Futures fall after unemployment insurance claims

Higher inventories; Apple falls on iPhone warning

The Dow Jones Industrial Average rose 100 points on Monday morning, but Apple stock fell after the company warned it had cut iPhone 14 production due to Covid-19 restrictions in China.


Top earnings reports this week include Diamondback Energy (CROC), disney (SAY), DoubleVerify (DV), DR Horton (DHI), Lyft (LYFT), Mosaic (MOS), western (OXY), Roblox (RBLX) and medical shock wave (SWAV).

Costco (COST) fell 1.3% on Monday after Wells Fargo downgraded the title from overweight to equal weight. Metaplatforms (META) jumped 5% after a Wall Street Journal report said the company planned to announce layoffs this week.

Electric vehicle giant You’re here (TSLA) was trading up more than 2% on Monday morning. Dow Jones Technology Leaders Apple (AAPL) and Microsoft (MSFT) were mixed after the stock market opened today.

Some of the best stocks to buy and watch include Arista Networks (A NET), Energy Cheniere (LNG), General dollar (DG) and Pure storage (PSTG) — as well as Dow Jones stocks Chevron (CLC) and UnitedHealth (A H). Keep in mind that the currently difficult stock market rally is a reason for investors to play more defense.

Cheniere is an IBD ranking title. Pure Storage was featured in last week’s Stocks Near A Buy Zone column, along with three other stock ideas. Pure Storage was also recently an IBD Stock Of The Day.

Dow Jones Today: Treasury Yields, Oil Prices

After Monday’s opening bell, the Dow Jones Industrial Average rose 0.2%, while the S&P 500 fell 0.1%. The tech-heavy Nasdaq composite lost 0.35% in morning action.

Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) traded down 0.4% and the SPDR S&P 500 ETF (SPY) fell 0.1%.

The 10-year Treasury yield fell to 4.15% on Monday morning, threatening to break a three-day winning streak. Meanwhile, US oil prices fell slightly. Last week, West Texas Intermediate futures hit their highest level since mid-October. WTI futures were trading just below $92 a barrel.

Stock market rally struggles

On Friday, the Dow Jones Industrial Average rebounded 1.3%, while the S&P 500 gained 1.4%. The tech-heavy Nasdaq composite climbed 1.3.

Friday’s The Big Picture commented: “While the market has now overcome the painful speed bump of the Fed meeting, further challenges lie ahead for the week ahead. On Thursday, the latest price index data consumption are expected. This will cover the October period. In addition, the midterm elections are about to take place. With President Joe Biden suffering from low approval ratings, a divided Congress or even a red wave where Republicans seize both chambers could be in sight.Markets tend to rally after midterms.

Now is an important time to read IBD’s The Big Picture column. Following recent selling, investors should focus more on defending than buying breakouts.

Five Dow Jones Stocks to Buy and Watch Now

Dow Jones stocks to buy and watch: Merck, UnitedHealth

Dow Jones and IBD 50 member Merck remains out of the buy range past the 93.12 buy point of a double bottom basis, according to IBD MarketSmith pattern recognition. Merck shares fell 0.7% on Monday.

Healthcare giant UnitedHealth is trying to surpass the 553.23 buy point of a cup with handle, according to IBD MarketSmith. Shares pared losses to 1% on Friday, holding below their last entry. UNH stock traded a fraction lower on Monday morning.

4 growth stocks to watch in the currentrStock market rally

Top stocks to watch: Arista, Cheniere, Dollar General, Pure Storage

IBD Leaderboard watchlist stock Arista Networks is trying to break above a buy point at 132.97 amid Friday’s 7.2% rise. The shares fell slightly on Monday morning.

IBD Leaderboard Cheniere Energy stock fell 3% on Friday, falling about 4% below a buy point of 178.69 in a handle cup. Look for a decisive rally in the entry before buying stocks. LNG shares rose 0.5% on Monday.

Dollar General fell further below a buy point of 259.75 in a cup basis, as DG shares lost 0.5% on Friday, falling for a fifth straight day. Now, the stock will look for support around its 50-day line. Shares of DG rose 0.2% on Monday morning.

Recent IBD stock of the day, Pure Storage, broke last week past a buy point of 31.62, but fell even further below that entry on the 0.5% decline in Friday. The stock rose a fraction on Monday.

Join IBD experts as they analyze the top stocks of the current stock market rally on IBD Live

Tesla Stock

Tesla stock slipped 3.6% on Friday, barely holding above its recent lows, about 50% off its 52-week high and well below its 50- and 200-day moving averages.

Shares of the electric vehicle giant fell 2.4% on Monday morning.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares fell 0.4% on Friday, falling for a fifth straight day. The stock fell more than 11% last week. Apple stock traded 1.4% on Monday after its iPhone production warning.

The company said: “We now expect lower shipments of iPhone 14 Pro and iPhone 14 Pro Max than we previously anticipated and customers will experience longer wait times to receive their new products.”

Microsoft rebounded 3.3% on Friday, snapping a four-day skid and rallying to its 52-week low. The software giant is around 37% off its 52-week high. Microsoft shares rose 0.75% 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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