Dow Jones futures were higher than Tuesday’s open after the Dow Jones Industrial Average ended Monday with modest losses. Tesla shares plunged, reaching a 52-week low and approaching a two-year low. The minutes of the last policy meeting of the Federal Reserve will be published on Wednesday.
The short holiday week will receive a deluge of economic data on Wednesday, including consumer confidence, durable goods orders, first jobless claims, PMI readings and new home sales. The stock market is closed on Thursday for Thanksgiving, along with a shortened trading session on Friday.
Dell (DEL), Urban Outfitters (URBN) and Zoom video (ZM) were the leading profit movers late Monday. DELL shares fell 2.5% in extended trading, while Urban shares rose nearly 3%. Shares of Zoom Video fell more than 5% in late trading.
The third-quarter earnings season continues this week, with reports from Baidu (BIDU), Best Buy (BBY), Deere (THE), Dick’s Sporting Goods (D.K.S.), Money tree (DLTR) and Nordstrom (JWN).
On Monday, the Dow Jones Industrial Average lost 0.1%, or 45 points, and the S&P 500 fell 0.4%. The tech-heavy Nasdaq composite sold 1.1%.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 1% and the SPDR S&P 500 (SPY) fell 0.4%.
Giant electric vehicles Tesla (TSLA) slipped 6.8% on Monday. Among the Dow Jones stocks, Apple (AAPL) fell 2.2% and Microsoft (MSFT) rose 0.3% in today’s stock market.
IBD Leaderboard stock Arista Networks (A NET), GlobalFoundries (GFS), KL (KLAC) and Shoals Technologies (SHLS) — as well as the Dow Jones name Caterpillar (CAT) — are among the top stocks to buy and watch.
Arista Networks is an IBD Leaderboard stock and was a recent IBD stock of the day. GlobalFoundries was near a buy zone in the Equities section last week. Shoals was Thursday’s IBD 50 Stocks To Watch pick.
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 rose 0.2% above fair value, while S&P 500 futures rose 0.25%. Tech-heavy Nasdaq 100 futures rose 0.3% 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 3.82%, completing a two-day profit streak.
US oil prices fell Monday shortly after the Wall Street Journal reported that OPEC is considering an increase in production to 500,000 barrels per day. Saudi Arabia later denied the report, sending oil prices sharply off their lows. West Texas Intermediate futures traded below $76 a barrel on Monday before slashing losses.
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What to do during the stock market rally
This is an important time to read IBD’s The Big Picture column with the stock market trending back in a “confirmed uptrend”.
In this day and age it is important to be flexible. Despite the recovery in early November, investors should remain cautious and limit exposure to no more than 40%. Wait for more confirmation of sustained strength before adding more exposure. Immediate spread in major stock indices would be a sign to remain 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 remains below the 238 buy point of a cup base, according to IBD MarketSmith pattern recognition, following a recent escape attempt. Caterpillar shares rose 0.3% on Monday.
CAT stocks have an impressive 95 out of a perfect 99 IBD Composite Rating, according to the IBD Stock Checkup.
Top stocks to buy and watch: Arista, GlobalFoundries, KLA, Shoals
IBD Leaderboard share of Arista Networks remains above the 132.97 buy point from a choppy base, despite falling 0.6% on Monday.
Chip foundry GlobalFoundries is still in the buy range above a buy point of 66.06 in a cup base after Monday’s loss of 2.05%, according to IBD MarketSmith pattern recognition.
KLA is building a handle cup that has a buy point of 392.60 amid Monday’s 1.1% drop. Bullish, the stock’s relative strength line hit a new all-time high last week, a sign of a major outperformance against the S&P 500.
Shoals Technologies remains out of buy range after a buy point of 28.57 despite a second consecutive drop on Monday. The 5% buy zone peaked at 30. Wait for an orderly pullback in the buy range before considering a stock buy.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla shares fell 6.8% on Monday, extending the streak of losses to four sessions and falling to the lowest level since Nov. 23, 2020.
Stocks are about 58% off their 52-week highs and sharply below their 50- and 200-day moving averages. Meanwhile, the stock’s RS line continues to hit new lows, indicating major stock market underperformance against the S&P 500.
Dow Jones leaders: Apple, Microsoft
Among Dow Jones shares, Apple shares sold 2.2% 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 rose 0.3% on Monday, ending a three-day losing streak. Stocks remain above the 50-day mark. 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.
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