Dow Jones Futures Fall as Growth Fears Rise; 7 Stocks Near Buy Points

Dow Jones futures fell slightly early Tuesday, as did S&P 500 and Nasdaq futures.

X

The stock rally initially struggled on concerns about the slowing economy, but bottomed again in the afternoon to close mixed. Crude oil prices fell, affecting energy stocks. Nvidia (NVDA) had a strong session, helping the Nasdaq and S&P 500 even as more executives came under pressure.

In the meantime, Metaplatforms (META) and GE Aerospace (GE) are close to key levels, potentially in place.

Spotify (PLACE), Arm holds (ARM) and Elf Beauty (ELF) took strong steps, at least flirting with the first entries. Vertex Pharmaceuticals (VRTX) rose into a buy zone. JPMorgan Chase (JPM) held above a buy point.

After closing, the HSA provider HealthEquity (HQY) beat the views and gave optimistic advice. HealthEquity stock jumped early Tuesday, signaling a breakout from a flat base.

Nvidia and ELF stock are on the IBD Leaderboard and the IBD 50. Vertex stock is on SwingTrader. Nvidia and Vertex stocks are on IBD Big Cap 20. Spotify was Monday's IBD Stock of the Day.

Dow Jones Futures Today

Dow Jones futures fell 0.4% from fair value. S&P 500 and Nasdaq 100 futures fell 0.4%.

The yield on the 10-year Treasury fell to 4.38%.

Crude oil futures fell nearly 2%, just below $73 a barrel. Copper futures fell more than 2%.

Remember that overnight action in Dow futures and elsewhere does not necessarily translate into actual trading during the next regular trading session.

Join IBD experts as they analyze top stocks and the market on IBD Live

Stock market rally

The stock market rally retreated Monday morning as the ISM manufacturing index fell unexpectedly, signaling a deeper contraction. While this may be good news for inflation, there are growing signs that the U.S. economy is starting to weaken. However, like Friday, key indices came off their lows to close mixed.

The Dow Jones Industrial Average fell 0.3% in Monday trading. The S&P 500 index rose 0.1% after retesting the 21-day moving average. The Nasdaq Composite Index rose 0.6%, with Nvidia stock providing key support.

The small-cap Russell 2000 index fell 0.5%, but found support near the 50-day line.

The Invesco S&P 500 Equal Weight ETF (RSP) fell 0.5%, just holding the 50-day line.

The First Trust Nasdaq 100 Equal Weighted Index ETF (QQEW) lost 0.15%, just below the 50-day line but well off intraday lows.

Restaurant stocks fell amid growing signs of consumer weakness.

Discount retailers like TJX (TJX) and medical games such as Vertex and Regeneron (REGN) is still doing well. Defensive growth stocks often perform well in choppy markets or uncertain recoveries.

U.S. crude oil prices fell 3.6% to $74.22 a barrel, the lowest since early February. OPEC+ agreed on Sunday to continue production cuts until 2025, but that was no surprise.

The 10-year Treasury yield plunged 11 basis points to 4.40%.

AND F

Among growth ETFs, the iShares Expanded Tech-Software Sector ETF (IGV) fell 0.2%. The VanEck Vectors Semiconductor ETF (SMH) rose 1.25%, with Nvidia stock the dominant position.

Reflecting more speculative stocks, the ARK Innovation ETF (ARKK) rose 1.3% and the ARK Genomics ETF (ARKG) gained 2.45%.

The SPDR S&P Metals & Mining ETF (XME) edged down 0.2% and the Global X US Infrastructure Development ETF (PAVE) fell 1.8%. The US Global Jets ETF (JETS) rose 0.65% but hit 50-day resistance. The SPDR S&P Homebuilders ETF (XHB) fell 1.2%, hitting 50-day resistance even with lower Treasury yields. The Energy Select SPDR ETF (XLE) fell 2.6%.

The SPDR Health Care Select Sector Fund (XLV) rose 0.7%, of which Vertex stock is a member.

The SPDR Industrial Select Sector Fund (XLI) fell 1.2%, hitting resistance at the 50-day line to hit a one-month low. GE stock is XLI's No. 1 stock.

The Financial Select SPDR ETF (XLF) fell 0.6%. JPMorgan stock is a key stock.

Five Best Chinese Stocks to Watch Now

NVIDIA Stock

Nvidia shares jumped 4.9% to 1,150.18, a record close. Shares rebounded after CEO Jensen Huang outlined Nvidia's AI chip plans through 2026. NVDA shares have been significantly extended since the May 23 earnings gap.

Stocks Near Buy Points

Meta Platforms stock rose 2.3% to 477.49, back above the 21-day line. Parent Facebook and Instagram sit just below the 50-day line, where Meta has encountered resistance in recent weeks. A significant move above the 50 day mark would offer early entry. Meta stock has a consolidation buy point of 531.49.

GE Aerospace stock fell 2.5% to 161, but found support at the 10-week line. The aerospace pure play should have a flat base with a 170.80 buy point after this week.

Actions in buying zones

ARM stock jumped 5.5% to 127.12%, closing just above the May 28 short-term high of 125.98. This provides early entry into a deep, loose base. Arm Holdings said Monday it aims to have 100 million Arm-powered devices “AI-ready” by the end of the year.

Spotify stock jumped 5.6% to 313.49, rebounding from the near-50-day line to nearly reach a flat base buy point of 319.30. Shares topped an early entry of 312.69. The streaming music giant has announced a price hike for US premium customers.

ELF stock rose 5.2% to 196.67 to reach 202.58 intraday. Shares broke too low and too short intraday, providing an early entry of 197.85. ELF stock may be actioned to break the downtrend of this inappropriate handle. The official buy point is 221.83.

Vertex stock rose 3.3% to 470.18, near the top of the buy zone from a cup base entry of 448.40. Investors could also use the May 24 high of 457.66 as a high buy point. The relative strength line, although not at peak levels, has sharpened considerably in recent weeks.

JPMorgan stock fell 0.4% to 201.78, maintaining just the fixed-base buy point of 200.94, according to MarketSurge. Shares initially broke out on May 14, then fell 4.5% on May 20 as CEO Jamie Dimon hinted at his subsequent retirement. But JPM stock stabilized, finding support at a 21-day ascending line.

Time the Market with IBD's ETF Market Strategy

What to do now

The market's recovery is struggling somewhat, although Nvidia stock masks some of the weakness. It wouldn't take much for the Nasdaq and S&P 500 to return to record highs. If so, a number of stocks would issue buy signals while others could establish themselves quickly. But it wouldn't take much for the Nasdaq and S&P 500 to fall back below their 21- and 50-day lines.

So now is not the ideal time to add exposure. Keep your watchlists up to date while keeping an eye on releases.

Read The Big Picture every day to stay in tune with market direction and leading stocks and sectors.

Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.

YOU MAY ALSO LIKE:

Best Growth Stocks to Buy and Watch

IBD Digital: Unlock IBD's premium stock lists, tools and analysis today

Nvidia's Jensen Huang and AMD's Lisa Su outline AI chip roadmaps