The Dow Jones Industrial Average rallied 275 points Tuesday after the early release of key economic data. Meanwhile, tech titans Alphabet (GOOGL) and Microsoft (MSFT) plan to report their earnings after the close.
Early Tuesday, the Purchasing Managers’ Index, or PMI, was released. The manufacturing index rose to 50.0 in October, better than the expected 49.5 reading vs. 49.8 in September. Further, the services index also rose in October, to 50.9 vs. vs. September’s 50.1 reading.
Later this week, the first official estimate of third-quarter GDP growth is due Thursday. Lastly, personal income and outlays data for September comes Friday and is expected to show how the Fed’s primary inflation rate, the core PCE price index, finished the quarter.
On the earnings front, 3M (MMM), Coca-Cola (KO), General Electric (GE), General Motors (GM) and Halliburton (HAL) were key earnings movers Tuesday. They were joined by PulteGroup (PHM), Spotify (SPOT) and Verizon (VZ),
MMM stock jumped 5% in early action, while Coca-Cola shares rallied 3%. GE stock advanced 6%, as GM shares moved up nearly 1%.
Halliburton lost 2%, while PHM stock edged higher. Finally, SPOT stock surged 10%, and Verizon shares rallied 8% in early morning trade.
Dow Jones Today: Oil Prices, Treasury Yields
After Tuesday’s opening bell, the Dow Jones Industrial Average rose 0.85%, while the S&P 500 gained 0.8%. The tech-heavy Nasdaq composite moved up 0.9% in morning action.
Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.9%, while the SPDR S&P 500 ETF (SPY) moved up 0.6% early Tuesday.
The yield on the 10-year U.S. Treasury bond ticked higher to 4.87% Tuesday morning. On Monday, the benchmark briefly topped 5% before settling at 4.83%.
Oil prices were modestly lower Tuesday, threatening to add to Monday’s losses. West Texas Intermediate futures traded around $85.50 a barrel.
Stock Market Correction
On Monday, the Dow Jones Industrial Average fell 0.6%, while the S&P 500 lost 0.2%. The tech-heavy Nasdaq composite rose 0.3% after reversing up from early losses. All three major stock indexes set new correction lows.
Monday’s Big Picture column commented, “Since early September, stocks making 52-week lows have trended above those making 52-week highs. On Friday, the ratio hit extreme levels with more than 300 new lows in both the NYSE and Nasdaq. New highs were in the single digits.”
Now is an important time to read IBD’s The Big Picture column, with the stock market outlook back in market correction status. Be sure to read how to handle changing market forces.
Stock Market Today
Electric-vehicle giant Tesla (TSLA) rallied 3.4% early Tuesday, while Nvidia (NVDA) rose 0.1%. Meanwhile, Dow Jones tech icons Apple (AAPL) and Microsoft traded mixed after today’s stock market open.
IBD Leaderboard member Arista Networks (ANET), Lululemon Athletica (LULU), Meta Platforms (META) and Zscaler (ZS) — as well as Dow Jones stocks JPMorgan Chase (JPM) and Salesforce (CRM) — are among the best stocks to buy and watch in the new stock market correction.
JPMorgan is featured in this Stocks Near A Buy Zone column.
Dow Jones Stocks: JPMorgan, Salesforce
Dow Jones banking giant JPMorgan dropped 1.4% Monday. Shares are squarely below their 50-day line, as they build a flat base with a 159.38 buy point, according to IBD MarketSmith chart analysis. An early entry looms at 153.11, using the Oct. 13 high as the buy trigger. JPM stock rose 0.1% Tuesday.
Software leader Salesforce is battling resistance around its key 50-day line. If the stock retakes that key level, then it would move closer to a 228.79 buy point in a double-bottom base. CRM stock climbed 0.7% Tuesday morning.
Stocks To Buy And Watch: Zscaler Tests Key Level
Arista rebounded 0.2% Monday, closing right at the 50-day line and about 5% away from a 198.70 buy point in a flat base. The company reports third-quarter results Oct. 30. ANET stock rose 1.9% early Tuesday.
Lululemon jumped 1.7% Monday, closing just below a flat base’s 406.94 buy point, according to IBD MarketSmith pattern recognition. Wait for another sustained move past that entry as a buy signal. LULU stock was up 0.1% Tuesday morning.
Facebook-parent Meta Platforms moved back above a 312.87 buy point during the stock’s 1.7% advance Monday. Meanwhile, Meta stock is still below a cup base’s official buy point at 326.20. The social media giant reports third-quarter results late Wednesday. Meta shares gained 0.6% Tuesday.
Cybersecurity leader Zscaler is rebounding from support around its 50-day line, with a 0.2% rise Monday. Another decisive bounce would place the stock in a new buy area. ZS stock moved up 1.9% early Tuesday.