Dow Jones futures fall after last week’s losses; Tesla stock slides on downgrade

Dow Jones futures fell Monday morning, continuing their decline after last week's stock market losses. Google parent alphabet (GOOGL) and Tesla stock fell on analyst downgrades.


On the economic front this week, new home sales are due on Tuesday while pending home sales are due on Thursday, along with initial jobless claims.

The May Personal Income and Expenditure report, released on Friday, will provide insight into consumer spending trends and update the Federal Reserve's most popular indicator of inflation: the Personal Consumption Expenditure Index.

Cruise ship operators carnival (CCL) will release its earnings results on Monday morning. CCL stock closed well above a 12.62 cup basis buy point on Friday.

Later this week, Dow Jones shares Nike (NKE) and Walgreens (WBA) will release its quarterly results. Nike's earnings will be released on Thursday, while Walgreens will report on Tuesday.

Stock market today: Alphabet, Tesla downgraded

Alphabet shares were down 1.4% early Monday after UBS downgraded the stock to neutral from a buy. The company raised its price target to 132 from 123. Meanwhile, the EV giant Tesla (TSLA) slid more than 2% on Monday after Goldman Sachs downgraded the stock to neutral from ‘buy' and raised its price target to 248 from 185.

Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) fell a fraction ahead of today's market open.

Chipotle Mexican Grill (CMG), McKesson (MCK), MongoDB (MDB) and roku (ROKU) – as well as Dow Jones shares JPMorgan Chase (JPM) and Foreclosure (CRM) – are among the stocks best to keep an eye on as the stock market continues to decline.

Tesla is an IBD leaderboard. McKesson is an IBD SwingTrader stock, while Chipotle was named Wednesday's Stock of the Day and featured in the latest Stocks Near A Buy Zone column.

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Dow Jones today: oil prices, government bond yields

Ahead of Monday's opening bell, Dow Jones futures were down slightly relative to fair value. S&P 500 futures lost 0.1%. And Nasdaq 100 futures were down slightly in the morning session.

Among US exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust (QQQ) is down 0.2%, while the SPDR S&P 500 ETF (SPY) is down 0.1% early Monday.

The US 10-year Treasury yield fell to 3.68%. The yield has recently fluctuated in a range between 3.57% and 3.85%, settling lower at 3.73% on Friday.

Oil prices rebounded slightly Monday morning, recovering from last week's losses but remaining close to their recent lows. West Texas Intermediate futures rose almost 1% to around $69.50 a barrel.

stock market action

On Friday, the Dow Jones Industrial Average fell nearly 0.7% while the S&P 500 lost 0.8%. The tech-heavy Nasdaq Composite was the worst performer, down 1%.

Friday's Big Picture column said: “As the market retreats, action remains constructive. A breather means the indices can gather strength for further advances. For this reason, IBD still recommends a 60% to 80% exposure. However, it is.” A good opportunity to examine your portfolio and perhaps make profits on your big winners.”

Now is an important time to read IBD's The Big Picture column as the stock market remains on the uptrend but is pulling back.

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

Dow Jones stocks to watch: JPMorgan, Salesforce

Dow Jones bank leader JPMorgan is about 3% below a flat base buy point of 143.37 after falling 0.5% on Friday. The shares are right on their 50-day moving average. JPM stock was up slightly early Monday.

Salesforce was able to stabilize after the slump in earnings that followed. It is now testing support at the 21-day exponential moving average. 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 reached 20% gains from an entry at 178.94 cups with handles and are now attempting to recover from support at the 10-week moving average. CRM stock fell 0.1% Monday morning.

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

The best stocks to buy and watch: Chipotle, McKesson, MongoDB, Roku

IBD Leaderboard Watchlist stock Chipotle is recovering from its 10-week moving average and forming a flat base with a buy point of 2139.88, according to IBD MarketSmith's pattern recognition. Chipotle was Wednesday's IBD stock of the day. CMG stock fell a fraction Monday morning.

IBD SwingTrader stock McKesson is in buy territory after a 401.53 cup with handle entry. The 5% buy zone goes to 421.61. Shares lost 0.5% on Monday.

MongoDB is trading tight on the recent earnings-driven gap to the upside and offers a fresh entry. The 3-week tight formation shows a buy point at 398.89 while aggressive investors could use a trendline entry around 386. MDB shares rose 0.1% on Monday morning.

According to pattern recognition by IBD MarketSmith, streaming giant Roku is building a cup with a handle with a buy point of 75.45, despite the stock extending its losing streak to seven sessions on Friday. Roku stock is attempting to halt its slide around its 50-day moving average, a key support level to watch for. The stock fell 0.2% early Monday.

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 June 26, 2023

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

Tesla stock

IBD leaderboard stock Tesla slipped 3% on Friday after the stock was downgraded by an analyst for the third time in as many days. The stock remains well above the 207.79 buy point higher on a double bottom basis. They closed 18% below their 52-week high on Friday.

TSLA stock threatened to add to Friday's losses, falling 2.2% on Monday. Last week, shares ended a five-week winning streak, falling 1.5% week-on-week.

Dow Jones leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares hit an all-time high on Friday before shedding 0.2%. Shares traded as high as 187.56 last week. The stock continues to hold well above a buy point of 157.38. Early Monday, AAPL shares fell 0.1%.

Microsoft shares fell 1.4% on Friday, continuing their recent decline. Last week the stock hit a record high of 351.47. Despite the recent losses, MSFT stock remains in the 20-25% profit-taking zone from a flat base buy point of 276.76, allowing investors to take at least some of the gains. And as of Monday morning, Microsoft shares were down 0.1%.

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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