Dow Jones rises 400 points on colder inflation data; Walmart soars on earnings

The Dow Jones Industrial Average briefly climbed more than 400 points on Tuesday after a cooler-than-expected reading in the producer price index, a key gauge of inflation. Dow Jones shares Home storage (HD) and Walmart (WMT) reported quarterly earnings results ahead of market open.


Among the best stocks to buy and keep an eye on is the IBD Leaderboard stock Arista Networks (ANET), IBD SwingTrader stock General Motors (GM), Global Foundries (GFS), Mobileye e Philip 66 (PSX)—as well as the Dow Jones name caterpillar (CAT) – are among the best stocks to buy and watch.

Arista Networks is an IBD ranking watchlist stock. Arista was also featured in last week’s Stocks Near A Buy Zone column, as well as Monday’s Stock Of The Day report. GlobalFoundries was also a recent IBD Stock Of The Day. And Mobileye was the leader of last week’s IPO.

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Dow Jones today: oil prices, treasury yields

After the opening bell on Tuesday, the Dow Jones Industrial Average was up 1.1%, while the S&P 500 was up 1.7%. The tech-heavy Nasdaq composite advanced 2.5% during the morning action, boosted by Chinese stocks extending their recent rally.

JD. com (JD) is up nearly 8%. NetEase (NTES) posted a 6% gain. The iShares MSCI China ETF (MCHI) was up 4.3% and the KraneShares CSI China Internet ETF (KWEB) was up more than 7%.

Among exchange-traded funds, Invesco Nasdaq 100 tracker QQQ Trust (QQQ) rose 2.4% early Tuesday and SPDR S&P 500 ETF (SPY) gained 1.6%.

The 10-year Treasury yield fell to 3.8% on Tuesday morning after cooler inflation data. Meanwhile, US oil prices are down nearly 1%, as oil continues to swing back and forth within its recent trading range. West Texas Intermediate futures held just above $85 a barrel.

Stock market rebound

The market took a breather on Monday after last week’s powerful advance. The Dow Jones Industrial Average lost 0.6%, or 211 points, on Monday and the S&P 500 was down 0.9%. The tech-heavy Nasdaq composite lost 1.1%.

The Big Picture on Monday commented: “Remember, the bear market destroyed the leadership, largely technological, that drove the previous bull market. New leadership could take some time to develop and prove itself. With the amount of breakouts and basics investors have to work with right now, a 20% to 40% exposure level seems adequate, as noted by The Big Picture.”

Now is an important time to read IBD’s The Big Picture column.

Five Dow Jones stocks to buy and watch now

Dow Jones Stocks to Buy and Watch: Caterpillar, UnitedHealth

Dow Jones member Caterpillar is trying to surpass the 238 buy points of a cup basis, according to IBD MarketSmith model recognition. CAT shares rose 0.7% on Tuesday.

CAT stock boasts an impressive 97 out of a perfect 99 IBD Composite Rating, according to IBD Stock Control.

4 growing stocks to watch in the current stock market rally

Top titles to buy and watch: Arista, GM, GlobalFoundries, Mobileye, PSX

IBD chart stock Arista Networks tried to clear a choppy base’s 132.97 buy point during Monday’s 2.1% climb. Shares briefly outpaced the entry before closing just below it. ANET stock rose 1.4% on Tuesday.

Automaker and IBD SwingTrader stock General Motors gave up the 40.20 buy point of its cup with handle during Monday’s 2.8% drop. If the stock resumes entry, the buy area reaches its maximum at 42.21. GM shares rose 2.3% early Tuesday.

GlobalFoundries recent day IBD shares are trading about 1% off a 66.06 buy point on a cup basis after surging 0.4% on Monday. GFS shares gained 3% on Tuesday morning.

IPO leader Mobileye passed the 29.96 buy point of an IPO basis, according to IBD MarketSmith model acknowledgement, but shares reversed lower on Monday and returned below it. The 5% chasing zone would top out at 31.46. MBLY shares were up 5% early Tuesday.

Monday’s IBD 50 Stocks To Watch pick, Phillips 66, is surpassing the 110.08 buy point of the base of a cup with handle. Stocks rallied on Friday, but gave up a portion of those gains on Monday. The stock is in the 5% buy zone, rising to 115.58. PSX shares are up 1% in early trading.

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

Tesla shares

Tesla stock fell 2.6% on Monday, snapping a two-day winning streak and erasing Friday’s gains. Shares are rebounding after hitting a new 52-week low last week. However, the stock is more than 50% below its 52-week high and sharply below the 50-day and 200-day moving average lines.

Shares of the electric vehicle giant jumped nearly 3% on Tuesday morning.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares fell 0.4% on Monday but are still above the 50-day line following last week’s gains. The stock rose 2.8% on Tuesday.

Microsoft fell 2.25% on Monday, ending a two-day winning streak. The software giant remains about 30% off its 52-week high. Microsoft shares rose 1.8% Tuesday morning.

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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