Dow Jones falls ahead of Fed minutes; Tesla stock falls to new low

Dow Jones futures were higher ahead of Tuesday’s open after the Dow Jones Industrial Average ended Monday with modest losses. Tesla stock dived, hitting a 52-week low and nearing a two-year low. Minutes of the Federal Reserve’s latest monetary policy meeting will be released on Wednesday.


The short holiday week is set to receive a barrage of economic data on Wednesday, including consumer sentiment, durable goods orders, initial jobless claims, PMI readings and new home sales. The exchange will close for Thanksgiving on Thursday, along with a shortened trading session on Friday.

Dell (DELL) Urban Outfitters (URBN) and zoom video (ZM) were the key gainers late Monday. DELL shares fell 2.5% in extended trading, while Urban shares gained nearly 3%. Zoom Video shares were down more than 5% at the close.

The third quarter earnings season continues this week with reports from baidu (BIDU), best buy (BBY), deer (DE), Dick’s sporting goods (DCS), money tree (DLTR) and north current (JWN).

stock market today

On Monday, the Dow Jones Industrial Average lost 0.1%, or 45 points, and the S&P 500 fell 0.4%. The tech-heavy Nasdaq Composite lost 1.1%.

Among exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 1% and SPDR S&P 500 (SPY) fell 0.4%.

Giant for electric vehicles Tesla (TSLA) slipped 6.8% on Monday. Among the Dow Jones stocks Apple (AAPL) traded up 2.2% and Microsoft (MSFT) is up 0.3% in today’s stock market.

IBD Leaderboard Stock Arista Networks (A NET), GlobalFoundries (GFS), KLA (KLAC) and Swarm Technologies (SHLS) – as well as the name Dow Jones Caterpillar (CAT) – are among the top stocks to buy and watch.

Arista Networks is an IBD Leaderboard stock and was recently an IBD Stock of the Day. GlobalFoundries was featured in the Stocks Near A Buy Zone column last week. Shoals was IBD 50 Stocks To Watch Pick on Thursday.

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 0.2% above fair value, while S&P 500 futures were up 0.25%. Tech-heavy Nasdaq 100 futures are up 0.3% 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 3.82% on Monday, leading to a two-day winning streak.

US oil prices tumbled briefly on Monday after the Wall Street Journal reported that OPEC is considering increasing production by up to 500,000 barrels a day. Saudi Arabia later denied the report, sending oil prices sharply off their lows. West Texas Intermediate futures traded below $76 a barrel on Monday before posting losses.

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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, where the stock market trend is back in a “confirmed uptrend.”

During this time it is important to be flexible. Despite the early November rebound, 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 across the major stock indices 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 remains below buy point of a cup base of 238, following a recent breakout attempt, according to pattern recognition by IBD MarketSmith. Caterpillar shares rose 0.3% on Monday.

CAT stock boasts an impressive 95 out of 99 perfect IBD Composite Ratings, according to the IBD Stock Checkup.

Top stocks to buy and watch: Arista, GlobalFoundries, KLA, Shoals

IBD leaderboard stock Arista Networks remains above the buy point of a choppy base of 132.97 despite falling 0.6% on Monday.

Chip foundry GlobalFoundries is still in the buy range above a buy point of 66.06 on a cup basis after losing 2.05% on Monday. according to pattern recognition by IBD MarketSmith.

KLA builds a mug that has a buy point of 392.60 amid Monday’s 1.1% decline. On an optimistic note, the stock’s relative strength line hit a new high last week, a sign of significant outperformance versus the S&P 500.

Shoals Technologies remains outside the buying range behind a buy point of 28.57 despite a second straight decline on Monday. The 5% buy zone peaked at 30. Wait for an orderly pullback into the buy range before considering a stock purchase.

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

Tesla stock

Tesla shares slipped 6.8% on Monday, extending a losing streak to four sessions and falling to its lowest level since Nov. 23, 2020.

Shares are about 58% below their 52-week high and well below their 50- and 200-day moving averages. Meanwhile, the stock’s RS line continues to make fresh lows, suggesting the stock markets are severely underperforming the S&P 500.

Dow Jones Leaders: Apple, Microsoft

Among the Dow Jones stocks, Apple shares fell 2.2% 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 rose 0.3% on Monday, ending a three-day losing streak. The shares continue to hold above 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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