Dow Jones Futures: Market rally to 2023 highs as Tesla shares rise; Jobs report looms

Dow Jones futures were slightly lower on Tuesday morning as the stock market closed for the July 4 holiday. Major stock indexes ended Monday at their 2023 highs, as Tesla stock soared to new highs on record second-quarter deliveries. Meanwhile, a crucial June jobs report looms on Friday.


On Monday, the Dow Jones Industrial Average rose slightly, while the S&P 500 gained 0.1%. The tech-heavy Nasdaq composite rose 0.2%.

On the economic front this week, Friday’s Department of Labor jobs report is in the spotlight. Economists predict a gain of around 200,000 jobs and a drop in the unemployment rate to 3.6%.

Ahead of that crucial jobs report, the minutes of the June 13-14 Fed meeting are due out Wednesday at 2 p.m. They could shed some light on why policymakers’ projections predicted two more rate hikes.

Thursday will bring a heavy dose of data. Payroll processor ADP releases its estimate of private sector job growth in June at 8:15 a.m. The first unemployment claims are due at 8:30 a.m. Both reports are considered precursors to the Monthly Payroll Report. The ISM services index is released at 10 a.m. along with the Department of Labor’s monthly job vacancies and turnover survey.

stock market today

VE Giant You’re here (TSLA) jumped nearly 7% after the company reported record second-quarter shipments that beat estimates. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) fell 0.8% and 0.75%, respectively, in today’s stock action.

Chipotle Mexican Grill (GCM), Dynatrace (DT), MongoDB (MDB), Search Lam (LRCX) and Nvidia (NVDA) – as well as Dow Jones stocks JPMorgan Chase (JMP), Visa (V) and Selling power (CRM) – are among the best stocks to watch in the continued rise of the stock market.

Tesla is an IBD Leaderboard stock, Lam Research remains an IBD SwingTrader stock, while Nvidia was listed in the Stocks Near A Buy Zone column this week. Dynatrace was a recent IBD Stock of the Day.

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Dow Jones Today: Oil Price, Treasury Yields

The stock market is closed on Tuesday, with limited futures trading.

Ahead of Wednesday’s opening bell, Dow Jones futures fell 0.1% from fair value, while S&P 500 futures fell slightly. Nasdaq 100 futures were barely below fair value. Remember that overnight action on futures contracts on Dow Jones and elsewhere does not necessarily translate into actual trading in the next regular trading session.

On Monday, the 10-year US Treasury yield rose to 3.85%. Oil prices rose 1.5% on Tuesday, rebounding from their recent lows. West Texas Intermediate futures were trading around $71 a barrel.

Stock market action: what to do now?

Now is an important time to read IBD’s The Big Picture column with major stock indices at their 2023 highs.

With the stock market holding steady at this year’s highs, IBD’s recommended exposure levels are between 80% and 100%. However, investors should be careful when adding exposure, taking stock of current market levels, and increasing at a measured pace. It’s also essential to stay nimble in case there’s another setback.

Five Best Dow Jones Stocks to Buy and Watch Now

Dow Jones stocks to watch: JPMorgan, Salesforce, Visa

Dow Jones banking leader JPMorgan broke above a fixed base buy point of 143.37 in Monday’s gains. The 5% buy zone rises to 150.54.

Salesforce managed to stabilize after falling after earnings. It is currently testing support on the 50 day line. A decisive rebound would offer a new entry.

Tech megacap previously topped a pair of alternative entries at 194.01 and 200.10, according to IBD Leaderboard analysis. Over the past few weeks, shares have reached the 20% profit zone from an entry of 178.94 cup with handle.

Payments leader Visa broke above the buy point of 235.57 on a flat basis last week and added to those gains on Monday, up 0.2%. The buy range peaks at 247.35.

4 growth stocks to watch in the Stock market rally

Best stocks to buy and watch: Chipotle, Dynatrace, MongoDB, Lam Research, Nvidia

The IBD Leaderboard Chipotle watchlist stock is trying to break above the buy point of 2,139.88 from a flat base, according to IBD MarketSmith pattern recognition. An early entry at 2,092.51 was also available due to a trendline. Chipotle was a recent IBD Stock of the Day.

Software maker Dynatrace formed a tight three-week chart pattern, representing a brief consolidation in which institutional investors paused their buying. The shares are around 3% off their last entry at 52.99.

IBD SwingTrader Lam Research stock broke an early buy point of 615.80 and a tight three-week setup with an entry of 630.72 on last week’s gains. Shares edged 1.3% on Monday.

MongoDB traded tight after its recent earnings-fueled jump, which offered fresh entry. Stocks are above the tight three-week formation that showed a buy point at 398.89, while aggressive investors could have used a trendline entry around 386.

After its May 25 earnings-fueled gap, Nvidia shares have been trending steadily higher. Amid a pullback since June 20, the stock offers a fresh opportunity to buy stocks. It formed a trendline entry at 418 after the stock found support at its 21-day exponential moving average. Nvidia is an IBD rating stock.

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Best stocks to buy and watch during the stock market rally

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

Company Name Symbol Correct point of purchase Point of purchase type
Dynatrace (DT) 52.99 narrow area
Visa (V) 235.57 Flat bottom
Cloudy (NET) 66.20 Double bottom
Nvidia (NVDA) 418.00 trend line
Source: IBD data as of July 3, 2023

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Tesla Stock

IBD Leaderboard Tesla stock extended its winning streak to five sessions on Monday. Amid the recent rebound, Tesla shares remain significantly out of the buy range past the 207.79 double-bottom buy point.

TSLA’s stock jumped 6.9% on Monday after the company said it delivered more than 466,000 vehicles to customers around the world in the April-June period, a record quarter for sales. Price cuts and discounts propelled demand well above Wall Street forecasts.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple stock faded from Friday’s high at 194.48, down 0.8% on Monday. Stocks continue to hold strong above a buy point of 157.38.

Microsoft shares shed 0.75% on Monday, returning some of Friday’s gains. Still, the stock is just 4% off its June 16 all-time high at 351.47.

Over the past few weeks, the stock has reached the 20%-25% profit zone from a fixed base buy point of 276.76, so investors could have taken at least some profit there. .

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen to learn more about growth stocks and the Dow Jones Industrial Average.


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