Dow Jones futures fell Tuesday morning after President Joe Biden and House Speaker Kevin McCarthy failed to reach a deal in their latest debt ceiling discussions. Big retailer Lowe’s (LOW) sold off after the company cut its full-year outlook.
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Ahead of Monday’s evening meeting, Biden stuck a a cautiously optimistic tone, saying, “We still have some disagreements but I think we may be able to get where we have to go. We both know we have a significant responsibility.”
But they failed to reach a deal to raise the debt ceiling, with talks centering around setting a top-line spending level for the next year and deciding how long to lift the debt ceiling before having to raise it again. After the meeting, McCarthy told reporters that the meeting was “productive,” adding, “I think the tone tonight was better than any other time we’ve had discussions.”
He continued, “I believe we can still get there. I believe we can get it done,” and that he expects to talk to Biden every day.
On the earnings front, Lowe’s shares declined nearly 2% after the home-improvement retailer cut its full-year guidance due to softening demand for home-improvement projects. Lowe’s beat first-quarter earnings and sales targets.
Other key earnings movers include AutoZone (AZO), BJ’s Wholesale (BJ), Dick’s Sporting Goods (DKS), Heico (HEI) and Zoom Video Communications (ZM).
AutoZone shares dipped 2.4% in early trade, while BJ stock lost 1.4%. Dick’s Sporting Goods rose nearly 2%, as Heico shares declined 0.5% in premarket trade.
Finally, ZM stock surged as much as 9.65% late Monday but was down nearly 1% Tuesday morning.
Finally, new home sales numbers are due out at 10 a.m. ET. New home sales in April are expected to ease to 670,000 vs. March’s jump to 683,000.
Stock Market Today
Electric-vehicle giant Tesla (TSLA) traded 0.3% lower Tuesday morning. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were mixed ahead of today’s stock market open.
Advanced Micro Devices (AMD), IBD Leaderboard stock ASML (ASML), Cadence Design Systems (CDNS) and IBD SwingTrader idea Shopify (SHOP) — as well as Dow Jones stocks Boeing (BA), Salesforce (CRM) and Visa (V) — are among the best stocks to buy and watch in the stock market uptrend.
ASML and Salesforce are IBD Leaderboard stocks, Shopify a new IBD SwingTrader idea, while Boeing was featured in this week’s Stocks Near A Buy Zone column.
Dow Jones Today: Oil Prices, Treasury Yields
Ahead of Tuesday’s opening bell, Dow Jones futures fell 0.2% vs. fair value. Energy heavyweight Chevron (CVX) led the index, up more than 1% after an upgrade to buy, from hold, from HSBC.
S&P 500 futures also lost 0.2%, while tech-heavy Nasdaq 100 futures moved down 0.15% in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) traded a fraction lower, while the SPDR S&P 500 ETF (SPY) fell 0.2% early Tuesday.
The 10-year U.S. Treasury yield on Tuesday traded up to 3.75%, on pace to extend a seven-day win streak that saw it rebound to its highest level since mid-March.
U.S. oil prices continued to trade between $70 and $73 a barrel. West Texas Intermediate futures were up around 1% Tuesday morning, holding just below $73 a barrel.
Stock Market Action
On Monday, the Dow Jones Industrial Average fell 0.4%. The S&P 500 gained less than 0.1%, while the tech-heavy Nasdaq composite climbed 0.5%.
Monday’s Big Picture column commented, “In an unusual twist, the S&P 500 still is burdened with six distribution days. But the Nasdaq has shed all its distribution days thanks to a combination of index gains and time passed since the distribution took place.”
Now is an important time to read IBD’s The Big Picture column after the recent bullish change in the market’s outlook.
Five Best Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Buy And Watch: Boeing, Salesforce, Visa
Dow Jones aerospace giant Boeing rose 0.2% Monday, still holding above its 50-day line and trading near a flat base’s 221.43 buy point, according to IBD MarketSmith pattern recognition. BA stock moved down 0.2% early Tuesday.
Salesforce rallied past alternative entries at 194.01 and 200.10 in recent weeks, according to Leaderboard analysis. Meanwhile, the RS line hit a new high last week, a bullish signal. Salesforce reports first-quarter results after the market close on May 31. CRM stock rose 0.1% Tuesday morning.
Visa shares remain in buy range above a 230.15 cup-with-handle buy point, after falling 0.9% Monday. The buy range goes up to 241.66. V stock was unchanged Tuesday.
4 Top Growth Stocks To Watch In The Stock Market Rally
Best Stocks To Buy And Watch: AMD, ASML, Cadence, Shopify
Chip leader Advanced Micro Devices moved back out of buy range above a cup base’s 102.53 buy point, according to IBD MarketSmith pattern recognition, with a 2.1% ascent Monday. The 5% buy area goes up to 107.66. AMD shares lost 0.2% premarket Tuesday.
IBD Leaderboard stock ASML broke above a 683.28 buy point in a cup with handle last week and is in the 5% buy zone that tops out at 717.44. ASML moved down 0.6% Tuesday morning.
Cadence Design Systems is trying to break out past a 217.77 buy point in a flat base, but fell further below the entry with a 2.3% drop Monday. CDNS stock was flat early Tuesday.
Shopify joined IBD Leaderboard Monday, as it made a bullish move above a trendline entry near 62. Shares rallied 3.1% Monday. SHOP stock was up a fraction 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 two Dow Jones leaders.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| ASML | (ASML) | 683.28 | Cup with handle |
| Salesforce | (CRM) | 200.10 | Consolidation |
| Visa | (V) | 230.15 | Cup with handle |
| Advanced Micro Devices | (AMD) | 102.53 | Cup base |
Source: IBD Data As Of May 23, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock rallied another 4.85% Monday, extending a win streak to five sessions and moving further above its 50-day line. Shares are building the right side of a new base that has a 207.89 buy point for now. Keep an eye out for a handle to offer a lower entry. Shares closed Monday 40% off their 52-week high.
TSLA stock threatened to give up a small part of Monday’s gains, moving down a fraction Tuesday morning.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares slipped 0.5% Monday on an analyst downgrade, falling from Friday’s 52-week high at 176.39. The stock continues to add to gains above a 157.48 buy point and is out of the buy range that ran up to 165.35. AAPL stock fell 0.2% in premarket trade Tuesday.
Microsoft shares rose 0.9% Monday, hitting a new 52-week high at 322.59. Shares are significantly above a 276.86 flat-base buy point. On Tuesday morning, MSFT stock was up 0.3%.
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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