The Dow Jones Industrial Average rose 100 points on Monday morning, but Apple shares fell back after the the company warned that it has reduced the production of iPhone 14 due to Covid-19 restrictions in China.
Key earnings reports this week include diamond back energy (CANINE), Disney (DIS), double check (YOU), dr horton (DHI), lyft (LYFT), Mosaic (MOS), Western (OXY), Roblox (RBLX) Y medical shock wave (SWAV).
Costco (COST) fell 1.3% on Monday after Wells Fargo downgraded the stock from overweight to equal weight. Metaplatforms (GOAL) jumped 5% after a Wall Street Journal Report He said the company plans to announce layoffs this week.
Top stocks to buy and watch include Arista Networks (A NETWORK), Cheniere Energy (LNG), general dollar (managing Director) Y pure storage (PSTG), as well as Dow Jones stocks Chevron (CLC) Y United Health (UNH). Keep in mind that the now-troubled stock market rally is a reason for investors to play more defensively.
Cheniere is a IBD classification table Values. pure storage appeared in the Stocks column near a buy zone last week, along with three other main ideas about actions. Pure Storage was also recently a IBD Day Stock.
Dow Jones Today: Treasury Yields, Oil Prices
After the opening bell on Monday, the Dow Jones industrial average was up 0.2%, while the S&P 500 was down 0.1%. The Nasdaq Tech Composite lost 0.35% in morning action.
The 10-year Treasury yield fell to 4.15% on Monday morning, threatening to snap a three-day winning streak. Meanwhile, US oil prices traded slightly lower. Last week, West Texas Intermediate futures hit their highest point since mid-October. WTI futures traded just below $92 a barrel.
Stock Market Recovery Struggles
On Friday, the Dow Jones Industrial Average rose 1.3%, while the S&P 500 gained 1.4%. The Nasdaq Tech Composite rose 1.3.
The Big Picture on Friday commented“While the market has now overcome the painful speed bump of the Fed meeting, there are still more challenges ahead for the coming week. On Thursday, the latest Consumer Price Index data will be released. This will cover the period October In addition, the Midterm elections are scheduled to take place. With President Joe Biden suffering from low approval ratings, a divided Congress or even a red wave in which Republicans take both chambers could be in the offing. Markets tend to rally after the midterms.”
Now is an important time to read. IBD’s The Big Picture column. Following the recent selloff, investors should focus more on playing defense than buying breakouts.
Dow Jones Stocks to Buy and Watch: Merck, UnitedHealth
Dow Jones member and Stock of IBD 50 Merck remains out of buy range after a double bottom base 93.12 point of purchase, according to IBD MarketSmith Pattern Recognition. Merck shares fell 0.7% on Monday.
Healthcare giant UnitedHealth is trying to outdo a mug with a handle 553.23 point of purchase, according to IBD MarketSmith. Stocks trimmed losses to 1% on Friday, holding below their last entry. UNH shares traded a fraction lower on Monday morning.
Top Stocks to Watch: Arista, Cheniere, Dollar General, Pure Storage
IBD Classification Table Watch List Arista Networks is trying to break out of a buy point at 132.97 amid Friday’s 7.2% gain. Stocks were down on Monday morning.
IBD classification table Cheniere Energy shares were down 3% on Friday, falling about 4% below a buying point of 178.69 in a mug with a handle. Look for a decisive resumption of entry before buying stocks. Shares of LNG rose 0.5% on Monday.
Dollar General fell further below a buying point of 259.75 on a base rate, as shares of DG lost 0.5% on Friday, falling for the fifth day in a row. The stock will now look for support around its 50-day line. DG shares rose 0.2% early Monday.
Recent stock of IBD of the day, Pure Storage, broke above a buy point of 31.62 last week, but fell further below that entry during Friday’s 0.5% drop. The stock rose a fraction on Monday.
tesla shares slid 3.6% on Friday, holding just above its recent lows, about 50% below its 52-week high, and well below its 50- and 200-day moving average lines.
Shares of the electric vehicle giant were down 2.4% on Monday morning.
Dow Jones Leaders: Apple, Microsoft
Among dow jones stocks, Apple shares fell 0.4% on Friday, falling for the fifth day in a row. The stock fell more than 11% last week. Apple shares traded down 1.4% on Monday after its iPhone production warning.
The company said: “We now expect lower iPhone 14 Pro and iPhone 14 Pro Max shipments than we previously anticipated and customers will experience longer wait times to receive their new products.”
Microsoft rallied 3.3% on Friday, snapping a four-day losing streak and recovering from its 52-week low. The software giant is down 37% from its 52-week high. Microsoft shares rose 0.75% on Monday morning.
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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