Stock Market Pullback Continues, What To Do Now; Nvidia, Tesla Sell Off

Dow Jones futures were little changed ahead of Tuesday’s stock market open, as the major stock indexes continued to pull back Monday. Nvidia (NVDA) and Tesla (TSLA) sold off sharply Monday.

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On Monday, the Dow Jones Industrial Average inched lower, while the S&P 500 lost 0.45%. The tech-heavy Nasdaq composite declined 1.2%, ending at day lows. On the upside, the small-cap Russell 2000 edged higher.

Tech titan Nvidia sold off 3.7% Monday, closing at its lowest level since June 12. EV giant Tesla skidded 6.1% after another downgrade, this one from Goldman Sachs.

Later this week, Dow Jones stocks Nike (NKE) and Walgreens (WBA) will report their quarterly results. Nike earnings are out Thursday, while Walgreens will report Tuesday.

Stock Market Today

Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) dropped 0.8% and 1.9%, respectively, in today’s stock market action.

Chipotle Mexican Grill (CMG), Floor & Decor (FND), Lam Research (LRCX) and MongoDB (MDB) — as well as Dow Jones stocks Merck (MRK), 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, Floor & Decor an IBD SwingTrader stock, while MongoDB is featured in this week’s Stocks Near A Buy Zone column.

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Dow Jones Today: Oil Prices, Treasury Yields

Ahead of Tuesday’s opening bell, Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, were little changed vs. fair value.

On Monday, the 10-year U.S. Treasury yield ticked lower to 3.71%.

Oil prices bounced modestly Monday, rebounding after last week’s losses, but remain near their recent lows. West Texas Intermediate futures rose almost 1%, to around $69.50 a barrel.

Stock Market Action: What To Do Now

Now is an important time to read IBD’s The Big Picture column as the major stock indexes extend their pullback from their 2023 highs.

While the market is pulling back, action remains mostly normal. Taking a breather now means the indexes can gather strength for further advances.

Due to this, IBD continues to recommend 60% to 80% exposure. But this is a good opportunity to look over your portfolio and perhaps lock in some profits in your big winners. Conversely, don’t hesitate to sell breakout stocks that aren’t working out. For example, Integration Appliance (INTA) dived nearly 14% Monday, triggering the 7% loss rule from a 47.04 buy point.

Five Best Dow Jones Stocks To Buy And Watch Now

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

Dow Jones banking leader JPMorgan is about 3% below a 143.37 flat-base buy point after Monday’s 0.3% rise. Shares are right at their 50-day line.

Drug giant Merck is approaching a flat base’s 119.65 buy point amid a four-day win streak that saw shares regain their 50-day line. But the stock dropped 1.3% Monday, falling back under the 50-day line.

Salesforce managed to steady itself after slumping following earnings. It is now testing support at the 50-day line. The megacap tech previously moved past a pair of 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.

4 Top Growth Stocks To Watch In The Stock Market Rally

Best Stocks To Buy And Watch: Chipotle, Floor & Decor, Lam Research, MongoDB

IBD Leaderboard watchlist stock Chipotle is again testing its 10-week line and building a flat base with a 2,139.88 buy point, according to IBD MarketSmith pattern recognition. Chipotle was Wednesday’s IBD Stock Of The Day.

IBD SwingTrader stock Floor & Decor is within striking distance of a cup-with-handle’s 101.49 buy point despite Monday’s 0.8% drop.

Lam Research moved above a 615.80 early buy point Monday, with a 1.9% rally. Meanwhile, a three-weeks-tight pattern also shows a 630.72 entry.

MongoDB is trading tightly after its recent earnings-fueled gap-up, offering a new entry. The three-weeks-tight formation shows a buy point at 398.89, while aggressive investors could use a trendline-entry around 386.

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 a Dow Jones leader.

Source: IBD Data As Of June 26, 2023

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

Tesla Stock

IBD Leaderboard stock Tesla skidded 6.1% Monday after Goldman Sachs downgraded the stock from buy to neutral, upping the price target to 248 from 185.

Despite recent losses, Tesla shares remains sharply out of buy range beyond a double-bottom base’s 207.79 buy point.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple stock hit another record high Monday, trading as high as 188.05. Shares reversed down 0.8%, as they continue to hold sharply above a 157.38 buy point.

Microsoft shares dropped 1.9% Monday, adding to Friday’s losses. On June 16, MSFT stock hit an all-time high at 351.47. In recent weeks, the stock reached the 20%-25% profit zone from a 276.76 flat-base buy point, so investors could have taken at least some profits there.

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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