by Dow Jones futures fell lower before Tuesday’s open after the Dow Jones Industrial Average rose 528 points on Monday. Tesla stock fell more than 6% on Monday, finishing just off its 2022 lows.
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Inflation data, Fed meeting
Consumer inflation data will be out on Tuesday morning. The CPI is expected to rise 0.3% for 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 pivot from aggressive tightening seems unlikely, but some respite from punishing rate hikes would be welcome. According to the CME’s FedWatch tool, traders have a 74% chance of a 50 basis point rate hike.
The 10-year Treasury yield rose to 3.61% on Monday.
late Monday, Oracle (ORCL) jumped 3% after the company’s earnings and sales beat analyst estimates. Other earnings reports this week include Darden Restaurants (DR) and Lennar (LEN).
Stock market today
The Dow Jones Industrial Average rose 1.6%, or 528 points, and the S&P 500 was up 1.4% on Monday. The tech-heavy Nasdaq composite followed with a 1.3% increase. Among exchange-traded funds, the Invesco Nasdaq 100 tracker QQQ Trust (QQQ) rose 1.3% and the SPDR S&P 500 (SPY) rose 1.4%.
The electric vehicle giant Tesla (TSLA) fell 6.3% on Monday. Among the Dow Jones shares, Apple (AAPL) rose 1.6% and Microsoft (MSFT) gained 2.9% in today’s stock market.
Allegro Microsystems (ALGM), IBD chart titles Dexcom (DXCM), KLA extension (KLAC) e Trane technologies (TT) – as well as Dow Jones names caterpillar (CAT), Home storage (HD) and UnitedHealth Group (UNH) – are among the best stocks to buy and watch.
Dexcom and Trane are IBD stocks. UnitedHealth was featured in this week’s Stocks Near A Buy Zone column. Allegro was a recent pick of IBD 50 Stocks To Watch. Caterpillar and Dexcom were recent IBD Stock Of The Day companies.
4 growth stocks to buy and watch in the Current stock market rally
Dow Jones Futures today: oil prices
Before the opening bell on Tuesday, Dow Jones futures were down 0.1% from fair value, while S&P 500 futures were down 0.2%. High-tech Nasdaq 100 futures fell 0.3% from fair value. Remember that overnight action in Dow Jones futures and elsewhere does not necessarily translate into actual trading in the next regular session of the stock market.
Oil prices in the United States rose more than 3% on Monday, rebounding from year lows. West Texas Intermediate futures traded just above $73 a barrel.
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What to do in the stock market rally
Now is an important time to read IBD’s The Big Picture column with the stock market trending back into a “confirmed uptrend.”
Even if the Nasdaq and S&P 500 remain higher, the defense is still better than the attack at this point due to continued market volatility. This means it’s fine to look for stocks to buy, but keep small positions to start with, keeping your overall exposure light.
When it comes to new signings, what kind of feedback are you getting from the market? Are your recent purchases making solid progress? If so, it’s okay to give them some space. But don’t be afraid to take partial profits if a gain reaches at least 10%. If new purchases go the wrong way or are met with an immediate sell, cut your losses when the stock drops 3% to 4%, rather than waiting for the 7%-8% rule to kick in.
(Check out IBD stock listings like IBD 50 and Stocks near a buy zone, for more 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 is nearing the point of buying 238 of a cup base, according to model accolade IBD MarketSmith, on the back of Monday’s 2.5% gain. CAT stock shows a solid 95 out of a perfect 99 IBD Composite Rating, according to IBD stock watch.
Home improvement retailer Home Depot closed less than 1% below its 329.77 basis point buy point on a cup with handle on Monday after advancing 2.3% for the session.
Healthcare giant UnitedHealth Group is tracking flat base with a buy point of 558.20. Shares are just 2% away from Monday’s last entry.
The best stocks to buy and watch: Allegro, Dexcom, KLA, Trane
Allegro MicroSystems closed Monday in the over a cup buy range with the handle’s 32.07 buy point after the day’s slight increase. ALGM stock rose 0.1% on Monday. And the 5% chasing zone rises to 33.67.
IBD Dexcom leaderboard stock tried to clear a 123.46 point buy on a flat basis, but is about 5% below the entry after recent losses. Dexcom shares rose 0.3% on Monday.
Chip leader KLA is inching further above a cup with an entry of 392.60 after Monday’s 1.9% gain. Bullishly, the relative strength line continues to make new highs in ongoing market volatility.
Trane Technologies closed about 4% below a 181.72 point buy in a cup with handle on Monday after the session’s slight decline.
Join IBD experts as they analyze the major stocks in the current stock market rally on IBD Live
Tesla shares
Tesla stock fell 6.3% on Monday, giving up all of Friday’s gains and heading back towards recent lows.
In recent weeks, TSLA stock has hit its lowest level since Nov. 23, 2020, hitting a new 52-week low price at 166.19. Shares closed Monday at 167.82, about 58% off its 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares rose 1.6% on Monday but are still below their 50-day line after last week’s losses. The stock is more than 20% off its 52-week high.
Microsoft jumped 2.9% on Monday as shares continue to hold above the 50-day line. The software giant remains about 27% off its 52-week high.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more information on growth stocks and the Dow Jones Industrial Average.
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