Dow falls ahead of Fed minutes;  3 Key Earning Drivers

Dow falls ahead of Fed minutes; 3 Key Earning Drivers

Dow Jones futures were little changed ahead of Tuesday’s open after the Dow Jones Industrial Average ended with modest losses on Monday. Tesla stock plunged, hitting a 52-week low and approaching a two-year low. Minutes of the Federal Reserve’s latest policy meeting are due out on Wednesday.


The short holiday week will see a flood of economic data on Wednesday, including consumer sentiment, durable goods orders, early jobless claims, PMI readings and new home sales. The stock market will be closed Thursday for Thanksgiving, with a shortened trading session on Friday.

Dell (OF THE), Urban outfitters (URBN) and Enlarge video (ZM) were the main drivers of earnings on Monday night. DELL stock fell 2.5% in extended trade, while Urban stock rebounded nearly 3%. Zoom Video’s stock fell more than 5% late in the session.

The third quarter earnings season continues this week, with reports of Baidu (BEGIN), best buy (ABY), Deere (OF), Dick Sporting Goods (DKS), dollar tree (DLTR) and Nordström (JWN).

stock market today

On Monday, the Dow Jones Industrial Average lost 0.1%, or 45 points, and the S&P 500 fell 0.4%. The tech-heavy Nasdaq composite fell 1.1%.

Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) was down 1% and the SPDR S&P 500 (SPY) was down 0.4%.

Electric vehicle giant You’re here (TSLA) slipped 6.8% on Monday. Among Dow Jones stocks, Apple (AAPL) traded down 2.2% and Microsoft (MSFT) rose 0.3% in the current stock market.

IBD Ranking Stock Arista Networks (A NET), GlobalFoundries (GFS), KLA (KLAC) and Shoal technologies (SHLS) – as well as the Dow Jones name caterpillar (CAT) – are among the best stocks to buy and watch.

Arista Networks is an IBD Leaderboard Stock and was recently an IBD Stock of the Day. GlobalFoundries was featured in last week’s Stocks Near A Buy Zone column. Shoals was Thursday’s IBD 50 Stocks To Watch pick.

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, S&P 500 futures and technology-heavy 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 3.82% on Monday, ending a two-day winning streak.

US oil prices fell briefly on Monday after the Wall Street Journal reported that OPEC was considering a production increase of up to 500,000 barrels per day. Saudi Arabia later denied the report, causing oil prices to plummet from their all-time lows. West Texas Intermediate futures traded below $76 a barrel on Monday before paring losses.

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What to do during the stock market rally

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

At this stage, it is important to be flexible. Despite the rebound in early November, investors should remain cautious by limiting their exposure to more than 40%. Wait for more confirmation of continued strength before adding more exposure. An immediate distribution in major equity indices would be a sign to stay more defensive.

If your recent stock purchases continue to progress, you should feel more confident in the stock market rally. But sharp reversals and losing trades would of course be signs to keep more of your powder dry.

(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: Caterpillar

Dow Jones member Caterpillar remains below the 238 buy point by a cup base, according to IBD MarketSmith pattern recognition, after a recent breakout attempt. Caterpillar shares rose 0.3% on Monday.

The CAT stock boasts an impressive 95 out of a perfect IBD composite score of 99, according to the IBD stock balance sheet.

Top stocks to buy and watch: Arista, GlobalFoundries, KLA, Shoals

IBD Leaderboard Arista Networks stock remains above the buy point of 132.97 from a choppy base despite falling 0.6% on Monday.

Chip foundry GlobalFoundries is still in buy range above a buy point of 66.06 in a cup basis after Monday’s 2.05% loss, according to IBD MarketSmith pattern recognition.

KLA is building a mug with handle that has a buy point of 392.60 amid Monday’s 1.1% decline. On the upside, the stock’s relative strength line hit a new high last week, signaling a strong outperformance against the S&P 500.

Shoals Technologies remains out of the buy range past a buy point of 28.57 despite posting a second straight decline on Monday. The 5% buy zone peaked at 30. Wait for an orderly move back into the buy range before considering a stock purchase.

Join IBD experts as they analyze the top stocks of the current stock market rally on IBD Live

Tesla Stock

Tesla stock slipped 6.8% on Monday, extending a four-session losing streak and falling to its lowest level since Nov. 23, 2020.

The shares are around 58% off their 52-week high and significantly below their 50- and 200-day moving averages. Meanwhile, the stock’s RS line continues to reach new lows, indicating a sharp underperformance of the stock market against the S&P 500.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares sold off 2.2% on Monday but still held above its recently recovered 50-day line. The stock is around 20% off its 52-week high.

Microsoft rose 0.3% on Monday, ending a three-day losing streak. Stocks continue to hold above the 50-day line. The software giant remains more than 30% 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.


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