Dow Jones futures were higher at the open on Tuesday after the Dow Jones Industrial Average closed with modest losses on Monday. Tesla shares fell, hitting a 52-week low and near a two-year low. The minutes of the Federal Reserve’s latest policy meeting are due to be released on Wednesday.
The short holiday week will see a flurry of economic data on Wednesday, including consumer sentiment, durable goods orders, first-time jobless claims, PMI readings and new home sales. The stock market will be closed Thursday for Thanksgiving, along with a shortened trading session on Friday.
Dell (DELL), Urban Outfitters (URBN) and Video scaling (ZM) were key earnings drivers late Monday. Shares of DELL turned down 2.5% in extended trading, while shares of Urban rose almost 3%. Shares of Zoom Video fell more than 5% in late trading.
Stock market today
On Monday, the Dow Jones Industrial Average lost 0.1%, or 45 points, and the S&P 500 fell 0.4%. The technology Nasdaq Composite sold off 1.1%.
IBD ranking availability Arista Networks (NETWORK), GlobalFoundries (GFS), AH, OK (KLAC) and Shoals Technologies (SHLS) — as well as the Dow Jones name Caterpillar (CAT) — are among the best stocks to buy and watch.
Arista Networks is IBD ranking warehouse and was recently IBD Stock of the day. GlobalFoundries was included in last week “Stocks Near Buy Zone” column. The braids were IBD’s Picks 50 Stocks to Watch Thursday.
Dow Jones futures today: Treasury yields, oil prices
Before Tuesday’s open, Dow Jones futures were up 0.2 percent at fair value, while S&P 500 futures gained 0.25 percent. Technology-heavy Nasdaq 100 futures were up 0.3 percent at fair value. Remember this night action in Dow Jones futures and elsewhere does not necessarily become an actual trade in the next regular Stock Exchange session.
The yield on the 10-year Treasury note rose to 3.82 percent on Monday, snapping a two-day streak of gains.
US oil prices dipped briefly on Monday after The Wall Street Journal reports that OPEC is considering increasing production to 500,000 barrels per day. Saudi Arabia later denied the report, sending oil prices plummeting to record lows. West Texas Intermediate futures traded below $76 a barrel on Monday before paring losses.
What to do during a stock market rally
Now is an important time to read IBD’s The Big Picture column with the stock market trending back into a “confirmed uptrend”.
It is important to be flexible at this time. Despite the rebound in early November, investors should maintain a cautious stance, limiting exposure to no more than 40%. Wait for further confirmation of continued strength before adding more exposure. An immediate breakout in the major stock indexes would be a sign to remain more defensive.
If your recent stock purchases continue to advance, then you should feel more confident about 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
Dow Jones member Caterpillar remained below a base of 238 a cup point of purchase, According to IBD MarketSmith pattern recognition, after a recent breakout attempt. Shares of Caterpillar rose 0.3% on Monday.
Top stocks to buy and watch: Arista, GlobalFoundries, KLA, Shoals
Chip foundry GlobalFoundries is still in buy range above a 66.06 buy point in the cup base after Monday’s 2.05% loss, According to IBD MarketSmith pattern recognition.
KLA is creating a cup with a handle that has a buy point at 392.60 on the back of Monday’s 1.1% decline. On the upside, stocks’ relative strength line hit a new high last week, a sign of a big outperformance relative to the S&P 500.
Shoals Technologies remains out of buy range after a 28.57 buy point despite Monday’s second straight decline. The 5% buy zone has peaked at 30. Wait for an organized pullback in the buy range before considering a stock purchase.
Tesla shares fell 6.8% on Monday, extending its losing streak to four sessions and falling to its lowest level since Nov. 23, 2020.
Shares are about 58% off their 52-week high and sharply below their 50- and 200-day moving averages. Meanwhile, the stock’s RS line continues to make new lows, indicating major underperformance in the stock market relative to the S&P 500.
Dow Jones Leaders: Apple, Microsoft
Between Dow Jones Stocks, Apple shares sold off 2.2% on Monday, but are still holding above their recently returned 50-day line. Shares are about 20% off their 52-week high.
Microsoft rose 0.3% on Monday, ending a three-day losing streak. Shares continue to hold above 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 for more information on growth stocks and the Dow Jones Industrial Average.
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