Dow Jones Surges 500 Points Ahead Of Inflation Data; Fed Meeting; Tesla Stock Nears 2022 Low


Dow Jones futures were lower leading up to Tuesday’s open after the Dow Jones Industrial Average gained 528 points on Monday. Tesla stock fell more than 6% on Monday, finishing just short of 2022 lows.


Inflation Data, Fed Meeting

Consumer inflation data will be released on Tuesday morning. The CPI is expected to rise 0.3% for the month of November and 7.3% year over year, according to Econoday estimates. In addition, the next Federal Reserve policy meeting will take place on Tuesday and Wednesday.

While the Fed has already forecast a 50 basis point hike, investors will be looking for further guidance on the Fed’s plans. A turnaround from aggressive tightening seems unlikely, but some respite from punitive rate hikes would be welcome. According to the CME’s FedWatch tool, traders are placing a 74% chance of a rate hike of 50 basis points.

The yield on 10-year Treasury bills ticked higher on Monday to 3.61%.

Monday late, Oracle (ORCL) rose 3% after the company’s earnings and sales figures beat analyst estimates. Include more earnings reports this week Darden Restaurants (DRI) and lennar (LEN).

Fair today

On Monday, the Dow Jones Industrial Average rose 1.6%, or 528 points, and the S&P 500 rose 1.4%. The technology-heavy Nasdaq composite followed with a 1.3% increase. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) was up 1.3% and the SPDR S&P 500 (SPY) was up 1.4%.

Giant of electric vehicles Tesla (TSLA) was down 6.3% on Monday. Among the Dow Jones stocks, Apple (AAPL) rose 1.6% and Microsoft (MSFT) gained 2.9% in today’s stock market.

Allegro MicroSystems (ALGM), IBD Leaderboard Share Dexcom (DXCM), KL (KLAC) and Trane Technologies (TT) — as well as Dow Jones names Caterpillar (CAT), DIY store (HD) and UnitedHealth group (UNH) — are among the top stocks to buy and watch.

Dexcom and Trane are IBD Leaderboard stocks. UnitedHealth was featured in this week’s Stocks section near a buy zone. Allegro was a recent IBD 50 Stocks To Watch pick. Caterpillar and Dexcom were recent IBD Stock Of The Day companies.

4 Top Growth Stocks to Buy and Watch in the Current Stock Market Rally

Dow Jones Futures Today: Oil Prices

Prior to Tuesday’s opening bell, Dow Jones futures, S&P 500 futures and the tech-heavy Nasdaq 100 futures all lost 0.1% from fair value. Remember that overnight action in Dow Jones futures and elsewhere does not necessarily translate into actual trading in the next regular trading session.

US oil prices rose more than 3% on Monday, recovering from their year-to-date lows. West Texas Intermediate futures traded just above $73 a barrel.

IBD’s latest newsletter, MarketDiem, brings actionable ideas for stocks, options, and crypto to your inbox.

What to do during the stock market rally

This is an important time to read IBD’s The Big Picture column with the stock market trending back in a “confirmed uptrend”.

While the Nasdaq and S&P 500 indices continue to trend upwards, defense is still better than offense at this point due to continued market volatility. That means it’s OK to look for stocks to buy, but keep positions small to begin with, while keeping your overall exposure light.

What kind of feedback do you get from the market when it comes to new purchases? Are your latest purchases making good progress? In that case, it’s fine to give them some space. But don’t be afraid to take partial profits if the profit is at least 10%. If new purchases go in the wrong direction, or sell immediately, cut losses when inventory is down 3% to 4%, rather than waiting for the 7%-8% rule to kick in.

(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 Buy and Watch: Caterpillar, Home Depot, UnitedHealth

Dow Jones member Caterpillar moves closer to a cup base’s 238 buy point, according to IBD MarketSmith pattern recognition, after Monday’s 2.5% gain. CAT stocks show a solid 95 out of a perfect 99 IBD Composite Rating, according to the IBD Stock Checkup.

Home Depot, the home improvement retailer, ended Monday less than 1% below the 329.77 buy point on a cup-with-handle base following the session’s 2.3% gain.

Healthcare giant UnitedHealth Group follows a flat base with a buy point of 558.20. Stocks are just 2% off Monday’s last entry.

Top stocks to buy and watch: Allegro, Dexcom, KLA, Trane

Allegro MicroSystems ended Monday in buy range past a cup with handle’s 32.07 buy point after the day’s slight gain. ALGM shares were up 0.1% on Monday. And the 5% pursuit zone goes up to 33.67.

IBD Leaderboard Share Dexcom attempted to break past a buy point of 123.46 in a flat base, but is about 5% below entry after recent losses. Shares of Dexcom rose 0.3% on Monday.

Chip leader KLA continues above a cup with handle’s 392.60 entry after Monday’s 1.9% increase. Bullish, the relative strength line continues to make new highs in ongoing market volatility.

Trane Technologies ended about 4% below a buy point of 181.72 in a handle cup on Monday after the session’s slight decline.

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

Tesla stock

Tesla shares fell 6.3% on Monday, giving up all of Friday’s gains and returning to their recent lows.

In recent weeks, TSLA stock reached its lowest level since November 23, 2020, reaching a new 52-week low at 166.19. The shares closed Monday at 167.82, about 58% from their 52-week high.

Dow Jones leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares rose 1.6% on Monday, but they are still below their 50-day line after last week’s losses. The stock is more than 20% off its 52-week high.

Microsoft rose 2.9% on Monday as shares remain above the 50-day mark. The software giant remains about 27% from its 52-week high.

Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more information on growth stocks and the Dow Jones Industrial Average.


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The Valley Voice
The Valley Voice
Christopher Brito is a social media producer and trending writer for The Valley Voice, with a focus on sports and stories related to race and culture.


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