The Dow Jones Industrial Average and other major stock indexes dropped Tuesday after economic reports on manufacturing and construction activity. Three big movers on the stock market today were Boeing (BA), Tesla (TSLA) and Nvidia (NVDA).
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S&P 500 Enters Power Trend; Broadcom, Comfort Systems, NextEra Energy In Focus
After the opening bell, the Dow Jones Industrial Average dropped 1.1%, while the S&P 500 fell 1.2%. The tech-focused Nasdaq composite declined 1.5% in early trading.
Early Tuesday, the 10-year Treasury yield slipped to 3.86%. Oil prices dropped, as West Texas Intermediate futures traded around $71.30 per barrel.
Among exchange traded funds, the Invesco QQQ Trust (QQQ) was down 1.5%, as the SPDR S&P 500 ETF (SPY) lost 1.2% after the open.
Boeing tumbled 8% after Wells Fargo downgraded the stock from equal weight to underweight. The bank also lowered its price target to 119, down from 185.
Meanwhile, Tesla added 0.3% after the company posted strong China sales in August, according to industry data. Tesla China sold 86,697 electric vehicles in August, including exports, according to the China Passenger Car Association. That’s up 17% vs. July and 3% vs. a year earlier.
Forget Amazon And Tesla. This Non-Magnificent Seven Stock Dwarfs Their Gains.
Stock Market Today
Key economic data Tuesday includes the Purchasing Managers’ Index on manufacturing, the Institute for Supply Management’s manufacturing index and the Commerce Department’s construction spending.
The PMI report fell to 47.9 in August, down from July’s 49.6 reading. It was expected to come in at 48.0, per Econoday.
Further, the ISM index rose to 47.2 in August, up from July’s 46.8 reading. It was anticipated to rise to 47.5. Finally, construction spending declined 0.3% in July. It was expected to edge 0.1% higher on the month vs. June’s 0.3% decline.
Later this week, the U.S. Labor Department’s employment report is expected to take the spotlight on Friday. Wall Street expects the U.S. economy to add 160,000 jobs in August vs. July’s much lower-than-expected 114,000 rise, per Econoday.
Nvidia Stumbles, Tesla Skids While This Mag 7 Stock Is Ripe For A Breakout
Dow Jones Hits New High
On Friday, the Dow Jones Industrial Average moved up 0.6% to set another record close, its 26th of 2024, according to Dow Jones Market Data. The S&P 500 climbed 1% and the tech-heavy Nasdaq composite advanced 1.1%. The small-cap Russell 2000 index gained 0.7%.
During Friday’s IBD Live show, the IBD Live team discussed the current trading conditions and how investors should handle the stock market today.
Now is an important time to read The Big Picture column amid the ongoing market action. Also, be sure to read how to adjust to changing market conditions, with IBD’s new exposure levels.
Microsoft Shoves Nvidia Aside As Tesla’s Status Remains In Doubt
Stock Market Today: Best Stocks To Watch
Among the best companies to watch on the stock market today are Arista Networks (ANET), Costco Wholesale (COST), Meta Platforms (META) and Netflix (NFLX).
Also on the list are Dow Jones components Amazon (AMZN), Apple (AAPL), Home Depot (HD), IBM (IBM) and Microsoft (MSFT).
Home Depot and Meta featured in this Stocks Near A Buy Zone column.
There were no new stocks on IBD MarketSurge‘s “Breaking Out Today” list Friday. Further, there are a handful of stock ideas on the site’s “Near Pivot” list. These are top stocks nearing new buy points, like Taiwan Semiconductor Manufacturing (TSM). The stock is nearing a 175.45 cup-with-handle entry, but it dropped 2.8% Tuesday morning.
To find more stock ideas, check IBD Stock Lists like IBD 50, Big Cap 20 and Stocks Near A Buy Zone.
Get Real-Time Buy And Sell Alerts On Stock Market Leaders With IBD Leaderboard
Dow Jones: Home Depot, IBM
Among Dow Jones components, Home Depot is just below a 378.58 handle buy point, according to MarketSurge pattern recognition. Shares rose 0.7% Tuesday morning.
Meanwhile, IBM is in buy range past its latest entry, a cup-with-handle buy point at 196.26. IBM stock moved up 0.9% Tuesday.
Outside the Dow Jones index, Arista Networks is rallying from support at the 50-day line. A 358.68 buy point is in play. Shares dropped 3.3% early Tuesday.
Retail giant Costco remains below its 896.67 cup-base entry following last week’s breakout move. The stock fell 0.5% Tuesday morning.
Streaming giant Netflix is just above a late-stage cup base’s 697.49 buy point after Friday’s 1.3% advance. Netflix stock was down 1.5% Tuesday.
Find The Best Stocks To Buy And Watch With IBD Stock Screener And IBD Screen Of The Day
Stock Market Today: Companies To Watch
These are four stocks in or near buy zones in today’s stock market.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Ferrari | (RACE) | 442.80 | Flat base |
| Shake Shack | (SHAK) | 111.29 | Cup base |
| ServiceNow | (NOW) | 806.52 | Handle entry |
| Birkenstock | (BIRK) | 61.83 | Flat base |
Source: IBD Data as of Aug. 27
Join IBD Experts As They Analyze Leading Stocks In The Stock Market Today On IBD Live
Magnificent Seven Stocks: Meta, Nvidia, Alphabet
Among Magnificent Seven stocks, Meta Platforms, Nvidia and Alphabet (GOOGL) traded lower in morning trading.
Meta stock attempted a breakout above a 542.81 buy point in recent weeks, but now sits squarely below the entry. Shares fell 0.7% Tuesday.
Artificial intelligence giant Nvidia stock remains below its 50-day line after last week’s losses. The stock dropped nearly 6% Tuesday morning.
Google-parent Alphabet was also in the red. After rising Friday, shares were down 2% in early trades Tuesday.
Dow Jones Leaders: Amazon, Apple, Microsoft
Among Dow Jones components in the Magnificent Seven, Amazon, Apple and Microsoft traded mixed after Tuesday’s stock market open.
Amazon shares rebounded from support at their 200-day line, but remain below the 50-day. The stock fell 1% Tuesday morning.
Apple stock is within striking distance of a new buy point at 237.23 as it continues to rebound from sharp losses in early August. Apple dropped 1.3% in recent action.
Microsoft shares are finding some support at their 200-day line. A new base is taking shape. And on Tuesday morning, the stock moved down 0.1%.
Be sure to follow Scott Lehtonen on X at @IBD_SLehtonen for more on growth stocks, the Dow Jones Industrial Average and the stock market today.
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