The Dow Jones Industrial Average sold 350 points on Monday after a slew of November economic data, including the PMI composite, the ISM services index and factory orders. Chinese stocks resumed their rebound thanks to a change in domestic policy from Covid. Tesla shares slipped more than 5% after Bloomberg reported the electric vehicle maker plans to cut production at its Shanghai factory.
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Economic data, upcoming earnings reports
The Markit/S&P Global US Services Purchasing Managers Index, or PMI, remained contracting in November, reading 46.2 for the month, up slightly from the initial mid-month estimate. The Institute for Supply Management’s services PMI continued to rise, rising from 54.4 in October to 56.5 in November.
Finally, Commerce Department factory orders data jumped 1% for October, beating the 0.7% estimate and up from September’s 0.4% rise.
Companies reporting profits this week include Sports + Outdoors Academy (ASO), Auto area (AVOID), Broadcom (AVGO), Respect (HUNDRED), Lululemon Athletica (LULU), Ollie’s Bargain Outlet (OLLI) and Toll Brothers (TOL).
Chinese stocks Ali Baba (BABA) and JD.com (JD) jumped 2% and 3%, respectively, as Chinese markets rallied after local authorities in the country continued to ease Covid-19 control measures.
VE Giant You’re here (TSLA) was trading around 4.5% on Monday morning. Dow Jones Technology Leaders Apple (AAPL) and Microsoft (MSFT) were mixed after the stock market opened today.
Celsius (CELH), Chubb (CB), IBD Ranking Action Dexcom (DXCM) and Lattice Semiconductors (LSCC) – as well as Dow Jones names Boeing (BA), caterpillar (CAT) and Chevron (CVX) – are among the best stocks to buy and watch.
Dexcom is an IBD ranking stock. Boeing is an IBD SwingTrader stock and was one of four leaders featured in the Stocks Near A Buy Zone column last week. Celsius was a recent IBD 50 Stocks To Watch pick and a New America stock. Caterpillar was Thursday’s stock of the day.
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Dow Jones Today: Oil Price, Treasury Yields
After Monday’s opening bell, the Dow Jones Industrial Average lost 1%, while the S&P 500 fell 1.1%. The tech-heavy Nasdaq composite was down 1% in morning action.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) lost 0.7% early Monday, and the SPDR S&P 500 ETF (SPY) fell 0.75%.
The 10-year Treasury yield rose to 3.52% on Monday morning, on pace with a three-day losing streak. Last week, the 10-year Treasury yield fell to 3.5%, its lowest level since mid-September. Investors are placing a 78% chance, down from 75% a week ago, of a 50 basis point rate hike at this month’s Federal Reserve meeting, according to the CME FedWatch Tool.
Meanwhile, US oil prices rose more than 3%, after posting their first weekly advance in a month. West Texas Intermediate futures were trading just below $82 a barrel after European Union sanctions took effect on Russian crude oil. Oil prices were also boosted by the easing of China Covid restrictions, a move that could potentially boost demand.
Stock market rally
The stock market posted mixed action on Friday, with the tech-heavy Nasdaq composite losing 0.2%. The Dow Jones Industrial Average rose 0.1%, while the S&P 500 fell slightly.
Friday’s The Big Picture commented: “The S&P 500 ended Friday down just 0.1%, well off the day’s lows. It posted a solid weekly gain of 1.1%, holding above from the 200-day moving average, after recapturing the key level earlier.The overall price action was encouraging, suggesting further upside at the end of the year.
Now is an important time to read IBD’s The Big Picture column amid current stock market volatility.
Five Dow Jones Stocks to Buy and Watch Now
Dow Jones Stocks to Buy and Watch: Boeing, Caterpillar, Chevron
Aerospace giant Boeing jumped 4% on Friday, ending just outside the buy range past the 173.95 buy point of a cut base. The 5% buy zone rose to 182.65. Boeing shares fell 1% on Monday.
Dow Jones member Caterpillar finished just shy of its cut base’s 238 buy points, according to IBD MarketSmith’s pattern recognition, following Friday’s 0.2% gain. CAT stock fell 0.5% on Monday.
The CAT stock boasts a solid 94 out of a perfect IBD composite rating of 99, according to the IBD stock balance sheet.
Energy giant Chevron slid 0.8% on Friday, ending just below a buy point of 182.50 in a consolidation basis. Shares of CVX rose 0.9% on Monday morning as oil prices rose.
4 growth stocks to watch in the currentrStock market rally
Top stocks to buy and watch: Celsius, Chubb, Dexcom, Lattice
Energy drink maker Celsius rallied for a third straight day, climbing 3.7% on Friday and surpassing the buy point of 118.29 by a cup base. The actions ended just below the entry. The stock was down 0.5% on Monday.
Chubb moved above the 216.10 one-cup buy point with a handle on Friday after the session’s 0.4% rise. The 5% buy zone peaks at 226.91. The insurance giant fell 0.7% on Monday morning.
IBD Leaderboard Dexcom stock is approaching an alternate entry at 123.46 amid a three-day winning streak. The shares are around 5% from their last buying point. Dexcom shares fell 0.5% on Monday morning.
Lattice Semiconductors remains in the buy range past a buy point of 70.25, according to chart analysis from IBD MarketSmith. Lattice stock fell 0.7% on Monday.
Join IBD experts as they analyze the top stocks of the current stock market rally on IBD Live
Tesla Stock
Tesla stock rose 0.1% on Friday, up for a third consecutive session. Despite recent gains, stocks remain more than 50% off their 52-week high. Meanwhile, the stock is approaching its 50-day line, which is a key resistance level to watch.
Shares slipped more than 5% on Monday morning after Bloomberg reported that Tesla plans to cut production at its Shanghai factory by about 20% in December due to slowing demand in China. Meanwhile, the China Passenger Car Association reported that Tesla deliveries in that country hit a record high in November at 100,291.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares pared losses to 0.3% on Friday but still ended a two-day winning streak. Stocks are holding just above their recently captured 50-day line. The stock is around 20% off its 52-week high. Apple stock traded 0.5% on Monday.
Microsoft edged up 0.1% on Friday, to its highest level since Sept. 13. The software giant remains around 26% off its 52-week high. Microsoft shares fell 0.8% on Monday morning.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen to learn more about growth stocks and the Dow Jones Industrial Average.
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