Dow Jones Drops Ahead of Fed Minutes; Tesla shares fall to a new low

Dow Jones futures were little changed ahead of Tuesday’s open after the Dow Jones Industrial Average closed with modest losses on Monday. Tesla shares plunged, hitting a 52-week low and approaching a two-year low. The minutes of the latest Federal Reserve policy meeting are due out Wednesday.


The short holiday week will receive a flood of economic data on Wednesday, including consumer sentiment, durable goods orders, first-time jobless claims, PMI readings and new home sales. The stock market will be closed on Thursday for Thanksgiving, along with a shortened trading session on Friday.

Dell (OF THE), Urban outfitters (URBN) e Enlarge videos (ZM) were the primary earnings mover late Monday. DELL shares reversed 2.5% in extended trade, while Urban shares rose nearly 3%. Zoom Video stock is down more than 5% in recent trading.

Third-quarter earnings season continues this week, with reports from Baidu (BIDU), Best buy (BBY), Deere (DE), Sporting Goods by Dick (DKS), Dollar tree (DLTR) e Nordstrom (JWN).

Stock market today

The Dow Jones Industrial Average lost 0.1%, or 45 points, on Monday and the S&P 500 was down 0.4%. The tech-heavy Nasdaq composite lost 1.1%.

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

The electric vehicle giant Tesla (TSLA) slipped 6.8% on Monday. Among the Dow Jones shares, Apple (AAPL) fell 2.2% and Microsoft (MSFT) was up 0.3% in the stock market today.

IBD leaderboard stock Arista Networks (A NETWORK), Global Foundries (GFS), KLA extension (KLAC) e Shoals Technologies (SHLS) – as well as the Dow Jones name caterpillar (CAT) – are among the best stocks to buy and watch.

Arista Networks is an IBD Leaderboard stock and was a recent IBD Stock of the Day. GlobalFoundries was featured in last week’s Stocks Near A Buy Zone column. Shoals was Thursday’s IBD 50 Stocks To Watch pick.

4 growth stocks to buy and watch in the Current stock market rally

Dow Jones Futures Today: Treasury Yields, Oil Prices

Before the opening bell on Tuesday, the tech-heavy Dow Jones, S&P 500 and Nasdaq 100 futures were little changed from fair value. He points out that overnight action in Dow Jones futures and elsewhere doesn’t necessarily translate into actual trading in the next regular session of the stock market.

The 10-year Treasury yield rose to 3.82% on Monday, snapping a two-day winning streak.

Oil prices in the United States fell briefly on Monday after The Wall Street Journal reported that OPEC is considering an increase in production of up to 500,000 barrels a day. Subsequently, Saudi Arabia denied the report, driving oil prices sharply off their lows. West Texas Intermediate futures traded below $76 a barrel on Monday before sharply trimming losses.

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What to do in the stock market rally

Now is an important time to read IBD’s The Big Picture column with the stock market trending back into a “confirmed uptrend.”

Right now, it’s important to be flexible. Despite the early November rebound, investors should remain cautious, limiting exposure to no more than 40%. Wait for further confirmation of continued strength before adding more exposure. An immediate spread into the major stock indexes would be a signal to remain more defensive.

If your recent stock purchases continue to make headway, you should be feeling more confident about the stock market rally. But hard reversals and losing trades would obviously be signs to keep more of your powder dry.

(Check out IBD stock listings like IBD 50 and Stocks near a buy zone, for more stock ideas.)

Five Dow Jones stocks to buy and watch now

Dow Jones Stocks to Watch: Caterpillar

Dow Jones member Caterpillar falls short of 238 buy points on a cup basis, according to IBD MarketSmith model acknowledgement, after a recent breakout attempt. Caterpillar shares rose 0.3% on Monday.

CAT stock boasts an impressive 95 out of a perfect 99 IBD Composite Rating, according to IBD Stock Control.

Top Stocks to Buy and Watch: Arista, GlobalFoundries, KLA, Shoals

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

Chip foundry GlobalFoundries is still in a buy range above a 66.06 point buy in a cup basis after Monday’s 2.05% loss, according to IBD MarketSmith model recognition.

KLA is building a cup with a handle that has a buy point of 392.60 after Monday’s 1.1% drop. On the upside, the stock’s relative strength line made a new high last week, a sign of large outperformance versus the S&P 500.

Shoals Technologies remains outside the buy range beyond a 28.57 buy point despite a second straight decline on Monday. The 5% buy zone has been breached at 30. Wait for an orderly pullback in the buy range before considering a stock buy.

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

Tesla shares

Tesla stock fell 6.8% on Monday, extending a four-session losing streak and falling to its lowest level since Nov. 23, 2020.

The shares are about 58% off their 52-week high and sharply below the 50- and 200-day moving average lines. Meanwhile, the stock’s RS line continues to hit new lows, indicating a large underperformance by the stock market relative to the S&P 500.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares fell 2.2% on Monday but are still above their recently recaptured 50-day line. The stock is roughly 20% off 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 line. The software giant remains more than 30% off its 52-week high.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more information on growth stocks and the Dow Jones Industrial Average.


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