July 24, 2024

Dow Jones futures dropped along with the other major indexes Tuesday as this week’s Federal Reserve meeting was set to kick off later in the day. Artificial intelligence leader Super Micro Computer (SMCI) plunged on the stock market today after the company announced a stock offering of 2 million shares.


Dow Jones futures dropped 0.2% vs. fair value in morning action, and S&P 500 futures lost 0.5%. Tech-heavy Nasdaq 100 futures declined 0.7% before the opening bell.

Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) was down 0.6%, while the SPDR S&P 500 ETF (SPY) fell 0.4%.

The 10-year Treasury yield ticked lower to 4.32%. Further, oil prices inched lower after Monday’s gains, as West Texas Intermediate futures traded around $82.70 a barrel.

AI stock Super Micro plunged 10% Tuesday morning on the proposed stock offering to sell 2 million shares. Shares are set to add to sharp losses incurred Monday as the company joined the S&P 500.

Be sure to read how to adjust to changing market conditions, with IBD’s new exposure levels.

Stock Market Today: Economic Data, Fed Meeting

The Federal Reserve’s two-day policy meeting kicks off Tuesday, with an interest-rate decision on Wednesday.

Fed Chairman Jerome Powell may signal that a near-term rate cut could be in the cards, supporting the odds of a June move. That would be something of a surprise for the no-landing camp, or those who expect higher inflation will keep rates as they are. Yet Fed projections may pencil in one fewer rate cut in both 2024 and 2025 than they showed in December, surprising soft-landing forecasters.

Investors will get more housing data, with the early release of Commerce Department’s housing starts and permits for February due Tuesday at 8:30 a.m. ET. Housing starts are expected to rise to 1.449 million, while permits are anticipated to climbed to 1.47 million, per Econoday estimates.

Key earnings movers Tuesday morning include StoneCo (STNE) and Tencent Music (TME). StoneCo shares tumbled more than 8%, while Tencent Music stock was up 0.7% in premarket trades.

Dow Jones Rises

On Monday, the Dow Jones Industrial Average moved up 0.2% and the S&P 500 gained 0.6%. The tech-heavy Nasdaq composite advanced 0.8%.

Monday’s Big Picture column commented, “One also cannot ignore the fact that the S&P 500 on Monday easily wiped out its prior two weeks of mild losses. That’s more than a crumb of comfort for IBD readers justifiably fretting about the unusually high count of distribution days over the past 25 trading sessions for both the S&P’s large-cap gauge and for the Nasdaq.”

Now is an important time to read IBD’s The Big Picture column amid the continuing stock market rally. Be sure to read how to adjust to changing market conditions, with IBD’s new exposure levels.

Learn How To Time The Stock Market With IBD’s ETF Market Strategy

Best Stocks To Buy And Watch On Stock Market Today

Arista Networks (ANET), Duolingo (DUOL), Dexcom (DXCM) and XP (XP) — plus Dow Jones components Disney (DIS), IBM (IBM) and Procter & Gamble (PG) — are among the best stocks to buy and watch on the stock market today.

Arista and Disney were featured in this Stocks Near A Buy Zone column.

An essential resource for daily breakouts is IBD MarketSurge’s “Breaking Out Today” list. It shows MarketSurge Growth 250 stocks that are breaking out past new buy points. There were no new breakouts Monday.

Meanwhile, the MarketSurge “Near Pivot” list shows stocks nearing buy points in bases, like Arista Networks.

Get Real-Time Buy And Sell Alerts On Stock Market Leaders With IBD Leaderboard

Dow Jones Stocks: Disney Retakes Buy Point

Disney is breaking out past a big cup-with-handle base’s 112.92 buy point, according to IBD MarketSurge chart analysis. And shares closed above their entry Monday, with a 1.7% gain. Disney stock fell 0.5% Tuesday morning.

IBM stock remains below a flat base’s 196.90 buy point, with a 0.3% rise Monday. Shares were flat Tuesday.

Consumer products giant Procter & Gamble inched lower Monday, still above a 158.38 buy point in a cup base. P&G stock inched lower Tuesday.

4 Top Growth Stocks To Watch In The Stock Market Rally

Arista Stock Nears Buy Point

Arista shares rallied 4.2% Monday, nearing a 292.66 flat-base buy point, according to MarketSurge charts. They are just 2% away from their latest buy trigger. On Tuesday morning, Arista shares lost 1.5%.

IPO Leader Duolingo is approaching a cup-with-handle’s 241.86 entry, but is about 10% away from the buy point. Duolingo shares were down 0.5% Tuesday.

Dexcom shares advanced 3.3% Monday, retaking a 132.03 entry in a flat base. Dexcom shares gained 0.3% early Tuesday.

Finally, Brazil-based XP lost 0.6% Monday, holding above support at the 50-day moving average. Shares are building a cup with handle that displays a 27.03 entry. XP stock lost 1.2% Tuesday morning.

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Best Bets On Stock Market Today

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

Company Name Symbol Correct Buy Point Type Of Buy Point
Novo Nordisk (NVO) 105.69 Flat base
Merck (MRK) 119.65 Cup base
DraftKings (DKNG) 39.35 Cup base
Spotify (SPOT) 202.88 Flat base
Source: IBD Data As Of Feb. 28, 2024

Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live

Magnificent Seven Stocks: Nvidia, Tesla

Magnificent Seven stocks Nvidia (NVDA) and Tesla (TSLA) declined 1.7% and 1.1%, respectively, in Tuesday’s premarket action.

Nvidia shares rose 0.7% Monday, ending a three-day losing streak. Nvidia is an IBD Leaderboard stock.

Tesla stock rallied 6.3% to rebound from last week’s lows. Still, shares are sharply below their 50- and 200-day moving averages and more than 40% off their 52-week high.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks in the Magnificent Seven, Apple (AAPL) and Microsoft (MSFT) traded lower ahead of Tuesday’s stock market open.

Apple stock moved up 0.6% Monday, hitting its highest level since March 4. Shares remain sharply below their long-term 200-day line. Apple moved down 0.2% Tuesday.

Microsoft shares found support at the 50-day line, sending them into new highs last week. That placed the software giant in a new buy area.  Microsoft shares fell 0.4% on the stock market today.

Be sure to follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on growth stocks, the Dow Jones Industrial Average and the stock market today.


Top Growth Stocks To Buy And Watch

Learn How To Time The Market With IBD’s ETF Market Strategy

Find The Best Long-Term Investments With IBD Long-Term Leaders

Nvidia Partner Rides AI Megatrends To 3,594% Gain — With More To Come

Spot Buy Points And Sell Signals With MarketSurge Pattern Recognition

Source: investors.com

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