The Dow Jones Industrial Average briefly fell 225 points on Monday ahead of a slew of economic data for November, including the PMI composite, ISM services index and factory orders. Chinese stocks started to rise again on change in domestic Covid policy. Tesla shares fell more than 3% after Bloomberg reported the electric car maker plans to cut production at its Shanghai plant.
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Economic Data, Future Earnings Reports
The Markit/S&P Global US services purchasing managers’ index, or PMI, is expected to remain contracted, with a reading of 46.3 for November, slightly above the initial monthly average estimate. The services PMI from the Institute for Supply Management is expected to show continued expansion, but to slow from 54.4 in October to 53.5 in November.
The Markit PMI indicator will be released at 9:45 am and the ISM indicator at 10:00 am. Finally, factory orders data from the Commerce Department (also due at 10:00 a.m.) appears to have risen 0.7% for October from September. An increase of 0.4%.
Companies reporting earnings this week include Academy Sports + Outdoors (ASO), AutoZona (AZO), Broadcom (AVGO), Ciena (CIEN), Lululemon Athletica (LULU), Ollie’s Bargain Outlet (OLLI) and Toll Brothers (TOL).
Chinese stocks Alibaba (DAD) and JD.com (JD) rose 2% and 3%, respectively, as markets in China rose after local authorities in the country continued to ease Covid-19 control measures.
The EV giant Tesla ( TSLA ) was down about 3% Monday morning after an early slide of as much as 5%. Dow Jones technology leaders apple (AAPL) and Microsoft ( MSFT ) was mixed after today’s stock open.
Celsius (CELH), Chubb (CB), an IBD Leaderboard stock Dexcom (DXCM) and Transparent semiconductors (LSCC) – also Dow Jones names Boeing (BA), Caterpillar (CAT) and Chevron (CVX) — is among the best stocks to buy and watch.
Dexcom is an IBD Leaderboard fund. Boeing is an IBD SwingTrader stockholder and was one of four leaders featured in last week’s Stocks Near Buy Zone column. Celsius was recently an IBD 50 Stocks to Watch pick and a New American stock. Caterpillar was the stock of the day on Thursday.
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Dow Jones today: Oil prices, Treasury yields
The Dow Jones Industrial Average was down 0.5% and the S&P 500 was down 0.6% after the opening bell on Monday. The tech-heavy Nasdaq composite fell 0.5% in morning action.
Among exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust ( QQQ ) was down 0.7% early Monday morning, while the SPDR S&P 500 ETF ( SPY ) was down 0.75%.
The 10-year Treasury yield rose to 3.52% on Monday morning, on pace to snap a three-day losing streak. Last week, the 10-year Treasury yield fell to 3.5%, the lowest level since mid-September. According to the CME FedWatch Tool, investors are increasing the probability of a 50-basis-point rate hike at this month’s Federal Reserve meeting to 78%, up from 75% a week ago.
Meanwhile, US oil prices rose more than 3% after posting their first weekly advance in a month. West Texas Intermediate futures traded just below $82 a barrel after European Union sanctions on Russian crude took full effect. Oil prices also got a boost from China easing Covid restrictions, a move that could potentially boost demand.
Stock market rally
Stocks were mixed on Friday as the tech-heavy Nasdaq composite lost 0.2%. The Dow Jones Industrial Average rose 0.1%, while the S&P 500 fell.
The Big Picture commented on Friday, “The S&P 500 ended Friday off just 0.1% off the day’s lows. After retracing the previous key level, it posted a solid weekly gain of 1.1%, holding above its 200-day moving average. during. The overall price action was encouraging, suggesting further upside for the end of the year.”
Now is an important time to read IBD’s The Big Picture column amid continued stock market volatility.
Five Dow Jones Stocks to Buy and Watch Now
Dow Jones Stocks to Buy and Watch: Boeing, Caterpillar, Chevron
Aerospace giant Boeing rose 4% on Friday, pushing beyond the cup base’s 173.95 buy point. A 5% buy area rose to 182.65. Boeing shares fell 1% on Monday.
Dow Jones member Caterpillar just shy of 238 buy points in its cup base, After gaining 0.2% on Friday, according to IBD MarketSmith model recognition. CAT shares fell 0.5% on Monday.
The CAT fund has a solid 94 out of a perfect 99 IBD Composite Rating according to the IBD Fund Checker.
Energy giant Chevron lost 0.8% on Friday, finishing a touch below a 182.50 buy point on a consolidation base. CVX shares rose 0.9% on Monday morning as oil prices rose.
4 Best Growth Stocks to Watch on Current Stock Market Rally
Best stocks to buy and watch: Celsius, Chubb, Dexcom, Lattice
Energy drink maker Celsius rose for a third time on Friday, rising 3.7% and leaving behind a 118.29 buy point of a cup base. Shares ended below the entry. The stock fell 0.5% on Monday.
Chubb rose above Friday’s 216.10 cup-handled buy point after a 0.4% session gain. The 5% buy area is at 226.91. The insurance giant fell 0.7% on Monday morning.
IBD Leaderboard stock Dexcom is nearing an alternative entry at 123.46 amid a three-day winning streak. Shares are about 5% away from their last buy point. Dexcom shares fell 0.5% on Monday.
According to IBD MarketSmith chart analysis, Lattice Semiconductors remains in a buy range past the 70.25 buy point. Lattice shares lost 0.7% on Monday.
Join IBD’s experts as they analyze the leading stocks in the current stock rally on IBD Live
Tesla shares
Tesla shares rose 0.1% on Friday for the third straight session. Despite recent gains, shares remain more than 50% above their 52-week high. Meanwhile, the stock is nearing its 50-day line, a key resistance level to watch.
Shares fell about 3% on Monday morning after Bloomberg reported that Tesla plans to cut production at its Shanghai factory by about 20% in December due to falling demand in China. Meanwhile, the China Passenger Car Association reported that Tesla’s deliveries in the country hit a record 100,291 in November.
Dow Jones Leaders: Apple, Microsoft
Among the Dow Jones stocks, Apple shares pared losses to 0.3% on Friday, but still ended a two-day winning streak. Shares are above the 50-day line they recently captured. The stock is down nearly 20% from its 52-week high. Apple shares rose 0.5% on Monday.
Microsoft rose 0.1% on Friday, its highest level since Sept. 13. The software giant is down nearly 26% from its 52-week high. Microsoft shares were down 0.8% on Monday morning.
Be sure to follow Scott Lehtonen on Twitter @IBD_SLehtonen For more information on growth stocks and the Dow Jones Industrial Average.
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