The Dow Jones Industrial Average rose as much as 600 points on Monday as Bank of America jumped out with better-than-expected earnings results. Meanwhile, Apple shares rose after Morgan Stanley called the tech titan a top pick.
Stock Market Today: Earnings Season Continues
The third quarter earnings season continues on Monday, with results of Bank of America (bac) Y charles schwab (BLACK). Next, Dow Jones stocks Goldman Sachs (SG) Y Johnson and Johnson (jnj) will report early Tuesday, while Netflix (NFLX) will kick off the tech gains after the market close on Tuesday. Tesla earnings are on Wednesday.
Bank of America shares rose more than 5%, while shares of Charles Schwab rose about 1% after the company’s earnings results.
electric vehicle leader Tesla (TSLA) rose 5.5% on Monday. Among the industrialists of the Dow Jones, the technological titans Apple (AAPL) Y Microsoft (MSFT) were directly superior after stock market today open.
auto zone (AZO), cardinal health (CAH), ConocoPhillips (POLICEMAN) Y Vertex Pharmaceuticals (VRTX), as well as Dow Jones stocks Chevron (CLC) Y Merck (MRK), are among the main actions to take into account. Keep in mind that the ongoing stock market correction is a time for investors to stay on the sidelines and create watch lists of the fastest growing stocks.
Cardinal Health and Vertex are IBD classification table stocks. the cardinal was Friday IBD Day Stock. Chevron and Conoco were featured in last week’s Stock Near A Buy Zone column, along with two other stock top ideas. merck era Stock picks to watch from Tuesday’s IBD 50.
Dow Jones Today: Treasury Yields, Oil Prices
After the opening bell on Monday, the Dow Jones industrial average was up 1.7%, while the S&P 500 gained 2.5%. The Nasdaq Tech Composite was up 3.1% in morning action.
Among exchange traded fundsNasdaq 100 follower Invesco QQQ Trust (QQQ) rose 2.6%, and the SPDR S&P 500 ETF (TO SPY) rose 2.1%.
The 10-year Treasury yield declined on Monday, retreating to 3.93% after Friday’s close above 4%.
US oil prices rose more than 1% on Monday, looking to rebound from Friday’s slump. West Texas Intermediate futures traded above $86 a barrel. In the meantime, natural gas futures plunged while the European Union considered ways to lower energy prices.
Stock Market Weakness Continues
On Friday, major stock indices reversed from a positive open on Friday, causing the Dow Jones Industrial Average to end down 1.3%, the S&P 500 down 2.4% and the Nasdaq a miserable 3. 1 %.
Friday’s Big Picture warned, “S&P 500 Q3 Earnings Growth expectations have fallen to 4.5%, while energy stocks should add 6.3% to earnings. As a result, the rest of the index may post negative growth in the third quarter.”
Despite big losses on Friday, the Nasdaq and S&P 500 remained above their recent lows, so their recovery attempts remain intact. Thursday was day 1 of the stock market’s latest rally attempt, so investors are now expecting a follow-up day, which can happen as early as Tuesday. A follow-up day confirms the start of a new uptrend.
Psychologically, watching the market perform through repeated rally attempts can be a challenging process. Investors want to have watch lists on hand to take advantage of day-of-watch breakouts. But not all follow-ups work, so buying too early or with too much conviction can lead to frustration.
This is why it is important to increase exposure slowly and methodically, as the uptrend proves itself.
Verify IBD Stock ListsAs the IBD 50 Y Stocks near a buy zonefor common ideas.
Five Dow Jones Stocks to Watch Now
Dow Stocks to Watch: Chevron, Merck
Energy giant Chevron continues to hold above support at its 50-day line and is consolidating below a buy point of 182.50 ahead of the company’s earnings release on Oct. 28. Chevron shares rose 2.1% on Monday morning, tracking higher with oil prices.
CLC actions boast a strong 98 from a perfect 99 IBD Composite Classification, for him IBD stock check. Investors can use the IBD Composite Rating to easily gauge the quality of a stock’s fundamental and technical metrics.
Dow Jones member and Stock of IBD 50 Merck is trying to overcome a false bottom93.12 point of purchase, according to IBD MarketSmith Pattern Recognition. the relative strength line reached a new high last week. Third quarter earnings results are due Oct. 27 before the opening bell.
Merck shares added 0.4% on Monday morning.
4 top growth stocks to watch in the CurrCurrent Stock Market Correction
Top Stocks to Watch: AutoZone, Cardinal, Conoco, Vertex
Auto parts leader and IBD’s recent stock of the day, AutoZone, is about 5% from the buy point of 2,362.34 on a cup basis. Keep an eye out for a potential handle to offer a lower entry. AutoZone shares rose 0.3% on Monday.
IBD classification table Medical and stock leader Cardinal Health is shaping a flat base that has a buy point of 72.38, according to IBD MarketSmith chart analysis. Drug distribution heavyweight stocks are again testing support around their key 10-week moving average, according to Leaderboard commentary. Winnings are due November 4. The shares rose 1.3% on Monday.
Energy giant ConocoPhillips continues to teeter above and below a 118.49 point of purchase in glass with handle amid the volatility of the stock market. The stock’s RS line hit a new high last week, illustrating a strong outperformance of the stock market. Winnings are due on November 3. The shares gained 2.1% on Monday.
Biotech leader Vertex Pharmaceuticals continues to build a flat base with a buy point of 306.05 and an early entry at 296.90. Its RS line hit a new high last week, confirming the biotech leader as a key stock to watch. VRTX shares found support at their 50-day line on Thursday. Winnings are due October 27. Shares rose 0.5% on Monday.
Join IBD experts as they discuss the leading stocks in the current stock market rally attempt on IBD Live
tesla shares fell 7.55% on Friday, closing at its lowest level since June 2021. The stock is more than 50% below its 52-week high. Tesla shares rose 5.5% on Monday morning.
The electric vehicle giant’s third-quarter results are due Wednesday night. Tesla is expected to earn an adjusted $1.01 per share on sales of $22.1 billion.
Dow Jones Leaders: Apple, Microsoft
Among dow jones stocks, Apple shares sold off 3.2% on Friday, erasing Thursday’s gains and closing near recent lows. The stock is about 25% below its 52-week high and below its 50- and 200-day lines. Apple shares rose 2.8% on Monday after Morgan Stanley called them one of the best options in the event of a US economic downturn. The analyst maintained the overweight rating, although he lowered the price target from 180 to 177.
Microsoft lost 2.4% on Friday but still remains above last week’s 52-week price low. The software giant is down 35% from its 52-week high. Microsoft shares gained 4.2% early Monday.
Apple’s earnings are expected on October 27, while Microsoft’s are expected on October 25.
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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