Dow Jones futures were lower before the open Tuesday after the Dow Jones Industrial Average rose more than 400 points on Monday. Tech titans Alphabet, Apple, Meta Platforms and Microsoft are all due for earnings this week.
But first, Dow Jones stocks 3 million (MMM) and Coca Cola (KO) will report early on Tuesday. General Motors (GM), Halliburton (HAL), Raytheon Technologies (RTX) and UPS (UPS) will also be among the key reporters Tuesday morning.
Stock market today: Chinese stocks fall
On Monday, the Dow Jones Industrial Average rose 1.3%, while the S&P 500 gained 1.2%. The tech-heavy Nasdaq composite rose 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%, while the SPDR S&P 500 ( SPY ) gained 1.2%.
Chinese stocks fell on Monday, with China’s Hang Seng index down 6.4% to close at its lowest level since April 29, 2009. Chinese leader Xi Jinping continued to consolidate his power, appointing several supporters to the party’s most powerful decision-making body. after securing a third term in violation of the convention.
Alibaba (BABA) and Baidu (BIDU) fell more than 12% each. Daqo’s new energy (DQ) plunged nearly 7% and Li Auto (LI) fell 17%. And Pinduoduo (PDD) crashed 24%.
The EV giant Tesla ( TSLA ) pared losses to 1.5%, hitting a new 52-week low. Among the Dow Jones stocks Apple (AAPL) traded up 1.5% and Microsoft ( MSFT ) rose 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 most popular stocks to buy and watch. Keep in mind that the new stock market rally is the perfect time for investors to implement their watch lists.
Cardinal and Texas Roadhouse are stocks on the IBD Leaderboard. Eli Lilly has IBD SwingTrader shares. UnitedHealth was featured in this week’s Stocks Near A Buy Zone column along with three other top stock ideas.
Top 4 Growth Stocks to Watch in the Current Editionrent Stock market rally
Dow Jones futures today: Treasury yields, oil prices
Before Tuesday’s opening bell, Dow Jones futures were down 0.3% versus the benchmark, while S&P 500 futures lost 0.2%. Nasdaq 100 futures were up less than 0.1% versus the underlying value. Remember that overnight action in Dow Jones futures contracts and elsewhere does not necessarily mean actual trading in the next regular stock market session.
The 10-year Treasury yield rose to 4.23% on Monday, reaching the highest level since June 2008. Meanwhile, US oil prices fell on Monday, ending a three-day winning streak. West Texas Intermediate futures were trading near $85 a barrel.
Q3 earnings Season: Alphabet, Apple, Meta, Microsoft to report
This week marks the start of third-quarter earnings season, with key reports coming from tech titans Alphabet (GOOGL), Apple (AAPL), Meta platforms (META) and Microsoft (MSFT).
Results from Boeing (BA), Chevron, Merck and Visa (V) is also due out all week.
Earnings reports drive many of the biggest moves in stocks and deserve close attention. Strong earnings can lift top stocks to previously untouched levels — and above new buy points — while a less-than-impressive announcement can send stocks tumbling.
Stock market reactions to earnings releases can often tell more than the earnings themselves. If the results look strong, but the stock is still sliding, investors may be concerned about the sustainability of growth, rising costs or other potential downsides.
As the market is in rally attempt mode, investors should track companies that easily outperform earnings and have a strong upside reaction. They could be among the stock market leaders if the market can recover.
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 instead take a measured approach. Most investors should limit their exposure to 20% of their portfolio. Aggressive investors should stay below 40% risk 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 are looking to put their established watchlists to use for further breakouts. But not all follow-ups work, so it’s important to increase exposure slowly and methodically as the new uptrend establishes itself.
If the uptrend is real and significant, there will be enough time to make money with a successful breakout. It’s important to be disciplined in increasing your exposure right now as the new stock market rally intensifies.
Five Dow Jones Stocks to Watch Now
Dow Jones stocks to watch: Merck, UnitedHealth
Dow Jones member and IBD 50 stock Merck tops double-bottom buy point at 93.12, according to IBD’s MarketSmith pattern recognition. Shares rose 1.8% on Monday, closing in on 5% overbought territory at 97.78. Third-quarter earnings results are due Thursday before the opening bell.
Healthcare giant UnitedHealth is approaching a handle mug buy point of 553.23, according to IBD’s MarketSmith pattern recognition. Shares rose 1.5% on Monday, nearing a new stock record.
Top stocks to watch: AutoZone, Cardinal, Eli Lilly, Texas Roadhouse
Auto parts leader and recent IBD Stock Of The Day AutoZone is beating the cup base’s 2,362.34 buy point with a 4.6% gain on Monday. 5% retracement zone increases to 2480.46.
According to IBD’s MarketSmith chart analysis, IBD Leaderboard stock Cardinal Health is in a buy range above the short cup with a handle of 71.22. Shares also stand out after a flat-base 72.38 buy point. Revenue is scheduled for November 4.
IBD SwingTrader stock Eli Lilly closed further into a buy range, above a flat-base 335.43 buy point, up 2.1% on Monday.
Texas Roadhouse is trying to regain a flat-base 95.52 buy point after a brief breakout last week. The stock ended Monday just above the record. Profits are due on Thursday.
Join IBD’s experts as they analyze the leading stocks in the current stock market rally on IBD Live
Tesla shares fell 7.4% on Monday, before paring losses to 1.5% after China slashed prices for Model 3 and Model Y cars by as much as 9%. Shares hit their lowest level since June 2021.
The stock closed about 49% off its 52-week high.
Dow Jones leaders: Apple, Microsoft
Among the Dow Jones stocks, Apple shares rose 1.5% on Monday and are about 18% below their 52-week high. Despite the recent rally, shares are still below the 50- and 200-day lines. Apple earnings are calculated after the close on Thursday.
Microsoft rose 2.1% on Monday, rising for the second day in a row. The stock is in rebound mode after hitting a 52-week low on Oct. 13. The software giant is still about 30% off its 52-week high. Microsoft’s earnings are due at the end of Tuesday.
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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