Dow Jones futures were higher ahead of Tuesday’s open and US election results. Key inflation data, including the consumer price index, is due out later in the week.
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Republicans almost certainly will retake the House of Representatives in Tuesday’s midterm elections. They seem to have the upper hand in winning the Senate, though that is not so clear. Democrats currently hold a slim majority in the House of Representatives, with Vice President Kamala Harris holding the deciding vote in the 50-50 Senate.
Out on Thursday, the consumer price index is expected to have risen 0.7% in October from the previous month. Consumer inflation is expected to increase by 8% annually.
Diamondback Energy (FANG), Elevator (ELEVATOR), Mosaic (MOS) and Shockwave Medical (SWAV) were key earnings reporters late Monday.
FANG shares traded marginally lower in extended trading, while Lyft shares fell more than 16%. Mosaic shares rose. And Shockwave shares lost more than 5%.
Stock market today
On Monday, the Dow Jones Industrial Average advanced 1.3%, or more than 400 points, and the S&P 500 gained 1%. The technology Nasdaq Composite rose 0.85%.
Between exchange traded fundsNasdaq 100 Tracker Invesco QQQ Trust (QQQ) rose 1.1%, and the SPDR S&P 500 (A SPY) grew by 0.9%.
EV giant Tesla (TSLA) fell 5% on Monday. Between Dow Jones Stocks, An apple (AAPL) traded up 0.4% and Microsoft (MSFT) jumped 2.9%. today’s stock market.
Among the best stocks to buy and watch, Albemarle (ALB), IBD ranking watch list stock Arista Networks (NETWORK), CF Industries (CF) and New fortress energy (NFE) — as well as Dow Jones names Merck (MRK) and UnitedHealth Group (UNH) — are among the best stocks to buy and watch.
Arista Networks is IBD ranking watch list stock. Albemarle was presented in this week’s column Stocks Near a Buy Zone, along with three other top stock ideas.
4 Biggest Growth Stocks to Buy and Watch in the Courserstock market rally
Dow Jones futures today: Treasury yields, oil prices
Before Tuesday’s open, Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, were up about 0.1 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 4.21 percent on Monday, extending its winning streak to four sessions and closing at its highest level since Oct. 24. Meanwhile, U.S. oil prices fell nearly 1 percent as West Texas Intermediate futures traded near $92 a barrel. Last week, WTI futures hit their highest point since mid-October.
3rd quarter earnings Season
Third quarter earnings season continues this week with more key reports to come Disney (DIS), DoubleVerify (DV), Dr. Horton (DHI), western (OXY) and Roblox (RBLX).
Earnings reports cause many of the biggest moves in stocks and require special attention. Strong earnings can fuel top stocks above new buy points and into buy zones, while a less-than-impressive release could send stocks tumbling below key support levels.
The stock market’s reaction to an earnings release can often tell you more than the earnings themselves. If the results look strong, but the stock still falls, investors may be concerned about the sustainability of growth, rising costs or other potential negatives.
With the market in rally mode, investors should keep an eye on companies that easily beat earnings results and have strong upside reactions. These stocks could be among the new leaders if the market can recover from its recent losses.
What to do in a struggling stock market rally
Now is an important time to read IBD’s The Big Picture column after the stock market trend transition from “confirmed uptrend” to “uptrend under pressure”.
At this point, investors should play defense; don’t let winning trades go negative. As The Big Picture reiterated last week, it makes sense to keep exposure at or below 20% until the uptrend resumes.
But it’s not time to back off completely. The uptrend is still intact, so investors can still buy breakouts, but they should focus on stocks with top-notch fundamentals and technicals.
(Take a look IBD Stock Lists like IBD 50 and Stocks near a buy zonefor additional stock ideas.)
Five Dow Jones Stocks to Buy and Watch Now
Dow Jones Stocks to Watch: Merck, UnitedHealth
Member of Dow Jones and IBD 50 Stocks Merck is out of scope for purchase after a double bottomis 93.12 point of purchase. The 5% buy range rose to 97.78.
Healthcare giant UnitedHealth continues to search for cup with handle 553.23 point of purchase, According to IBD MarketSmithafter last week’s breakout attempt. Shares rose 1.3% on Monday, closing about 1% below the stock’s last entry.
Top stocks to buy and watch: Albemarle, Arista, CF, New Fortress
Lithium producer Albemarle is building the right side of a cup base that has a 308.34 buy point. The stock rose 0.5 percent on Monday, extending its winning streak to three sessions.
IBD ranking watchlist stock Arista Networks tries to break volatile base at 132.97 point of purchase. Shares fell 0.4% on Monday.
CF Industries is trying to find support around its 50-day moving average amid Monday’s 1% loss. The stock is building a bowl base that has a 119.70 buy point, according to IBD MarketSmith pattern recognition.
New Fortress Energy is fast approaching the 63.16 cup buy point. With shares about 6% away from new highs, watch for a handle to suggest an early entry. The energy leader reported results late Monday, sparking a 1.5% gain on the day.
Join IBD’s experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla stock
Tesla shares fell 5% on Monday, hitting a new 52-week low and hitting its lowest level since June 2021.
Shares are more than 50% off their 52-week high and sharply below their 50- and 200-day moving averages.
Dow Jones Leaders: Apple, Microsoft
Between Dow Jones StocksApple shares rose 0.4% on Monday despite warning the company that it has been reduced iPhone 14 production due to Covid-19 restrictions in China. Apple shares snapped a five-day losing streak but are still about 24% off their 52-week high.
Microsoft jumped 2.9% on Monday, continuing its recovery from Friday’s 52-week low. The software giant remains about 35% 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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