Dow Jones futures rallied Tuesday morning, looking to rebound from the stock market drop Monday sparked by Fed Chief Jerome Powell’s “much too high” inflation comments. Treasury yields extended their gains Tuesday, while U.S. oil prices paused after Monday’s surge.
X
Before Tuesday’s open, Dow Jones stock Nike (NKE) jumped more than 5% after reporting a smaller-than-expected drop in fiscal third-quarter earnings.
Among other the Dow Jones stocks, Apple (AAPL) inched lower and Microsoft (MSFT) moved down 0.5% in today’s stock market. UnitedHealth (UNH), a Dow Jones stock to watch, finished Friday in buy range.
Chinese retailer Alibaba (BABA) advanced 8% Tuesday after the company raised its buyback program to $25 billion. Electric-vehicle leader Tesla (TSLA) rallied more than 1% early Tuesday, on pace to add to Monday’s gains.
Amid the stock market’s young uptrend, IBD Leaderboard stock Arista Networks (ANET), Broadcom (AVGO), Alpha & Omega Semiconductor (AOSL), GlobalFoundries (GFS) and CVS Health (CVS) are Tuesday’s top stocks to buy and watch.
Arista, Microsoft and Tesla are IBD Leaderboard stocks. And Broadcom was featured in this week’s Stocks Near A Buy Zone column.
Dow Jones Today: Treasury Yields, Oil Prices
Before Tuesday’s market open, Dow Jones futures rallied 0.4% vs. fair value, while S&P 500 futures moved up 0.2%. Nasdaq 100 futures were up 0.1 vs. fair value. Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.1%, and the SPDR S&P 500 ETF (SPY) was up 0.3% before Tuesday’s open.
Powell Talks Recession Risk, Super-Size Fed Rate Hikes; Dow Jones Falls
The 10-year U.S. Treasury yield extended gains Tuesday, ticking up to 2.34%. Monday’s surge to 2.31% left the yield at its highest point since May 2019. U.S. oil prices eased Tuesday morning, with West Texas Intermediate crude trading just above $111 a barrel.
On Monday, Fed Chief Powell said in prepared remarks for the National Association for Business Economics that “inflation is much too high” and the Federal Reserve will take the “necessary steps to ensure a return to price stability.” Options on the table include more aggressive 50 basis point increases.
Stock Market Rally
The stock market took a breather Monday, notching modest losses after a powerful weekly gain. The tech-heavy Nasdaq snapped its four-day win streak. For more daily stock market commentary, check out IBD’s The Big Picture column.
Monday’s The Big Picture column commented, “But on Monday the Nasdaq met resistance at its 50-day moving average, while the S&P 500 got stopped at its 200-day line. The S&P did manage to close above the neighboring 50-day average. The charts suggest the stock market could spend some time consolidating gains from last week’s surge before resuming its advance. That’s no reason to stop buying stocks right now, but it is a reminder that market volatility will make stock gains harder to gain and manage.”
If you’re new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one key to the investment guidelines. IBD offers a broad range of growth stock lists, such as Leaderboard and SwingTrader.
Investors also can create watchlists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.
Four Dow Jones Stocks To Watch Now
Dow Jones Earnings: Nike Jumps
Late Monday, Nike reported better-than-expected fiscal third-quarter earnings. Earnings measured 87 cents per share. That’s a 3% drop vs. year-ago period. And revenue rose 5% to $10.9 billion.
NKE shares jumped more than 5% in morning trade. The stock finished Monday about 27% off its 52-week high and sharply below its 50- and 200-day moving averages.
Dow Jones Stocks To Buy And Watch: UnitedHealth
Managed care giant UnitedHealth shows a 500.10 buy point with a handle entry on a double-bottom base. Shares ended Monday in buy range above their latest entry after the session’s 0.4% rise. UNH shares were flat early Tuesday.
Bullishly, the stock’s relative strength line is near new highs, indicating significant stock market outperformance.
Four Top Growth Stocks To Watch In The Current Stock Market Rally
Stocks To Buy And Watch: Arista, Broadcom, GlobalFoundries, CVS
IBD Leaderboard stock Arista Networks is approaching a double bottom’s 133.97 buy point. ANET shares rallied 0.6% Monday, extending a win streak to five sessions. Per Leaderboard commentary, Arista Networks cleared an aggressive entry near 127 and joined the Leaders as a quarter-size position. The stock was unchanged early Tuesday.
Chip giant Broadcom slipped 1.5% Monday, as it continued to build the right side of a new cup base. The cup base’s proper buy point is 677.86, but a more aggressive entry at 614.74 is in play. AVGO shares were flat Tuesday morning.
Chip leader Alpha & Omega Semiconductor is approaching a cup-with-handle’s 59.48 buy point, according to IBD MarketSmith chart analysis. Shares are about 4% away from the entry after Monday’s 1.4% decline. But the handle is 25% deep, far more than normal. This is a problem for the base, although deep handles often form during market corrections. AOSL stock was unchanged early Tuesday.
Last week’s IPO Stock Of The Week, GlobalFoundries, is back below a cup base’s 73.35 buy point following Monday’s 5.6% skid. GlobalFoundries shares rose 0.5% Tuesday morning.
Recent IBD Stock Of The Day CVS Health continues to build a flat base with a 111.35 buy point. CVS shares were unchanged Tuesday morning.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock rallied more than 1% Tuesday, looking to extend a five-day win streak. Shares regained their long-term 200-day moving average on Thursday; however volume on the move was weak. Still, the retaking of support could mark the early stages of a possible climb up the right side of a new base. Now, the stock is attempting to decisively retake its 50-day line.
The stock traded as high as 1,243.49 on Nov. 4, but ended Monday about 26% off that all-time high.
IBD Newsletters
Get exclusive IBD analysis and actionable news daily.
SIGN UP NOW!
IBD Newsletters
Get exclusive IBD analysis and actionable news daily.
- Financial Advisor Update
- How To Invest
- Market Prep
- Tech Report
Please enter a valid email address Please select a newsletter GO
Get these newsletters delivered to your inbox & more info about our products & services. Privacy Policy & Terms of Use
x
Thank You!
You will now receive IBD Newsletters
ALL DONE!
Something Went Wrong!
Please contact customer service
CLOSE
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares rose 0.85% Monday, extending a win streak to five sessions. The stock moved further back above its long-term 200-day line, and is testing resistance at its 50-day moving average. AAPL shares moved slightly higher Tuesday.
Software leader Microsoft lost 0.4% Monday, as shares try to convincingly retake their 50-day line. A new base is beginning to take shape. Microsoft shares edged higher Tuesday morning.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
YOU MAY ALSO LIKE:
Top Growth Stocks To Buy And Watch
Learn How To Time The Market With IBD’s ETF Market Strategy
Find The Best Long-Term Investments With IBD Long-Term Leaders
MarketSmith: Research, Charts, Data And Coaching All In One Place
How To Research Growth Stocks: Why This IBD Tool Simplifies The Search For Top Stocks%
The post Dow Jones Futures Rally As Treasury Yields Extend Gains, Nike Jumps On Earnings appeared first on Investor’s Business Daily.
