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Dow Jones Drops Ahead Of Fed Minutes; Tesla Stock Dives To New Low



Dow Jones futures were higher ahead of Tuesday’s open after the Dow Jones Industrial Average ended with modest losses Monday. Tesla stock dived, hitting a 52-week low and nearing a two-year low. Minutes from the Federal Reserve’s latest policy meeting are due out Wednesday.


The short holiday week will receive a flood of economic data on Wednesday, including consumer sentiment, durable goods orders, first-time jobless claims, PMI readings and new-home sales. The stock market will be closed Thursday for Thanksgiving, along with a shortened trading session on Friday.

Dell (DELL), Urban Outfitters (URBN) and Zoom Video (ZM) were key earnings movers late Monday. DELL stock reversed down 2.5% in extended trade, while Urban shares rallied nearly 3%. Zoom Video stock fell more than 5% in late trade.

Third-quarter earnings season continues this week, with reports from Baidu (BIDU), Best Buy (BBY), Deere (DE), 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 dropped 0.4%. The tech-heavy Nasdaq composite sold off 1.1%.

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

Electric vehicle giant Tesla (TSLA) skidded 6.8% Monday. Among Dow Jones stocks, Apple (AAPL) traded down 2.2% and Microsoft (MSFT) rose 0.3% in today’s stock market.

IBD Leaderboard stock Arista Networks (ANET), GlobalFoundries (GFS), KLA (KLAC) and Shoals Technologies (SHLS) — as well as Dow Jones name Caterpillar (CAT) — are among the top stocks to buy and watch.

Arista Networks is an IBD Leaderboard stock and was a recent IBD Stock Of The Day. GlobalFoundries was featured in last week’s Stocks Near A Buy Zone column. Shoals was Thursday’s IBD 50 Stocks To Watch pick.

4 Top Growth Stocks To Buy And Watch In The Current Stock Market Rally

Dow Jones Futures Today: Treasury Yields, Oil Prices

Ahead of Tuesday’s opening bell, Dow Jones futures rose 0.2% above fair value while S&P 500 futures gained 0.25%. Tech-heavy Nasdaq 100 futures were up 0.3% vs. fair value. Remember that overnight action in Dow Jones futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

The 10-year Treasury yield ticked higher to 3.82% Monday, snapping a two-day win streak.

U.S. oil prices briefly plunged Monday after the Wall Street Journal reported that OPEC is considering an output increase of up to 500,000 barrels a day. Later, Saudi Arabia denied the report, sending oil prices sharply off their lows. West Texas Intermediate futures traded below $76 a barrel Monday before slashing losses.

IBD’s latest newsletter MarketDiem gives you actionable ideas for stocks, options and crypto right in your inbox.

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 trend back in a “confirmed uptrend.”

At this time, it’s important to be flexible. Despite early November’s rebound, investors should maintain a cautious posture, limiting exposure to no more than 40%. Wait for more confirmation of continued strength before adding more exposure. Immediate distribution in the major stock indexes would be a sign to stay more defensive.

If your recent stock purchases continue to make progress, then 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 Lists 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 remains below a cup base’s 238 buy point, according to IBD MarketSmith pattern recognition, after a recent breakout attempt. Caterpillar shares were up 0.3% Monday.

CAT stock boasts an impressive 95 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup.

Top Stocks To Buy And Watch: Arista, GlobalFoundries, KLA, Shoals

IBD Leaderboard stock Arista Networks remains above a choppy base’s 132.97 buy point despite Monday’s 0.6% drop.

Chip foundry GlobalFoundries is still in buy range above a 66.06 buy point in a cup base following Monday’s 2.05% loss, according to IBD MarketSmith pattern recognition.

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

Shoals Technologies remains out of buy range past a 28.57 buy point despite a second straight decline Monday. The 5% buy zone topped out at 30. Wait for an orderly pullback into the buy range before considering a purchase of shares.

Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live

Tesla Stock

Tesla stock skidded 6.8% Monday, extending a losing streak to four sessions and falling to its lowest level since Nov. 23, 2020.

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

Dow Jones Leaders: Apple, Microsoft

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

Microsoft rose 0.3% Monday, ending a three-day losing streak. Shares 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 on growth stocks and the Dow Jones Industrial Average.


Top Growth Stocks To Buy And Watch

Learn How To Time The Market With IBD’s ETF Market Strategy

Find The Best Long-Term Investments With IBD Long-Term Leaders

MarketSmith: Research, Charts, Data And Coaching All In One Place

How To Research Growth Stocks: Why This IBD Tool Simplifies The Search For Top Stocks

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Gas Prices Are Expected to Fall Even Further



The average cost of fuel in the U.S. has fallen more than 30% from a record, with seven states below $3 a gallon.

