Dow Jones Falls Ahead of Fed Minutes; Tesla shares plunge to a new low

Dow Jones futures rose before the open Tuesday after the Dow Jones Industrial Average ended modest losses on Monday. Tesla shares plunged, hitting a 52-week low and nearing a two-year low. The minutes of the latest Federal Reserve policy meeting will be released on Wednesday.


The short holiday week will receive a deluge of economic data on Wednesday, including consumer confidence, 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 shorter trading session on Friday.

Dell (OF), Urban Outfitters Suppliers (URBN) and enlarge video (ZM) were key drivers of gains on Monday night. DELL shares were back 2.5% in extended trading, while Urban shares were up nearly 3%. Zoom Video shares fell more than 5% in recent trading.

Third-quarter earnings season continues this week, with reports of Baidu (START), Best Buy (BBY), deere (OF), Dick’s Sporting Goods (DKS), dollar tree (DLTR) and nordstrom (JWN).

stock market today

On Monday, the Dow Jones industrial average lost 0.1%, or 45 points, and the S&P 500 fell 0.4%. The Nasdaq tech composite sold off 1.1%.

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

electric vehicle giant tesla (TSLA) skidded 6.8% on Monday. Among the Dow Jones stocks, Apple (AAPL) traded down 2.2% and Microsoft (MSFT) was up 0.3% in today’s stock market.

IBD Classification Table Arista Networks (A NETWORK), GlobalFoundries (GFS), ELK (KLAC) and shoal technologies (SHLS), as well as the name Dow Jones Caterpillar (CAT) — are among the top stocks to buy and watch.

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

4 Top Growth Stocks to Buy and Watch on the Current stock rally

Dow Jones Futures Today: Treasury Yields, Oil Prices

Before the opening bell on Tuesday, Dow Jones futures were up 0.2% above fair value, while S&P 500 futures gained 0.25%. Tech-heavy Nasdaq 100 futures were up 0.3% versus fair value. Remember that overnight action in the Dow Jones futures and elsewhere does not necessarily translate into actual trading at the next regular stock market session.

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 a production increase of up to 500,000 barrels per day. Saudi Arabia later denied the report, sending oil prices sharply away from their lows. West Texas Intermediate futures traded below $76 a barrel on Monday before paring 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.”

At this time, it is important to be flexible. Despite the early November rally, investors should remain cautious, limiting exposure to no more than 40%. Wait for further confirmation of continued strength before adding more exposure. Immediate distribution on major stock indices would be a signal to stay more defensive.

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

(Check out IBD stock listings such as the IBD 50 and Stocks Near A Buy Zone for additional stock ideas.)

Five Dow Jones Stocks to Buy and Watch Now

Dow Stocks to Watch: Caterpillar

Dow Jones member Caterpillar remains below the 238 buy point of a base rate, according to IBD MarketSmith pattern recognition, after a recent breakout attempt. Caterpillar shares rose 0.3% on Monday.

CAT shares boast an impressive 95 out of a perfect 99 IBD composite rating, according to IBD Stock Review.

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

IBD’s leaderboard stock Arista Networks remains above the buy point of 132.97 off a choppy basis despite falling 0.6% on Monday.

Chip foundry GlobalFoundries is still in the buying range above a buy point of 66.06 on a base rate after Monday’s 2.05% loss, according to IBD MarketSmith pattern recognition.

KLA is building a cup with a handle that has a buy point of 392.60 amid Monday’s 1.1% drop. Bullishly, the relative strength line for stocks hit a new high last week, a sign of a big outperformance against the S&P 500.

Shoals Technologies remains out of the buy range beyond a buy point of 28.57 despite a second straight decline on Monday. The 5% buy zone peaked at 30. Wait for an orderly pullback into the buy range before considering buying stocks.

Join IBD experts as they discuss the top stocks in the current stock market rally on IBD Live

Tesla Stock

Tesla shares fell 6.8% on Monday, extending a losing streak to four sessions and falling to their lowest level since November 23, 2020.

Shares are 58% below their 52-week high and well below their 50-day and 200-day moving average lines. Meanwhile, the stock’s RS line continues to hit new lows, signaling big stock market underperformance against the S&P 500.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares sold off 2.2% on Monday, but are still holding above their recently recaptured 50-day line. The stock is 20% below its 52-week high.

Microsoft rose 0.3% on Monday, ending a three-day losing streak. Stocks 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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