Dow Jones falls on key economic data; Tesla shares rise on record deliveries

The Dow Jones Industrial Average fell on Monday as the stock market would close early for the July 4 holiday. Tesla stock soared after the Elon Musk-led electric-vehicle giant reported an 83% jump in deliveries in the second quarter.


On the economic front, Friday's jobs report from the Department of Labor is the focus of attention this week. Economists are forecasting an increase of around 200,000 jobs and a fall in the unemployment rate to 3.6%.

On Monday, the S&P Global Purchasing Manager's Manufacturing Index (PMI) came in at 46.3, in line with estimates and unchanged from the mid-month estimate.

Meanwhile, the Institute for Supply Management's manufacturing index for June fell unexpectedly to 46.0. Econoday estimates were expecting a rise to 47.3 from May's 46.9 reading.

The stock market closes at 1:00 p.m. ET on Monday. And the financial markets will remain closed on Tuesday for the 4th of July holiday. Additionally, there are few earnings results this week Levi Strauss (LEVI) reported late Thursday.

stock market today

Giant for electric vehicles Tesla (TSLA) is up more than 8% on Monday morning. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were slightly lower after the market open today.

The Google parent company is also among the other leaders in the stock market rally alphabet (GOOGL) and Facebook parent Meta platforms (META). Alphabet shares slipped 0.5%, while Meta shares lost 0.4% in morning trade.

Chipotle Mexican Grill (CMG), Dynatrace (DT), MongoDB (MDB) and Lam Research (LRCX) – as well as Dow Jones shares JPMorgan Chase (JPM), Visas (V) and Foreclosure (CRM) – are among the best stocks to watch in the ongoing stock market rally.

Tesla is an IBD Leaderboard stock, Lam Research remains an IBD SwingTrader stock, while MongoDB was featured in last week's “Stocks Near A Buy Zone” column. Dynatrace was an IBD Stock of the Day recently.

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Dow Jones today: oil prices, government bond yields

After Monday's opening bell, the Dow Jones Industrial Average fell 0.2%, while the S&P 500 lost 0.1%. The tech-heavy Nasdaq Composite gained 0.15% in morning trade.

Among US exchange-traded funds, Nasdaq 100-tracker Invesco QQQ Trust (QQQ) is down 0.1%, while the SPDR S&P 500 ETF (SPY) is down slightly early Monday.

The 10-year US Treasury yield fell to 3.81%. The 10-year yield tested the highs of its recent trading range early in the third quarter. The yield fell to 3.81% on Friday, just below its recent highs.

Oil prices appeared to extend their winning streak to four sessions Monday morning, climbing off recent lows. West Texas Intermediate futures rose nearly 1% to just over $71 a barrel.

stock market action

On Friday, the tech-heavy Nasdaq Composite led the stock market higher, rising 1.45% and closing just below its 2023 highs. The S&P 500 rose 1.2% and the Dow Jones Industrial Average rose 0.8%.

Friday's Big Picture column said, “With indices looking bullish and the market in a confirmed uptrend, IBD is increasing recommended exposure levels to 80%-100%. However, investors should exercise caution when adding exposure, take stock of current market levels and increase at a measured pace. It is also important to remain flexible in case there is a setback.”

Now is an important time to read IBD's The Big Picture column as the stock market nears this year's highs.

The five best Dow Jones stocks to buy and watch right now

Dow Jones stocks to watch: JPMorgan, Salesforce, Visa

Dow Jones banking leader JPMorgan continued to climb above the 143.37 flat base buy point during Friday's gains. The 5% buy zone goes to 150.54. JPM shares rose 0.5% Monday morning.

Salesforce was able to stabilize after the slump in earnings that followed. Support at the 50-day moving average is currently being tested. According to IBD leaderboard analysis, the megacap technology sector previously surmounted two alternative entries at 194.01 and 200.10.

For the past few weeks, shares have hit the 20 percent gain zone with an entry at 178.94 cups with handles. CRM stock fell 0.3% Monday morning.

Payments leader Visa surpassed the 235.57 buy point on Friday, up 1.35%. The buying range peaks at 247.35. V shares fell 0.25% early Monday.

4 top growth stocks to buy and watch in the stock market rally

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

Pattern recognition by IBD MarketSmith shows IBD Leaderboard watchlist stock Chipotle breaking above the buy point of a flat base of 2139.88. An early entry at 2,092.51 was also possible due to a trend line. Chipotle was an IBD Stock of the Day recently. CMG shares rose a fraction Monday morning.

Software maker Dynatrace has formed a three-week tight chart pattern that represents a brief consolidation in which institutional investors are pausing their purchases. From its last entry at 52.99, shares are about 3% off. DT shares lost 0.2% Monday morning.

IBD SwingTrader stock Lam Research moved above an early buy point of 615.80 and a 3 week tight pattern with an entry of 630.72 during last week's gains. LRCX shares were trading up 0.2% early Monday.

MongoDB traded tightly after its recent profitable surge that offered fresh entry. Shares are above the 3 week tight formation that showed a buy point at 398.89 while aggressive investors could have used a trend line entry around 386. MDB shares fell 1% Monday morning.

Learn how to drive the market with IBD's ETF market strategy

The best stocks to buy and watch as the stock market rallies

These are the top four stocks to buy and keep an eye on in today's stock market, including a Dow Jones leader.

Company Name symbol Right buying point Type of purchase point
ASML (ASML) 683.18 Cup with handle
Foreclosure (CRM) 200.00 consolidation
cloud flare (NETWORK) 66.20 Double bottom
roku (ROKU) 75.45 Cup with handle
Source: IBD data as of July 3, 2023

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

Tesla stock

IBD leaderboard stock Tesla extended its winning streak to four sessions on Friday, rising 1.7%. Amid the recent recovery, Tesla shares remain well outside the buy range beyond the 207.79 buy point as a double bottom.

TSLA stock appeared to add to Friday's gains, rising 8.3% on Monday.

On Sunday, Tesla announced that the company delivered more than 466,000 vehicles to customers worldwide in the April-June period, a record quarter for sales. Price cuts and rebates drove demand far beyond Wall Street forecasts.

Dow Jones leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares hit another record high on Friday, trading at 194.48. Shares continue to hold well above a buy point of 157.38. Early Monday, shares lost 0.1% in morning trade.

Microsoft shares gained 1.6% on Friday, ending the last week on a high. On June 16, MSFT stock hit an all-time high of 351.47.

Over the past few weeks, the stock has entered 20% to 25% profitability from a flat base buy point of 276.76, allowing investors to take at least some profits there. And as of Monday morning, Microsoft shares were down 0.3%.

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


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