Dow Jones futures fall: Market rally to 2023 highs as Tesla stock surges; Job Report Looms

Dow Jones futures were lower on Tuesday as the stock market was closed for the July 4 holiday. Major stock indexes ended Monday right at their 2023 highs, while Tesla stock surged to new highs on record second-quarter deliveries. Meanwhile, an important job report for June is due on Friday.


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

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%.

Minutes from the Fed's March 13-14 meeting will be released at 2 p.m. Wednesday before this key jobs report. expected in June. It may shed some light on why policymakers' projections called for two more rate hikes.

Thursday will bring a lot of data. Contractor ADP will release its estimate of June private sector job growth at 8:15 am. The first jobless claims are due at 8:30 am. Both reports are considered to be the forerunners of the monthly wages and salaries report. The ISM Services Index is released at 10am along with the Department of Labour's monthly job vacancy and labor turnover survey.

stock market today

EV giant Tesla (TSLA) rose nearly 7% after the company reported record second-quarter shipments that beat estimates. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) are down 0.8% and 0.75% respectively in trading today.

Chipotle Mexican Grill (CMG), Dynatrace (DT), MongoDB (MDB), Lam Research (LRCX) and Nvidia (NVDA) – as well as Dow Jones stocks 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 Nvidia was featured in this 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

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

Ahead of Wednesday's opening bell, Dow Jones futures were down 0.15% from fair value, while S&P 500 futures were down slightly. The Nasdaq 100 futures lost 0.1% from fair value. Keep in mind that nightly action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular trading session.

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

Stock market events: what to do now

Now is an important time to read IBD's The Big Picture column, which takes the major stock indices to their 2023 highs.

With the stock market hovering around this year's highs, IBD's recommended exposure levels are 80% to 100%. However, investors should be cautious when adding exposure, taking stock of current market levels and adding at a measured pace. It's also important to remain flexible in case there is another drop.

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 flat base buy point of 143.37 during Monday's gains. The 5% buy zone goes to 150.54.

Salesforce was able to stabilize after the slump in earnings that followed. Support at the 50-day moving average is currently being tested. A decisive bounce would allow for a new entry.

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.

Leading payments provider Visa surpassed the 235.57 buy point last week, adding to those gains on Monday, rising 0.2%. The buying range peaks at 247.35.

The 4 top growth stocks to watch stock market rally

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

IBD leaderboard watchlist stock Chipotle is attempting to break out of the 2139.88 buy point on a flat base, according to pattern recognition by IBD MarketSmith. An early entry at 2,092.51 was also possible due to a trend line. Chipotle was an IBD Stock of the Day recently.

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.

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. Shares rose 1.3% on 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 trendline entry around 386.

Following the profit-driven gap-up on May 25, Nvidia shares have been on a steady uptrend. Amid a decline since June 20, the stock presents another stock-buying opportunity. It has formed a trendline entry at 418 after the stock found support at its 21-day exponential moving average. Nvidia is an IBD leaderboard.

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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
Dynatrace (DT) 52.99 narrow area
Visas (V) 235.57 flat base
cloud flare (NETWORK) 66.20 Double bottom
Nvidia (NVDA) 418.00 trendline
Source: IBD data as of July 3, 2023

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Tesla stock

IBD Leaderboard stock Tesla extended its winning streak to five sessions on Monday. Amid the recent recovery, Tesla shares remain well outside the buy range beyond the 207.79 buy point as a double bottom.

TSLA shares rose 6.9% Monday after the company said it 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 stock slipped from Friday's record high of 194.48 and fell 0.8% on Monday. Shares continue to hold well above a buy point of 157.38.

Microsoft shares fell 0.75% on Monday, giving back some of Friday's gains. Still, the stock is only 4% off its all-time high of June 16 at 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.

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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