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Larry Summers Says Fed Will Need to Boost Rates More Than Markets Expect



(Bloomberg) — Former Treasury Secretary Lawrence Summers warned that the Federal Reserve will probably need to raise interest rates more than markets are currently expecting, thanks to stubbornly high inflationary pressures.

Most Read from Bloomberg

“We have a long way to go to get inflation down” to the Fed’s target, Summers told Bloomberg Television’s “Wall Street Week” with David Westin. As for Fed policymakers, “I suspect they’re going to need more increases in interest rates than the market is now judging or than they’re now saying.”

Interest-rate futures suggest traders expect the Fed to raise rates to about 5% by May 2023, compared with the current target range of 3.75% to 4%. Economists expect a 50-basis point increase at the Dec. 13-14 policy meeting, when Fed officials are also scheduled to release fresh projections for the key rate.

“Six is certainly a scenario we can write,” Summers said with regard to the peak percentage rate for the Fed’s benchmark. “And that tells me that five is not a good best-guess.”

Summers was speaking hours after the latest US monthly jobs report showed an unexpected jump in average hourly earnings gains. He said those figures showcased continuing strong price pressures in the economy.

“For my money, the best single measure of core underlying inflation is to look at wages,” said Summers, a Harvard University professor and paid contributor to Bloomberg Television. “My sense is that inflation is going to be a little more sustained than what people are looking for.”

Read More: Job Market Is Too Tight for Fed Comfort as Labor Pool Shrinks

Average hourly earnings rose 0.6% in November in a broad-based gain that was the biggest since January, and were up 5.1% from a year earlier. Wages for production and nonsupervisory workers climbed 0.7% from the prior month, the most in almost a year.

While a number of US indicators have suggested limited impact so far from the Fed’s tightening campaign, Summers cautioned that change tends to occur suddenly.

“There are all these mechanisms that kick in,” he said. “At a certain point, consumers run out of their savings and then you have a Wile E. Coyote kind of moment,” he said in reference to the cartoon character that falls off a cliff.

In the housing market, there tends to be a sudden rush of sellers putting their properties on the market when prices start to drop, he said. And “at a certain point, you see credit drying up,” forcing repayment problems, he added.

“Once you get into a negative situation, there’s an avalanche aspect — and I think we have a real risk that that’s going to happen at some point” for the US economy, Summers said. “I don’t know when it’s going to come,” he said of a downturn. “But when it kicks in, I suspect it’ll be fairly forceful.”

Inflation Target

The former Treasury chief also warned that “this is going to be a relatively high-interest-rate recession, not like the low-interest-rate recessions we’ve seen in the past.”

Summers reiterated that he didn’t think the Fed ought to change its inflation target to, say, 3%, from the current 2% — in part because of potential credibility issues after having allowed inflation to surge so high the past two years.

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©2022 Bloomberg L.P.

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Prince William meets President Biden, awards climate prizes By Reuters



© Reuters. Britain’s Prince William, Prince of Wales arrives at the John F. Kennedy Presidential Library, in Boston, Massachusetts, U.S., December 2, 2022. Charles Krupa/Pool via REUTERS

By Jeff Mason and Brian Snyder

BOSTON (Reuters) -Prince William greeted U.S. President Joe Biden at Boston’s waterfront on Friday, the final day of a visit by British royals trying to focus attention on tackling environmental issues.

William and his wife, Kate, attempted to keep the spotlight on climate and other causes they champion on their first overseas trip since taking on the titles of Prince and Princess of Wales after the death of Queen Elizabeth in September.

In the middle of their U.S. visit, however, Netflix Inc (NASDAQ:) released a trailer for an upcoming documentary series about William’s younger brother, Harry, and his American wife, Meghan, reviving talk about rifts in the royal family. Buckingham Palace also was dealing with a new racism controversy.

On Friday afternoon, William smiled as he met Biden outdoors in cold weather along Boston’s waterfront. The two men took a brief stroll before a private meeting at the John F. Kennedy Presidential Library and Museum.

The pair were expected to discuss “shared climate goals” and “prioritization of mental health issues,” White House spokeswoman Karine Jean-Pierre told reporters before the meeting.

Later on Friday, William and Kate honored winners of the Earthshot Prize, an award William established to recognize people working on solutions to problems caused by climate change.

“By supporting and scaling them, we can change our future,” William said on stage at the black-tie ceremony, which was attended by English soccer star David Beckham, James Bond actor Rami Malek and other celebrities.

Kate and William last visited the United States in 2014, when they were guests of then-President Barack Obama at the White House.

Their current trip came just days before Harry and Meghan looked set to steal the limelight at an awards ceremony in New York.

For many in the British media, Harry and Meghan have become the royal villains, turning their back on duty while using their royal status to forge out lucrative careers and earn millions, including from Netflix.

In contrast, William and Kate are usually portrayed in the British media as dutiful and earnest, reflecting the style of the late queen.

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