The Purchasing Managers’ Index, or PMI, came out at 9:45 a.m. ET. The manufacturing PMI measured 50.4, above estimates for a reading of 49.9 for October. Meanwhile, the ISM manufacturing index – at 10 am – is expected to slow to 50.0 in October, down from September’s reading of 50.9.
The Federal Reserve’s two-day meeting begins on Tuesday, with a decision on the interest rate on Wednesday afternoon. Investor sentiment shows an 88% probability of a 75 basis point rise, according to the Chicago Mercantile Exchange Index.
Tuesday’s main profit drivers were Arista Networks (Network), Eli Lilly (LLY), NXP Semiconductor (NXPI), Uber Technologies (UBER) and Dow Jones Pfizer (PFE).
Arista shares are up more than 1% in morning trading, while Eli Lilly shares are down 4.5% after trimming full-year earnings expectations. NXPI stock is up 3%. Uber stock is up more than 12%. Pfizer stock jumped 2.4% on quarterly earnings and strong sales results. Pfizer also raised its dividend guidance for 2022.
China-based stocks rebounded in US markets in early trade, amid talk that authorities may explore ways to ease the country’s restrictive policy against the coronavirus. Trip.com (TCOM), Lee Otto (LI) and Bindudu (PDD) Each traded at approximately 9%. JD.com (JD) and Baidu (BIDU) rose in the 7% range.
electric car giant Tesla (TSLA) traded more than 3% on Tuesday morning, as China’s electric car makers also rebounded on news of Covid in their home country. In the meantime, technology pioneers at Dow Jones apple (AAPL) and Microsoft (MSFT) was higher right after the stock market opened today.
Among the top stocks to buy and watch, Dicom (DY), IBD Leaderboard Inventory Cheniere Energy (LNG), IBD SwingTrader stock general dollar (DG) and pure storage (PSTG) – as well as shares of Dow Jones chevron (CVX) and United Health (UN) – Among the top stocks to buy and watch. Keep in mind that a continuous rally in the stock market is the perfect time for investors to look for stocks in their buying areas.
Cheniere is an IBD Leaderboard stock. The dollar of the year is the IBD SwingTrader stock. Pure Storage appeared in the stock column near the buy zone for this week, along with three other ideas for top stocks. Pure Storage was also an IBD stock for the day on Friday.
Dow Jones today: Treasury yields and oil prices
After the opening bell on Tuesday, the Dow Jones Industrial Average rose 0.3%, while the S&P 500 gained 0.5%. The heavy Nasdaq Composite was up 0.7% in the morning’s move, with China-based names crowded to the top of the index.
Among the exchange-traded funds, the Nasdaq 100-tracked Invesco QQQ Trust (QQQ) Index is up 1.4%, and the SPDR S&P 500 ETF (SPY) is up 1.1%.
10-year Treasury yields swung down to 3.94% on Tuesday morning, threatening to erase the last two days’ gains. Meanwhile, US oil prices rose 2%, looking to recover from Monday’s losses. West Texas Intermediate futures settled above their 50-day moving average, just above $88 a barrel.
The stock market continues to rise
On Monday, the Dow Jones Industrial Average was down 0.4%, while the S&P 500 was down 0.75%. The Nasdaq Technology Composite Index lost 1%.
The Big Picture commented on Monday, “Increased distribution days in the stock market – especially when they start to rally – usually cause problems to the upside. But they’ve been held back so far, and movement in individual stocks improves as more money comes from the margin. If You’re still investing a bit – say less than 50% like IBD Leaderboard – that’s okay.”
Now is an important time to read our IBD big picture column. After the recent gains, investors got the go-ahead to buy the big stocks that crossed the right buy points. But not all follow-ups work, so it is important to increase exposure slowly and methodically, as the new uptrend proves itself.
But not every follow-up results in a sustainable uptrend, which is why investors need to gauge their exposure in the days and weeks that come after this signal, especially with the added risk from the upcoming Fed meeting. You want to buy in tandem with the market so as not to overcommit to the uptrend that could turn back on you.
And if the stock market starts to crash again, you can reduce your exposure without losing a lot of capital.
Five Dow Jones stocks to buy and watch now
Dow Jones stocks to buy and watch: Merck, UnitedHealth
Dow Jones Member and Merck IBD 50 stock is out of buy after 93.12 buying points from a double bottom base, According to IBD MarketSmith Pattern Recognition. Merck shares fell 0.9 percent on Tuesday.
Healthcare giant UnitedHealth hits 553.23 points of purchase from a cup with a handle, According to IBD MarketSmith. Shares rose 0.75% on Monday, closing just above the stock’s most recent entry. UN stock lost 0.3% on Tuesday morning.
4 growth stocks to watch at Cursstock market rally
Top Stocks to Watch: Cheniere, Dollar General, Dycom, and Pure Storage
According to IBD MarketSmith’s chart analysis, IBD’s Cheniere Energy is just shy of a 178.69 buy point of a cup with a handle. LNG stocks rose 0.5% on Tuesday morning.
The stock IBD Swing Trader Dollar General is trying to surpass 259.75 buying points at the base of a teacup. On Monday, DG shares lost 2.1%, to close below the entry level. If the stock regains this critical level, the 5% chase zone would rise to 272.74. DG shares were up 0.2% early Tuesday.
Dycom is trying to get past the 120.55 cup base purchase point. Shares fell 1.85% on Monday, falling below the buying point and exiting the 5% buying zone that rose to 126.58. Dycom shares rose nearly 1% on Tuesday,
Friday’s stock of IBD, Pure Storage, is close to 31.62 buying points after three days of gains. On Tuesday, the stock rose 2%.
Join IBD experts as they analyze the leading stocks in the current stock market rally on IBD Live
Tesla stock fell 0.4% on Monday, cutting off a four-day winning streak. The stock is recovering after hitting a 52-week low last week. However, shares are down about 45% from their 52-week highs and sharply below the 50- and 200-day moving average lines.
Shares of the electric car giant rose more than 3% on Tuesday morning.
Dow Jones Leaders: Apple and Microsoft
Among Dow Jones stocks, Apple shares fell 1.5% on Monday and are down about 16% from their 52-week high. Last week, the stock regained its 50-day bullish streak. Now, stocks are testing resistance at the long-term 200-day line. Apple stock rose 1% on Tuesday.
Microsoft stock fell 1.6% on Monday, giving up part of Friday’s 4% recovery. Stocks approached their lowest level on October 13 in 52 weeks. The software giant is still more than 30% off its 52-week high. Microsoft shares rose 0.9% Tuesday morning.
Make sure to follow Scott Lehtonen on Twitter at Tweet embed Learn more about developing stocks and the Dow Jones Industrial Average.
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