Dow Jones futures were higher ahead of Tuesday’s open and the US election results. Key inflation data, including the consumer price index, is expected to be released later in the week.
Republicans will almost certainly retake the House of Representatives in Tuesday’s midterm elections. They seem to have the advantage to win the Senate, although it’s less clear. Democrats currently have a slim majority in the House, with Vice President Kamala Harris holding the deciding vote in the Senate 50-50.
Published Thursday, the consumer price index should increase by 0.7% in October compared to the previous month. Consumer inflation is expected to rise 8% year-on-year.
Diamondback Energy (CROC), Lyft (LYFT), Mosaic (MOS) and medical shock wave (SWAV) were the main reporters for Monday night’s results.
FANG stock traded a fraction lower in the extended trade, while Lyft stock plunged more than 16%. Mosaic shares rose slightly. And shares of Shockwave 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 tech-heavy Nasdaq composite climbed 0.85%.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 1.1% and the SPDR S&P 500 (SPY) rose 0.9%.
VE Giant You’re here (TSLA) slipped 5% on Monday. Among Dow Jones stocks, Apple (AAPL) rose 0.4% and Microsoft (MSFT) jumped 2.9% in the current stock market.
Among the best stocks to buy and watch, Albemarle (ALB), IBD Ranking Watch List Stock Arista Networks (A NET), 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 an IBD Leaderboard watchlist stock. Albemarle was featured in this week’s Stocks Near A Buy Zone column, along with three other stock ideas.
4 most important growth stocks to buy and watch in the currentrStock market rally
Dow Jones Futures Today: Treasury Yields, Oil Prices
Before Tuesday’s opening bell, Dow Jones futures, as well as S&P 500 and Nasdaq 100 futures, were little changed from fair value. Remember that overnight action on futures contracts on Dow Jones and elsewhere does not necessarily translate into actual trading in the next regular trading session.
The 10-year Treasury yield rose to 4.21% on Monday, extending a four-session winning streak and closing at its highest level since Oct. 24. Meanwhile, US oil prices fell nearly 1% as West Texas Intermediate futures traded near $92 a barrel. . Last week, WTI futures hit their highest level since mid-October.
IBD’s latest newsletter, MarketDiem, delivers practical insights for stocks, options and crypto straight to your inbox.
Third quarter earnings Season
The third quarter earnings season continues this week, with other key reports coming in from disney (SAY), DoubleVerify (DV), DR Horton (DHI), western (OXY) and Roblox (RBLX).
Earnings reports are driving many of the biggest moves in stocks, and they require close attention. Strong earnings can fuel major stocks above new buy points and into buy zones, while a less-than-impressive news can push stocks below key support levels.
The stock market’s reaction to an earnings release can often tell you more than the earnings themselves. If results look strong but the stock still slips, investors may worry about the sustainability of growth, rising costs, or other potential negative effects.
With the market in rally mode, investors should follow companies that easily beat earnings results and have strong upside reactions. These stocks could be among the new leaders if the market manages to rebound from its recent losses.
What to do in the struggling stock market rally
Now is an important time to read IBD’s The Big Picture column after the stock market trend transitioned from a “Confirmed Uptrend” to an “Uptrend Under Pressure”.
At this point, investors should play defensive; don’t let profitable trades turn negative. As The Big Picture reiterated last week, it makes sense to keep exposure at 20% or less until the uptrend resumes.
But now is not the time to walk away completely. The uptrend is still intact, so investors can still buy breakouts but should focus on stocks with top-notch fundamental and technical metrics.
(Check out IBD stock listings 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: Merck, UnitedHealth
Merck, a member of the Dow Jones and IBD 50, is out of the buy range past the 93.12 buy point of the double bottom. The 5% buy range has risen to 97.78.
Healthcare giant UnitedHealth continues to watch a cup with the handle’s buy point of 553.23, according to IBD MarketSmith, after last week’s breakout attempt. Shares rebounded 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 builds the right side of a cup base that has a buy point of 308.34. Shares rose 0.5% on Monday, extending a three-session winning streak.
IBD Leaderboard Arista Networks watchlist stock is trying to break above the buy point of 132.97 from a choppy base. Shares fell 0.4% on Monday.
CF Industries is trying to find support around its 50-day moving average amid Monday’s 1% loss. Stocks are building a cut base which has a buy point of 119.70, according to IBD MarketSmith pattern recognition.
New Fortress Energy is rapidly approaching the buy point of 63.16 from a cut basis. With the stock around 6% off new highs, keep an eye out for a handful to offer early entry. The energy leader released results Monday evening, triggering a 1.5% gain on the day.
Join IBD experts as they analyze the top stocks of the current stock market rally on IBD Live
Tesla stock slipped 5% on Monday, hitting a new 52-week low and hitting its lowest level since June 2021.
Stocks are more than 50% off their 52-week high and significantly below their 50- and 200-day moving averages.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares rose 0.4% on Monday despite the company’s warning that it has cut iPhone 14 production due to Covid-19 restrictions in China. Apple stock ended a five-day losing streak but is still about 24% off its 52-week high.
Microsoft jumped 2.9% on Monday, continuing its rebound from Friday’s 52-week low. The software giant remains around 35% off its 52-week high.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen to learn more about growth stocks and the Dow Jones Industrial Average.
YOU MIGHT ALSO LIKE:
Top growth stocks to buy and watch
Learn to Time the Market with IBD’s ETF Market Strategy
Find the best long-term investments with IBD’s long-term leaders
MarketSmith: research, charts, data and coaching in one place
How to Research Growth Stocks: Why This IBD Tool Simplifies Finding the Best Stocks