Dow Jones Rallies 400 Points, What To Do Now; 4 Tech Titans Report Earnings

Dow Jones futures were lower ahead of Tuesday’s open after the Dow Jones Industrial Average rose more than 400 points on Monday. Tech titans Alphabet, Apple, Meta Platforms and Microsoft have earnings due this week.


But first, Dow Jones stocks 3M (MMM) and Coca-Cola (KO) will report early Tuesday. General Motors (GM), Halliburton (HAL), Raytheon Technologies (RTX) and UPS (UPS) will also be among the key reporters on Tuesday morning.

Stock market today: Chinese shares plunge

On Monday, the Dow Jones Industrial Average rose 1.3% and the S&P 500 rose 1.2%. The tech-heavy Nasdaq composite climbed 0.9%. And the small-cap Russell 2000 rose 0.35%.

Among exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust ( QQQ ) rose 1.1% and SPDR S&P 500 ( SPY ) rose 1.2%.

Chinese stocks were lower on Monday as China’s Hang Seng index fell 6.4%, closing at its lowest level since April 29, 2009. Chinese leader Xi Jinping has continued to consolidate his power, appointing a number of supporters to the party’s most powerful decision-making body. after securing a convention-defying third term.

Alibaba (BABY) and Baidu (BIDU) tumbled more than 12% piece. Daqo New Energy (DQ) plunged nearly 7%, and Li Auto (LI) fell 17%. And Pinduoduo (PDD) crashed 24%.

EV giant Tesla ( TSLA ) pared losses to 1.5% after hitting a new 52-week low. Among Dow Jones stocks, appeal (AAPL) rose 1.5% and Microsoft (MSFT) climbed 2.1% in today’s stock market.

AutoZone (AZO), Cardinal Health (CAH), Eli Lilly (LLY) and Texas Roadhouse (TXRH) – as well as Dow Jones stocks Chevron (CVX) and UnitedHealth (UNH) – is one of the best stocks to buy and watch. Keep in mind that the new stock market rally is the perfect time for investors to put their watch lists into action.

Cardinal and Texas Roadhouse are IBD Leaderboard stocks. Eli Lilly is an IBD SwingTrader stock. UnitedHealth was featured in this week’s Stocks Near Buy Zone column, along with three other top stock ideas.

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4 Top Growth Stocks To Watch In The Current Stock Market Rally

Dow Jones Futures Today: Treasury yields, oil prices

Before Tuesday’s opening bell, Dow Jones futures fell 0.3% versus fair value, while S&P 500 futures lost 0.2%. Nasdaq 100 futures rose less than 0.1% versus fair value. Remember that overnight action in Dow Jones futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.

The 10-year Treasury yield rose higher to 4.23% on Monday, settling at its highest level since June 2008. Meanwhile, US oil prices edged lower on Monday, stalling after a three-day winning streak. West Texas Intermediate futures traded near $85 a barrel.

K3 Earnings Season: Alphabet, Apple, Meta, Microsoft to report

The third quarter earnings season begins this week, with key reports coming from tech titans Alphabet (GOOGL), appeal (AAPL), Meta Platforms (META) and Microsoft (MSFT).

Results of Boeing (BA), Chevron, Merck and Visa (V) is also published throughout the week.

Earnings reports cause many of the biggest moves in stocks, and they require special attention. Strong earnings can propel top stocks to previously untouched levels — and above new buy points — while a less-than-impressive announcement can send stocks tumbling.

The stock market’s reaction to an earnings release can often tell you more than the earnings themselves. If the results look strong, but the stock falls anyway, investors may worry about the sustainability of growth, rising costs or other potential downsides.

With the market in rally mode, investors should seek out companies that handily beat earnings results and have strong upside reactions. They could be among the stock market’s leaders if the market can recover.

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What to do in the new stock market rally

Despite the recent gains, now is not the time to aggressively jump back into stocks with both feet, but to take a measured approach. Exposure should be limited to a maximum of 20% of the portfolio for most investors. Aggressive investors should stay under 40% exposure until the market starts to prove itself.

Now is an important time to read IBD’s The Big Picture column. After Friday’s strong gains, investors want to put their curated watch lists to work to jump on future breakouts. But not all follow-ups work, so it’s important to increase exposure slowly and methodically as the new uptrend proves itself.

If the uptrend is real and significant, there will be plenty of time to make money with successful breakouts. Right now, it is important to be disciplined to increase exposure as the new stock market period strengthens.

Five Dow Jones Stocks to Watch Now

Dow Jones stocks to watch: Merck, UnitedHealth

Dow Jones member and IBD 50 stock Merck breaks past a double-bottom buy point of 93.12, according to IBD MarketSmith pattern recognition. Shares rose 1.8% on Monday and ended in 5% buy territory, rising to 97.78. Third quarter results are due before the opening bell on Thursday.

Healthcare giant UnitedHealth is approaching a cup-and-handle buy point of 553.23, according to IBD MarketSmith pattern recognition. Shares rose 1.5% on Monday, moving closer to the stock’s latest entry.

Top Stocks to Watch: AutoZone, Cardinal, Eli Lilly, Texas Roadhouse

Auto parts leader and recent IBD Stock Of The Day AutoZone breaks past a cup base’s 2,362.34 buy point, racing up 4.6% on Monday. The 5% chase zone rises to 2,480.46.

IBD Leaderboard stock Cardinal Health is in buy range beyond a short cup-with-handle’s 71.22 entry, according to IBD MarketSmith chart analysis. Shares also break past a flat base buy point of 72.38. Earnings are estimated for November 4th.

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IBD SwingTrader stock Eli Lilly closed further in buying range above a flat base buy point of 335.43, climbing 2.1% on Monday.

Texas Roadhouse is trying to reclaim a flat base buy point of 95.52 after a brief breakout last week. Shares ended Monday just above the entry. Earnings are issued on Thursday.

Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live

Tesla stock

Tesla stock plunged as much as 7.4% on Monday before paring losses to 1.5% after prices for its Model 3 and Model Y cars were cut by as much as 9% in China. Shares hit their lowest level since June 2021.

The stock closed about 49% off its 52-week high.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares rose 1.5% on Monday and are about 18% off their 52-week high. Despite a recent rally, the stock remains below its 50- and 200-day lines. Apple’s earnings are on tap for Thursday after the close.

Microsoft rose 2.1% on Monday, rising for a second straight day. Shares are in recovery mode after hitting a 52-week low on October 13. The software giant remains about 30% off 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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