Dow Jones Falls 200 Bps Ahead of Key Inflation Data; 6 Best Stocks to Buy and Watch

Dow Jones futures were higher ahead of Tuesday’s open after the Dow Jones Industrial Average snapped a two-day winning streak on Monday. The top six stocks to buy and watch include hot IPO stocks mobileye (MBLY).




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Early Tuesday, the Producer Price Index (PPI) is due at 8:30 a.m. ET. The PPI is expected to rise 0.5% in October from the previous month. And wholesale inflation is expected to jump 8.3% from a year ago.

Third-quarter earnings season continues this week, with key reports coming in from Dow Jones stocks Cisco Systems (CSCO), Home deposit (HD) and walmart (WMT), as well as Applied materials (AMAT), Kohls (KSS), Lowe’s (DOWN), Macy’s (M), Nvidia (NVDA), Palo Alto Networks (PANW) and Target (TGT).

stock market today

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

Electric vehicle giant You’re here (TSLA) fell 2.6% on Monday. Among Dow Jones stocks, Apple (AAPL) traded down 0.4% and Microsoft (MSFT) lost 2.25% in the current stock market.

Among the best stocks to buy and watch is the IBD Leaderboard stock Arista Networks (ANET), IBD SwingTrader Stocks General Motors (GM), GlobalFoundries (GFS), Mobileye and Phillips 66 (PSX) – as well as Dow Jones names caterpillar (CAT) – are among the best stocks to buy and watch.

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


4 most important growth stocks to buy and watch in the currentrStock market rally


Dow Jones Futures Today: Treasury Yields, Oil Prices

Before Tuesday’s opening bell, Dow Jones futures were up 0.3% relative to fair value, while S&P 500 futures were up 0.4%. Tech-heavy Nasdaq 100 futures rose 0.5% from fair value. Remember that overnight action on futures contracts on Dow Jones and elsewhere does not necessarily translate into actual trading in the next regular trading session.

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


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What to do during the stock market rally

Now is an important time to read IBD’s The Big Picture column after the stock market trend changed from a “pressured uptrend” to a “confirmed uptrend”.

At this stage, it is important to be flexible. Despite recent gains, investors should remain cautious, limiting their exposure to more than 40%. Wait for more confirmation of continued strength before adding more exposure. An immediate distribution would be a sign to stay more defensive.

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

(Check out IBD stock listings like the IBD 50 and stocks near a buy zone, for additional stock ideas.)


Five Dow Jones Stocks to Buy and Watch Now


Dow Jones Stocks to Watch: Caterpillar

Dow Jones Member Caterpillar Tries to Break Above 238 Cup Base Buy Point, according to IBD MarketSmith pattern recognition. Caterpillar shares were flat on Monday.

The CAT stock boasts an impressive 97 out of a perfect IBD composite score of 99, according to the IBD stock balance sheet.

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

IBD Leaderboard Arista Networks stock tried to break above the buy point of 132.97 from a choppy base amid Monday’s 2.1% rise. Stocks briefly moved above the entry before closing just below.

The automaker and IBD SwingTrader General Motors stock dropped its tumbler with handle’s 40.20 buy point during Monday’s 2.8% decline. If the stock resumes entry, the buy zone peaks at 42.21.

GlobalFoundries recent IBD stock of the day is trading around 1% off a buy point of 66.06 in a cut basis after Monday’s 0.4% rise.

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

Monday’s IBD 50 Stocks To Watch pick, Phillips 66, exceeds the 110.08 buy point of a cup base with handle. Shares broke out on Friday, but gave back some of those gains on Monday. The stock is in the 5% buy zone, which rises to 115.58.


Join IBD experts as they analyze the top stocks of the current stock market rally on IBD Live


Tesla Stock

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

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

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares fell 0.4% on Monday, but still hold above their recently recovered 50-day line. The stock is around 20% off its 52-week high.

Microsoft fell 2% on Monday, returning all of Friday’s gains. The stock halted the session’s slide at 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 to learn more about growth stocks and the Dow Jones Industrial Average.

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