Dow Jones futures were higher after Monday’s stock market action. A key inflation report, the Labor Department’s consumer price index, is due out on Wednesday. And Nvidia shares fell more than 6% after the chip giant issued a revenue warning for the current quarter.
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American International ( AIG ), Novavax ( NVAX ), Shockwave Medical ( SWAV ) and Take-Two Interactive ( TTWO ) were the key drivers of earnings after Monday’s close.
AIG shares rose nearly 1%. Vaccine maker Novavax plunged 33% after it cut its 2022 revenue guidance due to a lack of demand for its Covid-19 vaccine. Shockwave jumped nearly 8% in extended trade. Video game maker Take-Two tumbled about 7%.
Meanwhile, Perrigo (PRGO), Planet Fitness (PLNT) and Ralph Lauren (RL) will report before Tuesday’s open.
Stock Market Today: Nvidia Shares Plunge
On Monday, the Dow Jones Industrial Average rose 0.1%, while the S&P 500 fell 0.1%. The tech Nasdaq composite fell 0.1 percent, extending Friday’s slight losses.
Among exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 0.3% and the SPDR S&P 500 (SPY) fell 0.1%.
Graphics chip maker Nvidia ( NVDA ) sparked a selloff in chip stocks on Monday after it warned that its fiscal second-quarter revenue outlook would fall short of previous estimates. The company reported preliminary sales of $6.7 billion for the quarter ended July 31. It previously forecast sales of $8.1 billion for the period. He will announce official results on August 24. The Vaneck Semiconductor ETF ( SMH ) was down 1.7% on Monday. Fellow chip company Advanced Micro Devices (AMD) fell more than 2%.
Elsewhere, Tesla ( TSLA ) trimmed gains to 0.8% on Monday. Among the Dow Jones leaders, Apple (AAPL) and Microsoft (MSFT) lost 0.3% and 0.9%, respectively, in the stock market today.
In a strengthening stock market environment, Dow Jones stocks Coca-Cola ( KO ) and UnitedHealth ( UNH ) — as well as Monolithic Power Systems ( MPWR ), Ollie’s Bargain Outlet ( OLLI ) and Vertex Pharmaceuticals ( VRTX ) — are among the leaders stocks to buy and watch.
UnitedHealth and Vertex are IBD’s top-ranked stocks. Ollie’s and Vertex were featured in the Stocks column near a buy zone this week. Vertex is also the brainchild of IBD SwingTrader.
Dow Jones futures today: Treasury yields, oil prices, inflation report
Before Tuesday’s open, Dow Jones futures were up 0.15 percent at fair value, while S&P 500 futures and Nasdaq 100 futures were up about 0.1 percent each. Remember that a day’s action in Dow Jones futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.
The yield on the 10-year Treasury note edged lower on Monday, closing at 2.76 percent and giving up some of Friday’s jump. The 10-year yield is trying to recover after hitting its lowest level since early April. Meanwhile, U.S. oil prices recovered more than 1.5 percent, with West Texas Intermediate futures trading above $90 a barrel.
The Labor Department’s consumer price index is due out early Wednesday. Consumer prices are expected to have risen 0.2 percent in July, down from a 1.3 percent jump in June, according to Econoday estimates. However, inflation is expected to rise 8.7% in July from a year earlier, down from June’s 9.1% year-on-year rise.
What to do in the current stock market rally
In recent weeks, IBD upgraded its market outlook from “uptrend under pressure” to “confirmed uptrend” due to improving stock market conditions.
As the market shows signs of strength, investors have the green light to increase exposure, but keep their positions small to begin with. If a new purchase begins to progress, increase exposure methodically. There is still a lot of uncertainty for the stock market to navigate, so having plenty of cash still makes sense.
Friday’s The Big Picture column commented, “It was another solid performance for the stock market on Friday, leaving bulls feeling pretty good about a confirmed uptrend.”
If you’re new to IBD, consider checking out his Stock Trading System and CAN SLIM Basics. Chart pattern recognition is one of the keys to investment guidance. IBD offers a wide range of growth stock lists, such as Leaderboard and SwingTrader.
Investors can also create watch lists, find companies approaching a buy point, or develop custom screens in IBD MarketSmith.
Five Dow Jones Stocks to Watch Now
Dow Jones stocks to watch: Coca-Cola, UnitedHealth
Dow Jones soft drink giant Coca Cola is building the right side on a flat base that has a 67.30 buy point. The stock is testing its 50-day line amid a three-day losing streak as it fell 0.65% on Monday.
Shares of health insurance giant and IBD Leaderboard UnitedHealth are in buy range above a 518.80 base double-bottom buy point after rising 0.3% on Monday, according to IBD MarketSmith chart analysis.
UNH stock sports a solid 94 out of a perfect 99 IBD Composite Rating, according to IBD Stock Checkup. Investors can use the IBD Composite Rating to easily gauge the quality of a stock’s fundamental and technical indicators.
4 Biggest Growth Stocks to Watch in the Current Stock Market Rally
Top stocks to watch: Monolithic, Ollie’s, Vertex
Thursday IBD Stock Of The Day Monolithic Power Systems continues to build the right side of consolidation with a 580.10 buy point. Meanwhile, shares are up about 3% above the 514.80 early entry. Keep an eye out for a potential handle to suggest another alternative point of purchase. Shares rose 0.6% on Monday.
Ollie’s Bargain Outlet is recovering from its 10-week streak — a critical level of support — putting the ultimate discount retailer in a new shopping zone. Shares are also carving out a handle after a big cup, placing the most recent buy point at 72.37. The current price action is about 10% away from this entry.
IBD SwingTrader Shares of Vertex Pharmaceuticals rose 2.1% on Monday, breaking out of buy range after a cup entry on the handle at 279.23. The 5% chase area rises to 293.19. The stock’s June 23 breakout is back on track following last week’s second-quarter earnings results.
Join IBD’s experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla stock
Tesla shares pared gains as much as 0.8% on Monday, recovering a small portion of Friday’s 6.6% decline. The stock hit its highest level since early May last week, but is now finding resistance around its 200-day line, a key level to watch. On Friday, the company announced that the 3-for-1 stock split will take place on August 24.
Shares are about 30% off their 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among the Dow Jones stocks, Apple shares fell 0.3 percent on Monday, extending its losing streak to three sessions. In recent sessions, the stock regained its 200-day line for the first time since May 5.
Microsoft fell 0.9% on Monday, falling for the second day in a row. The software giant is still hovering below its long-term 200-day line. The stock closed about 20% off its 52-week high.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on stock growth and the Dow Jones Industrial Average.
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