Dow Jones Futures Fall On Key Housing Data; Alibaba Slides As CEO Steps Down

Dow Jones futures dropped Tuesday morning after key housing data, with the release of housing starts and permits from the Commerce Department. Chinese e-commerce giant Alibaba (BABA) fell sharply after CEO Daniel Zhang stepped down in a management shake-up.

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Early Tuesday, May’s housing starts rose to 1.631 million, far above estimates that expected them to hold steady at 1.400 million vs. April’s 1.401 million annualized rate, per Econoday. May’s permits climbed to 1.491 million, also above estimates vs. April’s 1.416 million.

Alibaba shares declined more than 2% Tuesday morning after the company announced an overhaul of its senior management team.

On the earnings front, shipping giant FedEx (FDX) will report after the close Tuesday. FDX stock is trying to break out past a flat base’s 235.81 buy point.

Stock Market Today

EV giant Tesla (TSLA) rose modestly Tuesday morning. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were lower ahead of today’s stock market open.

Dexcom (DXCM), Floor & Decor (FND), Kinsale Capital (KNSL) and Chipotle Mexican Grill (CMG) — as well as Dow Jones stocks Boeing (BA), JPMorgan Chase (JPM) and Salesforce (CRM) — are among the best stocks to buy or watch in the stock market uptrend.

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, Treasury Yields

Ahead of Tuesday’s opening bell, Dow Jones futures fell 0.35% vs. fair value, with Nike (NKE) and chemicals maker Dow (DOW) each down more than 1%.

S&P 500 futures lost 0.3%. Nasdaq 100 futures dropped 0.2% in morning action.

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

On Tuesday, the 10-year U.S. Treasury yield ticked lower to 3.75%. Last week, the 10-year Treasury yield rose slightly, settling at 3.76%.

Oil prices reversed from overnight losses, rising modestly Tuesday morning, still near their recent lows. West Texas Intermediate futures inched higher 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 dropped 0.4%. The Nasdaq composite declined 0.7% to snap a six-day win streak.

Friday’s Big Picture column cautioned, “After rallying 5.8% in May and nearly 6% so far in June, the Nasdaq looks stretched. The index is more than 9% above the 50-day moving average and on Thursday the gap exceeded 10%. That’s the most extended since the index topped in early February.”

Now is an important time to read IBD’s The Big Picture column amid the ongoing stock market uptrend.

Five Best Dow Jones Stocks To Buy And Watch Now

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

Dow Jones aerospace giant and IBD SwingTrader stock Boeing continues its breakout attempt past a flat base’s 221.33 buy point as orders begin to roll in from the Paris Air Show. BA stock rose 0.1% Tuesday premarket.

Dow Jones banking leader JPMorgan is just below a 143.37 flat-base buy point after Friday’s 0.1% rise. JPM stock lost 0.4% early Tuesday.

Salesforce managed to steady itself after slumping following earnings. It is now testing support at the 21-day exponential moving average. The megacap tech previously moved past a pair of new alternative entries at 194.01 and at 200.10, according to IBD Leaderboard analysis.

In recent weeks, shares reached the 20% profit zone from a 178.94 cup-with-handle entry, and are now trying to bounce from support at the 10-week line. CRM stock dropped 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

Dexcom remains in buy range past a flat base’s 126.44 buy point, despite a 0.7% drop Friday, according to IBD MarketSmith pattern recognition. The 5% buy area goes up 132.76. DXCM stock rose 1% premarket Tuesday.

IBD SwingTrader stock Floor & Decor decisively regained its 50-day line in recent weeks, placing the flooring retailer in a new buy area. FND stock is 5% away from a conventional buy point at 101.39. Shares were slightly lower early Tuesday.

Insurance leader Kinsale Capital closed Friday further above a 345.75 buy point amid a 1.6% rally in the session. The buy zone runs up to 363.04. KNSL stock was up 1.25% Tuesday morning.

IBD Leaderboard watchlist stock Chipotle is trading tightly after a big advance, creating another entry at 2,139.88. Meanwhile, the stock is also pulling back to its 10-week line. A decisive rebound from that level would also create a buying opportunity. CMG stock inched lower Tuesday morning.

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Best Stocks To Buy And Watch In Stock Market Rally

These are four best stocks to buy and watch in today’s stock market, including a Dow Jones leader.

Source: IBD Data As Of June 20, 2023

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

Tesla Stock

IBD Leaderboard stock Tesla ended a two-day skid Friday, rallying 1.8% and finishing with a weekly gain of 6.6%. Last week, shares hit new 2023 highs and extended a weekly win streak to five. Shares are sharply extended above a double-bottom base’s 207.79 buy point. They closed Friday 19% off their 52-week high.

TSLA stock looked to add to Friday’s gains, rising 0.4% Tuesday morning.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple stock reversed from all-time highs Friday, trading as high as 186.99 before closing 0.6% lower. The stock continues to hold sharply above a 157.38 buy point. Early Tuesday, AAPL stock was down 0.4%.

Microsoft shares sold off 1.7% Friday, ending a six-day win streak. Last week, the stock hit an all-time high at 351.47. MSFT stock is in the 20%-25% profit-taking zone from a 276.76 flat-base buy point, so investors take at least some profits. And on Tuesday morning, Microsoft shares were 0.6% lower.

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

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