Dow Jones is 200 points ahead of key inflation data; 6 top stocks to buy and watch

Dow Jones futures were higher leading up to Tuesday’s open after the Dow Jones Industrial Average posted a two-day profit streak on Monday. Six top stocks to buy and watch, including popular IPO stocks Mobile (MBLY).




X



The Producer Price Index (PPI) is released at 8:30am ET on Tuesday morning. The PPI is expected to rise 0.5% in October from the previous month. And wholesale inflation is expected to rise 8.3% from a year ago.

The third-quarter earnings season continues this week with major reports from Dow Jones stocks Cisco systems (CSCO), DIY store (HD) and walmart (WMT), together with Applied materials (AMAT), from Kohl (KSS), from Lowe (LOW), Macy’s (M), Nvidia (NVDA), Palo Alto Networks (PANW) and Target (TGT).

Fair 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 sold 1.1%.

Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 0.9% and the SPDR S&P 500 (SPY) fell 0.8%.

Giant electric vehicles Tesla (TSLA) fell 2.6% on Monday. Among the Dow Jones stocks, Apple (AAPL) fell 0.4% and Microsoft (MSFT) lost 2.25% in today’s stock market.

One of the best stocks to buy and watch, IBD Leaderboard Stocks Arista Networks (ANET), IBD SwingTrader Shares General engines (GM), GlobalFoundries (GFS), Mobileye and Philips 66 (PSX) — as well as the Dow Jones name Caterpillar (CAT) — are among the top stocks to buy and watch.

Arista Networks is an IBD Leaderboard watchlist stock and also featured in the Stocks column near a buy zone last week along with three other top stock ideas. General Motors is a stock of IBD SwingTrader. And Mobileye was the featured IPO Leader last week.


4 Top Growth Stocks to Buy and Watch in the Current Stock Market Rally


Dow Jones Futures Today: Treasury Yields, Oil Prices

Prior to Tuesday’s opening bell, Dow Jones futures were up 0.3% from fair value, while S&P 500 futures were up 0.4%. Tech-heavy Nasdaq 100 futures rose 0.5% from fair value. Remember that overnight action in Dow Jones futures and elsewhere does not necessarily translate into actual trading in the next regular trading session.

The 10-year Treasury yield ticked higher on Monday to 3.86%, reversing a small portion of last week’s plunge. Meanwhile, US oil prices fell more than 4% as West Texas Intermediate futures traded just above $85 a barrel.


IBD’s latest newsletter MarketDiem gives you actionable ideas for stocks, options and cryptocurrencies straight to your inbox.


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 transitioned from a “pressurized uptrend” to a “confirmed uptrend.”

In this day and age it is important to be flexible. Despite recent gains, investors should remain cautious and limit exposure to no more than 40%. Wait for more confirmation of sustained strength before adding more exposure. Immediate distribution would be a sign to stay more defensive.

If your recent stock purchases continue to make progress, you should feel more confident about the stock market rally. But sharp reversals and losing trades are natural signs to keep more of your powder dry.

(Check out IBD stock lists like the IBD 50 and stocks near a buy zone for additional stock ideas.)


Five Dow Jones stocks to buy and watch now


Dow Jones Stocks to Watch: Caterpillar

Dow Jones member Caterpillar attempts to break out past a cup base’s 238 buy point, according to IBD MarketSmith pattern recognition. Shares of Caterpillar were flat Monday.

CAT stocks have an impressive 97 out of a perfect 99 IBD Composite Rating, according to the IBD Stock Checkup.

Top Stocks to Buy and Watch: Arista, GM, GlobalFoundries, Mobileye, Phillips 66

IBD Leaderboard share Arista Networks attempted to break past the 132.97 buy point from a choppy base amid Monday’s 2.1% gain. Stocks briefly topped the entry before closing just below it.

Automaker and IBD SwingTrader Shares General Motors gave up the 40.20 buy point of the cup with handle during Monday’s 2.8% decline. If the stock recaptures imports, the buy area will hit a high of 42.21.

Recent IBD Stock of the Day GlobalFoundries is trading about 1% away from a buy point of 66.06 in a cup base following Monday’s 0.4% gain.

IPO leader Mobileye broke above the 29.96 buy point of an IPO base, according to IBD MarketSmith pattern recognition, but the shares went lower on Monday and are back below. The 5% chase zone would come out at 31.46.

Monday’s IBD 50 Stocks To Watch pick, Phillips 66, breaks out past the 110.08 buy point from a cup-with-handle base. Shares broke up on Friday, but gave up some of those gains on Monday. The stock is in the 5% buy zone, rising to 115.58.


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


Tesla stock

Tesla shares fell 2.6% on Monday, breaking a two-day profit streak and erasing Friday’s gains.

Stocks are more than 50% off their 52-week highs and sharply 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 they are still holding above their recently recaptured 50-day line. The stock is about 20% lower than 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% away from its 52-week high.

Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more information on growth stocks and the Dow Jones Industrial Average.

YOU MAY ALSO LIKE:

Top growth stocks to buy and watch

Learn how to time the market with IBD’s ETF market strategy

Find the best long-term investments with long-term IBD leaders

MarketSmith: research, charts, data and coaching all in one place

How To Research Growth Stocks: Why This IBD Tool Simplifies Searching For Top Stocks

Leave a Reply

Your email address will not be published. Required fields are marked *