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Futures: Key Inflation Data Looms As Stocks Bounce


Dow Jones futures were lower ahead of Tuesday’s open, along with S&P 500 futures and Nasdaq 100 futures, in overnight trade. Tesla stock snapped a losing streak Monday, as Wall Street prepares for the EV giant’s third-quarter deliveries.


Key inflation data takes the spotlight this week, with Friday’s personal income and outlays report due from the Commerce Department. Personal spending is expected to rise a solid 0.5% following July’s robust 0.8% gain. The Fed’s primary inflation gauge, the PCE price index, is expected to rise 0.2%, lowering the 12-month inflation rate to 3.8%.

Meanwhile, August housing starts hit a three-year low and the Federal Reserve readied a longer season of high rates, sending homebuilding stocks sprawling. That puts August new home sales data and pending home sales numbers — expected Wednesday and Friday, respectively — squarely on investors’ radar.

Finally, Dow Jones member Nike (NKE) reports fiscal first-quarter 2024 results late Thursday. Analysts expect a 19% drop in profits, and a third consecutive quarter of Nike earnings declines. Revenue growth also is seen slowing for the third quarter in a row, to a 2.6% increase.

Stock Market Today: Dow Jones Rises

On Monday, the Dow Jones Industrial Average edged up a fraction, while the S&P 500 climbed 0.4%. The tech-heavy Nasdaq composite gained 0.45%.

Electric-vehicle giant Tesla (TSLA) traded up 0.9% Monday, while Nvidia (NVDA) rose 1.5%. Dow Jones tech icons Apple (AAPL) and Microsoft (MSFT) ended higher in today’s stock market, with AAPL stock up 0.7% and Microsoft up 0.2%.

Airbnb (ABNB), DraftKings (DKNG), IBD Leaderboard stock Meta Platforms (META) and Uber Technologies (UBER) — as well as Dow Jones stocks Amgen (AMGN) and Caterpillar (CAT) — are among the stocks to watch in the ongoing stock market correction.

Meta is an IBD Leaderboard stock, and featured in this Stocks Near A Buy Zone column. Airbnb was a recent IBD Stock of the Day.

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Dow Jones Today: Oil Prices, Treasury Yields

Ahead of Tuesday’s opening bell, Dow Jones futures dropped 0.35% vs. fair value, while S&P 500 futures lost 0.4%. Nasdaq 100 futures were down 0.5% vs. fair value. Remember that overnight action in Dow Jones futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

On Monday, the 10-year U.S. Treasury yield jumped to new highs at 4.54%. Oil prices dipped, still right at their 2023 highs. West Texas intermediate futures settled near $90 a barrel.

Stock Market Rally Struggles: What To Do Now

Now is an important time to read IBD’s The Big Picture column, with the major stock indexes trying to bounce from new correction lows.

With the stock market now in the grip of a correction, investors need to concentrate on reducing market exposure to the 0%-20% range while building up a robust watchlist of strong stocks that could emerge as leaders when the next uptrend kicks off.

One way to do this is by using the relative strength line. The RS line measures a stock’s price performance vs. the S&P 500. Keep an eye on stock charts in which the line is trending upward, which means the stock is outperforming the S&P.

The RS line is in all IBD charts and IBD MarketSmith. In addition, the IBD Stock Screener includes a list of top-rated stocks with lines at new highs. MarketSmith also has the “RS Blue Line Dot” list, which screens for RS lines at new highs.

Two useful MarketSmith lists to check right now are “Breaking Out Today” and “Near Pivot.” The latter shows stocks nearing buy points in bases, and the other flags stocks rising past buy points during the session.

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Dow Jones Stocks: Amgen, Caterpillar

Drug giant Amgen finished Monday just below a 268.24 buy point in a cup with handle, per IBD MarketSmith pattern recognition.

Dow Jones leader Caterpillar continues to form a flat base with a 293.88 buy point after strong gains since early June. CAT stock rose 0.4% Monday, closing just below the 50-day line.

4 Top Growth Stocks To Watch In The Stock Market Correction

Stocks To Watch: Airbnb, DraftKings, Meta, Uber

Recent IBD Stock Of The Day Airbnb continues to build a cup-with-handle base with a buy point of 151.16. But ABNB stock remains below its 50-day line despite Monday’s 1.5% rise.

IBD Leaderboard watchlist stock DraftKings is building a cup with handle that has a 32.65 buy point, per IBD MarketSmith pattern recognition. Shares are consolidating below their 50-day moving average, a key level to watch.

Social media giant Meta Platforms is tracing a cup with handle that has a 312.87 buy point.

Uber Technologies continues to consolidate below its key 50-day line, rising 1.1% Monday. UBER is forming a flat base with a 49.49 entry.

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Best Stocks In Today’s Stock Market Action

These are four best stocks to watch in today’s stock market, including a Dow Jones leader.

Company Name Symbol Correct Buy Point Type Of Buy Point
Uber Technologies (UBER) 143.63 Flat base
Caterpillar (CAT) 293.88 Flat base
Airbnb (ABNB) 154.95 Cup base
DraftKings (DKNG) 32.65 Cup with handle
Source: IBD Data As Of Sept. 25, 2023

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Tesla Stock

Tesla stock moved up 0.9% Monday, but remains significantly below its 50-day line. TSLA stock has an official cup-with-handle base with a buy point at 278.98, but shares are about 11% away from that entry.

With Tesla likely to report its Q3 deliveries on Monday, Oct. 2, Wall Street is predicting the number will undercut the EV giant’s record-setting 466,140 vehicles in Q2. Since the end of July, analysts had forecast Tesla’s Q3 would outpace the second quarter.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple stock rose 0.7% Monday, still below its 50-day line after sharp losses in recent weeks. AAPL stock continues to build a flat base with a 198.23 buy point.

Microsoft shares remain sharply below their 50-day line, with a 0.2% rise Monday, after Guggenheim upgraded MSFT stock from sell to neutral.

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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