Dow Jones Falls Ahead Of Biden-McCarthy Debt Ceiling Meeting; Apple Falls On Downgrade

The Dow Jones Industrial Average fell Monday ahead of a meeting between President Joe Biden and House Speaker Kevin McCarthy, as debt ceiling talks failed to make progress over the weekend. Meanwhile, Apple (AAPL) stock dropped after an analyst downgrade.

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On Sunday, President Biden said in a news conference in Hiroshima, Japan, that it was “time for the other side to move from their extreme positions because much of what they’ve already proposed is simply, quite frankly, unacceptable.” Biden and McCarthy agreed to meet Monday afternoon to attempt to reach a deal that would see the U.S. avoid a default on its sovereign debt.

On the economic front this week, the Federal Reserve’s meeting minutes from the May 2-3 summit are scheduled for release on Wednesday at 2 p.m.

Then on Friday, personal income and spending data for April is due from the Commerce Department, which includes the Fed’s favorite inflation measure, the core personal consumption expenditures price index. Economists expect core inflation to rise 0.3% on the month, with the annual core inflation rate holding steady at 4.6%.

Meanwhile, a number of Federal Reserve speakers are on tap for Monday, with speeches from Fed Presidents James Bullard, Thomas Barkin and Mary Daly.

Earnings-wise, chip giant Nvidia (NVDA) will report late Wednesday. Also this week, big earnings results from retailers Lowe’s (LOW), Dick’s Sporting Goods (DKS), AutoZone (AZO), Urban Outfitters (URBN), Dollar Tree (DLTR) and Kohl’s (KSS) are also on the schedule.

Stock Market Today

Meta Platforms (META) rose 0.3% even after the social media giant was hit with a $1.3 billion fine by the European Union privacy regulator over its handling of user data. Micron Technology (MU) tumbled 3.1% after China’s cyberspace regulator banned the sale of Micron’s products after they failed a network security review.

Electric-vehicle giant Tesla (TSLA) rose 2% Monday morning. Dow Jones tech giants Apple and Microsoft (MSFT) were lower after today’s stock market open.

Advanced Micro Devices (AMD), IBD Leaderboard stock ASML (ASML), IBD SwingTrader stock Lam Research (LRCX) and Netflix (NFLX) — as well as Dow Jones stocks Boeing (BA), Salesforce (CRM) and Visa (V) — are among the best stocks to buy and watch in the ongoing stock market uptrend.

Lam Research and Netflix were recent IBD Stock Of The Day topics.

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Dow Jones Today: Oil Prices, Treasury Yields

After Monday’s opening bell, the Dow Jones Industrial Average edged lower, while the S&P 500 rose 0.3%. The tech-heavy Nasdaq composite traded up 0.4% in morning action.

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

The 10-year U.S. Treasury yield on Monday traded up to 3.60%, on pace to extend a six-day win streak that saw it rebound to its highest level since mid-March.

U.S. oil prices continued to trade between $70 and $73 a barrel. West Texas Intermediate futures were up slightly Monday morning, holding just below $72 a barrel.

Stock Market Action

On Friday, the Dow Jones Industrial Average lost 0.3%, while the S&P 500 edged lower. And the tech-heavy Nasdaq composite reversed to a 0.2% loss.

Friday’s Big Picture column commented, “The Nasdaq composite ended the day 0.2% lower, avoiding distribution due to lower volume. Still, it ended with a meaty 3% gain for the week and remains near its highs for the year. The tech-heavy index has risen in each of the past four weeks and is up nearly 22% so far in 2023.”

Now is an important time to read IBD’s The Big Picture column after the recent bullish change in the market’s outlook.

Five Best Dow Jones Stocks To Buy And Watch Now

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

Dow Jones aerospace giant Boeing dropped 0.8% Friday, still holding above its 50-day line and trading near a flat base’s 221.43 buy point, according to IBD MarketSmith pattern recognition. BA stock moved up 0.5% early Monday.

IBD Leaderboard stock Salesforce rallied past alternative entries at 194.01 and 200.10 in recent weeks, according to Leaderboard analysis. Meanwhile, the RS line hit a new high this week, a bullish signal. CRM stock fell 0.5% Monday morning.

Visa shares remain in buy range above a 230.15 cup-with-handle buy point, after inching lower Friday. The buy range goes up to 241.66. V stock lost 0.2% Monday.

4 Top Growth Stocks To Watch In The Stock Market Rally

Best Stocks To Buy And Watch: AMD, ASML, Lam, Netflix

Chip leader Advanced Micro Devices fell back into buy range above a cup base’s 102.53 buy point, according to IBD MarketSmith pattern recognition, with a 1.95% drop Friday. The 5% buy area goes up to 107.66. AMD shares fell 1.7% Monday.

IBD Leaderboard stock ASML broke above a 683.28 buy point in a cup with handle last week and is in the 5% buy zone that tops out at 717.44. ASML moved down 0.6% Monday.

Lam Research stock broke out of a flat base with a buy point of 548.95 last week and is slightly extended beyond the buy range. LRCX stock was down 0.7% Monday.

Streaming giant Netflix broke out past a buy point at 349.90 out of a cup-with-handle base last week. NFLX stock moved down 0.1% Monday morning.

Learn How To Time The Market With IBD’s ETF Market Strategy

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 two Dow Jones leaders.

Source: IBD Data As Of May 22, 2023

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

Tesla Stock

Tesla stock rallied 1.8% Friday, bullishly regaining its 50-day line for the first time since April 4. Shares are moving up the right side of a new base that has a 207.89 buy point for now. Shares closed Friday 43% off their 52-week high.

TSLA stock looked to add to Friday’s gains, moving up 2% Monday morning.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares rose 0.1% Friday, hitting a new 52-week high at 176.39. The stock continues to add to gains above a 157.48 buy point and is out of the buy range that ran up to 165.35. AAPL stock was down 0.6% Monday after Loop Capital downgraded the stock from buy to hold with a 180 price target.

Microsoft shares edged lower Friday, easing from Thursday’s 52-week high at 319.04. MSFT stock continues to add to gains above a 276.86 flat-base buy point. On Monday morning, MSFT stock fell 0.1%.

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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