Dow Jones futures, S&P 500 futures and Nasdaq 100 futures were little changed ahead of the stock market open on Tuesday. Magnificent Seven stock Nvidia (NVDA) extended its recent gains and is nearing an early buy trigger.
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The profits keep piling up: Look out for Coupang, Spotify, and Apple
Late Monday, shares of cybersecurity giant Palo Alto Networks (PANW) rose nearly 3% after the company reported better-than-expected fourth-quarter profit and revenue performance. The company also issued strong guidance and authorized an additional $500 million in spending for share buybacks.
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.
IBD Leaderboard stock Nvidia rose another 4.4%, snapping a six-session winning streak and moving closer to its latest buy point. There’s an official buy point at 140.76 at the base, but early entries are also available at 136.15.
Stock Market Today
On Monday, the Dow Jones Industrial Average rose 0.6%, while the S&P 500 added 1%. The tech-heavy Nasdaq Composite Index rose 1.4%.
Some companies to watch in the stock market today include Birkenstock (BIRK), Cava (CAVA), Ferrari (RACE), Netflix (NFLX), and Shake Shack (SHAK).
The list also includes Dow Jones components Amazon (AMZN), Apple (AAPL), IBM (IBM), Microsoft (MSFT), and UnitedHealth (UNH).
In this “Stocks Near the Buy Zone” column, we look at Birkenstock, Ferrari and Netflix.
Find the best stocks to buy and watch with IBD Stock Screener and IBD Screen of the Day
Dow Jones Today: Oil Prices, Treasury Yields
Ahead of the open of trading on Tuesday, Dow Jones futures were little changed relative to fair value, along with S&P 500 futures and tech-heavy Nasdaq 100 futures. Keep in mind that overnight movements in Dow Jones futures and other futures don’t necessarily translate into actual trading in the next regular stock market session.
The yield on the 10-year Treasury note fell to 3.87% on Monday, while oil prices continued their recent decline, with West Texas Intermediate crude oil futures closing near $73.80 a barrel.
What to do now
As stock market action continues, now is an important time to read IBD’s The Big Picture column, so be sure to check out today’s The Big Picture and today’s updated exposure levels following Monday’s session.
On Monday’s “IBD Live” show, the team discussed current trading conditions as the stock market continues to recover.
An essential resource for daily breakouts is IBD MarketSurge’s “Breaking Out Today” list, which displays the MarketSurge Growth 250 stocks that are breaking out above a buy point, while MarketSurge’s “Near Pivot” list displays additional stocks that are approaching a buy point on the base.
To find more stock ideas, check out IBD stock lists like the IBD 50, Big Cap 20 and Stocks Near A Buy Zone. These features identify bullish patterns and buy points and can be checked daily.
Alarm bells are ringing for Nvidia, Google, Meta and others
Dow Jones: IBM, UnitedHealth
Among Dow Jones components, UnitedHealth is in a buy range above a cup-based buy point of 554.70, according to MarketSurge Pattern Recognition, while IBM is nearing its latest entry, a cup-and-handle buy point of 196.26.
Outside of the Dow Jones indexes, Mediterranean restaurant chain Cava made a strong recovery above its 50-day line last week, which also presented a buying opportunity for more aggressive investors. The stock is just above its 98.69 entry. The stock is on the IBD SwingTrader list.
Birkenstock is in a buying range above a flat base buy point at 61.83 following last week’s breakout move.
Shares of automaker Ferrari have risen from flat to above a buy point of 442.80, reaching the upper end of the buy range. Ferrari is an IBD Leaderboard stock.
Video streaming giant Netflix is building a late-stage cup base with a buy point of 697.49, and Shake Shack recently surged above the cup-and-handle entry of 105.68 but stumbled on Monday, dropping 2.5% following a downgrade by Piper Sandler.
Learn how to time the market with IBD’s ETF market strategy
Stock Market Today: Companies to Watch
These are four stocks that are in or near the buy zone on the stock market today.
Company Symbol Purchase Point Purchase Point Type MercadoLibre (MELI) 1,792.05 Cup with handle Shake Shack (SHAK) 111.29 Cup base ServiceNow (NOW) 806.52 Handle entry Spotify (SPOT) 331.08 Flat base Source: IBD data as of Aug. 19
The Magnificent Seven Stocks: Tesla
Among the Magnificent Seven stocks, Tesla rose 3.1% on Monday, its third consecutive trading day of gains.
Tesla shares have bullishly reclaimed their 50-day moving average over the last week, with the stock forming a new low to the right of the original low.
Dow Jones Leaders: Amazon, Apple, Microsoft
Among the Dow Jones Magnificent Seven stocks, Amazon, Apple and Microsoft ended mixed on Monday.
Amazon shares rose 0.7% on Monday but are still trading below their 50-day moving average.
Apple shares fell 0.1% on Monday, ending an eight-day winning streak, but still managed to stay above their 50-day line.
Microsoft shares rose 0.7% after falling below their 50-day moving average and forming a new base.
For more on growth stocks and the Dow Jones Industrial Average, follow Scott Lehtonen at @IBD_SLehtonen on Twitter/X.
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