To get the fourth quarter of 2022 off to a strong start, the Dow Jones Industrial Average  (Dow Jones stock markets) posted a gain of more than 450 points on Monday morning. Tesla shares fell after the firm reported record car deliveries for the third quarter on Sunday, although those deliveries came in far lower than expected.

This week, many major companies will be reporting their quarterly profits, including Acuity Brands (AYI), Conagra Brands (CAG), Constellation Brands (STZ), and McCormick (MKC).

On Monday, trading was 7% down for electric vehicle market leader Tesla (TSLA). Both Apple (AAPL) and Microsoft (MSFT) saw their share prices rise shortly after the opening of today’s stock market. As a result of the increase in the price of oil in the United States, the share price of Chevron (CVX) was one of the best performers on the Dow.

Despite the stock market’s continuous fall in value, some of the top businesses to watch are DoubleVerify (DV), Hostess Brands (TWNK), Neurocrine Biosciences (NBIX), Toro (TTC), Vertex Pharmaceuticals (VRTX), and World Wrestling Entertainment (WWE), as well as Dow Jones company UnitedHealth (UNH). Remember that now is the time for investors to prepare their watchlists while sitting on the sidelines while the stock market fall worsens.

Both DoubleVerify and Vertex are stocks that are featured on the IBD Leaderboard. Both Hostess and Toro were highlighted in the Stock Near A Buy Zone piece that was published the previous week. The recent IBD Stock Of The Day featured company was Neurocrine Biosciences.

This morning on the Dow Jones Stock Markets: Treasury Yields and Oil Prices

Shortly after the opening bell on Monday, the Dow Jones Industrial Average (INDEXDJX:DJI) and the S&P 500 both gained 1.6% and 1.5%, respectively. The Nasdaq Composite, a technology-focused index, rose 1.15 percent during morning trade.

The Nasdaq 100 tracker Invesco QQQ Trust (QQQ) was up 1.1%, while the SPDR S&P 500 ETF (SPY) increased 1.5%, both of which are examples of exchange-traded funds.

The 10-year Treasury note yield fell to a fresh low of 3.65 percent early Monday. The 10-year Treasury note’s yield briefly reached 4% last week, marking the first time in over a decade that this has happened.

In other news, the price of a barrel of West Texas Intermediate futures reached $84 on Monday, marking a 6% increase from the previous trading day. They reached their all-time low for the year just the week before last. OPEC and its allies will get again on Wednesday to discuss the possibility of cutting output in order to assist prop up plummeting oil prices.

A Reversal in the Stock Market

The Dow Jones Industrial Average (INDEXDJX:DJI) fell 1.7% in Friday’s trading session, while the S&P 500 fell 1.5%. The Nasdaq composite index fell 1.5% as well. Since 2009, this is the first time that the market averages have experienced a decline for three consecutive quarters in a row. While everything was going on, both the Dow and the S&P 500 had their worst monthly losses since March of 2020.

It fell over 9% in September and has now declined in each of the last three weeks. Nike (NKE) was by far the poorest performer, with a 12.8% drop in quarterly earnings. The remark was made in The Big Picture column on Friday. “The blue chip index closed at levels last seen in November 2020 as it dived 1.7% for the day and 2.9% for the week.”

Investors are still expecting another effort at a rebound despite the fact that the leading stock indices have reached fresh correction lows. In light of the ongoing selling, investors should keep their money in the bank.

Nevertheless, it is essential for investors to make productive use of this period of reduced activity. Researching market bottoms and compiling a solid watchlist of stocks with significant performance potential are both excellent activities to pursue at this time. The follow-through day, also known as the market bottoming signal, is often the day on which many long-term leaders make their breakout. An expensive error might result from missing up on that early chance.

 

Featured Image:  Megapixl © Alexandersikov