Dow Jones Futures Rise Ahead Of Tuesday’s CPI Inflation Rate Data

Dow Jones futures were higher after Monday’s stock market rally ahead of Tuesday’s key inflation reading, the Labor Department’s consumer price index, or CPI. Apple stock made a bullish move Monday, decisively retaking its long-term 200-day line.

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Stock Market Today

On Monday, the Dow Jones Industrial Average advanced 0.7%, while the S&P 500 rose 1.1%. The tech-heavy Nasdaq composite rallied 1.3%. And the small-cap Russell 2000 gained 1.2%.

Among exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) moved up 1.2%, and SPDR S&P 500 (SPY) climbed 1.1%.

EV giant Tesla (TSLA) rallied 1.6% Monday. Among Dow Jones leaders, Apple (AAPL) and Microsoft (MSFT) traded up 3.85% and 0.8%, respectively, in today’s stock market.

In the market’s current volatility, Arista Networks (ANET), DoubleVerify (DV), Palo Alto Networks (PANW) and Pure Storage (PSTG) — as well as Dow Jones stock Chevron (CVX) — are among the top stocks to buy and watch. Keep in mind the market’s increased volatility is a good reason for investors to be more defensive, although recent indicators are constructive.

DoubleVerify is an IBD Leaderboard stock. Pure Storage is an IBD SwingTrader stock, while Chevron and Palo Alto were featured in this week’s Stocks Near A Buy Zone column.

Dow Jones Futures Today: Treasury Yields, Oil Prices, CPI Inflation Rate

Ahead of Tuesday’s open, Dow Jones futures rose 0.1% vs. fair value, while S&P 500 futures and Nasdaq 100 futures also tilted higher. Remember that overnight action in Dow Jones futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

The 10-year Treasury yield ticked higher to 3.36% Monday, notching its highest closing level since June 15. U.S. oil prices added to last week’s late gains, climbing more than 1% Monday. West Texas Intermediate futures traded back near $88 a barrel.

The Labor Department’s CPI inflation rate is due out Tuesday at 8:30 a.m. ET. Consumer prices are expected to fall 0.1% in August vs. the previous month. Inflation is expected to rise 8.0% in August from a year ago. The Producer Price index, which measures wholesale inflation, will be out Wednesday.

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What To Do In The Stock Market Rally

Despite constructive gains in recent sessions, the ongoing stock market volatility keeps IBD’s market outlook at “uptrend under pressure.”

If the market is able to mount a serious rebound, then you should have a watchlist of leading stocks that are approaching buy points. Some follow-on opportunities also may appear.

The best way to find emerging stock market leadership is by using the relative strength line. The RS line measures a stock’s price performance vs. the S&P 500. If the stock is outperforming the broader market, the RS line angles upward. If a stock lags the broad market, the line will point lower.

The RS line is plotted on all IBD and MarketSmith charts. In addition, the IBD Stock Screener includes a list of top-rated stocks with relative strength lines at new highs. MarketSmith also has the “RS Blue Line Dot” list, which screens for RS lines at new highs. (Starting today, IBD MarketSmith is providing free access for a full week.)

Friday’s The Big Picture column commented, “The bullish session might’ve been enough to resume the uptrend, but volume has been lackluster behind the Nasdaq’s three-session win streak, and the distribution day count remains high for the Nasdaq and S&P 500. That’s even after the Sept. 6 distribution day got nixed due to a 5% rise from that day’s close. Meanwhile, a key inflation report looms large on Tuesday.”

If you’re new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one key to the investment guidelines. IBD offers a broad range of growth-stock lists, such as Leaderboard and SwingTrader.

Investors also can create watchlists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.

Five Dow Jones Stocks To Watch Now

Dow Jones Stocks To Watch: Chevron

Dow Jones stock Chevron is building a cup with handle that has a 166.93 buy point — according to IBD MarketSmith chart analysis — amid a strong performance by energy stocks so far this year. The stock was up 1.6% Monday.

CVX stock shows a strong 97 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. Investors can use the IBD Composite Rating to easily gauge the quality of a stock’s fundamental and technical metrics.

3 Top Growth Stocks To Watch In The Current Stock Market Rally

Top Stocks To Watch: Arista, DoubleVerify, Palo Alto, Pure Storage

Arista Networks has added a handle to a double-bottom base, placing the correct entry at 132.97, according to IBD MarketSmith chart analysis. Arista’s relative strength line is close to highs, as the stock has retaken its 200-day and 21-day lines. ANET shares were up 0.3% Monday.

IBD Leaderboard stock DoubleVerify is breaking out past a 28.07 buy point in a bottoming base. Shares are in the 5% buy zone that goes up to 29.47, though it’s getting extended from moving averages. DV shares lost 0.4% Monday. The company specializes in platforms to help advertisers get a better view on the effectiveness of their ad spending and campaigns.

Cybersecurity leader Palo Alto Networks is nearing a 578.89 buy point in a cup with handle. An early entry around 560 is also in play due to a trendline, according to IBD Leaderboard commentary. Shares rose 0.6% Monday.

IBD SwingTrader stock Pure Storage is approaching a 31.62 buy point in a cup with handle. Meanwhile, an early entry is also in play after the stock moved above a downtrend line within that handle. Shares moved up 1.7% Monday.

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

Tesla Stock

Tesla stock rallied 1.6% Monday, extending a win streak to five sessions and continuing its rebound from the 50-day line.

Shares of the EV giant found resistance at their 200-day line in recent months, but are now back above that level. The stock remains about 27% off its 52-week high.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares rose 3.85% Monday, decisively regaining their 200-day line. The stock is about 9% away from a buy point at 176.25 off a cup with handle.

Microsoft moved up 0.8% Monday, rising for a fourth straight day. The software giant remains sharply below its 50- and 200-day lines. Shares are about 24% off their 52-week high.

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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