Dow Jones rises after the release of key economic data; Nio dives, Pinduoduo rises with earnings

Dow Jones rises after the release of key economic data;  Nio dives, Pinduoduo rises with earnings

The Dow Jones Industrial Average rose 145 points on Tuesday after the release of key economic data. Shares of rival Tesla Nio tumbled after announcing weak results for the second quarter.


Early Tuesday, the Case-Shiller Home Price Index and the Federal Housing Finance Agency’s Price Index were released. The Case-Shiller Index for June rose 0.9%, missing estimates for a 1.1% rise. On a year over year basis, the Case-Shiller Index is down 1.2%.

The FHFA rose 0.3% m/m in June, with a gain of 3.1% m/y.

Moreover, the Conference Board’s August consumer confidence numbers fell to 106.1 in August, down from 117.0 in July. Finally, the JOLTS Survey – Employment Opportunities and Employment Turnover for July – came in much lower than expected, at 8.827M vs. estimates of 9.559M.

On the earnings front, software giant Dow Jones sales force (Customer relationship management) provided its second-quarter earnings report late Wednesday. Several software stocks are also on the earnings calendar, including MongoDB (mdb) Nutanix (NTNX) And samsara (The Internet of things), along with stock security software Crowd Strike (raw) And Octa (Octa).

tuesday morning, best buy (bbw), BYD (I will), New (New) And Bindudu (PDD) were the main drivers of earnings.

BBY stock rose more than 5% in morning trade, while BYD, the Chinese electric vehicle and battery giant, posted near-record second-quarter earnings on the back of strong deliveries of electric vehicles. Nio shares fell 10%. Finally, Pinduoduo shares were up 17% in morning trade, crossing the buy point at 92.79.

stock market today

electric car giant Tesla (TSLA) rose by 3.9% Tuesday morning, while nvidia (NVDA) increased by 2.4%. Technology icons in the Dow Jones index apple (Camel) And Microsoft (MSFT) were higher after the stock market opened today.

Among other stock market leaders the alphabet (Google) And Meta platforms (meta). GOOGL shares rose 2.3% while Meta shares rose in early trade.

Baker Hughes (BKR), Cadence design systems (CDNS), quickly (FSLY) And Tide water (TDP) – as well as Dow Jones shares ibm (ibm), merck (Mark) And visa (Fifth) — one of the best stocks to watch in the ongoing stock market correction.

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Baker Hughes is an IBD Watch List stock leaderboard. Merck appeared in the column of stocks near the buy zone.

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Dow jones today: oil prices and treasury yields

After the opening bell on Tuesday, the Dow Jones Industrial Average rose 0.4%, while the S&P 500 rose 0.7%. The high-tech Nasdaq Composite advanced 1% in morning trade.

Among the US exchange-traded funds is the Nasdaq 100 Invesco QQQ Trust (QQQ(down 1%, while the SPDR S&P 500 ETF rose)spy) rose 0.7% early Tuesday.

Also on Tuesday, the 10-year US Treasury yield fell to 4.14%, as it continues to hold near its highs in 2023.

WTI crude prices rebounded on Tuesday, after a halt on Monday. West Texas Intermediate crude futures were up nearly 1%, trading near $81 a barrel.

stock market trend

On Monday, the Dow Jones Industrial Average rose 0.6%, while the S&P 500 rose 0.6% as well. The Nasdaq Composite Index rose 0.8%.

Monday’s “Big Picture” column commented: “Despite the difficulties the stock market is facing, it is still trying to rally. All it takes to confirm this move is a big rally for the index with an increase in daily trading volume. And as long as the NASDAQ indices remain Standard & Poor’s exceeded their expectations. Lows in August, still a follow-up signal.”

Now is an important time to read IBD’s “The Big Picture” column, as the stock market attempts to rebound after a sharp pullback from its highs this year.

Top five Dow stocks to buy and watch right now

Dow Jones shares: IBM, Merck, Visa

IBM, the leader in the Dow Jones Index, is attempting to surpass the buy-by-cup handle point of 146.50, with a gain of 0.5% on Monday. IBM shares rose 0.4% on Tuesday.

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Pharmaceutical giant Merck struggled to stay above its 50-day line, up 0.7% on Monday. MRK stock is tracking a flat bottom with a buy point at 119.65 and an early entry point at 115.61. Shares rose 0.6% early on Tuesday.

Visa, the Dow Jones payments leader, continues to hold a buy range of more than 235.57 fixed buy points, according to IBD MarketSmith’s pattern recognition. Meanwhile, another entry is available, as the stock forms another flat base containing the entry level of 245.37. V stock rose 0.3% on Tuesday.

4 top growth stocks to buy and watch at stock market correction

Stocks to watch: Baker, Cadence, Fastly, Tidewater

Oilfield services and equipment company Baker Hughes has been trading tightly for the past five weeks and has a buy point at its 2023 high of 36.48, according to IBD MarketSmith. BKR shares were down 0.1% in early morning trade.

Cadence Design Systems is flat with a buy point of 248.16. Equities are at the 50 day line, near the early entry level at 237.91. CDNS rose 0.8% on Tuesday.

Leading software company Fastly surpassed the buy point of the bullish base at 21.54 on Monday, with a gain of 2.3%. Stocks are in the buy territory by 5% on Monday, but a market correction should keep investors on the sidelines. FSLY share price rose 1% in early trade.

IBD Leaderboard’s Tidewater stock is rebounding from support around its 10-week line, putting the energy leader in a new buy territory. TDW stock rose 0.4% early Tuesday.

Learn how to time the market with IBD’s ETF Market Strategy

Best stocks in the stock market business

These are the four best stocks to buy and watch in the stock market today, including the leader of the Dow Jones Index.

Company Name Code The right point of purchase Point of purchase type
inspiration (ORCL) 127.54 Flat base
visa (Fifth) 235.57 Flat base
slb (slb) 58.70 mug with handle
quickly (FSLY) 21.54 rising base
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Source: IBD data as of August 28, 2023

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Tesla shares

Tesla shares rose on Monday, adding to Friday’s gains. Despite their recent rebound, stocks are still well below the 50-day line. Amid the recent weakness, it is clear that the stock needs more time to consolidate before a new entry appears. Wait for a decisive move back above the 21- and 50-day moving averages before considering a new purchase of TSLA shares.

Early Tuesday, Tesla stock was looking to extend its two-day winning streak, rising nearly 4%.

Dow Jones Index Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple rose 0.9% Monday, near its recent high. The stock remains squarely below the 50-day line after sharp losses in recent weeks. AAPL stock is building a flat bottom with a buy point of 198.23. AAPL stock rose 1% early Tuesday.

Microsoft shares are also trying to bounce back from their recent lows, but the stock needs more time to consolidate before a new buy point emerges. The stock is still below the 21 and 50 day lines, so no buy signal yet. On Tuesday morning, the stock was up 0.8%.

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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