Dow Jones rises on surprise retail sales; Intel gains after Amazon AI chip deal

The Dow Jones Industrial Average rose on Tuesday after the Commerce Department released its retail sales report. An early winner on the stock market today was Intel (INTC), which jumped after announcing an expanded contract with Amazon Web Services, Amazon.com (AMZN) company.

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After the stock market opened, the Dow Jones Industrial Average rose 0.2 percent, while the S&P 500 gained 0.3 percent. The technology-heavy Nasdaq Composite rose 0.6 percent.

Early Tuesday, the yield on 10-year U.S. Treasury notes fell slightly to 3.61 percent. Oil prices paused after their recent rebound and then slowly rose, lifting West Texas Intermediate futures to around $70.20 a barrel.

Among exchange-traded funds, the Invesco QQQ Trust (QQQ) rose 0.8%, while the SPDR S&P 500 ETF (SPY) gained 0.4% after the open.

Intel shares rose nearly 3% early Tuesday after the company announced an expanded collaboration with Amazon Web Services.

“As part of the expanded collaboration, Intel will develop an AI [artificial intelligence] Fabric chip for AWS on Intel 18A, the company's most advanced process node. Intel will also produce a custom Xeon 6 chip on Intel 3, building on the existing partnership where Intel produces Xeon Scalable processors for AWS,” the press release said.

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Stock market today: retail sales

The Fed's two-day policy meeting begins on Tuesday and culminates in a rate decision on Wednesday afternoon. The central bank appears to be on the verge of announcing its first rate cut since it cut its benchmark rate to near zero in March 2020 as the Covid pandemic began to escalate.

Ahead of that meeting, the U.S. retail sales report for August showed that sales rose 0.1% month-on-month, which was stronger than the 0.3% decline expected, according to Econoday. Excluding vehicles, sales rose 0.1%, while excluding vehicles and gasoline, they rose 0.2% month-on-month.

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On Monday, the Dow Jones Industrial Average rose 0.6 percent, hitting an all-time high and its 27th record close of 2024, according to Dow Jones Market Data. The S&P 500 gained 0.1 percent, while the tech-heavy Nasdaq Composite fell 0.5 percent.

During Monday's IBD Live show, the team discussed current trading conditions and how investors should trade in the stock market today.

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Stock market today: The best stocks to keep an eye on

Companies to keep an eye on today’s stock market include Costco Wholesale (COST), DoorDash (DASH) and Semiconductor manufacturing in Taiwan (TSM).

Important Dow Jones components are Amazon.com, Apple (AAPL), Home Depot (HD) and Microsoft (MSFT).

Home Depot and DoorDash are featured in this Stocks Near A Buy Zone column.

During trading activity on Monday, eight new stocks were added to IBD MarketSurge's Breaking Out Today list. In particular, KKR (KKR) crossed a 124.20 buy point. And the number of names on the site's Near Pivot list is growing. For more stock ideas, check out IBD stock lists like the IBD 50, Big Cap 20 and Stocks Near A Buy Zone.

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Dow Jones: Home Depot in buy zone

Among Dow Jones stocks, Home Depot is breaking through a buy point at 378.58, according to MarketSurge pattern recognition. Shares rose 0.4% early Tuesday.

Outside the Dow Jones index, retail giant Costco is in buy territory above an 896.67 cup base entry. The stock fell 0.5 percent on Tuesday morning.

DoorDash ended Monday just below a cup-with-handle buy point at 131.21. Shares fell 0.1% early Tuesday.

Taiwan Semiconductor is approaching the 175.45 mark after re-reaching the 50-day line last week, rising 0.3 percent on Tuesday morning.

Find the best stocks to buy and watch with IBD Stock Screener and IBD Screen Of The Day

Stock market today: Companies to keep an eye on

These are four stocks that are in or near the buy zone on today's trading session.

Source: IBD data as of September 10

Join IBD experts as they analyze leading stocks in today's stock market on IBD Live

The glorious seven stocks: Alphabet, Nvidia, Tesla

Among the shares of the “Magnificent Seven” alphabet (GOOGL), NVIDIA (NVDA) and Tesla (TSLA) traded higher in early trading.

Google parent Alphabet closed just above the 200-day mark on Monday, rebounding. After extending gains on Monday, shares rose another 0.9 percent in early trading on Tuesday.

Nvidia undercut its 50-day line on Monday with a decline of nearly 2%. The stock rebounded 0.3% early Tuesday.

And Tesla rallied 2.3 percent on Tuesday morning, looking set to rebound after Monday's 1.5 percent decline ended a five-day winning streak. Shares of the electric vehicle leader are approaching an early entry price of 235, the high seen on Sept. 5.

Dow Jones leader: Apple breaks important mark

Among the Dow Jones' “Magnificent Seven” stocks, Amazon shares reclaimed their 50-day line during last week's rally. The stock rose 1.4 percent on Tuesday morning.

Apple lost nearly 3% on Monday, falling below the 50-day line, a V-shaped cup with handle showing an entry at 232.92. Shares lost 0.3% on Tuesday morning.

Microsoft shares are also back above their 50-day moving average, forming a new base, and shares rose 1.8% on Tuesday morning after the company announced a $60 billion share buyback and raised its dividend 10% from the previous quarter.

Follow Scott Lehtonen on X at @IBD_SLehtonen Learn more about growth stocks, the Dow Jones Industrial Average and the current stock market.

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