After the Dow Jones Index sold more than 480 points on Monday, Dow Jones futures rose ahead of Tuesday’s open. Tesla stock drops said multiple reports Tesla plans to cut EV production in China as demand appears to be declining.
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The EV giant denied the reports, finding it untrue that it had cut its production in China. Still, investors kept the stock down more than 6% and near daily lows.
More Fed Rate Increases to 2023?
The stock market headed south on Monday as stronger-than-expected economic data fueled fears that the Federal Reserve will continue to aggressively raise interest rates next year due to the strong labor market. Earlier on Monday, the ISM services report came in better-than-expected at 56.5 in November. and 54.4 in October. ISM services are a barometer of US business conditions in the service industry; A reading above 50 indicates expansion and a reading below 50 indicates contraction.
Monday’s economic data came directly after the year. Strong employment report on Friday This showed employers added 263,000 payroll positions, the unemployment rate remained at 3.7%, and wages rose.
According to Nick Timiraos The Wall Street Gazette“Fed officials signaled plans to raise benchmark interest rates by 0.5 percentage points at their meeting next week, but increased wage pressures could lead them to continue pushing higher than investors currently expect.”
Timiraos continued: “Policymakers expect price pressures to subside significantly next year, but rapid wage growth or higher inflation in the labor-intensive service sectors of the economy is more likely to hit benchmark rates of the currently forecasted 5% next year. It may lead to support for its removal on investors.”
The 10-year Treasury yield jumped 3.59% on Monday, recovering from sharp losses last week.
Including this week’s earnings reports Academy Sports + Outdoor (ASO), Auto Zone (AZO), Broadcom (AVGO), Ciena (PRICE), Lululemon Athletics (LULU), Ollie’s Discount Store (OLLY) and Paid Brothers (TOL).
Stock Market Today
On Monday, the Dow Jones Industrial Average lost 1.4%, or 482 points, and the S&P 500 fell 1.8%. The tech-heavy Nasdaq composite sold at 1.9%. between exchange traded fundsNasdaq 100 followers Invesco QQQ Trust (QQQ) fell 1.7% and the SPDR S&P 500 (SPY) fell 1.8%.
electric vehicle giant tesla (TSLA) was trading down 6.4% on Monday. between Dow Jones stocks, Apple (AAPL) fell 0.8% and Microsoft (MSFT) fell 1.2% today’s stock market.
Centigrade (FULLY FULL), chubby (CB), Dexcom (DXCM) and CLA (BAT)— Alongside the Dow Jones names caterpillar (CAT), strip (CVX) and Main depot (HD) — among the best stocks to buy and watch.
Dexcom a IBD Leaderboard stock available. Caterpillar and Home Depot featured in this week Stocks Near a Buying Zone column. Celsius is a new Selection of IBD 50 Stocks to Watch and one New America stock available. Caterpillar was Thursday share of the day.
4 Best Growing Stocks To Buy And Watch Over Timeyearkt Stock Market Rally
Dow Jones Futures Today: Oil Prices
Dow Jones futures were up 0.2% ahead of the opening bell on Tuesday. S&P 500 futures gained 0.25% as their fair value rose. Technology-heavy Nasdaq 100 futures rose 0.3%. reasonable value. Remember, overnight action Dow Jones futures and elsewhere it doesn’t necessarily turn into real trade on the next regular trade Exchange session.
US oil prices fell more than 3%, rebounding from early gains. West Texas Intermediate futures were trading at just over $77 a barrel. Crude oil prices rose after the first rise. European Union sanctions Russian crude oil is in full effect.
What is done in the Stock Market Rally?
Now is an important time to read IBD’s Big Picture column the stock market trend has returned to a “confirmed uptrend”.
While it’s certainly true that the S&P 500 and Nasdaq composites are still in confirmed uptrends, tradable stocks have been disappointing. Increasing exposure has not been easy.
What kind of feedback do you get when it comes to new purchases? Are new purchases progressing from points of purchase? In that case, it’s okay to give them some space. But don’t be afraid to take a partial profit if the profit reaches at least 10%. If new buys go awry, trim losses instead of waiting for the stock to drop 3% to 4%. 7% rule triggers.
Light, flexible trading is the best course of action for now. If the uptrend starts to gain momentum again, there will be many opportunities to increase exposure. And instead of waiting for a stock to reach a traditional buy point, don’t be afraid to look for early listings.
(Payment IBD Stock Lists as IBD 50 and Stocks Close to the Buying Zonefor additional stock ideas.)
Five Dow Jones Stocks to Buy and Watch Now
Dow Jones Stocks to Buy and Watch: Caterpillar, Chevron, Home Depot
Dow Jones member Caterpillar close to reclaiming 238 of its trophy base point of purchase, according to this IBD MarketSmith pattern recognitionand approximately 2% below the input. CAT stock fell 1.5% on Monday.
cat stock It has an excellent 94 out of 99 IBD Compound Ratings. IBD Stock Control.
Energy giant Chevron fell 2.5% on Monday, even further below its purchasing point of 182.50 on a consolidation basis.
Home improvement retailer Home Depot closed about 4% below a trophy bottom buy point of 333.08 on Monday, after the stock fell 2.4%.
Best Stocks to Buy and Watch: Celsius, Chubb, Dexcom, KLA
Energy drink maker Celsius fell 3.5% on Monday to hit a three-day winning streak. The stock is trying to beat the 118.29 buying point of a trophy floor but is about 4% below the entry. according to this IBD MarketSmith pattern recognition.
Insurance giant Chubb is trading just below the pommel cup’s buy point of 216.10 on Monday after losing 1.7% in the session. The 5% buying area peaks at 226.91.
IBD Leaderboard Stock Dexcom is approaching an alternative entry at 123.46 despite Monday’s 1.3% drop. Stocks are about 5% off the newest point of purchase.
New IBD Long Term Leader KLA shares are down 0.25% on Monday, continuing to hold just below the pommel cup’s 392.60 buy point amid a three-day streak of losses. The RS line remains at new highs as a sign of stock market leadership.
Tesla Stock
Tesla stock He slipped 6.4% on Monday to hit a three-day winning streak, giving up all of last week’s gains.
In recent weeks, the stock has hit its lowest level since Nov. 23, 2020 reaches a new 52-week low of 166.19. The stock has since rebounded but remained sharply below the 50 and 200-day moving average lines. Shares are about 55% off from their 52-week high.
Dow Jones Leaders: Apple, Microsoft
between Dow Jones stocksApple shares fell 0.8% on Monday, but are still holding above the 50-day line. The stock is down more than 20% from its 52-week high.
Microsoft fell 1.2% on Monday as shares continued to hold above the 50-day line. The software giant is down nearly 27% from its 52-week high.
Be sure to follow Scott Lehtonen on Twitter. @IBD_SLehtonen For more information on growth stocks and the Dow Jones Industrial Average.
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