Dow Jones Futures Fall Ahead Of Key Economic Data; Warren Buffett Stock Jumps On Upgrade

Dow Jones futures fell slightly Tuesday morning ahead of key economic data, including a consumer confidence reading and two home price indexes. Warren Buffett stock Occidental Petroleum (OXY) rallied on an analyst upgrade, while Chinese e-commerce giant Alibaba (BABA) jumped nearly 9% on plans to split its business into six independently run entities, the biggest structural overhaul in its history.

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On the economic front Tuesday, the Conference Board’s Consumer Confidence Index is out at 10 a.m. ET. Also due are two home price indexes — the Case-Shiller Home Price Index and the FHFA House Price Index. Both were expected at 9 a.m.

Wall Street expects the Consumer Confidence Index to measure 101.0 in March, down slightly from February’s 102.9 reading. The Case-Shiller Home Price Index is expected to rise 3.7% on the year in January vs. December’s 4.6% rise. Further, the FHFA House Price index is expected to fall 0.2% for January.

Walgreens Boots Alliance (WBA) rose nearly 2% premarket Tuesday after the company’s fiscal second quarter results topped earnings and sales estimates.

Stock Market Today: Warren Buffett Stock Jumps

Warren Buffett stock Occidental Petroleum rallied 2.3% after TD Cowen upgraded the stock to outperform, with a 70 price target. Late Monday, Securities and Exchange Commission filings showed that Buffett’s Berkshire Hathaway (BRKB) boosted its stake by 3.66 million shares between March 23 and March 27.

Electric-vehicle giant Tesla (TSLA) rose 0.5% early Tuesday. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were lower ahead of today’s stock market open.

Align Technology (ALGN), IBD SwingTrader stock Meta Platforms (META) and IBD Leaderboard Palo Alto Networks (PANW) — as well as Dow Jones stocks Cisco Systems (CSCO) and Nike (NKE) — are among the top stocks to watch in the ongoing stock market correction.

Palo Alto is an IBD Leaderboard stock. Cisco was featured in this week’s Stocks Near A Buy Zone column. And Meta is an IBD SwingTrader stock. Palo Alto, Align, Microsoft and Meta were all recent IBD Stock Of The Day subjects.

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Dow Jones Today: Oil Prices, Treasury Yields

Ahead of Tuesday’s opening bell, Dow Jones futures fell 0.1% vs. fair value, and S&P 500 futures lost 0.2%. Tech-heavy Nasdaq 100 futures were down 0.2% in morning action.

Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) lost 0.2% and the SPDR S&P 500 ETF (SPY) fell 0.2% early Tuesday.

The 10-year U.S. Treasury yield on Monday jumped to 3.52%, snapping a three-day losing streak. Last week, the 10-year yield briefly touched its lowest level since mid-September. On Tuesday, the 10-year ticked higher to 3.56%.

U.S. oil prices continued higher Tuesday after Monday’s sharp gains, as West Texas Intermediate futures traded above $73 a barrel.

Stock Market Correction

On Monday, the Dow Jones Industrial Average climbed 0.6%. The S&P 500 reduced its gain to 0.2%. And the Nasdaq trailed with a 0.5% decline as techs lagged.

Monday’s Big Picture column commented, “The Nasdaq and S&P 500 continue with a rally attempt that started about two weeks ago. But so far there’s been no follow-through signal to confirm a new uptrend. That’s left the stock market in an ambiguous spot, making tentative progress only to bump up against sellers.”

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

Five Dow Jones Stocks To Buy And Watch Now

Dow Jones Stocks To Watch: Cisco Systems, Nike

Cisco Systems is approaching a flat base’s 51.84 buy point, according to IBD MarketSmith pattern recognition. Bullishly, the stock’s relative strength line hit a new high last week, a sign of stock market outperformance. CSCO stock fell 0.1% Tuesday morning.

Nike shares continue to trace a flat base that has a 131.41 buy point. The stock failed to hold above its 50-day line last week, meeting resistance. NKE stock moved up 0.4% Tuesday.

3 Top Growth Stocks To Watch In The Stock Market Correction

Top Stocks To Watch: Align, Meta, Palo Alto

Align Technology continues to trace a consolidation that has multiple buy points: a 357.10 early entry and a conventional entry at 368.97. ALGN stock is looking for support around its 50-day moving average. If the stock breaches this level, then further weakness would be expected. ALGN stock was up 0.3% Tuesday morning.

Backstory: The company makes clear teeth-straightening systems called Invisalign. UBS analyst Kevin Caliendo says investors recently regained confidence in Align stock, which has surged 50% this year. December-ended quarter results from Align and its competitors, management commentary, U.S. economic data and a recent uptick in demand for Invisalign cases support this view, he said in a note to clients.

Backstory: Like social media rivals, Meta is struggling due to a sharp reduction in advertising revenue as clients squirm over macroeconomic concerns, recession fears and higher interest rates. This is happening as it spends billions of dollars on a risky bet to build the “metaverse,” a virtual reality world that has yet to take hold.

IBD Leaderboard stock Palo Alto Networks continues to trade above and below its 192.94 buy point out of a cup with handle amid Monday’s 0.5% move higher. The buy area will run up to 202.59 if the stock retakes the entry. PANW stock was unchanged premarket Tuesday.

Backstory: Through acquisitions, Palo Alto Networks has expanded into endpoint security and vulnerability management. Endpoint tools detect malware on laptops, mobile phones and other devices that access corporate networks.

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

Stocks To Watch In Stock Market Correction

These are four top stocks to watch in today’s stock market, including two Dow Jones leaders.

Source: IBD Data As Of March 27, 2023

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

Tesla Stock

Tesla stock climbed 0.7% Monday, as it continues to see some support around its 50-day moving average line. Shares closed Monday around 50% off their 52-week high. TSLA stock moved up 0.5% Tuesday morning.

On Tuesday, weekly China EV insurance registration data could be an important gauge for Tesla demand in the world’s largest electric-vehicle market, which is in the midst of a huge price war started by Tesla.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares declined 1.2% Monday, ending a two-day win streak. Shares remain near their recent highs. AAPL stock moved down 0.4% Tuesday.

Microsoft shares are again trying to capture a flat base’s 276.86 buy point, but closed back below the entry during Monday’s 1.5% loss. The stock is just below the 5% buy area that goes up to 290.70. And shares fell 0.2% early Tuesday.

Microsoft shares surged earlier this month after the company announced that it is adding artificial intelligence tools to its popular Office productivity applications. That follows the company’s investments in AI startup OpenAI, the firm behind the buzz-worthy ChatGPT application.

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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