Dow Jones futures were lower ahead of Tuesday’s open. A fresh attempt at a rally in stock markets began on Monday as the Dow Jones Industrial Average rose 765 points.
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stock market today
On Monday, the Dow Jones Industrial Average rose 2.7%, leading the stock market higher. The S&P 500 was up 2.6% and the tech-heavy Nasdaq Composite was up 2.3%. And the small-cap Russell 2000 is up 2.65%.
Among exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust (QQQ) was up 2.35% and SPDR S&P 500 (SPY) was up 2.6%.
This week’s key earnings reports come from Acuity Brands (AYI), ConAgra brands (KAG), constellation marks (STZ) and McCormick (MKC).
General Motors (GM) on Monday reported its third-quarter auto sales, beating expectations on strong consumer demand and better vehicle availability. GM shares gained 2.4% on Monday but are still more than 50% off their 52-week high.
EV giant Tesla (TSLA) tumbled 8.6% after missing vehicle shipment estimates. Among the Dow Jones stocks Apple (AAPL) rose 3.1% during Microsoft (MSFT) is up 3.4% in today’s stock market.
In the ongoing stock market weakness Murphy United States of America (MUSA), Neurocrine Life Sciences (NBIX), Apex Pharma (VRTX) and World Wrestling Entertainment (WWE) – as well as Dow Jones stocks UnitedHealth (UNH) – are among the top stocks to watch. Keep in mind that the ongoing stock market correction is a time for investors to sit on the sidelines and make watch lists.
Vertex is a new addition to the IBD Leaderboard. Murphy USA was featured in this week’s “Stocks Near a Buy Zone” column, along with three other top stock ideas.
Dow Jones Futures Today: Treasury Yields, Oil Prices
Ahead of Tuesday’s opening bell, Dow Jones futures fell 0.1% below fair value, while S&P 500 futures were down less than 0.1%. Nasdaq 100 futures are up less than 0.1% from fair value. Keep in mind that overnight action in Dow Jones futures and elsewhere doesn’t necessarily translate to actual trading in the next regular trading session.
The 10-year Treasury yield fell sharply to 3.65% on Monday. Last week, the 10-year Treasury yield briefly exceeded 4%, not in more than a decade.
Meanwhile, U.S. oil prices rose more than 4% on Tuesday as West Texas Intermediate futures traded above $83 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.
What to do in the new stock market rally attempt?
Despite Monday’s strong gains, IBD’s market trend remains in a “market in correction” with strong selling over the past few weeks. That means investors should stay in cash.
However, Monday’s gains sparked a fresh stock market rally attempt which is your Day 1. Day 2 and Day 3 action is irrelevant as long as the index fails to undercut its recent low. Breaking below that low means the rally attempt is over and the market has to try again.
Next, investors should wait for a follow-through day that occurs on day 4 or later. Starting Thursday (Day 4), expect the Nasdaq or S&P 500 to rise sharply with more volume than the previous session. This is a following day. It gives investors the green light to start buying leading stocks that break out past the correct buy points. It should align your portfolio and mindset with the stock market by gradually investing capital in leading stocks.
Now, ahead of a possible follow-through day, is the perfect time to build a strong watchlist of top-performing stocks. Many long-term leaders tend to break out at or near the follow-through, the market’s bottom signal. Missing this early opportunity can be a costly mistake.
Friday’s The Big Picture column commented: “Market averages have now fallen for the third straight quarter for the first time since 2009. The consolation for investors is that IBD research finds that bear markets form over three or four waves of intense selling. That looks like the third leg.”
Five Dow Jones stocks to watch right now
Keeping an Eye on Dow Jones Stocks: UnitedHealth
Dow Jones stock UnitedHealth rose 2.1% on Monday and found renewed support around the 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 shares are about 7% off their last buy point and are facing a resistance test at the 50-day moving average.
UNH stock shows a strong 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: Murphy USA, Neurocrine, Vertex, WWE
Gas station and convenience store leader Murphy USA is setting up a flat base with a buy point of 303.19. Shares gained 3.1% on Monday and are nearing potential resistance at their 50-day moving average. A decisive recapture of this level would be bullish on the stock’s base building prospects.
Wednesday’s IBD 50 Stocks To Watch pick, Neurocrine Biosciences, is building a flat base with a buy point of 109.36, according to IBD MarketSmith chart analysis. Shares are now just 2% from the buy point after gaining 0.5% on Monday. The RS line made a new high on Friday, a bullish signal.
IBD leaderboard stock Vertex Pharmaceuticals decisively recaptured its 50-day moving average last week. Shares form a flat base with a buy point at 306.05 and an early entry at 296.24. The stock outperformed Monday’s early entry by gaining nearly 3%. While the weak market status might keep you on the sidelines, the stock’s resilience makes it a top idea to watch. Its RS line is at new highs, a potential sign of major stock market outperformance.
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 only 4% away from the buy point. The RS line continues to make new highs.
Join IBD experts as they analyze leading stocks in the latest stock market correction on IBD Live
Tesla stock
Tesla shares fell 8.6% on Monday, closing at their lowest level since July 18 after the company missed forecasts for weekend vehicle deliveries.
The electric vehicle giant 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 protracted 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.
Shares are more than 40% off their 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares rose 3.1% on Monday, enduring a three-day losing streak. Still, shares are more than 20% below their 52-week high and below their 50- and 200-day moving averages.
Microsoft rose 3.3% on Monday, recovering from Friday’s 52-week low. The software giant remains more than 30% below its 52-week high.
Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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