Dow Jones falls 200 points ahead of Fed meeting; 6 top stocks to buy and watch

Dow Jones falls 200 points ahead of Fed meeting;  6 top stocks to buy and watch
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The Dow Jones Industrial Average fell more than 200 points Monday morning, heading towards the last day of October. Investors are braced for a big week, highlighted by the two-day Federal Reserve meeting and concluding with the Labor Department jobs report on Friday.


The Fed’s two-day meeting begins on Tuesday with a rate decision on Wednesday afternoon. Investor sentiment shows an 81% probability of a 75 basis point hike, according to CME.

That The Fed says it won’t turn – that is, slowing the pace of rate hikes – until the overheated labor market shows clear signs of slowing. But once the job market starts to turn, the Fed’s strategy and a wide range of economic factors are likely to change. As a result, Friday’s job report will be subjected to more scrutiny.

Major earnings reporters on Monday were Global Payments (GPN) and onsemi (HE). Global Payments fell more than 4% on mixed results, while ON shares fell more than 1%.

Other big earnings reports this week include modern micro devices (AMD), Arista Networks (A NET), Eli Lilli (LLY), NXP Semiconductor (NXPI) and Pfizer (PFE).

Giant of electric vehicles Tesla (TSLA) was trading down about 1% on Monday morning, while Dow Jones Tech Leaders Apple (AAPL) and Microsoft (MSFT) were also lower afterwards today’s stock market open.

cardinal health (CAH), Eli Lilli (LLY), Pure storage (PSTG) and Texas Roadhouse (TXRH) – as well as Dow Jones stocks note (MRK) and United Health Group (UNH) – are among the top stocks to buy and watch. Keep in mind that the new stock market rally is the perfect time for investors to put their watch lists into action, but keep in mind the ongoing market volatility.

Cardinal and Texas Roadhouse are IBD Leaderboard Stocks. Pure Storage was new IBD Stock of the Day. UnitedHealth got introduced in the “Stocks Near a Buy Zone” column for the past week, along with three others Top Stock Ideas.

Dow Jones Today: Treasury Yields, Oil Prices

After Monday’s opening bell, the Dow Jones Industrial Average fell 0.7%, while the S&P 500 fell 0.8%. The Nasdaq lost 1% in morning action.

Under exchange traded fundsthe Nasdaq 100 tracker Invesco QQQ Trust (QQQ) traded 1% lower and the SPDR S&P 500 ETF (SPY) fell 0.7%.

The 10-year Treasury yield rose to 4.04% Monday morning, trying to recover from last week’s losses, which saw the 10-year Treasury yield enjoy a 12-week winning streak.

Meanwhile, US oil prices fell nearly 2% on Monday after a weekly rebound last week. West Texas Intermediate futures held just above their 50-day moving average, just above $86 a barrel.

Stock market rally continues

On Friday, the Dow Jones Industrial Average gained 2.6% while the S&P 500 gained 2.5%. The tech-heavy Nasdaq Composite gained 2.9%.

Commented on Friday’s The Big Picture“The stock market demonstrated strength, rallying despite disappointing big tech earnings reports. But it’s too early for investors to get excited as another Federal Reserve meeting is fast approaching.”

Now is an important time for reading IBD’s The Big Picture column. After the recent gains, investors are looking to get their curated watchlists up and running to jump on future breakouts. But not all follow-throughs work, so it’s important to slowly and methodically increase engagement as the new uptrend proves its worth.

Cash IBD inventory listshow IBD 50 and Stocks near a buy zonefor stock ideas.

Five Dow Jones stocks to buy and watch

Dow Jones Stocks to Buy and Watch: Merck, UnitedHealth

Merck is extended beyond the buy point of a double bottom at 93.12 after a six day winning streak. The 5% buy area rose to 97.78. Merck shares traded 0.9% lower on Monday.

Healthcare giant UnitedHealth is just under 553.23 for a mug with a handle purchase point, corresponding IBD MarketSmith pattern recognition. WITHRabbits climbed 1.7% on Friday, moving in line with points from the stock’s last entry.

UNH shares rose nearly 1% Monday morning.

4 Top Growth Stocks to Watchrightde Stock market rally

Top stocks to buy and watch: Cardinal, Eli Lilly, Pure Storage, Texas Roadhouse

IBD Leaderboard Cardinal Health stock remains on course for gains after a recent breakout above entry of 71.22 on a short cup-with-handle IBD MarketSmith chart analysis. Shares are also above the buy point of a flat base of 72.38. Earnings are scheduled for Friday. CAH shares traded 0.6% lower early Monday.

IBD Swing Trader Eli Lilly stock continued to close above its buy range above the buy point of a flat base of 335.43, up 1% on Friday. Shares fell 2% Monday morning ahead of Tuesday’s earnings report.

Friday’s IBD stock of the day Pure Storage is approaching a buy point of 31.62 after two consecutive days of gains. The stock was up 2.4% early Monday.

Texas Roadhouse remains in a buying range above 95.52 flat base buy point during Friday’s volatile earnings-driven session. The pursuit zone goes to 100.30. TXRH stock fell 1.5% after Deutsche Bank downgraded it from “buy” to “hold.”

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

Tesla stock

Tesla stock was up 1.5% on Friday, rising for the fourth straight session and continuing to recover after hitting a 52-week low last week. Despite recent gains, the stock ended about 45% below its 52-week high.

Shares of the electric vehicle giant are down about 1% as of Monday morning.

Dow Jones Leaders: Apple, Microsoft

Under Dow Jones Stocks, Apple shares rose 7.6% on Friday, decisively retaking the key 50-day moving average. Now, stocks are attempting to break above their 200-day long-term moving average for the first time since September. 13. Apple shares fell 1.3% on Monday.

Microsoft rose 4% on Friday, ending a two-day slide. The software giant is down about 33% from its 52-week high. Microsoft shares fell 0.7% Monday morning.

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


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