Dow Jones futures were higher heading into Tuesday’s open after the Dow Jones Industrial Average snapped a two-day winning streak on Monday. The top six stocks to buy and watch include hot IPO stocks mobileye (MBLY).
Early Tuesday, the Producer Price Index (PPI) is due at 8:30 a.m. ET. The PPI is expected to increase by 0.5% in October compared to the previous month. And wholesale inflation is expected to jump 8.3% from a year ago.
Third Quarter Earnings Season continues this week, with key reports coming from Dow Jones stocks Cisco Systems (CSCO), Home deposit (HD) and walmart (WMT), in the same way Applied materials (AMAT), Kohls (KSS), Lowe’s (DOWN), Macy’s (M), Nvidia (NVDA), Palo Alto Networks (PANW) and Target (TGT).
stock market today
On Monday, the Dow Jones Industrial Average lost 0.6%, or 211 points, and the S&P 500 fell 0.9%. The tech-heavy Nasdaq composite fell 1.1%.
Among the best stocks to buy and watch, IBD classification Stock Arista Networks (A NET), IBD Swing Trader Stock General Engines (GM), GlobalFoundries (SFP), Mobileye and Phillips 66 (PSX) — as well as the Dow Jones name caterpillar (CAT) – are among the best stocks to buy and watch.
Arista Networks is a IBD classification watchlist stock and was also presented in last week’s Stocks Near A Buy Zone column, along with three other top stock ideas. General Motors is a IBD Swing Trader Stock. And Mobileye was featured last week IPO leader.
Dow Jones Futures Today: Treasury Yields, Oil Prices
Before Tuesday’s opening bell, Dow Jones futures were up 0.2% relative to fair value, while S&P 500 futures were up 0.25%. Tech-heavy Nasdaq 100 futures rose 0.35% 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 rose to 3.86% on Monday, recovering a small portion of last week’s plunge. Meanwhile, US oil prices fell more than 4%, with West Texas Intermediate futures trading just above $85 a barrel.
What to do during the stock market rally
This is an important time to read IBD’s The Big Picture column after the stock market trend changed from a “pressurized uptrend” to a “confirmed uptrend”.
At this stage, it is important to be flexible. Despite recent gains, investors should remain cautious, limiting their exposure to more than 40%. Wait for more confirmation of continued strength before adding more exposure. An immediate distribution would be a sign to stay more defensive.
If your recent stock purchases continue to progress, you should feel more confident in the stock market rally. But sharp reversals and losing trades would of course be signs to keep more of your powder dry.
Dow Jones Stocks to Watch: Caterpillar
Top stocks to buy and watch: Arista, GM, GlobalFoundries, Mobileye, Phillips 66
car manufacturer and IBD Swing Trader General Motors stock gave up its tumbler with handle’s 40.20 buy point during Monday’s 2.8% decline. If the stock resumes entry, the buy zone peaks at 42.21.
Recent IBD stock of the day GlobalFoundries is trading around 1% from a buy point of 66.06 in a cut basis after rising 0.4% on Monday.
IPO leader Mobileye broke above the 29.96 buy point of an IPO basis, according IBD Pattern Recognition MarketSmith, but stocks reversed on Monday and are back below. The 5% pursuit zone would peak at 31.46.
Monday’s IBD 50 Stocks To Watch PickPhillips 66, exceeds 110.08 of a cup base with handle point of purchase. Shares broke out on Friday, but gave back some of those gains on Monday. The stock is in the 5% buy zone, which rises to 115.58.
Tesla Stock fell 2.6% on Monday, ending a two-day winning streak and erasing Friday’s gains.
Stocks are more than 50% off their 52-week high and significantly below their 50- and 200-day moving averages.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones Stocks, Apple shares fell 0.4% on Monday, but still hold above their recently recovered 50-day line. The stock is around 20% off its 52-week high.
Microsoft fell 2% on Monday, returning all of Friday’s gains. The stock halted the session’s slide at the 50-day line. 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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