Dow Jones Reverses As Biden, Xi Meet; Chip Giant AMD Jumps On Upgrades

The Dow Jones Industrial Average reversed higher Monday as President Joe Biden and Chinese leader Xi Jinping held a closely watched meeting, meant to restore communication between the two countries. Meanwhile, chip giant AMD stock jumped after receiving two upgrades.


Stock Market Today: Earnings Season To Continue

Key earnings reporters this week include Dow Jones stocks Cisco Systems (CSCO), Home Depot (HD) and Walmart (WMT), along with Applied Materials (AMAT), Kohl’s (KSS), Lowe’s (LOW), Macy’s (M), Nvidia (NVDA), Palo Alto Networks (PANW) and Target (TGT).

Advanced Micro Devices (AMD) rallied more than 3% after Baird and UBS upgraded AMD stock. Baird upgraded the stock from neutral to outperform, while UBS moved the stock from neutral to buy. (AMZN) slipped more than 2% after Bank of America removed the stock from its collection of best investment ideas. Electric-vehicle giant Tesla (TSLA) traded down 4% Monday morning. Dow Jones tech leaders Apple (AAPL) and Microsoft (MSFT) were also lower after today’s stock market open.

Among the top stocks to buy and watch, Albemarle (ALB), IBD Leaderboard watchlist stock Arista Networks (ANET), GlobalFoundries (GFS) and Mobileye (MBLY)— as well as Dow Jones names Caterpillar (CAT) and UnitedHealth Group (UNH) — are among the top stocks to buy and watch.

Arista Networks is an IBD Leaderboard watchlist stock. Albemarle was featured in last week’s Stocks Near A Buy Zone column, along with three other top stock ideas. GlobalFoundries was a recent IBD Stock Of The Day. And Mobileye was last week’s featured IPO Leader.

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

Dow Jones Today: Oil Prices, Treasury Yields

After Monday’s opening bell, the Dow Jones Industrial Average rose 0.2%, while the S&P 500 moved down 0.3%. The tech-heavy Nasdaq lost 0.9% in morning action, with Okta (OKTA), and Tesla leading the declines.

Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) traded down 0.7% early Monday, and the SPDR S&P 500 ETF (SPY) fell 0.3%.

Meanwhile, U.S. oil prices declined more than 1%, falling after a two-day rebound. West Texas Intermediate futures traded just below $88 a barrel, about midway in their recent price range.

The bond market was closed Friday and the 10-year Treasury yield climbed to 3.85% Monday morning.

On Thursday, the 10-year Treasury yield dived more than 30 basis points to 3.82%, settling at its lowest level since early October. It was the largest one-day yield decline since March 18, 2009, according to Dow Jones Market Data.

Stock Market Rally

On Friday, the Dow Jones Industrial Average rose 0.1%, while the S&P 500 climbed 0.9%. The tech-heavy Nasdaq composite advanced 1.9%.

Friday’s The Big Picture commented, “With many near-term hurdles cleared, the stock market looks to be in a good position to rally, heading into the Thanksgiving holiday and beyond.”

Now is an important time to read IBD’s The Big Picture column.

Five Dow Jones Stocks To Buy And Watch Now

Dow Jones Stocks To Buy And Watch: Caterpillar, UnitedHealth

Dow Jones member Caterpillar is trying to break out past a cup base’s 238 buy point, according to IBD MarketSmith pattern recognition. CAT shares fell 0.1% Monday.

Health care giant UnitedHealth tumbled more than 4% Friday, triggering the 7%-8% loss rule from a cup with handle’s 553.23 buy point. That means the latest breakout attempt failed and investors should be waiting for a new buy point to emerge. UNH stock added 0.3% Monday morning.

4 Top Growth Stocks To Watch In The Current Stock Market Rally

Top Stocks To Buy And Watch: Albemarle, Arista, GlobalFoundries, Mobileye

Lithium producer Albemarle is out of buy range past a cup base’s 308.34 buy point, as shares rallied 1.4% Friday. The 5% buy zone went up to 323.76. ALB stock fell 2% early Monday.

IBD Leaderboard watchlist stock Arista Networks remains squarely below a choppy base’s 132.97 buy point despite Friday’s 1.2% climb. ANET stock traded up 0.4% Monday morning. 

IPO Leader Mobileye is breaking out past an IPO base’s 29.96 buy point, according to IBD MarketSmith pattern recognition. The 5% chase zone tops out at 31.46. MBLY shares jumped 1.5% Monday.

Tuesday’s IBD Stock Of The Day, GlobalFoundries is trading about 2% away from a 66.06 buy point in a cup base following last week’s big rally. GFS stock traded 2% lower Monday.

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

Tesla Stock

Tesla stock rose 2.75% Friday, adding to Thursday’s 7.4% surge. Shares are rebounding after they hit a new 52-week low last week. Still, the stock is more than 50% off its 52-week high and sharply below its 50- and 200-day moving average lines.

Shares of the EV giant moved about 4% lower Monday morning.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares jumped 1.9% Friday, retaking its 50-day line for the first time since Nov. 2. The stock traded down 1.3% Monday.

Microsoft climbed 1.7% Friday, moving further above its 50-day line. The software giant remains about 30% off its 52-week high. Microsoft shares lost 2.7% Monday morning.

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


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Read More: Dow Jones Reverses As Biden, Xi Meet; Chip Giant AMD Jumps On Upgrades

2022-11-14 15:01:00

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