (AMZN), Apple (AAPL), IBM (IBM), Microsoft (MSFT), and UnitedHealth (UNH).
There were no new stocks on IBD MarketSurge’s “Breaking Out Today” list on Monday. Check out MarketSurge’s “Near Pivot” list to see other stocks approaching buy points on the basis. 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 formation, according to MarketSurge Pattern Recognition. Shares were flat on Tuesday morning.
Meanwhile, IBM is approaching a buy point at 196.26, the latest entry point. IBM shares were up slightly on Tuesday.
Outside the Dow Jones index, Mediterranean restaurant chain Cava made a strong recovery above its 50-day line last week, which also presents a buying opportunity for more aggressive investors. The stock is forming a new right side of a low. Cava shares were up 0.5% early Tuesday.
Shares of automaker Ferrari were looking for support near its 50-day moving average. Moreover, the stock was trading flat to about 5% away from a buy point at 442.80. The stock was up 0.3% on Tuesday morning.
ServiceNow bounced off the support of its 50-day line and rose above the 806.52 handle entry. ServiceNow was up 0.2% early Tuesday morning.
Shake Shack added handle to the cup base and set new entries at 105.68, with shares up 0.3% on Tuesday morning.
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 ServiceNow (NOW) 806.52 Handle Entry Spotify (SPOT) 331.08 Flat Base Source: IBD data as of August 5th
Watch IBD Live as IBD experts break down the biggest stocks on the stock market today.
The Magnificent Seven Stocks: Tesla
Among the Magnificent Seven stocks, Tesla (TSLA) rose 0.6% in morning trading.
Tesla shares fell 1.3% on Monday but are still below their 50-day and 200-day lines.
Dow Jones Leaders: Amazon, Apple, Microsoft
Among the Dow Jones “Magnificent Seven” stocks, Amazon, Apple and Microsoft rose ahead of the stock market’s open on Tuesday.
Amazon shares remain below their long-term 200-day moving average after the recent sell-off. The stock was up 0.8% on Tuesday morning.
Apple shares rose 0.7% on Monday, closing above their 50-day moving average again. Last week, the stock triggered a round-trip sell rule from a buy point of 199.62. Apple rose 0.5% on Tuesday.
Microsoft shares are on the verge of breaking above their 200-day moving average, and shares were up 0.8% on Tuesday 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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