Stocks Higher As Inflation Report Looms

The Dow Jones Industrial Average and the other major stock indexes rose modestly Monday after factory data, while a critical inflation report looms later in the week. An early mover on the stock market today was General Motors (GM), which dropped on an analyst downgrade.

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After the opening bell, the Dow Jones Industrial Average rose less than 0.1%, while the S&P 500 gained 0.2%. The tech-heavy Nasdaq composite moved up 0.3% in early trading.

Early Monday, the 10-year Treasury yield ticked higher to 3.77%. Oil prices rose, with West Texas Intermediate futures trading around $71.15 per barrel.

Among exchange traded funds, the Invesco QQQ Trust (QQQ) was up 0.3%, as the SPDR S&P 500 ETF (SPY) moved up 0.2% after the open.

General Motors dropped more than 3% Monday after Bernstein downgraded GM stock from outperform to market perform with a 53 price target. The shares have jumped 85% from the lows of November 2023, but Bernstein says its data now signals rising earnings headwinds. GM stock is forming a cup with handle that has a 49.86 buy point.

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Stock Market Today: Inflation Data

On Monday, S&P Global will release preliminary survey index readings for the U.S. factory and services sector, which are due out at 9:45 a.m. ET.

The composite index rose to 54.4 for September. It was expected to fall to 53.0. The manufacturing index rose to 48.9, above the 48.5 estimate. The services index climbed to 55.4; it was anticipated to hold steady at 55.2, according to Econoday estimates.

But this week’s economic data is headlined by Friday’s core Personal Consumption Expenditures price index, the Federal Reserve’s favored inflation indicator. Estimates call for the index to rise 0.15% on the month. Personal consumption expenditures are seen gaining 0.3%, and personal income up 0.4%, according to FactSet.

Meanwhile, retailer Costco Wholesale (COST), homebuilder KB Home (KBH) and flash memory leader Micron Technology (MU) headline this week’s earnings calendar.

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On Friday, the Dow Jones Industrial Average rose 0.1%, while the S&P 500 fell 0.2%. The tech-heavy Nasdaq composite declined 0.4%.

Last week’s rally was more evidence of stock market strength following the Federal Reserve’s decision to cut interest rates by a half point. After the decision was handed down Wednesday, markets hesitated but then surged on Thursday.

During Friday’s IBD Live show, the IBD Live team discussed the current trading conditions and how investors should handle the stock market.

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Best Stocks To Watch

Among the best companies to watch in the stock market today are Arista Networks (ANET), DoorDash (DASH) and Spotify (SPOT).

Notable Dow Jones components are Amazon.com (AMZN), Apple (AAPL), Home Depot (HD), Microsoft (MSFT) and Visa (V).

Home Depot and DoorDash were featured in Investor’s Business Daily’s Stocks Near A Buy Zone column.

There were three new stocks on IBD MarketSurge‘s “Breaking Out Today” list Friday. Notably, Powell Industries (POWL) topped a 198.49 cup-with-handle entry. And there are more names on the site’s “Near Pivot” list. To find more stock ideas, check IBD Stock Lists like IBD 50, Big Cap 20 and Stocks Near A Buy Zone.

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Dow Jones: Home Depot, Visa In Buy Zones

Dow Jones payments stock Visa is back below a 290.96 flat-base entry. Shares were up 0.5% Monday morning.

Further, Home Depot is in buy range past a handle buy point at 378.58, according to MarketSurge pattern recognition. Shares fell 0.4% early Monday.

Outside the Dow Jones index, Arista Networks is in a buy zone past a 376.50 buy point in a consolidation, according to IBD MarketSurge pattern recognition. Shares rose 0.1% Monday morning.

DoorDash ended Friday out of buy range above a cup-with-handle’s 131.21 buy point. Shares added 0.1% early Monday.

Finally, Spotify shares are in buy range above a consolidation’s 359.38 entry. The music streaming platform tacked on 0.4% Monday.

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Stock Market Today: Companies To Watch

These are four stocks in or near buy zones in today’s stock market.

Source: IBD Data as of Sept. 23

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Magnificent Seven Stocks: Alphabet, Meta, Nvidia, Tesla

Among Magnificent Seven stocks, Alphabet (GOOGL) and Meta Platforms (META) traded up 0.4% and 1.4%, respectively, Monday.

Google-parent Alphabet is back above its 200-day line as it rebounds. After extending a win streak to eight sessions Friday, shares were right at their 50-day line, an important resistance area to watch.

Fellow Magnificent Seven stock Meta is in buy range above a 544.23 alternate entry.

Among others in the group, Nvidia (NVDA) held right at its 50-day line Friday and added 0.5% Monday. And Tesla (TSLA) is in buy range above an early entry at 235, and climbed 3.6% early Monday. The electric-vehicle giant is forming a cup base with a 274 buy point.

Dow Jones Leaders: Apple Eyes Buy Point

Among Dow Jones components in the Magnificent Seven, Amazon shares reclaimed their 50-day line during the recent rally. The stock rose 0.3% Monday.

Apple is close to a V-shaped cup with handle that shows a 232.92 entry. Shares lost 0.4% Monday morning.

Microsoft shares are also back above their 50-day line and building a new base. And on Monday morning, the stock was down 0.4%.

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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