Dow Jones Futures Rise As Treasury Yields Slide; Tesla Stock Falls On Target Price Cut| Investor’s Business Daily

Dow Jones futures rose modestly Tuesday morning, along with S&P 500 futures and tech futures, as the stock market looks to add to its recent gains.


Four days after Hamas militants launched the largest assault on Israel in 50 years, Israel’s military said it had regained control of the Gaza-Israel border. Meanwhile, Israel defense forces intensified airstrikes on Gaza, and prepared for a ground invasion of the Palestinian territory.

Early Tuesday, PepsiCo (PEP) reported better-than-expected earnings results, sparking a near-1% rise in premarket trade. Truist (TFC) popped more than 3% on reports it was in talks to sell the remainder of its insurance brokerage business for $10 billion.

Dow Jones Today: Oil Prices, Treasury Yields

Ahead of Tuesday’s opening bell, Dow Jones futures rose 0.3% vs. fair value. S&P 500 futures gained 0.2%. Tech-heavy Nasdaq 100 futures rose modestly above fair value in morning action.

Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) inched higher, while the SPDR S&P 500 ETF (SPY) moved up 0.2% early Tuesday.

Tuesday’s early action also saw the 10-year U.S. Treasury slide to 4.69%, following some dovish comments from Federal Reserve officials that came in the wake of the Monday holiday for bond markets. The 10-year Treasury hit a long-term high Friday, settling at 4.78% — up about 40 basis points since the Fed’s Sept. 19-20 meeting.

Oil prices paused Tuesday following Monday’s bounce. West Texas Intermediate futures held just above $86 a barrel.

IBD’s latest newsletter MarketDiem gives you actionable ideas for stocks, options and crypto right in your inbox

Stock Market Rally

On Monday, the Dow Jones Industrial Average and S&P 500 both rose 0.6%. The tech-heavy Nasdaq composite moved up 0.4%.

Monday’s Big Picture column commented, “The tech-heavy index now sits just 1.1% below its 50-day moving average, though retaking the level will be a key test. It is now up nearly 30% for the year as it tries to retrace recent losses.”

Now is an important time to read IBD’s The Big Picture column, with the stock market outlook showing a new uptrend. Be sure to read how to handle the newfound stock market strength and raise your exposure methodically.

Learn How To Time The Market With IBD’s ETF Market Strategy

Stock Market Today

Tesla (TSLA) fell 0.7% early Tuesday after UBS cut its price target to 266 from 290. Nvidia (NVDA) dipped a fraction, while Dow Jones tech icons Apple (AAPL) and Microsoft (IBD) were mixed ahead of today’s stock market open.

IBD Leaderboard member Arista Networks (ANET), Duolingo (DUOL), DraftKings (DKNG) and Meta Platforms (META) — as well as Dow Jones stocks Chevron (CVX) and UnitedHealth (UNH) — are among the best stocks to buy and watch in the new stock market uptrend.

Meta is a new IBD SwingTrader stock, while Arista is featured in this Stocks Near A Buy Zone column.

Dow Jones Stocks: Chevron, UnitedHealth

Dow Jones oil giant Chevron jumped almost 3% Monday as oil prices rebounded. In recent weeks, CVX stock broke out past a short handle entry at 168.96. Meanwhile, a cup base within a larger consolidation continues to show a 172.88 buy point. Shares are back above their 50-day line. CVX stock gained 0.3% early Tuesday.

Health insurer UnitedHealth closed Monday in buy range above a 515.86 buy point in a cup base, per IBD MarketSmith chart analysis. The 5% buy area goes up to 541.65. UNH stock edged higher Tuesday.

4 Top Growth Stocks To Buy And Watch In The Stock Market Rally

Stocks To Buy And Watch: Arista Nears Buy Point

Arista climbed 1.2% Monday, further rebounding from the 50-day line. A bullish rebound from that level places the stock in a new buy area. Meanwhile, shares are approaching a 198.70 buy point out of a flat base. ANET reports third-quarter results Oct. 30. Shares inched higher early Tuesday.

DraftKings is building a consolidation that has a 34.49 buy point, per IBD MarketSmith pattern recognition. An early entry looms at 32.65. Shares are trying to decisively retake their 50-day moving average, which would be a bullish signal. DKNG stock edged higher Tuesday morning.

IPO Leader Duolingo surged more than 6% Monday, back above its latest buy point at 167.35 and in buy range. The new entry is the result of a handle forming on a double-bottom base. And on Tuesday morning, DUOL added a fraction.

Social media giant Meta Platforms is in buy range after a strong move past a 312.87 buy point. Its cup base has an official buy point at 326.20. The company reports third-quarter results Oct. 25. META stock rose 0.3% Tuesday.

Best Stocks In Today’s Stock Market Action

These are four best stocks to buy and watch in today’s stock market, including a Dow Jones leader.

Company Name Symbol Correct Buy Point Type Of Buy Point
Meta Platforms (META) 312.87 Handle entry
Caterpillar (CAT) 293.88 Flat base
Duolingo (DUOL) 167.53 Double bottom with handle
DraftKings (DKNG) 32.65 Cup with handle
Source: IBD Data As Of Oct. 9, 2023

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

Tesla Stock Hits Buy Point

Tesla stock erased heavy losses Monday, finishing the session down just 0.3%. Shares remain above their 50-day line and near an alternative buy area. The buy zone starts at 254.77 and goes up to 258.40 for aggressive investors. TSLA stock has an official cup-with-handle base with a buy point at 278.98, and shares are about 7% away from that entry.

Tesla reports quarterly results Oct. 18. Shares lost 0.3% early Tuesday in premarket trades.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple moved up 0.85% Monday, rallying for a fourth-straight session. Shares are bouncing back from their recent lows. Amid the continued weakness, the stock is sharply below its 50-day line after September’s losses. If AAPL stock can rebound, it would likely have a double-bottom base with a 189.98 buy point.

Apple delivers its fiscal fourth-quarter report on Nov. 2. Shares fell 0.3% early Tuesday.

Microsoft shares gained 0.8% Monday, moving further above their 50-day line. A new base is forming, with an early entry at 340.86. And on Tuesday morning, MSFT stock rose 0.3%.

Be sure to follow Scott Lehtonen on X/Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.


Top Growth Stocks To Buy And Watch

Learn How To Time The Market With IBD’s ETF Market Strategy

Find The Best Long-Term Investments With IBD Long-Term Leaders

MarketSmith: Research, Charts, Data And Coaching All In One Place

How To Research Growth Stocks: Why This IBD Tool Simplifies The Search For Top Stocks

Leave a Comment