The Dow Jones Industrial Average turned higher on Tuesday, as blue chips 3M and Coca-Cola reported their quarterly results. The next step is for Microsoft’s earnings to be paid out after the shutdown.
X Stock Market Today: Earnings Season Continues
Dow Jones shares 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 top reporters on Tuesday morning.
MMM shares fell 4% after missing revenue estimates and lowering the full-year outlook. KO shares rose 2.4% on better-than-expected earnings and sales results.
GM shares rose 3.5% in early trading, while Halliburton rose nearly 2%. Raytheon fell 3% after earnings results, while UPS shares rose 2.5%.
Electric vehicle giant Tesla (TSLA) rose 3% Tuesday morning, while technology leaders Dow Jones Apple (AAPL) and Microsoft (MSFT) were higher after the stock market opened.
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 get their watchlists into action and hone their pyramiding technique.
Young rallies, especially those fighting bear markets, often fail. Pyramiding provides a method of taking new equity positions incrementally to minimize risk to capital.
Cardinal and Texas Roadhouse are IBD Leaderboard stocks. UnitedHealth was featured in the Stocks Near a Buy Zone column this week, along with three other top stock ideas.
Dow Jones Today: Treasury Yields, Oil Prices
After Tuesday’s opening bell, the Dow Jones Industrial Average rose 0.35% after wiping out early losses, while the S&P 500 gained 0.8%. The tech-heavy Nasdaq composite was up 1.4% in the morning action.
Of the exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 1.2% and the SPDR S&P 500 ETF (SPY) rose 0.6%.
The 10-year yield tapped lower to 4.07% on Tuesday morning. On Monday, 10-year government bond yields rose to 4.23%, reaching the highest level since June 2008.
Meanwhile, US oil prices rose nearly 1% on Tuesday, recovering from Monday’s slight losses. West Texas Intermediate futures traded near $85 a barrel.
Stock rally continues
On Monday, the Dow Jones Industrial Average rose 1.3% and the S&P 500 rose 1.2%. The tech-heavy Nasdaq composite climbed 0.9%.
Monday’s Big Picture warned: “The number of institutional-grade stocks that are building a solid foundation or breaking out is relatively small. But the odds are increasing. More than 20 stocks appeared on MarketSmith’s breakout list on Monday. However, most were not.” impressive.”
This is an important time to read IBD’s The Big Picture column. After Friday’s gains, investors are looking to put their curated watchlists to work jumping on future breakouts. But not all follow-throughs work, so it’s important to increase exposure slowly and methodically as the new uptrend proves itself.
Check out IBD stock lists, such as 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 the double bottom buy point of 93.12, according to IBD MarketSmith’s pattern recognition, after Monday’s 1.8% gain. The buying area of 5% increases to 97.78. Third quarter results are expected before the opening bell on Thursday.
Shares of Merck traded nearly 1% lower Tuesday morning.
Healthcare giant UnitedHealth is approaching the 553.23 buy point of a cup-and-handle, according to pattern recognition from IBD MarketSmith. Shares rose 1.5% on Monday, moving closer to the stock’s latest entries. UNH stock fell 0.5% on 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 share of the day AutoZone breaks above a cup base 2,362.34 buy point and races up 4.6% on Monday. The 5% chase zone increases to 2,480.46. AutoZone shares rose 0.3% Tuesday.
IBD Leaderboard shares Cardinal Health is in the buy range past the 71.22 entry from a short head-and-handle, according to the IBD MarketSmith chart analysis. Stocks are also breaking past the 72.38 buy point from a flat base. The win is scheduled for November 4. CAH shares fell 0.9% early Tuesday.
IBD SwingTrader stock Eli Lilly closed further into the buy range past the 335.43 buy point from a flat base and was up 2.1% on Monday. The stock lost 0.6% Tuesday morning.
Texas Roadhouse is trying to regain the 95.52 buy point from a flat base after a short breakout last week. Shares ended just above the entry on Monday. The win will be announced on Thursday. The stock rose 0.1 percent on Tuesday.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla stock: price target lowered
Tesla shares plunged a whopping 7.4% on Monday before cutting losses to 1.5%. The early loss came as stocks with high exposure to Chinese markets took a beating, and after Tesla’s projected price cut 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% from its 52-week high.
Shares of the EV giant rose 3% on Tuesday morning, even as Berenberg Bank and Morgan Stanley lowered their price targets. Morgan Stanley analyst Adam Jonas lowered the company’s price target for Tesla from 350 to 330, while maintaining an overweight rating. Jonas warned of “unexpected headwinds” in the fourth quarter and 2023.
Dow Jones Leaders: Apple, Microsoft
Of the Dow Jones stock, Apple shares rose 1.5% on Monday and are about 19% off their 52-week high. Despite a recent rally, the stock remains below the 50 and 200 day limits. Apple earnings are after hours on Thursday. AAPL shares were up 0.6% Tuesday morning.
Microsoft rose 2.1% on Monday, rising for the second day in a row. Stocks are still in rebound mode after hitting a 52-week low on Oct. 13. The software giant remains about 30% lower than its 52-week high. The stock rose 0.2% on Tuesday.
Microsoft revenues are expected after the shutdown. The company is expected to earn $2.31 per share on revenue of $49.6 billion.
Follow Scott Lehtonen on Twitter at @IBD_SLehtonen to learn more about growth stocks and the Dow Jones Industrial Average.
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