Finance
Dow Jones Falls as Fed Meeting Looms; Tesla named ‘top choice’| Investor business daily
The Dow Jones Industrial Average reversed lower on Monday, ahead of a slew of critical earnings reports and a two-day Federal Reserve policy meeting this week. One of the early winners in the stock market today was the electric car giant Tesla (TSLA), which was named a “top pick” at Morgan Stanley.
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A tale of two markets; 3M, GE Aerospace, ServiceNow in pictures
After the opening bell, the Dow Jones Industrial Average fell 0.1%, while the S&P 500 added 0.3%. The tech-focused Nasdaq composite climbed 0.8% in morning action.
Early Monday, the interest rate on ten-year government bonds fell to 4.15%. Oil prices fell, with West Texas Intermediate futures trading around $77 a barrel.
Among exchange-traded funds, Invesco QQQ Trust (QQQ) rose 0.8%, while the SPDR S&P 500 ETF (SPY) gained 0.4% after the opening.
Tesla shares rose 4.6% Monday morning after it became Morgan Stanley’s new “Top Pick” among U.S. automakers, replacing Ford (F). The brokerage cited a 40% upside to the company’s 310 price target, “more controlled” auto expectations and strong emerging value drivers.
However, Morgan Stanley added that it believes near-term expectations around fully self-driving vehicles and robotaxis may be too high. It has an overweight rating on Tesla stock.
Wake-up calls are still ringing for Nvidia, Google, Meta and more
Stock Market Today: Fed Meeting, Jobs Report Loom
The biggest news this week is expected from the Federal Reserve’s two-day meeting, which starts Tuesday with a policy announcement expected Wednesday. The Department of Labor will release July payrolls on Friday.
This week’s big earnings reports include the tech titans of Dow Jones Apple (AAPL), Intel (INTC) And Microsoft (MSFT), while blue-chip components Boeing (BA), Merck (MRK), Pfizer (PFE) And Procter & Gamble (PG) are also expected to announce.
Others are expected from Magnificent Seven players Amazon (AMZN) And Metaplatforms (META).
The top gainers on Monday include: McDonald’s (MCD), About semiconductor (ON) And Phillips (PHG).
Shares of McDonald’s fell 0.1% in morning trading, while On rose more than 11%. And Philips shares rose more than 13% in the first phase.
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Dow Jones is bouncing
On Friday, the Nasdaq composite rose 1%, while the S&P 500 rose 1.1%. And the Dow Jones Industrial Average fared the best among the stock market’s major indexes, rising 1.6%.
Investor’s Business Daily’s Big Picture column noted, “While Friday’s recovery was encouraging, it wasn’t enough to prevent painful weekly losses for the S&P 500 and Nasdaq. With a number of notable events in the week ahead, including a whole range of technology revenues, it remains prudent to keep exposure at the 40% to 60% level for the time being.”
During Friday’s IBD Live showthe IBD Live team discussed current trading conditions and how investors should interact with the stock market today.
This is an important time to read The Big Picture column amid the ongoing market action. Also learn how to adapt to changing market conditions, with IBD’s new exposure levels.
Learn how to time the stock market with IBD’s ETF market strategy
Stock market today: the best stocks to watch
Some of the best companies to watch in the stock market today include Badger meter (BMI), GE Aviation (GE), Service now (NOW), Tene healthcare (THC) And Toll brothers (TOLL).
Also on the list are Dow Jones components Amazon, American Express (AXP), Apple, IBM (IBM) and Microsoft.
IBD market wave‘s Breaking Out Today list included Installed building products (IBP). Shares hit a double bottom of 257.45 on Friday. Shares were up 0.4% in morning trading on Monday.
look at the MarketSurge List ‘Near Pivot Point’ for more stocks approaching buy points in bases. For more stock ideas, check out IBD stock lists such as IBD50, Large hood 20 and stocks near a buy zone.
Get real-time buy and sell alerts on stock market leaders with the IBD Leaderboards
Dow Jones: American Express, IBM
Among Dow components, payments giant American Express regained a flat base of 244.41, according to MarketSurge Pattern Recognition, after Friday’s win. Meanwhile, IBM staged a breakout on Thursday after the company’s earnings report. The stock is above a cup-with-handle entry of 189.47. IBM shares fell 0.3% early Monday.
Outside of the Dow Jones Industrial Average, the Badger Meter breaks above a reading of 202.81 on a flat base, having risen 2.4% on Friday. Shares rose another 1.6% Monday morning.
GE stock’s recent breakout past a 170.80 buy point remains under pressure, but shares are recovering. Shares rose 0.2% early Monday.
ServiceNow rose last week on second-quarter earnings results, topping a record 806.52. ServiceNow fell 0.6% early Monday.
Tenet Healthcare added 1.4% on Friday, further expanding above 142.35 on a flat base. Shares added 1.2% on Monday.
Finally, homebuilder Toll Brothers broke past a cup base of 135.37, advancing 5.1% on Friday. And on Monday morning, shares of Toll Brothers were up 0.9%.
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 in or near buy zones in today’s stock market.
| Company Name | Symbol | Correct purchase point | Purchase point type |
|---|---|---|---|
| Tenet healthcare | (THC) | 142.35 | Flat base |
| KB Home | (KBH) | 74.66 | Flat base |
| Service now | (NOW) | 806.52 | Handle entry |
| Newmont | (NEM) | 44.59 | Flat base |
Source: IBD data as of July 25
Join IBD experts as they analyze the top stocks in the stock market today on IBD Live
Beautiful seven stocks: Nvidia
Beautiful Seven stock Nvidia (NVDA) rose 2.1% in morning trading.
Nvidia shares, an IBD Leaderboard name, closed below the 50-day line on Friday, with sharp losses last week.
Dow Jones Leaders: Amazon, Apple, Microsoft
Among the Dow Jones components in the Magnificent Seven, Amazon, Apple and Microsoft traded higher after Monday’s stock market open.
Amazon triggered the 7% loss rule last week after falling well below the 191.70 buy point on a flat basis. The shares are also below the 50-day line. Shares of Amazon rose 0.7% on Monday.
Apple shares edged higher, but still remain well below their July 15 record high. Shares rose 0.4% on Monday.
Microsoft shares rebounded 1.6% on Friday, still below the 430.82 buy point and the 50-day line of their flat base. And early Monday the stock was 0.7% higher.
Make sure you follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen to learn more about growth stocks, the Dow Jones Industrial Average, and the current stock market.
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