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As the Dow Jones Industrial Average and other stock indexes moved sharply lower Tuesday, Amazon (AMZN), CommScope (COMM), Nu Holdings (NU), and Tesla (TSLA) were among the best names to watch in the current market. With key indexes falling from recent record highs, investors should patiently await new breakouts using The IBD Methodology. It's also important to raise and lower exposure methodically, as those positions gain or lose momentum. Dow Jones index component Amazon broke out decisively past a 238.85 entry Friday after the company's earnings results. Shares pulled back into the 5% buy zone Tuesday, according to MarketSurge chart analysis. The stock closed 1.8% lower on Tuesday. Amazon stock backstory: Amazon stock jumped Monday after the company announced a $38 billion cloud deal with ChatGPT creator OpenAI. It is Amazon Web Services' first cloud contract with OpenAI, which has long been a key partner for Amazon rival Microsoft (MSFT). Tesla Stock Hits Early Entry A non-Dow Jones index name to watch is Tesla. Shares of Tesla broke out Monday past an early entry at 467. But they gave up that entry amid Tuesday's slide that left the stock down more than 5%. Tesla stock backstory: Investor attention is on Tesla's annual shareholder meeting after the stock market close Thursday. Along with Musk's $1 trillion pay package, investors will also vote on Tesla's investment in xAI and several other measures. Outside The Dow Jones Index: CommScope, Nu Holdings Two more names to watch outside the Dow Jones Industrial Average are CommScope and Nu Holdings. CommScope stock broke out Friday, topping a 17.13 flat-base entry. But shares are about 5% below that level. The stock fell more than 1% in Tuesday's session. CommScope stock backstory: CommScope stock and Amphenol (APH) announced a $10.5 billion deal in early August. Amphenol is buying CommScope's Connectivity and Cable Solutions, or CCS, business. CommScope's unit makes fiber-optic and copper connectivity cables for cable television, residential broadband networks and data centers. North Carolina-based CommScope has been shedding businesses, including Amphenol, to reduce debt. The deal comes amid growing demand for data center capacity driven by artificial intelligence investments. Connecticut-based Amphenol makes interconnect products, fiber-optic connectors, antennas, sensors and specialty cables. The sale is expected to close within the first half of 2026. Meanwhile, Nu stock briefly hit a 16.43 buy point in a flat base Monday, but closed below it. Shares then fell 2.1% on Tuesday. Nu stock backstory: Nu Holdings is the parent company of Brazil's Nubank, which operates across South America. The majority of its customers are in Brazil, Colombia, and Mexico, where it primarily serves people without substantial access to other banks. In addition to online bank accounts, Nubank also offers a suite of financial products, including credit cards, loans, and an investment platform. Investing Tips Investor's Business Daily continues to hold its recommended stock exposure of 80% to 100% for the current market. That means IBD readers should be adjusting their exposure by looking for new breakouts, while cutting stocks that trigger sell signals. An essential resource for daily breakouts is IBD MarketSurge's Breaking Out Today list. It shows MarketSurge Growth 250 stocks that are rising past fresh buy points. Before making any investment decisions, be sure to check current stock market conditions. Also, use IBD Stock Checkup to view ratings for the most important fundamental and technical criteria. To get chart analysis on stocks to buy and watch, as well as high-odds buy-and-sell alerts, check out IBD MarketSurge, IBD Leaderboard, and IBD SwingTrader. Best Stocks To Watch, Including Dow Jones Leader These are the best stocks to watch that are near buy points, including Dow Jones index leader Amazon and Tesla stock.
