Futures: Key inflation report due;  6 stocks to buy and watch

Dow Jones futures were higher at the open on Tuesday after the Dow Jones Industrial Average snapped a two-day winning streak on Monday. The top six stocks to buy and watch include hot IPO stocks Mobileye (MBLY).




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Early on Tuesday, the producer price index (PPI) is due to be released at 8:30 am ET. PPI is expected to increase by 0.5% in October from the previous month. And wholesale inflation is expected to jump 8.3% from a year earlier.

Third quarter earnings season continues this week, with key reports coming from Dow Jones stocks Cisco Systems (CSCO), Home Depot (HD) and Walmart (WMT), together with Applied materials (AMAT), on a spike (KSS), Lowe (LOW), Macy’s (M), Nvidia (NVDA), Palo Alto Networks (PANW) and Target (TGT).

Stock market today

On Monday, the Dow Jones Industrial Average lost 0.6%, or 211 points, and the S&P 500 fell 0.9%. The technology Nasdaq Composite sold off 1.1%.

Between exchange traded fundsNasdaq 100 Tracker Invesco QQQ Trust (QQQ) was down 0.9%, and the SPDR S&P 500 (A SPY) fell by 0.8%.

Electric vehicle giant Tesla (TSLA) fell 2.6% on Monday. Between Dow Jones Stocks, An apple (AAPL) traded down 0.4% and Microsoft (MSFT) lost 2.25% in today’s stock market.

Among the best stocks to buy and watch, IBD ranking availability Arista Networks (NETWORK), IBD SwingTrader availability General Motors (GM), GlobalFoundries (GFS), Mobileye and Phillips 66 (PSX) — as well as the Dow Jones name Caterpillar (CAT) — are among the best stocks to buy and watch.

Arista Networks is IBD ranking watch list stocks and was also introduced in last week’s “Stocks Near Buy Zone” column, along with three other top stock ideas. General Motors is IBD SwingTrader availability. And Mobileye was introduced last week IPO leader.


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 were up 0.2 percent at fair value, while S&P 500 futures were up 0.25 percent. Technology-heavy Nasdaq 100 futures were up 0.35% 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 3.86 percent on Monday, recovering some of last week’s decline. Meanwhile, U.S. oil prices fell more than 4 percent as West Texas Intermediate futures traded just above $85 a barrel.


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What to do during a stock market rally

Now is an important time to read IBD’s The Big Picture column after the stock market trend moved from “uptrend under pressure” to “uptrend confirmed”.

It is important to be flexible at this time. Despite recent gains, 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 distribution 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.

(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: Caterpillar

Dow Jones member Caterpillar is trying to break the 238 cup base point of purchase, According to IBD MarketSmith pattern recognition. Shares of Caterpillar were flat on Monday.

CAT warehouse boasts an impressive 97 out of a perfect 99 IBD Composite Rating, according to IBD Stock Check.

Top stocks to buy and watch: Arista, GM, GlobalFoundries, Mobileye, Phillips 66

IBD ranking Arista Networks shares tried to break through a volatile base at 132.97 point of purchase on the back of a 2.1% rise on Monday. The stock briefly topped the entry before closing just below it.

Automaker and IBD SwingTrader General Motors shares gave up their 40.20 cup-handled buy point during Monday’s 2.8% decline. If the stock retakes the entry, the buy zone tops out at 42.21.

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

IPO leader Mobileye broke out above the 29.96 buy point IPO base, According to IBD MarketSmith pattern recognition, but the stock reversed on Monday and is back below it. The 5% chase zone will peak at 31.46.

IBD’s Picks 50 Stocks to Watch on MondayPhillips 66, exceeds 110.08 on the base of a cup with a handle point of purchase. The stock rallied on Friday, but gave up some of those gains on Monday. The stock is in a 5% buy zone that reaches 115.58.


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


Tesla stock

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

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 Stocks, Apple shares fell 0.4% on Monday but are still holding above their recently recovered 50-day line. Shares are about 20% off their 52-week high.

Microsoft fell 2% on Monday, giving back all of Friday’s gains. Shares halted the session’s decline at 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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