Dow Jones futures were lower ahead of Tuesday’s open after the Dow Jones Industrial Average rallied more than 400 points on Monday. Tech titans Alphabet, Apple, Meta Platforms and Microsoft all have earnings due this week.
But first, Dow Jones stocks 3M (MMM) and Coca Cola (KO) will report early on Tuesday. General Motors (GM), Halliburton (HAL), Raytheon Technologies (RTX) and UPS (UPS) will also be among the keynote speakers on Tuesday morning.
Stock market today: Chinese shares fall
On Monday, the Dow Jones Industrial Average gained 1.3% and the S&P 500 gained 1.2%. The technology-rich Nasdaq composite rose 0.9%. And the small-cap Russell 2000 rose 0.35%.
Among exchange-traded funds, the Nasdaq 100 Invesco QQQ Trust ( QQQ ) rose 1.1% and the SPDR S&P 500 ( SPY ) rose 1.2%.
Chinese stocks were rocked 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 a number of supporters to the party’s most powerful decision-making body after securing a convention-defying third term.
Alibaba (GRANDMA) i Baidu (BIDU) fell more than 12% each. New energy Daqo (DQ) plunged nearly 7%, and Li Car (LI) fell 17%. AND Pinduoduo (PDD) tumbled 24%.
EV div Tesla ( TSLA ) pared losses to 1.5% after hitting a new 52-week low. Among the Dow Jones stocks, Apple (AAPL) traded up 1.5% and Microsoft ( MSFT ) climbed 2.1% in the stock market today.
AutoZona (AZO), Cardinal health (CAH), Eli Lilly (LLY) and Texas Roadhouse (TXRH) — as well as Dow Jones stocks Chevron (CVX) and UnitedHealth (UNH) — are among the best stocks to buy and watch. Keep in mind that a new rally in the stock market is the perfect time for investors to start their watch lists.
Cardinal and Texas Roadhouse are stocks on the IBD Leaderboard. Eli Lilly is an IBD SwingTrader stock. UnitedHealth is featured in this week’s Stocks Near the Buy Zone column, along with three other top stock ideas.
4 stocks with the highest growth to watch in the exchange raterent Gathering of the stock market
Dow Jones futures today: Treasury yields, oil prices
Ahead of Tuesday’s opening bell, Dow Jones futures fell 0.3% against fair value, while S&P 500 futures lost 0.2%. Nasdaq 100 futures were up less than 0.1% at fair value. Note that overnight action on Dow Jones futures and elsewhere does not necessarily mean actual trading at the next regular session of the stock market.
The yield on the 10-year Treasury note rose to 4.23% on Monday, settling at its highest level since June 2008. Meanwhile, US oil prices fell on Monday, ending a three-day winning streak. West Texas Intermediate futures traded near $85 a barrel.
Earnings in the 3rd quarter Season: Alphabet, Apple, Meta, Microsoft to report
This week marks the start of third quarter earnings season, with key reports coming from tech titans Alphabet (GOOGL), Apple (AAPL), Meta platform (TARGET) i Microsoft (MSFT).
Results from Boeing (BA), Chevron, Merck and Visa (V) should also go out during the week.
Earnings reports cause many of the biggest moves in stocks and require special attention. Strong earnings can propel top stocks to previously untouched levels — and above new buy points — while a less impressive announcement can send stocks tumbling.
The stock market’s reaction to an earnings announcement can often tell you more than the earnings themselves. If results appear strong but the stock still falls, investors may be concerned about the sustainability of growth, rising costs or other potential negatives.
While the market is trying to recover, investors should keep an eye on companies that skillfully beat earnings results and have strong positive reactions. They could be among the leaders in the stock market if the market manages to recover.
What to do in the new rise of the stock market
Despite 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 under 40% exposure until the market starts to prove itself.
Now is an important time to read IBD’s Big Picture column. After Friday’s strong gains, investors are looking to launch their select watchlists to jump on future breakouts. But not all follow-ups work, so it’s important to increase exposure slowly and methodically as a new uptrend proves itself.
If the uptrend is real and significant, there will be plenty of time to make money with successful breakouts. Right now, it’s important to be disciplined in increasing exposure as the stock market’s new rally strengthens.
Five Dow Jones Stocks You Can Watch Right Now
Dow Jones stocks to watch: Merck, UnitedHealth
Dow Jones and IBD 50 member Merck breaks above a double bottom buy point of 93.12, according to IBD MarketSmith pattern recognition. Shares rose 1.8% on Monday, ending in a 5% buy zone that goes to 97.78. Earnings results for the third quarter are due Thursday before the open.
Healthcare giant UnitedHealth is nearing a cup-with-handle buy point of 553.23, according to IBD MarketSmith pattern recognition. Shares gained 1.5% on Monday, closing in on the stock’s last entry.
Best stocks to watch: AutoZone, Cardinal, Eli Lilly, Texas Roadhouse
Auto parts leader and recent IBD Stock of the Day AutoZone broke through a 2,362.34 buy base, racing 4.6% higher on Monday. The 5% chase zone goes to 2480.46.
IBD Leaderboard Cardinal Health stock is in buy range after a short cup-with-handle entry at 71.22, according to IBD MarketSmith chart analysis. The stock is also breaking through a flat base of 72.38 buy points. Earnings are scheduled for November 4.
IBD SwingTrader Eli Lilly stock closed further in a buy range after a flat base buy point of 335.43, climbing 2.1% on Monday.
Texas Roadhouse is trying to regain a permanent base of 95.52 buy points after a brief breakout last week. Shares ended Monday slightly above the entry price. Earnings are due to be released on Thursday.
Join IBD experts as they analyze the leading stocks in the stock market’s current rally on IBD Live
Tesla shares fell as much as 7.4% on Monday before paring losses to 1.5% after cutting prices of its Model 3 and Model Y cars by as much as 9% in China. Shares hit their lowest level since June 2021.
The stock closed about 49% lower than its 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among the Dow Jones stocks, Apple shares gained 1.5% on Monday and are about 18% off their 52-week high. Despite the recent rally, the stock remains below its 50- and 200-day lines. Apple’s earnings are reported for Thursday after the close.
Microsoft rose 2.1% on Monday, rising for the second day in a row. The stock is recovering after hitting a 52-week low on Oct. 13. The software giant remains about 30% below its 52-week high. Microsoft’s earnings are due to be released on Tuesday evening.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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