Dow Jones Drops Ahead Of Fed Minutes; Tesla Stock Dives To New Low
Dow Jones futures were higher ahead of Tuesday’s open after the Dow Jones Industrial Average ended with modest losses Monday. Tesla stock dived, hitting a 52-week low and nearing a two-year low. Minutes from the Federal Reserve’s latest policy meeting are due out Wednesday.
The short holiday week will receive a flood of economic data on Wednesday, including consumer sentiment, durable goods orders, first-time jobless claims, PMI readings and new-home sales. The stock market will be closed Thursday for Thanksgiving, along with a shortened trading session on Friday.
Dell (DELL), Urban Outfitters (URBN) and Zoom Video (ZM) were key earnings movers late Monday. DELL stock reversed down 2.5% in extended trade, while Urban shares rallied nearly 3%. Zoom Video stock fell more than 5% in late trade.
Third-quarter earnings season continues this week, with reports from Baidu (BIDU), Best Buy (BBY), Deere (DE), Dick’s Sporting Goods (DKS), Dollar Tree (DLTR) and Nordstrom (JWN).
Stock Market Today
On Monday, the Dow Jones Industrial Average lost 0.1%, or 45 points, and the S&P 500 dropped 0.4%. The tech-heavy Nasdaq composite sold off 1.1%.
Among exchange traded funds, Nasdaq 100 tracker Invesco QQQ Trust (QQQ) moved down 1% and the SPDR S&P 500 (SPY) fell 0.4%.
Electric vehicle giant Tesla (TSLA) skidded 6.8% Monday. Among Dow Jones stocks, Apple (AAPL) traded down 2.2% and Microsoft (MSFT) rose 0.3% in today’s stock market.
IBD Leaderboard stock Arista Networks (ANET), GlobalFoundries (GFS), KLA (KLAC) and Shoals Technologies (SHLS) — as well as Dow Jones name Caterpillar (CAT) — are among the top stocks to buy and watch.
Arista Networks is an IBD Leaderboard stock and was a recent IBD Stock Of The Day. GlobalFoundries was featured in last week’s Stocks Near A Buy Zone column. Shoals was Thursday’s IBD 50 Stocks To Watch pick.
4 Top Growth Stocks To Buy And Watch In The Current Stock Market Rally
Dow Jones Futures Today: Treasury Yields, Oil Prices
Ahead of Tuesday’s opening bell, Dow Jones futures rose 0.2% above fair value while S&P 500 futures gained 0.25%. Tech-heavy Nasdaq 100 futures were up 0.3% vs. fair value. Remember that overnight action in Dow Jones futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
The 10-year Treasury yield ticked higher to 3.82% Monday, snapping a two-day win streak.
U.S. oil prices briefly plunged Monday after the Wall Street Journal reported that OPEC is considering an output increase of up to 500,000 barrels a day. Later, Saudi Arabia denied the report, sending oil prices sharply off their lows. West Texas Intermediate futures traded below $76 a barrel Monday before slashing losses.
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What To Do In The Stock Market Rally
Now is an important time to read IBD’s The Big Picture column with the stock market trend back in a “confirmed uptrend.”
At this time, it’s important to be flexible. Despite early November’s rebound, investors should maintain a cautious posture, limiting exposure to no more than 40%. Wait for more confirmation of continued strength before adding more exposure. Immediate distribution in the major stock indexes would be a sign to stay more defensive.
If your recent stock purchases continue to make progress, then you should feel more confident in the stock market rally. But sharp reversals and losing trades would of course be signs to keep more of your powder dry.
(Check out IBD Stock Lists like the IBD 50 and Stocks Near A Buy Zone, for additional stock ideas.)
Five Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Watch: Caterpillar
Dow Jones member Caterpillar remains below a cup base’s 238 buy point, according to IBD MarketSmith pattern recognition, after a recent breakout attempt. Caterpillar shares were up 0.3% Monday.
CAT stock boasts an impressive 95 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup.
Top Stocks To Buy And Watch: Arista, GlobalFoundries, KLA, Shoals
IBD Leaderboard stock Arista Networks remains above a choppy base’s 132.97 buy point despite Monday’s 0.6% drop.
Chip foundry GlobalFoundries is still in buy range above a 66.06 buy point in a cup base following Monday’s 2.05% loss, according to IBD MarketSmith pattern recognition.
KLA is building a cup with handle that has a 392.60 buy point amid Monday’s 1.1% drop. Bullishly, the stock’s relative strength line hit a new high last week, a sign of big outperformance vs. the S&P 500.
Shoals Technologies remains out of buy range past a 28.57 buy point despite a second straight decline Monday. The 5% buy zone topped out at 30. Wait for an orderly pullback into the buy range before considering a purchase of shares.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla stock skidded 6.8% Monday, extending a losing streak to four sessions and falling to its lowest level since Nov. 23, 2020.
Shares are about 58% off their 52-week high and sharply below their 50- and 200-day moving average lines. Meanwhile, the stock’s RS line continues to hit new lows, indicating big stock market underperformance vs. the S&P 500.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares sold off 2.2% Monday but are still holding above their recently recaptured 50-day line. The stock is about 20% off its 52-week high.
Microsoft rose 0.3% Monday, ending a three-day losing streak. Shares continue to hold above the 50-day line. The software giant remains more than 30% off its 52-week high.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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