Dow Jones jumps 500 points ahead of inflation data; Fed meeting; Tesla stock nears 2022 low

Dow Jones futures were down ahead of Tuesday’s open after the Dow Jones Industrial Average gained 528 points on Monday. Tesla stock slipped more than 6% on Monday, ending just past its 2022 lows.


Inflation data, Fed meeting

Consumer inflation data is due out Tuesday morning. The CPI is expected to rise 0.3% for November and 7.3% year-on-year, according to Econoday estimates. Additionally, the next Federal Reserve policy meeting will take place on Tuesday and Wednesday.

With the Fed already forecasting a 50 basis point hike, investors will be looking for further indications of the Fed’s plans. A pivot of aggressive tightening seems unlikely, but some respite from punitive rate hikes would be welcome. According to CME’s FedWatch tooltraders are placing a 74% chance of a 50 basis point rate hike.

The 10-year Treasury yield rose to 3.61% on Monday.

Late Monday, Oracle (ORCL) jumped 3% after the company’s earnings and sales beat analysts’ estimates. Other earnings reports this week include Dard Restaurants (DRI) and Lennar (LEN).

stock market today

On Monday, the Dow Jones Industrial Average rose 1.6%, or 528 points, and the S&P 500 climbed 1.4%. The tech-heavy Nasdaq composite followed with a 1.3% gain. Among exchange traded fundsthe Nasdaq 100 Invesco QQQ Trust tracker (QQQ) rose 1.3% and the SPDR S&P 500 (TO SPY) increased by 1.4%.

Electric vehicle giant You’re here (TSLA) was trading down 6.3% on Monday. Among Dow Jones Stocks, Apple (AAPL) increased by 1.6% and Microsoft (MSFT) gained 2.9% in stock market today.

Allegro Microsystems (ALGM), IBD classification Stock Dexcom (DXCM), KLA (CLUTCH) and Trane Technology (TT) – as well as the Dow Jones names caterpillar (CAT), Home deposit (HD) and UnitedHealth Group (A H) – are among the best stocks to buy and watch.

Dexcom and Trane are IBD classification shares. UnitedHealth has been presented in this week Stocks Near Buy Zone column. Allegro was a recent IBD 50 Stocks to Watch. Caterpillar and Dexcom were recent IBD stock of the day companies.

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

Dow Jones Futures Today: Oil Price

Before Tuesday’s opening bell, Dow Jones futures, S&P 500 futures and technology-heavy Nasdaq 100 futures all fell 0.1% to fair value. Remember that overnight action in Dow Jones Futures and elsewhere does not necessarily translate into actual trading over the next stock Exchange session.

U.S. oil prices rose more than 3% on Monday, rebounding from their lows for the year. West Texas Intermediate futures were trading just above $73 a barrel.

IBD’s latest newsletter, MarketDiem, delivers practical insights for stocks, options and crypto straight to your inbox.

What to do during the stock market rally

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

Even though the Nasdaq and S&P 500 indices remain in uptrends, defense is still better than offense at this point due to current market volatility. This means that it is okay to look for stocks to buy, but keep your positions small to start with, while keeping your overall exposure light.

When it comes to new purchases, what kind of feedback do you get from the market? Are your latest purchases progressing well? In this case, it is normal to give them space. But don’t be afraid to take partial profits if a gain reaches at least 10%. If new buys go the wrong way or end in an immediate sell, cut losses when the stock drops 3% to 4%, instead of waiting the 7%-8% rule trigger.

(Check IBD Action Lists as the INN 50 and Stocks near a buy zonefor additional stock ideas.)

Five Dow Jones Stocks to Buy and Watch Now

Dow Jones stocks to buy and watch: Caterpillar, Home Depot, UnitedHealth

Caterpillar, member of the Dow Jones, is closing in on 238 from a cutting base point of purchase, according IBD Pattern Recognition MarketSmithfollowing Monday’s 2.5% gain. cat stock shows a solid 95 out of a perfect IBD composite score of 99, according to the IBD inventory check.

Home improvement retailer The Home Depot ended Monday less than 1% below the buy point of 329.77 on a cup-and-handle basis after the session’s 2.3% advance.

Healthcare giant UnitedHealth Group is charting a flat base with a buy point of 558.20. Shares are just 2% off the last entry on Monday.

Top stocks to buy and watch: Allegro, Dexcom, KLA, Trane

Allegro MicroSystems finished Monday in the buy range beyond a cup with the 32.07 buy point of the handle after the day’s uptick. ALGM stock traded down 0.1% on Monday. And the 5% pursuit zone rises to 33.67.

IBD classification Dexcom stock attempted to move above a buy point of 123.46 in a flat basis, but is around 5% below entry after recent losses. Dexcom stock rose 0.3% on Monday.

Chip leader KLA moves further above a cut with the 392.60 entry from the handle after Monday’s 1.9% advance. On the upside, the relative strength line continues to reach new highs in the current market volatility.

Trane Technologies ended Monday around 4% below a buy point of 181.72 in a cup with a handle after the session’s slight decline.

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

Tesla Stock

Tesla Stock slipped 6.3% on Monday, giving up all of Friday’s gains and returning to recent lows.

Over the past few weeks, TSLA stock has hit its lowest level since November 23, 2020, hitting a new 52-week low at 166.19. Shares closed Monday at 167.82, about 58% off their 52-week high.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones Stocks, Apple shares rebounded 1.6% on Monday but are still below their 50-day line after last week’s losses. The stock is more than 20% off its 52-week high.

Microsoft jumped 2.9% on Monday as shares continue to hold above the 50-day line. The software giant remains around 27% 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.


Top growth stocks to buy and watch

Learn to Time the Market with IBD’s ETF Market Strategy

Find the best long-term investments with IBD’s long-term leaders

MarketSmith: research, charts, data and coaching in one place

How to Research Growth Stocks: Why This IBD Tool Simplifies Finding the Best Stocks

Leave a Comment