Dow Jones futures were lower before opening Tuesday after the Dow Jones Industrial Average rose more than 400 points on Monday. Tech giants like Alphabet, Apple, Meta Platforms and Microsoft have earnings due this week.
But first, the Dow Jones stock 3M (MMM) and Coca-Cola (KO) will report early Tuesday. Synthetic engine (GM), Halliburton (HAL), Raytheon Technologies (RTX) and UPS (UPS) will also be among the main reporters Tuesday morning.
Stock market today: Chinese stocks plunge
On Monday, the Dow Jones Industrial Average rose 1.3% and the S&P 500 gained 1.2%. The tech-heavy Nasdaq composite index rose 0.9 percent. And the small-cap Russell 2000 is up 0.35%.
Among exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust (QQQ) gained 1.1% and SPDR S&P 500 (SPY) gained 1.2%.
Chinese stocks were hit on Monday by China’s Hang Seng index, which fell 6.4% to close at its lowest level since April 29, 2009. Chinese leader Xi Jinping continued to strengthen consolidating its power, appointing several supporters to the party’s most powerful decision-making body after securing a third term that defies convention.
Alibaba (BABA) and Baidu (BIDU) dropped more than 12%. Daqo New Energy (DQ) dropped nearly 7% and Li Auto (LI) fell 17%. And Pinduoduo (PDD) dropped 24%.
Huge EVs Tesla (TSLA) slashed losses to 1.5% after hitting a 52-week low. Among Dow Jones stocks, Apple (AAPL) trading increased by 1.5% and Microsoft (MSFT) is up 2.1% in the stock market today.
AutoZone (AZO), Cardinal Health (CAH), Eli Lilly (ONLY) and Texas Roadhouse (TXRH) – as well as Dow Jones stock Chevron (CVX) and UnitedHealth (UNH) – among the top stocks worth buying and worth watching. Remember that the new stock market rally is the perfect time for investors to put their watchlists to work.
Cardinal and Texas Roadhouse are shares of IBD Leaderboard. Eli Lilly is an IBD SwingTrader stock. UnitedHealth was featured in this week’s Stocks Near Buy Area column, along with three other top stock ideas.
Top 4 growth stocks to watchrent Stock Market Rally
Dow Jones Futures Today: Treasury yields, oil prices
Before Tuesday’s opening bell, Dow Jones futures were down 0.3% from fair value, while S&P 500 futures lost 0.2%. Nasdaq 100 futures contracts are up less than 0.1% from fair value. Remember that overnight action in Dow Jones futures and elsewhere does not necessarily translate into actual trading during the next regular stock market session.
The 10-year Treasury yield edged higher to 4.23% on Monday, settling at its highest level since June 2008. Meanwhile, US oil prices fell on Monday, pausing after a streak of three. victory day. West Texas Intermediate futures trade near $85 per barrel.
3rd quarter earnings Section: Alphabet, Apple, Meta, Microsoft To Report
Q3 earnings season kicks off this week, with key reports from the tech giants Alphabet (GOOGL), Apple (AAPL), Meta . Platform (META) and Microsoft (MSFT).
Results from Boeing (BA), Chevron, Merck and Passport (V) is also due throughout the week.
Earnings reports cause the most volatility for stocks, and they require special attention. High earnings can propel top stocks to previously untouched levels — and above new buy points — while a less dramatic announcement could send stocks plunging.
The stock market’s reaction to earnings releases can often tell you more than the earnings themselves. If the results look positive but the stock is still sliding, investors may be concerned about the sustainability of growth, rising costs, or other potential negatives.
With the market in attempt-to-recovery mode, investors should watch for companies that beat earnings results easily and reacted strongly to the upside. They could be among the stock market leaders if the market can recover.
What to do during a new stock market rally
Despite the recent gains, this is not the time to forcefully return to the stock with both feet, but to take a calculated approach. Exposure should be limited to a maximum of 20% of a portfolio for most investors. Active investors should maintain exposure below 40% until the market starts to prove itself.
Now is a great time to read the IBD Big Picture column. After Friday’s strong gains, investors want to put their curated watchlists to work, for future breakouts. But not all followings work, so it’s important to increase visibility slowly and methodically, as the new uptrend has proven itself.
If the uptrend is real and meaningful, there will be plenty of time to make money with successful breakouts. Right now, it’s important to be disciplined in raising your exposure as the stock market rallies strongly.
Five Dow Jones stocks to watch now
Dow Jones Stocks to Watch: Merck, UnitedHealth
Dow Jones and IBD 50 Merck stock are breaking through the 93.12 buy level of the double bottom, according to the IBD MarketSmith pattern identifier. Shares rose 1.8% on Monday, ending in a 5% buy zone to 97.78. Third-quarter earnings results will come into effect on Thursday before the opening bell.
Healthcare giant UnitedHealth is approaching the 553.23 point of purchase of the cup with handle, according to the IBD MarketSmith pattern identifier. Shares rose 1.5% Monday, moving closer to the stock’s latest entry.
Top stocks to watch: AutoZone, Cardinal, Eli Lilly, Texas Roadhouse
Auto parts lead and recently IBD Stock Of The Day AutoZone is breaking past the 2,362.34 buy point of a trophy base, racing 4.6% higher on Monday. 5% Chasing Zone increased to 2,480.46.
According to IBD MarketSmith chart analysis, Cardinal Health stock is in a buy range after the 71.22 entry of a short cup with handle, according to IBD MarketSmith chart analysis. The stock is also breaking out past a 72.38 buy point of the flat base. Expected earnings for November 4
IBD SwingTrader Eli Lilly stock closed further in a buying range past the flat base 335.43 buy point, up 2.1% Monday.
Texas Roadhouse is attempting to regain a 95.52 buy point of a flat base after a brief breakout move last week. Stocks ended Monday just above entry. Earnings are due on Thursday.
Join IBD experts as they analyze the top stocks in the current stock market rally on IBD Live
Tesla shares fell as much as 7.4% on Monday before paring losses to 1.5% after cutting Model 3 and Model Y car prices by as much as 9% in China. Shares hit their lowest level since June 2021.
Shares closed down about 49% from their 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock rose 1.5% on Monday and is down about 18% from its 52-week high. Despite a recent rally, the stock remains below the 50 and 200-day lines. Apple earnings will be recognized on the Thursday after closing.
Microsoft rose 2.1% on Monday, the second straight day of gains. The stock is in recovery mode after hitting a 52-week low on Oct. 13. The software giant is still down about 30% from its 52-week high. Microsoft earnings are due late Tuesday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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