Dow Jones futures dropped Tuesday morning ahead of key economic data, with the impending release of two manufacturing gauges and a critical Labor Department report. Meanwhile, Caterpillar (CAT), Merck (MRK) and Uber Technologies (UBER) were among nine big earnings movers Tuesday morning.
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Early Tuesday, the Purchasing Managers’ Manufacturing Index is expected to come in at 49.0, unchanged from the mid-month estimate. That number is due out at 9:45 a.m. ET. Meanwhile, the Institute for Supply Management Manufacturing Index, out at 10 a.m. ET, is anticipated to remain in a contraction, with a 46.5 reading, per Econoday estimates.
Key employment data will be reported with the 10 a.m. release of the Labor Department’s ‘s Job Openings and Labor Turnover Survey. June job openings are expected to ease to 9.65 million vs. May’s 9.824 million.
Friday’s jobs report will be in the spotlight this week. Economists forecast a steady 3.6% unemployment rate for July and see employers adding 190,000 jobs, down from June, with a moderate gain in average hourly earnings.
Early Tuesday, Allegro MicroSystems (ALGM), Arista Networks (ANET), Caterpillar, DoubleVerify (DV), Lattice Semiconductor (LSCC), Merck, Monolithic Power (MPWR), Rambus (RMBS) and Uber Technologies are key earnings movers.
ALGM stock declined 2.8% in premarket trade, as Arista shares surged 14%. Caterpillar shares climbed nearly 1%, while DV stock tumbled almost 10%.
Lattice shares dropped nearly 2% early, while MPWR stock skidded around 7%. Merck jumped 1.3% in morning action, but Rambus shares dived nearly 11% ahead of the market open.
Finally, UBER stock raced more than 2% higher in morning trade.
Stock Market Today
Electric-vehicle giant Tesla (TSLA) traded down 0.8% early Tuesday. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were lower before today’s stock market open.
Other stock market leaders include Alphabet (GOOGL) and Meta Platforms (META). GOOGL stock dropped 0.8%, while Meta shares fell 0.4% in early action.
Allegro MicroSystems, Broadcom (AVGO), Skechers (SKX) — as well as Dow Jones stocks Boeing (BA), Caterpillar and Salesforce (CRM) — are among the best stocks to watch in the current stock market rally.
Tesla is an IBD Leaderboard stock, while Boeing and Skechers were recent IBD Stocks Of The Day. And Skechers featured in this Stocks Near A Buy Zone column.
Dow Jones Today: Oil Prices, Treasury Yields
Ahead of Tuesday’s opening bell, Dow Jones futures dropped 0.2% vs. fair value, while S&P 500 futures lost 0.4%. Nasdaq 100 futures declined 0.45% in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) was down 0.6%, while the SPDR S&P 500 ETF (SPY) fell 0.45% early Tuesday.
The 10-year U.S. Treasury yield ticked higher to 3.99% Tuesday morning.
West Texas Intermediate oil prices paused after their recent torrid gains Tuesday morning, at their highest level since mid-April. WTI futures traded modestly lower, around $81.50 a barrel.
Stock Market Action
On Monday, the Dow Jones Industrial Average rose 0.3% after a late-day advance, while the S&P 500 gained 0.15%. The tech-heavy Nasdaq composite finished up 0.2%.
Monday’s Big Picture column commented, “Up 37% year to date, the Nasdaq just had its best first seven months of any year since 1975. And the Nasdaq 100 index is up 44.2% so far in 2023, which is its best first seven months in its entire history, according to Dow Jones Market Data.”
Now is an important time to read IBD’s The Big Picture column as the stock market is at this year’s highs.
Five Best Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Watch: Boeing, Caterpillar, Salesforce
Aerospace giant Boeing broke out last week, surpassing a 223.91 flat-base entry. Shares are just out of the 5% buy area that went up to 235.11. BA stock dipped 0.6% Tuesday morning.
Industrial giant Caterpillar finished Monday just out of the buy range past a 250.89 entry in a cup with handle, according to IBD MarketSmith pattern recognition. CAT stock rose almost 1% early Tuesday after the company’s earnings results ahead of the opening bell.
Salesforce’s recent breakout continues to struggle, with the stock holding just above the flat base’s 225.00 entry, according to IBD Leaderboard analysis. Shares dropped 0.5% below that entry in premarket action Tuesday.
4 Top Growth Stocks To Buy And Watch In The Stock Market Rally
Stocks To Buy And Watch: Allegro, Broadcom, Skechers
Allegro MicroSystems surged past a new entry in recent weeks, in the buy range that runs up from the 48.72 entry to 51.16. And on Tuesday, ALGM stock dropped nearly 3% in the wake of the company’s earnings results.
Chip giant Broadcom is eyeing a 921.78 buy point in a consolidation, according to IBD MarketSmith pattern recognition. Shares are just 3% away from their latest entry. AVGO stock fell 0.6% Tuesday morning.
Skechers broke out Friday, surging above a 54.77 buy point after the company’s strong quarterly earnings results. Shares are in the buy area that runs up to 57.51. SKX stock was unchanged early Tuesday.
Learn How To Time The Market With IBD’s ETF Market Strategy
Best Stocks To Buy And Watch In Stock Market Rally
These are four best stocks to buy and watch in today’s stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Allegro | (ALGM) | 48.72 | Cup base |
| Salesforce | (CRM) | 225.00 | Flat base |
| Broadcom | (AVGO) | 921.78 | Consolidation |
| Skechers | (SKX) | 54.77 | Flat base |
Source: IBD Data As Of July 31, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
IBD Leaderboard stock Tesla inched higher Monday, rising for a second-straight session. Amid the recent pullback, Tesla shares are trying to find support around their key 50-day line. A decisive rebound would place the electric-vehicle leader in a new buy area.
TSLA stock threatened to give up Monday’s gains, trading down 0.8% Tuesday morning.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock added 0.3% Monday, holding near its recent highs. AAPL stock continues to hold sharply above a 157.38 buy point. Apple will report fiscal third-quarter results late Thursday. Early Tuesday, shares fell 0.3% in morning action.
Microsoft shares closed Monday right at their 50-day line. Look for a strong rebound to place the stock in a new buy area. And on Tuesday morning, Microsoft shares were down 0.7%.
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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