Dow Jones jumps 450 points but Tesla stock plunges on missed deliveries

The Dow Jones Industrial Average rallied more than 450 points on Monday morning to kick off the fourth quarter of 2022. Tesla stock slipped after the company reported record third-quarter vehicle deliveries on Sunday, but they are well below views.


Sharpness marks (AYI), Conagra Brands (GAC), Constellation Brands (STZ) and McCormick (MKC) are among the top earnings reporters this week.

Leader in electric vehicles You’re here (TSLA) was trading down 7% on Monday. Tech Titans Apple (AAPL) and Microsoft (MSFT) were higher after today’s stock market open. Chevron (CVX) was one of the best performers in the Dow, rising almost 5% as US oil prices surged.

In the ongoing weakness of stock markets, DoubleVerify (DV), Hostess Brands (TWNK), Neurocrine Biosciences (NBIX), Toro (including tax), Vertex Pharmaceuticals (VRTX) and World wrestling entertainment (WWE) – as well as Dow Jones stocks UnitedHealth (UNH) – are among the most important stocks to watch. Keep in mind that the deepening of the stock market correction is a time for investors to sit on the sidelines and make watchlists.

DoubleVerify and Vertex are IBD ranking stocks. Hostess and Toro were featured in last week’s Stock Near A Buy Zone column. Neurocrine Biosciences was one of the IBD Stocks of the Day recently.

Dow Jones Today: Treasury Yields, Oil Prices

After Monday’s opening bell, the Dow Jones Industrial Average rose 1.6%, while the S&P 500 rose 1.5%. The tech-heavy Nasdaq Composite gained 1.15% in morning action.

Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 1.1% and the SPDR S&P 500 ETF (SPY) rose 1.5%.

The 10-year Treasury yield fell significantly to 3.65% on Monday morning. Last week, the 10-year Treasury yield briefly topped 4%, the lowest it had been in over a decade.

Meanwhile, U.S. oil prices jumped 6% on Monday as West Texas Intermediate futures traded at $84 a barrel. Last week they fell to their lowest level of the year. On Wednesday, OPEC+ will meet to consider a production cut to help support falling oil prices.

Stock market correction

On Friday, the Dow Jones Industrial Average fell 1.7%, while the S&P 500 closed down 1.5%. The Nasdaq composite also lost 1.5%. Market averages have now fallen for a third straight quarter for the first time since 2009. Meanwhile, the Dow Jones and S&P 500 posted their biggest monthly losses since March 2020.

Friday’s The Big Picture column commented: “The blue chip index closed at levels last seen in November 2020 as it plunged 1.7% for the day and 2.9% It ended September down nearly 9% and has now fallen in each of the past three weeks. Nike (NKE) was by far the worst performer, dropping 12.8% on quarterly results.”

With major stock indices at new corrective lows, investors are still looking for another attempt at a rally. Amid the continued selling, investors are expected to remain in cash.

Nevertheless, it is important that investors take advantage of this downtime. Now is the perfect opportunity to study market lows and build a strong watchlist of top performing stocks. Many long-term leaders tend to break out on or near the day after the market bottom signal. Missing that first opportunity can be a costly mistake.

Five Dow Jones stocks to watch now

Dow Jones stocks to watch: UnitedHealth

Dow Jones UnitedHealth stock continues to hold above its long-term 200-day line. The shares are building a flat base that has a buy point of 553.23, according to IBD MarketSmith’s chart analysis. The stock’s resilience — its relative strength line hit a new high on Friday — made it Tuesday’s IBD 50 Stocks To Watch pick. Shares rose 0.7% on Monday morning.

UNH stock is posting a solid 95 out of a perfect IBD composite rating of 99, according to the IBD Stocks Balance Sheet. Investors can use the IBD Composite Rating to easily assess the quality of a stock’s fundamental and technical metrics.

4 growth stocks to watch in the currentrent Stock market correction

Top stocks to watch: DoubleVerify, Hostess, Neurocrine, Toro, Vertex, WWE

IBD Leaderboard DoubleVerify stock closed just below its buy point of 28.07 on a low basis after Friday’s 1.5% drop. According to the leaderboard commentary, DoubleVerify has found support near its 50-day line and has a relative strength line at new highs. The shares traded down 0.8% on Monday.

Twinkie maker Hostess Brands is holding on to its buy point of 23.23 on a mug with handle, according to IBD MarketSmith’s chart analysis. On the upside, Hostess’ relative strength line continues to hit new highs. Keep in mind that the weak market trend should keep you away, but it is one of the main stocks to watch. The stock was up 0.5% on Monday.

Neurocrine Biosciences is still building a flat base which has a buy point of 109.36. Stocks decisively regained their 50-day line on Friday’s 3.4% jump. The RS line hit a new high last week. Shares fell 0.4% on Monday.

Toro stock is in a flat base and about 5% from a buy point of 92.05. Stocks fell further below their 50-day line after Friday’s 0.4% decline. The RS range reaches new heights. Shares of Toro traded up 0.6% on Monday.

Vertex Pharmaceuticals definitely regained its 50-day line last week and is forming a flat base with a buy point of 306.05 and an early entry at 296.24. The resilience of the title makes it a great idea to watch. Shares rose 0.4% on Monday.

World Wrestling Entertainment continues to build a flat base that has an entry of 75.33. The stock is back above its 50-day line and about 7% from the buy point. WWE shares rose 0.85% early Monday.

Join IBD experts as they analyze the top stocks of the current market correction on IBD Live

Tesla Stock

Tesla stock fell another 1.1% on Friday, closing at its lowest level since July 26. The shares are significantly below their 50-day line. Tesla shares plunged 7% on Monday morning after missing delivery estimates.

Tesla delivered 343,830 electric vehicles in the third quarter, up 42% from a year earlier and topping the first quarter record of 310,048. It was also 35% higher than Q2’s 254,695. The Shanghai factory faced a long shutdown and slow recovery in the second quarter due to Covid lockdowns.

But analysts were expecting Tesla deliveries of 350,000 to 370,000, with consensus slightly above 360,000. Tesla cited an increase in the number of vehicles in transit. But that may reflect weaker Chinese demand, spurring an earlier-than-usual export surge from Shanghai.

Over the past few weeks, the stock’s relative strength line has reached its highest level since April, but has fallen sharply in recent sessions. The shares are down about 40% from their 52-week high.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares slid 3% on Friday, extending a three-session losing streak and falling to their lowest level since June 30. Apple stock rose 0.5% on Monday morning.

Microsoft fell 1.9% on Friday, hitting another 52-week low. The software giant is more than 33% off its 52-week high. Microsoft shares gained 1% early Monday.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen to learn more about growth stocks and the Dow Jones Industrial Average.


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