May 24, 2024

Dow Jones futures led an early market rebound Tuesday morning, as investors hoped to reverse a downward trend that has besieged stocks in recent days. But the rebound didn’t help Tesla (TSLA), which sank again on the stock market today.




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Dow Jones futures rose 0.6% in morning action following heavy losses on Monday, which was the sixth-straight down session for blue chips. The Dow has lost ground in 10 of the last 11 trading days and is down more than 5% from its March 21 peak. It sits well below its 50-day moving average.

S&P 500 futures were up 0.2% vs. fair value. Tech-focused Nasdaq 100 futures gained 0.1% before the opening bell. After two straight down sessions, both dipped below their 50-day lines amid Monday’s sell-off.

Early Tuesday, 10-year Treasury yield ticked higher to 4.65%. Further, oil prices dipped, as West Texas Intermediate futures traded around $84.90 a barrel.

Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) was up marginally, and the SPDR S&P 500 ETF (SPY) rose 0.2%.

Tesla stock sold off another 2.3% Tuesday morning, threatening to extend Monday’s losses.

On Monday, Tesla confirmed that it will cut more than 10% of its global workforce, according to an Elon Musk email to staff. The move cuts more than 14,000 jobs, and comes as the electric-vehicle maker faces slowing demand and overcapacity at its plants.

Tesla shares nearly hit new multi-month lows Monday and shares are more than 45% off their 52-week high.

Stock Market Today: Powell, Earnings

In economic news, Federal Reserve Chairman Jerome Powell will participate in a moderated discussion Tuesday afternoon with Tiff Macklem, Governor of the Bank of Canada. The talk will be held at the Washington, D.C. Forum on the Canadian economy and is scheduled to start at 1:15 p.m. ET.

Meanwhile, key earnings movers Tuesday included Bank of America (BAC), Johnson & Johnson (JNJ), Morgan Stanley (MS) and UnitedHealth (UNH).

Bank of America shares gained 0.5% in premarket trades, while J&J stock dropped 0.4%. Morgan Stanley stock rallied more than 3%. And UnitedHealth shares surged 8% in early trading.


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


Dow Jones Slides

The Nasdaq composite slid 1.8% and the S&P 500 lost 1.2%. Both benchmarks closed below their 50-day moving averages for the first time since early November, back when the market confirmed a new uptrend.

The Dow Jones Industrial Average, which was the first of the major indexes to break the 50-day line, dropped 0.6% Monday and nearly 1.7% from its session high.

Monday’s Big Picture column commented, “With Monday’s break of that support level, the Nasdaq and S&P 500 ended a 110-day streak of closes above their 50-day averages. That was the longest for the S&P since a 139-day run that ended March 9, 2011, according to Dow Jones Market Data. The Nasdaq had equaled a 110-day run that ended Feb. 2, 2018.”

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 Watch On Stock Market Today

Broadcom (AVGO), DraftKings (DKNG) and ServiceNow (NOW) — plus Dow Jones components American Express (AXP) and Verizon Communications (VZ) — are among the best companies to watch on the stock market today.

ServiceNow is 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. Also, the MarketSurge “Near Pivot” list shows stocks nearing buy points in bases.

To find more stock ideas, check IBD Stock Lists like IBD 50, Big Cap 20 and Stocks Near A Buy Zone. These features identify bullish patterns and buy points and are available to check every day.


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


Dow Jones: American Express, Verizon

American Express is trying to find support around its 50-day moving average, according to MarketSurge charts. A rebound would place the payments leader in a new buy area. But investors need to wait for a decisive recovery. American Express stock inched up in morning trades Tuesday.

Telecom giant Verizon’s recent breakout attempt failed in recent sessions, as it fell more than 7% below a 43.21 buy point. Verizon shares were slightly higher Tuesday morning.


4 Top Growth Stocks To Watch In The Stock Market Rally


Stock Market Today: Broadcom Eyes Buy Point

Artificial intelligence player Broadcom continues to build a short consolidation with a 1,438.17 buy point, according to MarketSurge charts. The price action looks like a flat base, but it’s slightly too deep, with a depth of slightly more than 16%. The maximum depth of a flat base is 15%. And shares are searching for support at the 50-day line. Broadcom stock rose 0.7% Tuesday.

DraftKings moved back below its 46.52 buy point in a short consolidation following recent losses. And the sports-betting giant was up 0.6% Tuesday morning.

ServiceNow decisively gave up its 50-day line during Monday’s 4.3% decline. Shares continue to build a flat base with a 815.32 entry, but they have a lot of work ahead of them before a potential breakout. The stock gained 0.2% early Tuesday.


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Stocks To Watch

These are four stocks in or near buy zones in today’s stock market.

Company Name Symbol Correct Buy Point Type Of Buy Point
Disney (DIS) 112.92 Cup with handle
Broadcom (AVGO) 1,438.17 Consolidation
DraftKings (DKNG) 45.62 Consolidation
ServiceNow (NOW) 815.32 Flat base
Source: IBD Data As Of April 15, 2024

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


Magnificent Seven Stocks: Nvidia

Among Magnificent Seven stocks, Nvidia (NVDA) rose 0.5% in Tuesday’s early trading.

Nvidia stock is trying to find support around its 50-day line, as it builds a flat base with a 974 buy point. The AI giant is an IBD Leaderboard stock.

Dow Jones Leaders: Apple, Microsoft

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

Apple stock moved down 2.2% Monday, ending a two-day rally and seeing stout resistance at the 50-day line. The stock fell 0.2% Tuesday morning.

Microsoft shares skidded 1.9% Monday, giving up its 50-day line for the first time since a Jan. 11 breakout past a 384.30 buy point. And the stock moved up 0.3% early Tuesday.

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.

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Source: investors.com

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