Dow Jones falls as investors fear rate hikes in 2023; Tesla stock down

Election Results, Inflation Data;  Tesla hit a new low
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Dow Jones futures were higher ahead of Tuesday’s open after the Dow Jones industrial average sold off more than 480 points on Monday. After that, Tesla shares sank multiple reports say Tesla plans to cut electric car production in China as demand declines.


The EV giant has denied reports that it has cut production in China as false. However, investors left the stock down more than 6% and near the day’s lows.

Will the Fed raise more rates until 2023?

The stock market headed south on Monday as stronger-than-expected economic data fueled fears that the Federal Reserve will continue to raise interest rates aggressively over the next year due to a strong labor market. On Monday, the ISM services report came in better than expected, with a reading of 56.5 in November. It rose to 54.4 in October. ISM services are a barometer of business conditions in the US service sector; A reading above 50 indicates expansion, and a reading below 50 indicates contraction.

It came directly on the heels of Monday’s economic data A strong jobs report on Friday It showed employers added 263,000 payroll positions, the unemployment rate remained at 3.7% and wages rose.

According to Nick Timiraos The Wall Street Journal“Federal Reserve officials said they plan to raise the benchmark interest rate by 0.5 percentage points at their meeting next week, but rising wage pressures could lead them to continue raising them to higher levels than investors currently expect.”

Timiraos continued: “Policymakers expect price pressures to ease meaningfully next year, but faster wage growth or higher inflation in labor-intensive service sectors of the economy could help many of them push standard rates above the currently expected 5% next year. Investors .”

The 10-year Treasury yield rose to 3.59% on Monday, recovering from last week’s sharp losses.

Included in this week’s earnings reports Academy Sports + Outdoors (SO THAT), AutoZona (AZO), Broadcom (AVGO), Ciena (HUNDRED), Lululemon Athletica (LULU), Ollie’s Bargain Outlet (OLLY) and Toll Brothers (FULL).

Stock Exchange Today

The Dow Jones Industrial Average was down 1.4%, or 482 points, and the S&P 500 was down 1.8% on Monday. The tech-heavy Nasdaq composite fell 1.9%. between exchange traded fundsNasdaq 100 tracker Invesco QQQ Trust (QQQ) 1.7% and the SPDR S&P 500 (SPY) was 1.8%.

A giant electric car Tesla (TSLA) fell 6.4% on Monday. between Dow Jones stocks, apple (AAPL) decreased by 0.8% and Microsoft (MSFT) decreased by 1.2% stock market today.

Celsius (CELH), Chubb (CB), Dexcom (DXCM) and QLA (KLAC)— also Dow Jones names Caterpillar (CAT), Chevron (CVX) and Home Depot (HD) — are among the best stocks to buy and watch.

Dexcom one IBD Leaderboard stock. Caterpillar and Home Depot was demonstrated this week Stocks Close to Buy Zone column. Celsi was new IBD 50 Stocks to Watch and a New America stock. Caterpillar was Thursday Stock of the day.

4 Best Growth Stocks to Buy and Watch on Current Stock Market Rally

Dow Jones Futures Today: Oil Prices

Dow Jones futures rose 0.2% ahead of Tuesday’s opening bell. fair value, while S&P 500 futures gained 0.25%. Tech-heavy Nasdaq 100 futures rose 0.3%. fair value. Don’t forget that it’s a one night stand Dow Jones futures and elsewhere does not necessarily become the actual trade on a regular basis Stock market session.

Oil prices in the US fell more than 3%, reversing initial gains. West Texas Intermediate futures traded just above $77 a barrel. Crude oil prices initially rose after that European Union sanctions Where Russian crude comes into full force.

IBD’s latest newsletter, MarketDiem, brings you actionable ideas for stocks, options and cryptocurrencies straight to your inbox.

What to Do in a Stock Market Rally

Now is an important time to read IBD’s Big Picture column with the stock market trend, the “confirmed uptrend” is back.

While it’s true that the S&P 500 and Nasdaq composite are still in confirmed uptrends, the performance of impact stocks has been disappointing. Increasing exposure has not been easy.

What kind of feedback do you get when it comes to new purchases? Are new purchases moving forward from purchase points? In this case, it’s best to give them some space. But if the profit is at least 10%, do not be afraid to take a partial profit. If new purchases are going the wrong way, instead of waiting, cut losses when the stock falls 3%-4%. The 7% rule to trigger

Light, flexible trading is the best course of action right now. If the uptrend starts to engage again, there will be plenty of opportunities to increase exposure. And don’t be afraid to look for early entries rather than waiting for a stock to hit a conventional buy point.

(Check IBD Stock Lists whom IBD 50 and Stocks close to the buy zonefor additional fund ideas.)

Five Dow Jones Stocks to Buy and Watch Now

Dow Jones Stocks to Buy and Watch: Caterpillar, Chevron, Home Depot

Dow Jones member Caterpillar is close to reclaiming 238 of its trophy base point of purchase, according to IBD MarketSmith pattern recognition, and is about 2% lower than the input. CAT shares fell 1.5% on Monday.

CAT reserve It has a solid 94 out of a perfect 99 IBD Composite Rating by IBD Stock Check.

Energy giant Chevron fell 2.5% on Monday, falling further below a 182.50 buy point on a consolidated basis.

Home improvement retailer Home Depot ended nearly 4% below a 333.08 buy point from a cup base after the stock fell 2.4% on Monday.

Best stocks to buy and watch: Celsius, Chubb, Dexcom, KLA

Energy drink maker Celsius fell 3.5% on Monday, snapping a three-day winning streak. Shares are trying to break a cup base’s 118.29 buy point, but are about 4% lower than the entry, according to IBD MarketSmith pattern recognition.

Insurance giant Chubb is trading under a cup with a 216.10 buy point on Monday after a 1.7% session loss. The 5% buy area is at 226.91.

IBD Leaderboard stock Dexcom is nearing an alternate entry at 123.46, despite falling 1.3% on Monday. Shares are about 5% off their most recent high point of purchase.

New IBD Long Term Leader As shares fell 0.25% on Monday, KLA remains just below the handle cup’s 392.60 buy point amid a three-day losing streak. The RS line continues to hold new highs, a sign of stock market leadership.

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

Tesla shares

Tesla shares It slipped 6.4% on Monday, snapping a three-day winning streak and giving up all of last week’s gains.

In recent weeks, the stock has hit its lowest level since November. 23, 2020, it hit a new 52-week low of 166.19. Since then, the stock has rebounded, but remains sharply below its 50- and 200-day moving averages. Shares are about 55% off their 52-week high.

Dow Jones Leaders: Apple, Microsoft

between Dow Jones stocks, Apple shares fell 0.8% on Monday but are still above their 50-day line. The stock is down more than 20% from its 52-week high.

Microsoft fell 1.2% on Monday as shares continued to hover above the 50-day line. The software giant remains about 27% below its 52-week high.

Be sure to follow Scott Lehtonen on Twitter @IBD_SLehtonen For more information on growth stocks and the Dow Jones Industrial Average.


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