Dow Jones futures fall on key housing data; Alibaba slips as CEO resigns

Dow Jones futures fell Tuesday morning after key housing data and the release of housing starts and permits from the Commerce Department. Chinese e-commerce giant Alibaba (BABA) fell sharply after CEO Daniel Zhang resigned amid a management reshuffle.




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Early Tuesday, May housing starts rose to 1.631 million, well ahead of estimates that called for them to remain steady at 1.400 million, compared with April's annualized rate of 1.401 million, according to Econoday. May approvals rose to 1.491 million, also beating estimates from April's 1.416 million.

Alibaba shares fell more than 2% on Tuesday morning after the company announced a change in its leadership team.

On the earnings side lies the shipping giant FedEx (FDX) will report after the market close on Tuesday. FDX stock is attempting to break out of the 235.81 buy point.

stock market today

EV giant Tesla (TSLA) was slightly higher on Tuesday morning. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were lower ahead of today's market open.

Dexcom (DXCM), floor & decor (FND), Kinsale Capital (KNSL) and Chipotle Mexican Grill (CMG) – as well as Dow Jones shares Boeing (BA), JPMorgan Chase (JPM) and Foreclosure (CRM) – are among the best stocks to buy or watch when the stock market is up.

Tesla is an IBD leaderboard stock, while Floor & Decor was a recent IBD stock of the day. Dow Jones giant Boeing is an IBD SwingTrader stock.


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Dow Jones today: oil prices, government bond yields

Before Tuesday's opening bell, Dow Jones futures were down 0.35% from fair value Nike (NKE) and chemical manufacturers dow (DOW) down more than 1% each.

S&P 500 futures lost 0.3%. Nasdaq 100 futures fell 0.2% in morning trade.

Among US exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust (QQQ) is down 0.4%, while the SPDR S&P 500 ETF (SPY) is down 0.3% early Tuesday.

On Tuesday, the 10-year US Treasury yield fell to 3.75%. Last week, the 10-year government bond yield edged up to settle at 3.76%.

Oil prices rebounded from overnight losses and edged higher Tuesday morning, still near their recent lows. West Texas Intermediate futures edged higher on Tuesday, trading just above $72 a barrel.

stock market action

On Friday, the Dow Jones Industrial Average lost 0.3% while the S&P 500 lost 0.4%. The Nasdaq Composite fell 0.7%, ending a six-day winning streak.

Friday's Big Picture column warned, “After the Nasdaq is up 5.8% in May and nearly 6% so far in June, things are looking tight. The index is more than 9% above the 50-day moving average and on Thursday the gap surpassed 10%.” This is the longest extension since the index peaked in early February.”

With stock markets continuing to rally, now is an important time to read IBD's The Big Picture column.


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


Dow Jones Stocks To Buy And Watch: Boeing, JPMorgan, Salesforce

Aerospace giant Dow Jones and IBD SwingTrader stock Boeing continue attempting a breakout above the 221.33 buy point on a flat basis amid orders from the Paris Air Show. BA shares rose 0.1% premarket on Tuesday.

Dow Jones bank leader JPMorgan is just below a flat base buy point of 143.37 after rising 0.1% on Friday. JPM shares lost 0.4% early Tuesday.

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 company previously surmounted two new 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 0.5% Tuesday morning.


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


Best stocks to buy and watch: Dexcom, Floor & Decor, Kinsale, Chipotle

According to pattern recognition by IBD MarketSmith, Dexcom remains in the buy range above the 126.44 buy point as a flat base despite a 0.7% drop on Friday. The 5% buy area rises to 132.76. DXCM shares rose 1% premarket on Tuesday.

IBD SwingTrader stock Floor & Decor has recaptured its 50-day moving average significantly over the past few weeks, propelling the flooring retailer into new buy territory. FND stock is 5% off a traditional buy point at 101.39. Shares were slightly lower early Tuesday.

Insurance leader Kinsale Capital continued to close above a buy point of 345.75 on Friday amid a 1.6% rally on the session. The buy zone extends to 363.04. KNSL shares rose 1.25% on Tuesday morning.

IBD leaderboard watchlist stock Chipotle is trading tight after a big rally making another entry at 2139.88. Meanwhile, the stock is also falling back to its 10-week moving average. A decisive recovery from this level would also create a buying opportunity. CMG stock was down slightly on Tuesday morning.


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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
ASML (ASML) 683.18 Cup with handle
Foreclosure (CRM) 200.00 consolidation
cloud flare (NETWORK) 66.20 Double bottom
Fortinet (FTNT) 69.07 flat base
Source: IBD data as of June 20, 2023

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


Tesla stock

IBD leaderboard stock Tesla ended a two-day slide Friday up 1.8% to finish up 6.6% for the week. Last week, shares hit new highs for 2023, extending their weekly winning streak to five. Shares are taken well past the buy point of a double bottom basis at 207.79. They closed 19% below their 52-week high on Friday.

TSLA stock appeared to add to Friday's gains, rising 0.4% Tuesday morning.

Dow Jones leaders: Apple, Microsoft

Among Dow Jones stocks, Apple stock rebounded from Friday's all-time highs, trading as high as 186.99 before closing 0.6% lower. The stock continues to hold well above a buy point of 157.38. Early Tuesday, AAPL shares fell 0.4%.

Microsoft shares fell 1.7% on Friday, ending a six-day winning streak. Last week the stock hit an all-time high of 351.47. MSFT stock is trading in the 20-25% profit-taking zone from a flat base buy point of 276.76, leaving investors to take at least some of the profits. And as of Tuesday morning, Microsoft shares were down 0.6%.

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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