The Dow Jones Industrial Average rose more than 450 points Monday morning to boost the fourth quarter of 2022. Tesla stock slipped after the company reported record third-quarter vehicle deliveries on Sunday, but they fell far short of expectations.
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Acuity Brands (AYI), Conagra Brands (KAG), constellation marks (STZ) and McCormick (MKC) are among the top earnings reporters this week.
Market leader in electric vehicles Tesla (TSLA) traded 7% lower on Monday. tech titans Apple (AAPL) and Microsoft (MSFT) were higher after the market open today. rafters (CVX) was one of the Dow’s top performers, rising nearly 5% as U.S. oil prices soared.
In the ongoing stock market weakness DoubleVerify (DV), hostess Brands (TWNK), Neurocrine Life Sciences (NBIX), toro (TTC), Apex Pharma (VRTX) and World Wrestling Entertainment (WWE) – as well as Dow Jones stocks UnitedHealth (UNH) – are among the top stocks to watch. Remember that the deepening stock market correction is a time for investors to sit on the sidelines and compile watch lists.
DoubleVerify and Vertex are IBD Leaderboard stocks. Hostess and Toro were featured in last week’s Stock Near A Buy Zone column. Neurocrine Biosciences was a recent IBD stock of the day.
Dow Jones Today: Treasury Yields, Oil Prices
After Monday’s opening bell, the Dow Jones Industrial Average was up 1.6%, while the S&P 500 was up 1.5%. The tech-heavy Nasdaq Composite gained 1.15% in morning action.
Among exchange-traded funds, Nasdaq 100-tracker Invesco QQQ Trust (QQQ) was up 1.1% and SPDR S&P 500 ETF (SPY) was up 1.5%.
The 10-year Treasury yield fell sharply to 3.65% Monday morning. Last week, the 10-year Treasury yield briefly exceeded 4%, not in more than a decade.
Meanwhile, US oil prices rose 6% on Monday as West Texas Intermediate futures traded at $84 a barrel. Last week they fell to their lowest level for the year. On Wednesday, OPEC+ will meet to consider a production cut to support falling oil prices.
stock market correction
On Friday, the Dow Jones Industrial Average lost 1.7% while the S&P 500 ended down 1.5%. The Nasdaq Composite also lost 1.5%. Market averages have now fallen for the third straight quarter since 2009. Meanwhile, the Dow 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, when it was down 1.7% for the day and 2.9% for the week. collapsed past three weeks. Nike (NKE) was by far the worst performer, falling 12.8% from the quarterly results.”
With major stock indices making fresh correction lows, investors are still looking for another rally attempt. Amid the ongoing selling, investors should stick to cash.
Still, it’s important for investors to make good use of this downtime. Now is an ideal opportunity to examine the bottoms and build a strong watch list of top-performing stocks. Many long-term leaders tend to break out on or near the follow-through day, the market’s bottom signal. Missing this early opportunity can be a costly mistake.
Five Dow Jones stocks to watch right now
Keeping an Eye on Dow Jones Stocks: UnitedHealth
Dow Jones stock UnitedHealth continues to hold above its 200-day long-term moving average. According to IBD MarketSmith chart analysis, shares are forming a flat base with a buy point of 553.23. The stock’s resilience — its relative strength line hitting a new high on Friday — made it an IBD 50 Stocks To Watch pick on Tuesday. Shares were up 0.7% Monday morning.
UNH stock shows a solid 95 out of 99 perfect IBD Composite Ratings according to the IBD Stock Checkup. Investors can use the IBD Composite Rating to easily gauge the quality of a stock’s fundamental and technical metrics.
4 Top Growth Stocks to Watchrightent stock market correction
Top stocks to watch: DoubleVerify, Hostess, Neurocrine, Toro, Vertex, WWE
IBD leaderboard stock DoubleVerify closed just below its 28.07 buy point on a bottoming basis after falling 1.5% on Friday. According to leaderboard comment, DoubleVerify found support near its 50-day moving average and has a relative line of strength at new highs. Shares traded 0.8% lower on Monday.
Twinkie maker Hostess Brands is holding onto its buy point of 23.23 from a mug with a handle, according to chart analysis by IBD MarketSmith. Upbeat, Hostess relative strength line continues to make new highs. Keep in mind that the weak market trend should keep you on the sidelines, but it’s one of the top stocks to keep an eye on. The stock rose 0.5% on Monday.
Neurocrine Biosciences is still building a flat base with a buy point of 109.36. Stocks decisively recaptured their 50-day moving average during Friday’s 3.4% jump. The RS line made a new high last week. Shares lost 0.4% on Monday.
Toro stock is on a flat basis and is about 5% off a buy point of 92.05. Shares fell further below their 50-day moving average after falling 0.4% on Friday. The RS line is at new highs. Toro shares rose 0.6% on Monday.
Vertex Pharmaceuticals decisively regained its 50-day moving average last week, forming a flat base with a buy point at 306.05 and an early entry at 296.24. The stock’s resilience makes it a top idea to watch. Shares rose 0.4% on Monday.
World Wrestling Entertainment continues to build flat base with an entry of 75.33. The stock is back above its 50-day moving average and about 7% from the buy point. WWE shares are up 0.85% early Monday.
Join IBD experts as they analyze leading stocks in the latest stock market correction on IBD Live
Tesla stock
Tesla shares fell another 1.1% on Friday to close at their lowest level since July 26. The shares are well below their 50-day moving average. Tesla shares fell 7% Monday morning after estimates on shipments fell.
Tesla delivered 343,830 electric vehicles in the third quarter, up 42% year over year and beating the record 310,048 in the first quarter. It was also 35% higher than the 254,695 in the second quarter. The Shanghai plant faced a prolonged shutdown and slow recovery in the second quarter due to Covid lockdowns.
However, analysts had expected Tesla deliveries of 350,000 to 370,000 with the consensus reading just above 360,000. Tesla cited an increased number of vehicles in transit. But that may reflect weaker Chinese demand, which is spurring an earlier-than-usual surge in exports from Shanghai.
Over the past few weeks, the stock’s relative strength line has hit its highest level since April, but has fallen sharply in recent sessions. Shares are about 40% off their 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares fell 3% on Friday, extending a losing streak to three sessions and falling to its lowest level since June 30. Apple shares rose 0.5% Monday morning.
Microsoft fell 1.9% on Friday, hitting another 52-week low. The software giant is down more than 33% from its 52-week high. Microsoft shares were up 1% early Monday.
Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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