Futures: Key Inflation Report Due; 6 Stocks To Buy And Watch
Dow Jones futures were higher ahead of Tuesday’s open after the Dow Jones Industrial Average snapped a two-day win streak Monday. Six top stocks to buy and watch include hot IPO stock Mobileye (MBLY).
Early Tuesday, the producer price index (PPI) is due out at 8:30 a.m. ET. The PPI is expected to rise 0.5% in October vs. the previous month. And wholesale inflation is expected to jump 8.3% from a year ago.
Third-quarter earnings season continues this week, with key reports coming from Dow Jones stocks Cisco Systems (CSCO), Home Depot (HD) and Walmart (WMT), along with Applied Materials (AMAT), Kohl’s (KSS), Lowe’s (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 dropped 0.9%. The tech-heavy Nasdaq composite sold off 1.1%.
Among exchange traded funds, Nasdaq 100 tracker Invesco QQQ Trust (QQQ) moved down 0.9% and the SPDR S&P 500 (SPY) fell 0.8%.
Electric vehicle giant Tesla (TSLA) declined 2.6% Monday. Among Dow Jones stocks, Apple (AAPL) traded down 0.4% and Microsoft (MSFT) lost 2.25% in today’s stock market.
Among the top stocks to buy and watch, IBD Leaderboard stock Arista Networks (ANET), IBD SwingTrader stock General Motors (GM), GlobalFoundries (GFS), Mobileye and Phillips 66 (PSX) — as well as Dow Jones name Caterpillar (CAT) — are among the top stocks to buy and watch.
Arista Networks is an IBD Leaderboard watchlist stock and was also featured in last week’s Stocks Near A Buy Zone column, along with three other top stock ideas. General Motors is an IBD SwingTrader stock. And Mobileye was last week’s featured IPO Leader.
4 Top Growth Stocks To Buy And Watch In The Current Stock Market Rally
Dow Jones Futures Today: Treasury Yields, Oil Prices
Ahead of Tuesday’s opening bell, Dow Jones futures rose 0.2% vs. fair value, while S&P 500 futures moved up 0.25%. Tech-heavy Nasdaq 100 futures were up 0.35% vs. fair value. Remember that overnight action in Dow Jones futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
The 10-year Treasury yield ticked higher to 3.86% Monday, recovering a small part of last week’s plunge. Meanwhile, U.S. oil prices fell more than 4% as West Texas Intermediate futures traded just above $85 a barrel.
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What To Do In The Stock Market Rally
Now is an important time to read IBD’s The Big Picture column after the stock market trend transitioned from an “uptrend under pressure” to a “confirmed uptrend.”
At this time, it’s important to be flexible. Despite recent gains, investors should maintain a cautious posture, limiting exposure to no more than 40%. Wait for more confirmation of continued strength before adding more exposure. Immediate distribution would be a sign to stay more defensive.
If your recent stock purchases continue to make progress, then you should feel more confident in the stock market rally. But sharp reversals and losing trades would of course be 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 is trying to break out past a cup base’s 238 buy point, according to IBD MarketSmith pattern recognition. Caterpillar shares were flat Monday.
CAT stock boasts an impressive 97 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup.
Top Stocks To Buy And Watch: Arista, GM, GlobalFoundries, Mobileye, Phillips 66
IBD Leaderboard stock Arista Networks tried to break out past a choppy base’s 132.97 buy point amid Monday’s 2.1% climb. Shares briefly topped the entry before closing just below it.
Automaker and IBD SwingTrader stock General Motors gave up its cup-with-handle’s 40.20 buy point during Monday’s 2.8% drop. If the stock retakes the entry, the buy area tops out at 42.21.
Recent IBD Stock Of The Day GlobalFoundries is trading about 1% away from a 66.06 buy point in a cup base following Monday’s 0.4% rise.
IPO Leader Mobileye broke out above an IPO base’s 29.96 buy point, according to IBD MarketSmith pattern recognition, but shares reversed lower Monday and are back below it. The 5% chase zone would top out at 31.46.
Monday’s IBD 50 Stocks To Watch pick, Phillips 66, is breaking out past a cup-with-handle base’s 110.08 buy point. Shares broke out Friday, but gave up a part of those gains Monday. The stock is in the 5% buy zone, which goes up to 115.58.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla stock declined 2.6% Monday, snapping a two-day win 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 average lines.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares fell 0.4% Monday, but are still holding above their recently recaptured 50-day line. The stock is about 20% off its 52-week high.
Microsoft declined 2% Monday, giving back the entirety of Friday’s gains. The stock halted the session’s slide 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 on growth stocks and the Dow Jones Industrial Average.
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Read More: Futures: Key Inflation Report Due; 6 Stocks To Buy And Watch