Dow Jones futures were lower ahead of Tuesday’s open after the Dow Jones Industrial Average gained more than 400 points on Monday. Tech titans Alphabet, Apple, Meta Platforms and Microsoft are going to earn this week.
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But First, Dow Jones Stocks 3M (mmm) and coco cola (KO) will report early Tuesday. General Motors (GM), halliburton (HAL), Raytheon Technologies (RTX) and UPS (UPS) will also join prominent journalists on Tuesday morning.
Stock Market Today: Chinese Stocks Plunge
The Dow Jones Industrial Average rose 1.3% and the S&P 500 1.2% on Monday. The tech-heavy Nasdaq Composite climbed 0.9%. While the small-cap Russell 2000 rose 0.35%.
Among exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 1.1% and the SPDR S&P 500 (SPY) rose 1.2%.
Chinese shares fell on Monday as China’s Hang Seng index fell 6.4%, closing at its lowest level since April 29, 2009. Chinese leader Xi Jinping continued to consolidate his power, appointing many supporters to the party’s most powerful decision-making body. After securing an anti-convention third term.
Alibaba (Baba) and Baidu (BIDU) fell over 12%. daco new energy (DQ) made about 7% of the dive, and lee auto (LI) fell 17%. And pinduoduo (PDD) 24% crashed.
EV Giant Tesla (TSLA) cut losses to 1.5% after hitting a new 52-week low. Dow Jones shares, Apple (AAPL) traded up 1.5% and Microsoft (MSFT) climbed 2.1% in today’s stock market.
AUTOZONE (azo), cardinal health (CAH), Eli Lilly (LLY) and Texas Roadhouse (TXRH) — as well as Dow Jones stocks beam (CVX) and unitedhealth (UNH) – are among the top stocks to buy and watch. Keep in mind that the new stock market rally is the perfect time for investors to execute their watchlist.
Cardinal and Texas Roadhouse are IBD leaderboard stocks. Eli Lilly is an IBD Swing Trader stock. UnitedHealth was featured in this week’s Stocks Near a Buy Zone column, along with three other top stock ideas.
4 Top Growth Stocks To Look ForRstock market rally
Dow Jones Futures Today: Treasury Yield, Oil Prices
Before Tuesday’s opening bell, Dow Jones futures fell 0.2% versus fair value, while S&P 500 futures also fell 0.2%. Nasdaq 100 futures were down 0.25% versus fair value. Remember that overnight action in Dow Jones futures and elsewhere does not necessarily entail actual trading in the next regular stock market session.
The 10-year Treasury yield rose to 4.23% on Monday, hitting its highest level since June 2008. Meanwhile, US oil prices eased on Monday, halting after a three-day winning streak. West Texas Intermediate futures were trading near $85 a barrel.
Q3 Income Seasons: Alphabet, Apple, Meta, Microsoft to report
Third quarter earnings season kicks off this week, with key reports coming in from tech titans Alphabet (Google), Apple (AAPL), meta platform (meta) and Microsoft (MSFT).
its consequences Boeing (BA), Chevron, Merck and Visa (v) are also due for the whole week.
Earnings reports cause many of the biggest moves in stocks, and they require special attention. Strong earnings could propel top stocks to previously untouched levels — and well above new buying points — while a less-than-impressive announcement could send shares plummeting.
The stock market’s reaction to an earnings release can often tell you more than the earnings themselves. If results look strong but the stock slips anyway, investors may be concerned about growth stagnation, rising costs or other potential downside.
With the market attempting a bullish run, investors should keep an eye on companies that easily outperform earnings results and get strong feedback. If the market is able to rally then they could be one of the leaders of the stock market.
What to do in the new rally of the stock market?
Despite the recent gains, this is not the time to aggressively jump 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 should stay below 40% risk until the market begins to prove itself.
Now is an important time to read IBD’s The Big Picture column. After Friday’s powerful gains, investors are looking to hire their curated watchlist to jumpstart future breakouts. But not all follow-throughs work, so it is important to gradually and systematically increase exposure, as the new uptrend proves itself.
If the uptrend is real and meaningful, there will be plenty of time to make money with a successful breakout. Right now, it is important to be disciplined in increasing exposure as the new stock market rally strengthens.
Five Dow Jones stocks to watch now
Dow Jones Stocks to Watch: Merck, UnitedHealth
Dow Jones member and IBD 50 stock Merck is outpacing the 93.12 buy point of a double bottom, According to IBD Marketsmith Pattern Recognition. Shares rose 1.8% on Monday, ending in a 5% buy zone going up to 97.78. Third quarter results are due before the opening bell on Thursday.
Health care giant UnitedHealth is approaching a cup-with-handle’s 553.23 buying point, According to IBD Marketsmith Pattern Recognition. Shares rose 1.5% on Monday, moving closer to the stock’s latest entry.
Top stocks to watch: AutoZone, Cardinal, Eli Lilly, Texas Roadhouse
Auto parts leader and recent IBD stock of the day AutoZone is breaking the one-cup base’s 2,362.34 buy point, up 4.6% on Monday. The 5% chase zone goes up to 2,480.46.
According to IBD MarketSmith chart analysis, the IBD leaderboard stock is in a buy range following entry of Cardinal Health short cup-with-handle at 71.22. The shares are also breaking the 72.38 buy point of a flat base. Earnings are set for November 4.
IBD Swing Trader stock Eli Lilly on Monday climbed 2.1% in a buy range after closing a flat base at 335.43 buy points.
Texas Roadhouse is attempting to reclaim the 95.52 buy point of a flat base after a brief breakout move last week. The stock ended just above the entry on Monday. Earnings are due on Thursday.
Join IBD experts as they analyze key stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock fell 7.4% on Monday and narrowed losses to 1.5% after slashing prices of its Model 3 and Model Y cars in China by up to 9%. Shares hit their lowest level since June 2021.
The stock closed nearly 49% from its 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones shares, shares of Apple were up 1.5% on Monday and are down nearly 18% from a 52-week high. Despite the recent rally, the stock remains below its 50- and 200-day lines. After the shutdown, there is an emphasis on Apple’s earnings on Thursday.
Microsoft rose 2.1% on Monday, heading for the second straight day. The shares are in rebound mode after hitting a 52-week low on October 13. The software giant is about 30% off its 52-week high. Microsoft’s earnings are due late 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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