Dow Jones Futures Rise After Housing Data; Tesla Plunges On Reduced Production Schedule

Dow Jones futures rose on Tuesday morning, with an early dose of economic data poised to launch the short, final trading week of the year. Shares based in China gained as that nation further eased its Covid restrictions. Tesla stock plunged more than 6% after Reuters reported that the electric-vehicle giant plans to run a reduced production schedule at its Shanghai plant in January.


Tuesday’s economic data includes two housing reports with the Case-Shiller Home Price Index and the FHFA House Price Index — both at 9 a.m. ET — along with the Dallas Fed Manufacturing Survey at 10:30 a.m. ET

October’s Case-Shiller home price index came in better than expected, but still fell 0.5% after September’s decline of 1.2%, and was up 8.6% year-over-year. Meanwhile, the FHFA House Price Index was flat for October, with a year-over-year increase of 9.8%.

Finally, the Dallas Fed Manufacturing Survey is expected for a -11.0 reading in December versus -14.4 in the previous month.

On the earnings front, the schedule is moving to the last week of 2022 this week Cal-Maine Foods (quiet) The only reporter on Wednesday after closing.

Southwest Airlines (LUV) declined more than 3% after the company canceled more than two-thirds of its flights on Monday, with plans to cut its schedule further on Tuesday and Wednesday due to holiday storms.

EV Giants Tesla (TSLA) dived more than 6% on Tuesday. dow jones tech leaders Apple (AAPL) and Microsoft (MSFT) saw mixed trade ahead of today’s stock market open.

medspace (MEDP), IBD Leaderboard Stock Neurocrine Biosciences (nbx), O’Reilly Auto Parts (Orly) and Texas Roadhouse (TXRH)—as well as the Dow Jones name Amgen (AMGN) and Kamla (CAT) — are among the top stocks to consider for investor watchlists. Bear in mind that the recent weakness in the market should keep investors on the defensive.

Neurocrine and Texas Roadhouse are IBD leaderboard stocks. Caterpillar and MedSpace were recent IBD Stocks of the Day Companies.

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Dow Jones Today: Oil Prices, Treasury Yields

Ahead of Tuesday’s opening bell, Dow Jones futures moved up 0.1% versus fair value. S&P 500 futures edged higher. Tech-heavy Nasdaq 100 futures were down 0.2% in morning action, Tesla barely pulled lower while China named (TCOM), pinduoduo (PDD) and (JD) posted strong gains.

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Among US exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.2% and the SPDR S&P 500 ETF (SPY) rose 0.5% early on Tuesday.

Chinese officials said the country would end its mandatory quarantine requirement for incoming travelers from January 8. Restrictions on the number of passengers and international flights will also be lifted. The latest move by China to ease strict Covid restrictions comes as infections are reported to be spreading rapidly in the country.

China-based solar makers posted some of the strongest early moves ginkosolar (JKS) and daco new energy (DQ) over 4.5% each. In ETFs, KraneShares CSI China Internet (KWEB) jumped 2.3%. iShares MSCI China (MCHI) added 2.2%.

The 10-year Treasury yield climbed to 3.81% on Tuesday morning, with the 10-year yield rising after last week’s strong gains. Meanwhile, US oil prices traded up less than 1% on Tuesday as West Texas Intermediate futures traded above $80 a barrel in morning trade.

stock market rally under pressure

The Dow Jones Industrial Average rose 0.5% and the S&P 500 rose 0.6% on Friday. The tech-heavy Nasdaq Composite climbed just 0.2%.

Friday’s The Big Picture column commented, “The Nasdaq Composite also struggled with negative territory, though it gained 0.2%. The tech-heavy index slipped 1.9% for the week and has work to do to break its downtrend.” ” That’s worse than the S&P 500 this year, dropping nearly 34%.”

Amidst the ongoing volatility in the stock market, this is an important time to read IBD’s The Big Picture column.

5 Dow Jones Stocks to Buy Now and See

Dow Jones Stocks to Watch: Amgen, Caterpillar

Drugmaker Amgen continues to trace a flat base amid a three-week losing streak. Shares are below their 50-day line after further sharp losses. For now, the perfect buy point is 296.77, but the stock needs to decisively retest its 50-day low. AMGN shares registered a marginal gain on Tuesday.

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Dow Jones member Caterpillar broke past the 239.95 buy point in a flat base last week. According to IBD MarketSmith pattern recognition, and a few cents below entry following Friday’s advance. Bullishly, the stock’s relative strength line, a key technical indicator, is at new highs. CAT stock climbed 0.3% on Tuesday.

CAT stock according to IBD Stock Checkup shows a strong 98 out of a perfect 99 IBD Composite rating. The aggregated ratings are designed to help investors easily find top growth stocks.

4 top growth stocks to watch across the curveRENT stock market rally

Top Stocks to Watch: MedSpace, Neurocrine, O’Reilly, Texas Roadhouse

MedSpace jumped sharply from its 50-day line last week with a 3.3% gain. The stock rose 0.7% on Friday to extend its winning streak to four sessions. For now, the perfect buy point is at 235.82, but an earlier entry at 220.09 is also in play. MEDP stock was unchanged on Tuesday.

IBD leaderboard stock Neurocrine slipped 1.7% on Friday, ending a five-day winning streak that saw the biotech leader hold support at its 50-day level. A strong rebound is bullish for the stock’s immediate prospects and the stock is likely to form a new base to the right. NBIX stock was flat on Tuesday.

O’Reilly Auto Parts also found much-needed support at its 50-day line last week and remained above the 750.98 flat-base entry. A bigger rally from the 50-day line could bring a follow-on entry point, but the market is under bullish pressure for now, increasing the risk of buying the stock. A new base is likely to form, which will offer a fresh entry in the near future. ORLY shares were inactive on Tuesday.

Texas Roadhouse shows a new buy point at 101.85 in a flat base but is now consolidating below its 50-day line. The IBD Leaderboard stock will look to recover that key benchmark in the coming sessions, and the current two-day winning streak is off to a promising start. TXRH stock traded unchanged Tuesday morning.

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to see stock

These are the four top stocks to watch in today’s stock market, including two of the Dow Jones leaders.

name of the company sign, symbol right purchase point base type
medspace (MEDP) 235.82 consolidation
Texas Roadhouse (txrh) 101.85 flat base
Kamla (Cat) 239.95 flat base
Amgen (AMGN) 296.77 flat base
Source: IBD Data as of December 27, 2022

Join IBD experts as they analyze the top stocks in the current stock market rally on IBD Live

Tesla stock

Tesla stock fell another 2% on Friday, extending its losing streak to six sessions and hitting a 52-week low. Last week, Tesla shares hit a 52-week low of 121.02, down 18%. The stock closed nearly 69% from its 52-week high.

Shares extended their losses on Tuesday morning, taking another 6% dive after Reuters reported Tesla would cut its production starting this month into next year. Tesla stock looks set to hit a new low, trading below 116 shares in premarket trade.

Tesla suspended production at its Shanghai plant on Saturday, reportedly hastening its plan to halt production at the plant at the end of December.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones shares, Apple shares fell 0.3% on Friday, closing at their 52-week low, set on June 16, at 129.04. The stock is down about 28 per cent from its 52-week high. Shares fell marginally on Tuesday.

Microsoft stock rose 0.2% on Friday but remains below its 50-day line after falling 2.4% last week. The software giant is about 30% off its 52-week high. MSFT stock rose 0.3% in early trading Tuesday.

Be sure to follow Scott Lehton on Twitter @IBD_SLehtonen For more information on Growth Stocks and the Dow Jones Industrial Average.

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