Dow Jones Surges 765 Points To Start New Stock Market Rally Attempt, What To Do Now

Dow Jones futures were down ahead of Tuesday’s open. Another attempt at a stock market rally began on Monday, as the Dow Jones Industrial Average jumped 765 points.


stock market today

On Monday, the Dow Jones Industrial Average jumped 2.7%, leading the stock market higher. The S&P 500 climbed 2.6% and the tech-heavy Nasdaq composite rebounded 2.3%. And the small-cap Russell 2000 rose 2.65%.

Among exchange traded fundsthe Nasdaq 100 Invesco QQQ Trust tracker (QQQ) rose 2.35% and the SPDR S&P 500 (TO SPY) increased by 2.6%.

This week’s top earnings reports come from Sharpness marks (AYI), ConAgra Brands (GAC), Constellation Brands (ZST) and McCormick (MKC).

General Motors (GM) reported his third quarter auto sales Monday, beating expectations on strong consumer demand and improved vehicle availability. GM shares rose 2.4% on Monday but are still more than 50% off their 52-week high.

VE Giant You’re here (TSLA) plunged 8.6% after estimates of missing vehicle deliveries. Among Dow Jones Stocks, Apple (AAPL) rose 3.1%, while Microsoft (MSFT) climbed 3.4% in stock market today.

In the ongoing weakness of stock markets, Murphy UNITED STATES (MUSA), Neurocrine Biosciences (NBIX), Vertex Pharmaceuticals (VRTX) and World wrestling entertainment (WWE) — as well as the Dow Jones stock UnitedHealth (A H) – are among the best stocks to watch. Keep in mind that the ongoing stock market correction is a time for investors to sit on the sidelines and build watch lists.

Vertex is a recent addition to IBD classification. Murphy USA was featured in the Stock column near a buy zone this weekplus three other best stock ideas.

Dow Jones Futures Today: Treasury Yields, Oil Prices

Before Tuesday’s opening bell, Dow Jones futures fell 0.1% below fair value, while S&P 500 futures lost less than 0.1%. Nasdaq 100 futures are up less than 0.1% from fair value. Remember that overnight action in Dow Jones Futures and elsewhere does not necessarily translate into actual trading over the next stock Exchange session.

The 10-year Treasury yield fell significantly to 3.65% on Monday. Last week, the 10-year Treasury yield briefly topped 4%, the lowest it had been in over a decade.

Meanwhile, U.S. oil prices jumped more than 4% on Tuesday, with West Texas Intermediate futures trading above $83 a barrel. Last week they fell to their lowest level of the year. Wednesday, OPEC+ will meet consider a production cut to help support falling oil prices.

What to do in the new stock market rally attempt

Despite Monday’s strong gains, IBD’s market trend remains in a “correcting market”, with the strong selling of the past few weeks. This means investors need to stay in cash.

However, Monday’s gains kicked off another attempt at a stock market rally, which is your Day 1. Action on Days 2 and 3 is irrelevant until the index breaks above its latest low. If this low is undercut, the rally test is over and the market must try again.

Then, investors must wait for a trailing day, which occurs on day 4 or later. From Thursday (day 4), you are looking for a strong rise in the Nasdaq or S&P 500 in higher volume than the previous session. This is a follow-up day. This gives investors the green light to start buying top-tier stocks overshooting the fair buy points. It should synchronize your portfolio and mindset with the stock market action by gradually committing capital to leading stocks.

Now, before a possible follow-up day, is the perfect time to build a strong watchlist best performing stocks. Many long-term leaders tend to break out at or near the trailing, market bottom signal. Missing that first opportunity can be a costly mistake.

Friday’s The Big Picture column commented, “Market averages have now fallen for a third consecutive quarter for the first time since 2009. The crumb of comfort for investors is the fact IBD research reveals bear markets form in three or four waves of intense selling. It seems to be the third game.”

Five Dow Jones stocks to watch now

Dow Jones stocks to watch: UnitedHealth

Dow Jones UnitedHealth stock rose 2.1% on Monday, again finding support around the long-term 200-day line. The shares are building a flat base that has a buy point of 553.23, according to IBD MarketSmith graphical analysis. Stocks are around 7% from their last buy point and facing a resistance test at the 50-day line.

UNH stock shows a solid 95 over a perfect 99 IBD Composite Ratingspeak IBD Stock Check. Investors can use the IBD Composite Rating to easily assess the quality of a stock’s fundamental and technical metrics.

4 growth stocks to watch in the currentrent Stock market correction

Top stocks to watch: Murphy USA, Neurocrine, Vertex, WWE

Murphy USA, the leader in gas stations and mini-markets, is building a flat base with a buy point of 303.19. Stocks rebounded 3.1% on Monday and are approaching potential resistance at their 50-day line. A decisive recovery from this level would be bullish for the stock’s basis building outlook.

Wednesday’s IBD 50 Stocks To Watch pickNeurocrine Biosciences, builds a flat base that has a buy point of 109.36, according to IBD MarketSmith graphical analysis. Stocks are just 2% off the buy point after Monday’s 0.5% gain. The RS line hit a new high on Friday, a bullish signal.

IBD Ranking Stock Vertex Pharmaceuticals definitely regained her 50 day line Last week. Stocks are building a flat base with a buy point of 306.05 and an early entry at 296.24. The stock topped early entry on Monday’s nearly 3% gain. While market weakness may keep you on the sidelines, the stock’s resilience makes it a great idea to watch. Its RS line is at new highs, a potential sign of a big stock market outperformance.

World Wrestling Entertainment continues to build a flat base that has an entry of 75.33. The stock is back above its 50-day line and just 4% from the buy point. The RS range continues to reach new heights.

Join IBD experts as they analyze the top stocks of the current market correction on IBD Live

Tesla Stock

Tesla Stock plunged 8.6% on Monday, closing at its lowest level since July 18, after the company missed estimates on vehicle deliveries over the weekend.

The electric vehicle giant delivered 343,830 electric vehicles in the third quarter, up 42% from a year earlier and surpassing the first quarter record of 310,048. It was also 35% higher than the 254,695 in Q2 . The Shanghai factory faced a long shutdown and slow recovery in the second quarter due to Covid lockdowns.

But analysts were expecting Tesla deliveries of 350,000 to 370,000, with consensus slightly above 360,000. Tesla cited an increase in the number of vehicles in transit. But that may reflect weaker Chinese demand, spurring an earlier-than-usual export surge from Shanghai.

Shares are more than 40% off their 52-week high.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones Stocks, Apple shares soared 3.1% on Monday, ending a three-day losing streak. Still, stocks are more than 20% off their 52-week high and below their 50- and 200-day lines.

Microsoft rose 3.3% on Monday, rebounding from Friday’s 52-week low price. The software giant remains more than 30% off its 52-week high.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen to learn more about growth stocks and the Dow Jones Industrial Average.


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