Dow futures fell ahead of Tuesday’s open after the Dow Jones Industrial Average rose more than 400 points on Monday. Tech giants Alphabet, Apple, Meta Platforms, and Microsoft posted earnings due this week.
But first, Dow Jones stock 3M (MMM) and coca cola (KO) will report early on Tuesday. General motors (GM), Halliburton (Hal), Raytheon Technologies (RTX) and UBS (UPS) will also be among the chief reporters on Tuesday morning.
Stock Market Today: Chinese Stocks Falling
On Monday, the Dow Jones Industrial Average rose 1.3% and the Standard & Poor’s advanced 1.2%. The Nasdaq Tech Composite Index is up 0.9%. Small cap Russell 2000 rose 0.35%.
Among the exchange-traded funds, the Nasdaq 100 index-tracked Invesco QQQ Trust (QQQ) rose 1.1% and the SPDR S&P 500 (SPY) rose 1.2%.
Chinese stocks fell on Monday, with China’s Hang Seng Index down 6.4% to close at its lowest level since April 29, 2009. Chinese leader Xi Jinping continued to consolidate his power, appointing a number of supporters to the party’s most powerful decision-making body. After obtaining a third term defying the convention.
Ali Baba (Papa) and Baidu (BIDU) fell more than 12% each. Daku New Energy (DQ) decreased nearly 7%, and Lee Otto (LI) decreased by 17%. And the Bindudu (PDD) 24% crashes.
Giant EV Tesla TSLA cut losses to 1.5% after hitting a 52-week low. Among the Dow Jones stocks, apple (AAPL) rose 1.5% and Microsoft (MSFT) is up 2.1% in the stock market today.
AutoZone (to avoid), Cardinal’s health (CAH), Eli Lilly (LLY) and Texas Roadhouse (TXRH) – So are Dow Jones stock chevron (CVX) and United Health (UN) – Among the top stocks to buy and watch. Keep in mind that a new stock market rally is the perfect time for investors to put their watch lists into action.
Cardinal and Texas Roadhouse are IBD Leaderboard shares. Eli Lilly is a stock IBD SwingTrader. UnitedHealth featured in the stocks column near the buy zone for this week, along with three other ideas for top stocks.
4 growth stocks to watch at Cursstock market rally
Dow futures today: Treasury yields, oil prices
Before the opening bell on Tuesday, Dow Jones futures were down 0.2% against fair value, while S&P 500 futures also lost 0.2%. Nasdaq 100 futures are down 0.25% against fair value. Remember that the 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 4.23% on Monday, stable at its highest level since June 2008. Meanwhile, US oil prices fell on Monday, stalling after a three-day winning streak. West Texas Intermediate crude futures were trading near $85 a barrel.
Q3 earnings Season: Alphabet, Apple, Meta, Microsoft To Report
Third-quarter earnings season begins this week, with major reports coming in from tech giants the alphabet (GOOGL), apple (AAPL), meta pads (META) and Microsoft (MSFT).
results from Boeing (Bachelor), Chevron, Merck and visa (V) Also due to be released throughout the week.
Earnings reports cause many of the biggest moves in stocks, and they require special attention. Strong earnings can push big stocks to previously untouched levels – and above new buying points – while a less impressive announcement can send stocks lower.
The stock market’s reaction to the earnings release can often tell you more than the earnings themselves. If the results look strong but the stock is falling anyway, investors may be concerned about the sustainability of growth, higher costs, or other potential downsides.
As the market enters bullish mode, investors should track companies that easily outperform earnings results and have strong bullish reactions. They could be among the stock market leaders if the market is able to recover.
What to do in the new stock market rally
Despite the recent gains, it is not time to jump aggressively back into stocks with both feet, but to take a measured approach. Exposure should be limited to a maximum of 20% of the portfolio for most investors. Aggressive investors must stay under 40% exposure until the market starts to prove itself.
Now is an important time to read our IBD big picture column. After Friday’s strong gains, investors are willing to put their watchlists to work, in order to jump on future breakouts. But not all follow-ups work, so it is important to increase exposure slowly and methodically, as the new uptrend proves itself.
If the upside is real and meaningful, there will be plenty of time to make money with successful breakouts. For now, it is important to be disciplined in increasing exposure as the new stock market rally strengthens.
Five Dow Jones stocks to watch right now
Dow Jones stocks to watch: Merck, UnitedHealth
Dow Jones Member and Merck IBD 50 stock breaks through the 93.12 buy point for the double bottom, According to IBD MarketSmith Pattern Recognition. Shares rose 1.8% on Monday, closing in the buying territory of 5%, which rose to 97.78. Third-quarter earnings results are due Thursday, before the opening bell.
Healthcare giant UnitedHealth is close to buying 553.23 mugs with a handle, According to IBD MarketSmith Pattern Recognition. Shares rose 1.5% on Monday, approaching the stock’s latest entry.
Top Stocks to Watch: AutoZone, Cardinal, Eli Lilly, Texas Roadhouse
The leader in auto parts and last-day stock IBD AutoZone tops a 2,362.34 purchase point in the cup base, racing 4.6% on Monday. The chase area rises 5% to 2480.46.
IBD Leaderboard stock Cardinal Health is in a buying range after entering 71.22 for a short handle cup, according to IBD MarketSmith chart analysis. Stocks are also breaking out above 72.38 buying points on a flat base. Earnings set for November 4th.
IBD SwingTrader Eli Lilly stock closed further into a buying range beyond the 335.43 buy point of the flat base, up 2.1% on Monday.
Texas Roadhouse is trying to regain the 95.52 buy point of the flat base after a short breakout move last week. Stocks ended on Monday just above the entry. Earnings are due on Thursday.
Join IBD experts as they analyze the leading stocks in the current stock market rally on IBD Live
Tesla stock fell as much as 7.4% on Monday before cutting losses to 1.5% after cutting prices for its Model 3 and Model Y cars by up to 9% in China. Shares hit their lowest level since June 2021.
The stock has closed about 49% from its 52-week high.
Dow Jones Leaders: Apple and Microsoft
Among Dow Jones stocks, Apple shares are up 1.5% on Monday, and are down nearly 18% from their 52-week high. Despite the recent rally, the stock is still below the 50 and 200-day lines. Apple earnings are on tap for Thursday after the close.
Microsoft stock rose 2.1% on Monday, rising for the second day in a row. Stocks are in recovery mode after hitting a 52-week low on October 13. The software giant is still about 30% off its 52-week high. Microsoft earnings are due out late Tuesday.
Make sure to follow Scott Lehtonen on Twitter at Tweet embed Learn more about developing stocks and the Dow Jones Industrial Average.
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