Prior to a week of significant earnings releases, the Dow Jones Industrial Average (Dow Jones Stock Markets)  momentarily increased by 350 points on Monday in an effort to build on Friday’s significant stock market gains. After the Model 3 and Model Y prices were reduced by as much as 9% in China, Tesla shares fell more than 5%.

At 9:45 a.m. ET, the Manufacturing and Services Purchasing Managers’ Index, or PMI, was released. The manufacturing index decreased, dropping to 49.9 from predictions of 51.2. According to forecasts from Econoday, the services index continued to shrink, dropping to 46.6 from the anticipated 49.3.

Today’s Stock Market: Earnings Season is in full swing (Dow Jones Stock Markets)

This week could see the release of yet another wave of major third-quarter earnings reports, including significant ones from Dow Jones stocks Apple (AAPL), Boeing (BA), Chevron (CVX), Merck (MRK), Microsoft (MSFT), and Visa (V). The IT behemoths Meta Platforms (META) and Alphabet (GOOGL) will also report.

After Wells Fargo downgraded the company from overweight to equal-weight with a reduced price target of 160, the shipping giant FedEx (FDX) saw a 0.5% fall on Monday morning.

After today’s stock market opened, Dow Jones tech giants Apple and Microsoft went marginally higher while electric vehicle juggernaut Tesla (TSLA) fell more than 4%. After Guggenheim Securities raised ServiceNow (NOW) to a buy rating, the stock increased by more than 1%.

The best companies to purchase and monitor include AutoZone (AZO), Cardinal Health (CAH), Molina Healthcare (MOH), Texas Roadhouse (TXRH), as well as Dow Jones stocks Chevron and Merck. Remember that the current stock market surge is the ideal opportunity for investors to implement their watchlists and refine their pyramiding strategy.

Young rallies frequently fall short, especially those battling bad markets. Pyramiding offers a way to enter fresh stock holdings gradually in order to reduce capital risk.

IBD Leaderboard stocks include Cardinal and Texas Roadhouse. In the Stocks Near A Buy Zone post from the previous week, Merck and Molina Healthcare were mentioned along with two other excellent stock suggestions. In recent weeks, AutoZone was the IBD Stock Of The Day.

Today’s Dow Jones Stock Markets: Treasury Yields and Oil Prices

The Dow Jones Industrial Average increased by 0.7% after the opening bell on Monday, while the S&P 500 increased by 0.3%. The Nasdaq composite fell in early trading by 0.7%.

The SPDR S&P 500 ETF (SPY) increased 0.3% while the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) traded down 0.7%.

Monday saw a 6.4% decline in China’s Hang Seng Index, which closed at its lowest point since April 29, 2009. After winning a third term that defied tradition, Chinese leader Xi Jinping moved to expand his influence by nominating several of his allies to the party’s most important decision-making body.

Markets in the U.K. and Europe rose as a result of Friday’s U.S. optimism about a potential change in the Federal Reserve’s stance. Just after noon, the DAX in Frankfurt and the CAC-40 in Paris both traded more than 1.5% higher.

The 10-year Treasury yield increased slightly on Monday morning to 4.22% from 4.21% on Friday. The 10-year Treasury yield reached its highest point since June 2008 last week.

After a three-day winning streak, U.S. oil prices reversed early losses on Monday. WTI futures were trading close to $85 per barrel.

Start of a new stock market rally

The Nasdaq composite saw a gain of 2.3% on Friday, ending the week up 5.2%, while the Dow Jones Industrial Average concluded the day up 2.5%. The S&P 500 gained 2.4% and increased by over 4.8% for the week.

The Big Picture on Friday said, “Risk remains heightened given that this is probably a bad market resurgence. The moment is not right to enthusiastically leap back into the stock market with both feet, but rather to go cautiously. For most investors, exposure should be kept to a maximum of 20%. Before the market starts to show its worth, aggressive investors should limit their exposure to under 40%.

The Big Picture piece from IBD should be read right now. After Friday’s advances, investors are eager to put their carefully constructed watchlists to use in order to seize upcoming breakouts. However, not all follow-throughs are successful, so while the new upswing continues to hold true, it is crucial to gradually and systematically increase exposure.

 

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