Dow Jones futures, along with S&P 500 and Nasdaq 100 futures, were relatively flat ahead of Tuesday’s market open. Notably, Nvidia (NVDA), a leading stock in the “Magnificent Seven” group, saw a sharp rally, but the broader market rally is still missing a critical confirmation signal.
Musk-Trump Event Disrupted by DDOS Attack
Former President Donald Trump was scheduled to have a conversation with Tesla (TSLA) CEO Elon Musk on Musk’s X platform (formerly Twitter) on Monday night. The event faced significant technical difficulties, as users struggled to join the X Space due to what Musk described as a “massive DDOS attack.” Musk assured users that efforts were underway to resolve the issue, and if necessary, the event would proceed with a smaller audience, with a recorded version to be posted later.
Earlier on Monday, Trump resumed posting on X for the first time since August 2023, sharing a copy of his mug shot along with a link to his reelection campaign website. The disruptions seemed to have a minor impact on Tesla’s stock, which dipped 1.3% on Monday, while Trump Media (DJT) saw a more significant decline, tumbling over 5%.
Key Economic Data in Focus
This week, investors are closely watching two major inflation indicators: the producer price index (PPI) on Tuesday and the consumer price index (CPI) on Wednesday. Additionally, U.S. retail sales data for July, set to be released on Thursday, could provide further insights into consumer spending trends, which have shown signs of weakening.
Stock Market Recap
On Monday, the Dow Jones Industrial Average dropped by 0.4%, while the S&P 500 ended the session nearly unchanged. The Nasdaq Composite, driven by gains in technology stocks, inched up by 0.2%.
Among the stocks to watch are Cava (CAVA), Ferrari (RACE), ServiceNow (NOW), and Shake Shack (SHAK). Dow Jones components such as Amazon (AMZN), Apple (AAPL), IBM (IBM), Microsoft (MSFT), and UnitedHealth (UNH) are also worth monitoring. Notably, IBM and Shake Shack are highlighted in the “Stocks Near A Buy Zone” column.
Oil Prices and Treasury Yields
Ahead of Tuesday’s trading session, Dow Jones futures, along with S&P 500 and Nasdaq 100 futures, showed little movement compared to fair value. It’s important to note that overnight futures action does not always correlate with the next regular market session’s trading activity.
On Monday, the yield on the 10-year U.S. Treasury note slightly decreased to 3.9%. Oil prices continued their recent upward trend, with West Texas Intermediate (WTI) crude settling around $79.60 per barrel.
What Investors Should Do Now
The stock market has yet to confirm its rally attempt with a follow-through day, a critical signal for market direction. While this confirmation could occur soon, it’s essential to remember that not all confirmed rallies succeed. Investors should gradually increase their market exposure as conditions improve, but for now, it is advisable to remain largely in cash and focus on building watchlists of promising stocks.
Now is an opportune time to read IBD’s “The Big Picture” column, which provides valuable insights into the current market action. Following Monday’s session, be sure to check out the latest edition of “The Big Picture” and the updated exposure level.
For those looking for daily breakout opportunities, IBD MarketSurge’s “Breaking Out Today” list highlights stocks that are breaking out past buy points. Additionally, the “Near Pivot” list showcases stocks nearing buy points in bases.
