HomeBusinessDow Jones Rallies Ahead Of Fed Minutes; Tesla Stock Surges On Upgrade

Dow Jones Rallies Ahead Of Fed Minutes; Tesla Stock Surges On Upgrade

The Dow Jones Industrial Average rose Wednesday ahead of the minutes of the Federal Reserve’s latest policy meeting. Tesla shares rose higher after Citigroup upgraded the EV giant.


Before the Fed’s minutes are released at 2 p.m. ET, consumer confidence, durable goods orders, first jobless claims, purchasing managers’ index readings and new home sales are all scheduled for the morning. The market is closed on Thursday for Thanksgiving, followed by a shortened trading session on Friday.

Initial jobless claims, released at 8:30 a.m. ET, rose to 240,000 versus 222,000 in the previous week. Meanwhile, durable goods rose 1% in October, beating the Econoday estimate of 0.4%. The services PMI was 46.1, below the estimate of 48.0, and the manufacturing PMI came in at 47.6, below the estimate of 50.0. Finally, new home sales rose to 632,000 versus 603,000 in the month of September. New home sales beat estimates.

Auto desk (ADSK), PK (HPQ) and Nordstrom (JWN) reported earnings late Tuesday, while Deere (THE) earnings came out Wednesday morning.

Autodesk shares fell 9%, while HPQ shares fell 3.5% in early morning trading. Nordstrom shares plummeted 9.5%. And shares of Deere were up 3% in morning trading.

Giant of electric vehicles Tesla (TSLA) was trading 5% higher Wednesday morning. Dow Jones Technology Leaders Apple (AAPL) and Microsoft (MSFT) were higher afterwards today’s stock market Open.

IBD ranking stock Arista Networks (A NET), KL (KLAC), Shoals Technologies (SHLS) and Ultimate beauty (ULTA) – as well as the Dow Jones name Caterpillar (CAT) – are among the top stocks to buy and watch.

Arista Networks is one IBD ranking stock and was a recent IBD Stock of the day. Ultimate beauty was in the Stocks section this week near a buy zone. Schools laundry Thursday’s IBD 50 Stocks To Watch pick.

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After Wednesday’s opening bell, the Dow Jones Industrial Average rose 0.3%, while the S&P 500 rose 0.4%. The tech-heavy Nasdaq composite was up 0.7% in morning action.

China-related stocks showed strength early on, after news reports reported that the State Council had announced stimulus measures, including a reduction in reserve requirements for Chinese banks.

Among exchange traded fundsthe Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.7% on Wednesday and the SPDR S&P 500 ETF (SPY) gained 0.5%.

The yield on 10-year Treasury bills ticked lower to 3.7% on Wednesday morning.

Oil stocks were under some pressure as oil prices eased after a recovery on Tuesday. West Texas Intermediate futures fell more than 3% to under $79 a barrel even after industry data showed US crude inventories fell more than expected last week. Official weekly oil inventory data is expected from the EIA at 10:30 a.m. ET.

Natural gas stocks were boosted as gas prices continued to rise. US natural gas futures rose nearly 7% after Russia issued a warning after Russia accused Ukraine of stealing gas from a pipeline and threatened to curtail supplies on Russia’s last remaining supply line to Europe.

Stock market rally

On Tuesday, the stock market posted solid gains. The S&P 500 and the Nasdaq composite each rose 1.4%. The Dow Jones Industrial Average climbed 1.2%.

Tuesday is The Big Picture commented, “While it’s fine to put money to work in today’s stock market, keep your exposure on the conservative side with small holdings to start with. Just because the stock market is in a confirmed uptrend doesn’t mean that you need to be 100% invested And don’t be afraid to take a 10% profit if you have one given the choppy nature of the market.”

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Five Dow Jones stocks to buy and watch now

Dow Jones Stocks to Buy and Watch: Caterpillar

Dow Jones member Caterpillar is about to recapture the 238 of its cup base buy point, according to IBD MarketSmith pattern recognition, and less than 1% lower than imports. CAT gained 0.1% on Wednesday and traded higher along with Deere. Stocks are still below their buy point.

CAT stock has an impressive 95 out of a perfect 99 IBD Composite Rating, according to the IBD Inventory Control.

4 Top Growth Stocks to Watch in the Current Stock Market Rally

Top stocks to buy and watch: Arista, KLA, Shoals, Ulta

IBD ranking stock Arista Networks moved further above 132.97 from a choppy base buy point after Tuesday’s gain of 1.1%. ANET shares rose 0.1% on Wednesday.

KLA is approaching the buy point of 392.60 of a handle cup during Tuesday’s 2.7% increase. Bullish, the stock’s relative strength line reached a new high last week, a sign of a major outperformance against the S&P 500. KLAC shares fell 0.5% on Wednesday.

Shoals Technologies is still out of buy range at a buy point of 28.57 after a third straight drop on Tuesday. The 5% buy zone tops out at 30. Wait for an orderly pullback in the buy range before considering a stock buy. SHLS shares rose 1% on Wednesday.

Ulta Beauty stepped out of the buy range on Tuesday and rose nearly 2%. The 5% buy zone passed a buy point of 426.99 in a cup with handle increases to 448.34. Ulta will report third quarter results on December 1. The stock fell 0.3% on Wednesday.

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Tesla stock

Tesla stock climbed 1.2% on Tuesday, breaking a four-day losing streak that saw the stock reach its lowest level since Nov. 23, 2020. The stock reached a new 52-week low of 167.54 on Monday. Tesla shares are about 57% off their 52-week high and sharply below their 50- and 200-day moving averages.

Shares of the EV giant traded up 5% Wednesday morning after Citigroup upgraded the stock from selling to neutral, raising its price target from 141.33 to 176.

Dow Jones leaders: Apple, Microsoft

Among Dow Jones StocksApple shares recovered 1.5% on Tuesday and are still above their recently recaptured 50-day line. The stock is about 20% lower than its 52-week high. The stock was up 0.8% on Wednesday Foxconn workers clashed with police officers. Foxconn is the largest iPhone assembly plant in China.

Microsoft rose 1.2% on Tuesday, adding to Monday’s gains. Stocks remain above the 50-day mark. The software giant remains more than 30% away from its 52-week high. Microsoft shares rose 0.6% Wednesday morning.

Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more information on growth stocks and the Dow Jones Industrial Average.


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