Dow Jones falls 200 points ahead of key inflation data;  6 top stocks to buy and watch

Dow Jones falls 200 points ahead of key inflation data; 6 top stocks to buy and watch

Dow Jones futures were higher ahead of Tuesday’s open after the Dow Jones Industrial Average posted a two-day winning streak on Monday. Six top stocks to buy and watch are hot IPO stocks Mobileye (MBL).


Early Tuesday, the Producer Price Index (PPI) will be released at 8:30 am ET. PPI is expected to rise 0.5% mom in October. And wholesale inflation is expected to rise 8.3% year-on-year.

The third quarter earnings season continues this week with key reports from Dow Jones stocks Cisco systems (CSCO), home depot (HD) and Walmart (WMT), along with Applied Materials (AMAT), cabbage (KSS), lowes (LOW), Macy’s (M), NVIDIA (NVDA), Palo Alto Networks (PANW) and target (TGT).

stock market today

On Monday, the Dow Jones Industrial Average was down 0.6%, or 211 points, and the S&P 500 was down 0.9%. The tech-heavy Nasdaq Composite lost 1.1%.

Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 0.9% and the SPDR S&P 500 (SPY) fell 0.8%.

Giant for electric vehicles Tesla (TSLA) is down 2.6% on Monday. Among the Dow Jones stocks Apple (AAPL) traded up 0.4% and Microsoft (MSFT) lost 2.25% in today’s stock market.

Among the top stocks to buy and watch is IBD Leaderboard stock Arista Networks (ANET), IBD SwingTrader stock General Motors (GM), GlobalFoundries (GFS), Mobileye and Philip 66 (PSX) – as well as the name Dow Jones Caterpillar (CAT) – are among the top stocks to buy and watch.

Arista Networks is a stock on the IBD Leaderboard watchlist and was featured in last week’s “Stocks Near a Buy Zone” column along with three other top stock ideas. General Motors is an IBD SwingTrader stock. And Mobileye was last week’s IPO leader.

4 top growth stocks to buy and watchrightde Stock market rally

Dow Jones Futures Today: Treasury Yields, Oil Prices

Ahead of Tuesday’s opening bell, Dow Jones futures were up 0.3% from fair value, while S&P 500 futures were up 0.4%. Tech-heavy Nasdaq 100 futures are up 0.5% from fair value. Keep in mind that overnight action in Dow Jones futures and elsewhere doesn’t necessarily translate to actual trading in the next regular trading session.

The 10-year Treasury yield rose to 3.86% on Monday, recovering a small part of last week’s plunge. Meanwhile, US oil prices fell more than 4% as West Texas Intermediate futures traded just above $85 a barrel.

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What to do in the stock market rally?

Now is an important time to read the IBD column, The Big Picture, after the stock market trend has moved from “uptrend under pressure” to “uptrend confirmed.”

During this time it is important to be flexible. Despite recent gains, investors should remain cautious and limit exposure to no more than 40%. Await further confirmation of continued strength before adding another exposure. An immediate spread would be a sign to remain more defensive.

If your recent stock purchases continue to make progress, you should be more confident about the stock market rally. But sharp reversals and losing trades would of course be signs of keeping more of your powder dry.

(See IBD stock lists such as IBD 50 and stocks near a buy zone for more stock ideas.)

Five Dow Jones stocks to buy and watch

Eyes on Dow Jones stocks: Caterpillar

Dow Jones member Caterpillar attempts to break above the buy point of a 238 cup base. according to pattern recognition by IBD MarketSmith. Caterpillar shares were flat on Monday.

CAT stock boasts an impressive 97 out of 99 perfect IBD Composite Ratings, according to the IBD Stock Checkup.

Top stocks to buy and watch: Arista, GM, GlobalFoundries, Mobileye, Phillips 66

IBD leaderboard stock Arista Networks attempted to break above the buy point of a choppy base of 132.97 amid Monday’s 2.1% gain. Shares briefly topped the entry before closing just below.

Automaker and IBD SwingTrader stock General Motors gave up the buy point of its 40.20 mug during Monday’s 2.8% decline. If the stock regains entry, the buy area will top out at 42.21.

IBD’s latest share of the day GlobalFoundries is trading about 1% from a buy point of 66.06 on a cup basis after rising 0.4% on Monday.

IPO leader Mobileye broke above the buy point of a 29.96 IPO base, according to pattern recognition by IBD MarketSmith, but stocks reversed lower on Monday and are back below. The 5% pursuit zone would peak at 31.46.

Monday’s IBD 50-pick Stocks To Watch, Phillips 66, breaks above the 110.08 cup-and-handle base buy point. Stocks broke out on Friday but gave back some of those gains on Monday. The stock is in the 5% buy zone rising to 115.58.

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

Tesla stock

Tesla shares fell 2.6% on Monday, breaking a two-day winning streak and erasing Friday’s gains.

Shares are more than 50% off their 52-week high and well below their 50- and 200-day moving averages.

Dow Jones Leaders: Apple, Microsoft

Among the Dow Jones stocks, Apple shares fell 0.4% on Monday but are still holding above their recently recaptured 50-day moving average. The stock is down about 20% from its 52-week high.

Microsoft slipped 2% on Monday, giving back all of Friday’s gains. The stock halted the session’s slide at the 50-day moving average. The software giant remains more than 30% below its 52-week high.

Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.


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