Dow Jones jumps 500 points ahead of inflation data; Fed meeting; Tesla stock nears 2022 low
Dow Jones futures were higher at the open on Tuesday after the Dow Jones Industrial Average rose 528 points on Monday. Tesla shares fell more than 6% on Monday, finishing just above their 2022 lows.
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Inflation data, Fed meeting
Consumer inflation data is due out on Tuesday morning. The CPI is expected to rise 0.3% in November and 7.3% on a year-over-year basis, according to Econoday estimates. Additionally, the Federal Reserve’s next policy meeting takes place on Tuesday and Wednesday.
While the Federal Reserve is already forecasting a 50 basis point hike, investors will be looking for further guidance on the Fed’s plans. A reversal from aggressive tightening seems unlikely, but some respite from punitive rate hikes would be welcome. According to CME’s FedWatch tooltraders are placing a 74% chance of a 50 basis point rate hike.
The yield on the 10-year Treasury note rose to 3.61% on Monday.
late monday Oracle (ORCL) jumped 3% after the company’s earnings and sales beat analysts’ estimates. More earnings reports this week include Darden Restaurants (DRI) and Lennar (LEN).
Stock market today
On Monday, the Dow Jones Industrial Average rose 1.6%, or 528 points, and the S&P 500 rose 1.4%. The technology Nasdaq composite followed with a gain of 1.3%. Between exchange traded fundsthe Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 1.3% and the SPDR S&P 500 (A SPY) grew by 1.4%.
Electric vehicle giant Tesla (TSLA) traded down 6.3% on Monday. Between Dow Jones Stocks, An apple (AAPL) rose by 1.6% and Microsoft (MSFT) gained 2.9% in today’s stock market.
Allegro MicroSystems (ALGM), IBD ranking availability Dexcom (DXCM), AH, OK (CLUTCH) and Trane Technologies (TT) — as well as Dow Jones names Caterpillar (CAT), Home Depot (HD) and UnitedHealth Group (UNH) — are among the best stocks to buy and watch.
Dexcom and Trane are IBD ranking stocks. UnitedHealth was presented during this week “Stocks Near Buy Zone” column.. Allegro was recent IBD’s Pick 50 Stocks to Watch. Caterpillar and Dexcom were recent IBD Stock of the Day companies.
4 Biggest Growth Stocks to Buy and Watch in the Courserstock market rally
Dow Jones Futures Today: Oil Prices
Ahead of Tuesday’s open, Dow Jones futures were up 0.6 percent at fair value, while S&P 500 futures were up 0.5 percent. Nasdaq 100 technology futures gained 0.5% against fair value. Remember this night action in Dow Jones futures and elsewhere does not necessarily become an actual trade in the next regular Stock Exchange session.
U.S. oil prices rose more than 3% on Monday, rebounding from a yearly low. West Texas Intermediate futures were trading just above $73 a barrel.
What to do during a stock market rally
Now is an important time to read IBD’s The Big Picture column with the stock market trending back into a “confirmed uptrend”.
Although the Nasdaq and S&P 500 remain in uptrends, defense is still better than offense at this point due to continued market volatility. This means it’s okay to look for stocks to buy, but keep small positions to start with while keeping your overall exposure light.
In terms of new purchases, what feedback are you getting from the market? Are your recent purchases making solid progress? In that case, it’s good to give them some space. But don’t be afraid to take partial profits if the profit reaches at least 10%. If the new purchases go the wrong way or are met with an immediate selloff, cut losses when the stock falls 3% to 4% instead of waiting the 7%-8% rule. to be triggered.
(Take a look IBD Stock Lists like IBD 50 and Stocks near a buy zonefor additional stock ideas.)
Five Dow Jones Stocks to Buy and Watch Now
Dow Jones stocks to buy and watch: Caterpillar, Home Depot, UnitedHealth
Caterpillar, the Dow Jones member, is approaching the 238 cup point of purchase, According to IBD MarketSmith pattern recognitionfollowing Monday’s 2.5% rise. CAT warehouse showing a solid 95 out of a perfect 99 IBD Composite Rating, acc IBD Stock Check.
Home improvement retailer Home Depot ended Monday less than 1 percent lower at 329.77 a cup handle, following a 2.3 percent advance on the session.
Healthcare giant UnitedHealth Group is tracking flat ground with a buy point at 558.20. Shares are down just 2% from Monday’s last entry.
Top stocks to buy and watch: Allegro, Dexcom, KLA, Trane
Allegro MicroSystems closed Monday in buy range above a buy point on the 32.07 cup handle after a slight uptick for the day. Shares of ALGM traded up 0.1% on Monday. And the 5% chase zone goes to 33.67.
IBD ranking Dexcom shares tried to break above a 123.46 buy point in a flat base, but are about 5% below the entry after recent losses. Shares of Dexcom rose 0.3% on Monday.
Chip leader KLA moves further above a cup with an entry of 392.60 after a 1.9% advance on Monday. On the upside, the relative strength line continues to make new highs in continued market volatility.
Trane Technologies ended Monday about 4% below a 181.72 buy point in a cup handle after the session’s slight decline.
Join IBD’s experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla stock
Tesla shares fell 6.3% on Monday, giving up Friday’s gains entirely and heading back to its recent lows.
In recent weeks, TSLA shares hit their lowest level since November 23, 2020, hitting a new 52-week low of 166.19. Shares closed Monday at 167.82, about 58% below their 52-week high.
Dow Jones Leaders: Apple, Microsoft
Between Dow Jones Stocks, Apple shares rose 1.6% on Monday but are still below their 50-day line after last week’s losses. Shares are more than 20% off their 52-week high.
Microsoft jumped 2.9% on Monday as the stock continued to hold above its 50-day line. The software giant remains about 27% off its 52-week high.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more information on growth stocks and the Dow Jones Industrial Average.
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