Dow Jones Index Falls Ahead of Fed Minutes 3 Major Earnings Drivers
Dow futures rose ahead of Tuesday’s open after the Dow Jones Industrial Average ended with modest losses on Monday. Tesla stock fell, hitting a 52-week low and approaching a two-year low. Minutes of the Federal Reserve’s latest policy meeting are due on Wednesday.
The short holiday week will receive a flood of economic data on Wednesday, including Consumer Confidence, Durable Goods Orders, First Jobless Claims, PMI readings and New Home Sales. The stock market will be closed on Thursday for Thanksgiving, along with a shortened trading session on Friday.
Dale (del), Urban Outfitters (URBN) f Video zoom (ZM) was the main driver of earnings late Monday. DELL shares fell 2.5% in extended trading, while Urban shares rose about 3%. Zoom Video stock is down more than 5% in late trading.
Third-quarter earnings season continues this week, with reports from Baidu (Started), best buy (BBY), monastery (From), Dick’s Sporting Goods (DKS), dollar tree (DLTR) f Nordstrom (JWN).
stock market today
On Monday, the Dow Jones Industrial Average lost 0.1%, or 45 points, and the S&P 500 fell 0.4%. The Nasdaq Technology Composite fell 1.1%.
Among exchange-traded funds, the Nasdaq 100 Tracking Invesco QQQ Trust (QQQ) was down 1% and the SPDR S&P 500 (SPY) was down 0.4%.
electric car giant Tesla (TSLA) slid 6.8% on Monday. Among Dow Jones stocks, apple (AAPL) decreased by 2.2% and Microsoft (MSFT) is up 0.3% in the stock market today.
IBD Stock Leaderboard Arista Networks (Network), GlobalFoundries (GFS), Kosovo Liberation Army (KLAC) and Scholes Technologies (SHLS) – as well as the name of Dow Jones Larva (CAT) – Among the top stocks to buy and watch.
Arista Networks is an IBD stock on the leaderboard and was one of the most recent IBD stocks for the day. GlobalFoundries appeared in the stocks column near the overbought zone last week. Shoals was the stock pick to watch out of the IBD 50 on Thursday.
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Dow futures today: treasury yields, oil prices
Before the opening bell on Tuesday, Dow Jones futures were up 0.1% above fair value while S&P 500 futures were up 0.15%. Futures for the Nasdaq 100-heavy technology rose 0.2% against fair value. Remember that overnight action in Dow Jones futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.
The 10-year Treasury yield rose to 3.82% on Monday, snapping a two-day winning streak.
US oil prices fell briefly on Monday after the Wall Street Journal reported that OPEC is considering increasing production by up to 500,000 barrels per day. Later, Saudi Arabia denied the report, which pushed oil prices off their lowest levels. West Texas Intermediate crude futures traded below $76 a barrel on Monday, before paring losses.
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What to do in the stock market
Now is an important time to read IBD’s Big Picture column with the stock market heading back into a ‘confirmed uptrend’.
At this time, it is important to be flexible. Despite the early November rebound, investors should maintain a cautious attitude, limit exposure to no more than 40%. Wait for more confirmation of continued strength before adding more exposure. A spot distribution in major stock indices would be a sign of staying more defensive.
If your recent stock purchases continue to make progress, you should feel more confident about the stock market rally. But sharp reversals and losing trades will, of course, be signs of keeping more of your powder dry.
(Check out our lists of IBD stocks such as the IBD 50 and Stocks Near the Buy Zone, for additional stock ideas.)
Five Dow Jones stocks to buy and watch now
Dow stock to watch: Caterpillar
Dow Jones member Caterpillar remains below 238 cup bottom buy points, According to IBD MarketSmith’s pattern recognition, after the recent attempted breakout. Caterpillar shares rose 0.3% on Monday.
CAT stock boasts an impressive average of 95 out of 99 IBD compound rating, per IBD stock examination.
Top stocks to buy and watch: Arista, GlobalFoundries, KLA, and Shoals
Arista Networks stock on the IBD Leaderboard remains above the 132.97 buy point of a choppy base despite Monday’s drop of 0.6%.
GlobalFoundries chip foundry remains in a buy range above 66.06 buy points at the base of the cup after Monday’s loss of 2.05%, According to IBD MarketSmith Pattern Recognition.
KLA is building a cup with a handle of 392.60 buys amid Monday’s drop of 1.1%. To the upside, the stock’s RSI reached a new high last week, indicating a significant outperformance against the S&P 500.
Shoals Technologies remained outside the buy range after 28.57 points of buy despite the second consecutive decline on Monday. The 5% buy zone peaked at 30. Wait for an orderly pullback into the buy range before considering buying stocks.
Join IBD experts as they analyze the leading stocks of the current stock market rally on IBD Live
Tesla stock fell 6.8% on Monday, extending its losing streak to four sessions and falling to its lowest level since November 23, 2020.
Stocks are down nearly 58% from their 52-week highs and sharply below the 50- and 200-day moving average lines. Meanwhile, the stock’s RS line continues to reach new lows, indicating underperformance of the large-cap stock market against the S&P 500.
Dow Jones leaders: Apple and Microsoft
Among Dow Jones stocks, Apple shares sold up 2.2% on Monday but are still holding above the 50-day line that was recently recovered. The stock is down about 20% from its 52-week high.
Microsoft stock rose 0.3% on Monday, ending a three-day losing streak. Stocks continue to hold above the 50-day line. The software giant is still more than 30% off its 52-week high.
Be sure to follow Scott Lehtonen on Twitter at @tweet Learn more about developing stocks and the Dow Jones Industrial Average.
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