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Dow Jones futures dropped 180 points Tuesday morning, as blue chips 3M and Coca-Cola reported their quarterly earnings results. Next up, Microsoft earnings are due out after the close.
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Stock Market Today: Q3 Earnings Season Continues
Dow Jones stocks 3M (MMM) and Coca-Cola (KO) reported Tuesday. General Motors (GM), Halliburton (HAL), Raytheon Technologies (RTX) and United Parcel Service (UPS) are also among the key reporters Tuesday morning.
MMM stock dropped 2.8% after missing revenue estimates and lowering its full-year outlook. KO stock jumped 2.8% after posting better-than-expected earnings and sales results.
GM stock rallied 3.4% in premarket trade, while Halliburton was up nearly 2%. Raytheon dipped 0.5% after its earnings results, while UPS stock jumped 3%.
EV giant Tesla (TSLA) ticked down around 1% Tuesday morning, while Dow Jones tech leaders Apple (AAPL) and Microsoft (MSFT) were mixed ahead of today’s stock market open.
AutoZone (AZO), Cardinal Health (CAH), Eli Lilly (LLY) and Texas Roadhouse (TXRH) — as well as Dow Jones stocks Merck (MRK) and UnitedHealth Group (UNH) — are among the top stocks to watch. Keep in mind that the new stock market rally is the perfect time for investors to put their watchlists into action, and to hone their pyramiding technique.
Young rallies, particularly those fighting bear markets, often fail. Pyramiding provides a method of moving into new stock positions incrementally, in order to minimize risk to capital.
Cardinal and Texas Roadhouse are IBD Leaderboard stocks. UnitedHealth was featured in this week’s Stocks Near A Buy Zone column, along with three other top stock ideas.
Dow Jones Today: Treasury Yields, Oil Prices
Ahead of Tuesday’s opening bell, the Dow Jones futures fell 0.6%, while S&P 500 futures moved down 0.4%. The Nasdaq 100 futures fell 0.2% in morning action.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) traded down 0.2%, and the SPDR S&P 500 ETF (SPY) fell 0.45%.
The 10-year Treasury yield ticked lower to 4.16% Tuesday morning. On Monday, the 10-year Treasury yield rose to 4.23%, settling at its highest level since June 2008.
Meanwhile, U.S. oil prices declined more than 1% Tuesday, adding to Monday’s slight losses. West Texas Intermediate futures traded near $83 a barrel.
Stock Market Rally Continues
On Monday, the Dow Jones Industrial Average rallied 1.3% and the S&P 500 advanced 1.2%. The tech-heavy Nasdaq composite climbed 0.9%.
Monday’s The Big Picture cautioned, “The amount of institutional-quality stocks forming sound bases or breaking out is relatively small. But opportunities are growing. On Monday, more than 20 stocks appeared on MarketSmith’s breakouts list. Most, however, were unimpressive.”
Now is an important time to read IBDSs The Big Picture column. Following Friday’s gains, investors want to put their curated watchlists to work, in order to jump on future breakouts. But not all follow-throughs work, so it’s important to raise exposure slowly and methodically, as the new uptrend proves itself.
Check out IBD Stock Lists, like the IBD 50 and Stocks Near A Buy Zone, for stock ideas.
Five Dow Jones Stocks To Watch Now
Dow Jones Stocks To Buy And Watch: Merck, UnitedHealth
Dow Jones member and IBD 50 stock Merck is at the top of its buy range above its double bottom’s 93.12 buy point, according to IBD MarketSmith pattern recognition, following Monday’s 1.8% advance. The 5% buy area goes up to 97.78. Third-quarter earnings results are due Thursday before the opening bell.
Merck shares traded flat Tuesday morning.
Health care giant UnitedHealth is approaching a cup-with-handle’s 553.23 buy point, according to IBD MarketSmith pattern recognition. Shares rallied 1.5% Monday, moving closer to the stock’s latest entry. UNH stock inched lower Tuesday morning.
4 Top Growth Stocks To Watch In The Current Stock Market Rally
Top Stocks To Buy And Watch: AutoZone, Cardinal, Eli Lilly, Texas Roadhouse
Auto parts leader and recent IBD Stock Of The Day AutoZone is breaking out past a cup base’s 2,362.34 buy point, racing 4.6% higher Monday. The 5% chase zone goes up to 2,480.46. AutoZone shares were inactive Tuesday.
IBD Leaderboard stock Cardinal Health is in buy range past a short cup-with-handle’s 71.22 entry, according to IBD MarketSmith chart analysis. Shares are also breaking out past a flat base’s 72.38 buy point. Earnings are slated for Nov. 4. CAH stock was flat early Tuesday.
IBD SwingTrader stock Eli Lilly closed further in buy range past a flat base’s 335.43 buy point, climbing 2.1% Monday. Shares were unchanged Tuesday morning.
Texas Roadhouse is trying to reclaim a flat base’s 95.52 buy point after a brief breakout move last week. Shares finished Monday just above the entry. Earnings are due out Thursday. The stock was flat Tuesday.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock dived as much as 7.4% Monday before slashing losses to 1.5%. The early loss occurred as stocks with heavy exposure to China markets took a beating, and after Tesla’s anticipated price reduction of as much as 9% for its Model 3 and Model Y cars sold in China. Shares hit their lowest level since June 2021. The stock closed about 49% off its 52-week high.
Shares of the EV giant moved down 1.1% Tuesday morning, as Berenberg Bank and Morgan Stanley lowered their price targets. Morgan Stanley analyst Adam Jonas lowered the firm’s price target on Tesla from 350 to 330, while keeping an overweight rating. Jonas warned of “unexpected headwinds” into the fourth quarter and 2023.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares rallied 1.5% Monday and are about 19% off their 52-week high. Despite a recent rally, the stock remains below its 50- and 200-day lines. Apple earnings are Thursday after the close. AAPL stock moved down 0.3% Tuesday morning.
Microsoft rose 2.1% Monday, rising for a second straight day. Shares are still in rebound mode after hitting a 52-week low on Oct. 13. The software giant remains about 30% off its 52-week high. Shares climbed 0.2% Tuesday.
Microsoft earnings are due out after the close. The company is expected to earn $2.31 a share on sales of $49.6 billion.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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