The Dow Jones Industrial Average briefly rallied 300 points Monday, as Wall Street awaits the Federal Reserve's two-day meeting. Meanwhile, Apple earnings are due out late Thursday. And McDonald's stock jumped on strong earnings results.
The Fed meeting, which wraps up at 2 p.m. ET on Wednesday, preludes Chairman Jerome Powell's news conference. Markets see zero chance of a rate hike and only a slim chance of a hike at the subsequent meeting on Dec. 13.
Still, with consumer spending on a tear in the third quarter, Powell won't want to take a rate hike off the table. The Fed probably needs to see hiring slow to a crawl before removing the risk of further rate hikes, but that's not the kind of employment report economists expect.
Speaking of which, the Labor Department's October jobs report is out Friday. The employment report is expected to show a net gain of 172,000 jobs and a steady 3.8% unemployment rate.
On the earnings front, Apple headlines this week's reports. Other key earnings reports this week include Dow Jones machinery giant Caterpillar, Amgen and Pfizer.
Monday's earnings reports included McDonald's and ON Semiconductor.
McDonald's shares jumped nearly 2% in morning trading, while ON stock dived 18% in early action.
Dow Jones Today: Oil Prices, Treasury Yields
After Monday's opening bell, the Dow Jones Industrial Average rose 0.8%, while the S&P 500 moved up 0.6%. The tech-heavy Nasdaq composite rallied 0.6% in morning action.
Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust gained 0.6%, while the SPDR S&P 500 ETF moved up 0.65% early Monday.
The yield on the 10-year U.S. Treasury bond ticked higher to 4.9% Monday morning. On Friday, the benchmark settled at 4.84%.
Oil prices declined Monday morning, as West Texas Intermediate futures fell around 2%, trading just below $83 a barrel.
Stock Market Correction
On Friday, the Dow Jones Industrial Average had the toughest time out of the major indexes on the stock market as it fell 1.1%. The S&P 500 followed up with a 0.5% decline, while the Nasdaq rose modestly.
Friday's Big Picture column commented, "The Nasdaq composite fared best out of the major indexes as it rose 0.4%, but it suffered a stout weekly decline of 2.6%. The tech-heavy index was turned away at its 200-day moving average and now sits firmly below the 13,000 level. Its 2023 gains have atrophied, leaving the Nasdaq up less than 22% for the year."
Now is an important time to read IBD's The Big Picture column, with the current outlook still in market correction status. Be sure to read how to handle a weak market environment.
Learn How To Time The Market With IBD's ETF Market Strategy
Stock Market Today: Best Stocks To Watch
International Seaways, Lululemon Athletica, Light & Wonder and Tradeweb Markets — as well as Dow Jones stocks Walmart and UnitedHealth — are among the best stocks to watch in the deepening stock market correction.
International Seaways and LNW stock are recent IBD Stocks Of The Day.
Dow Jones retail titan Walmart is tracing a cup base with a 165.85 buy point, according to IBD MarketSmith chart analysis. Shares extended a losing streak to three sessions Friday, ending right at their 50-day line. WMT stock rose 0.3% Monday.
Healthcare giant UnitedHealth is adding a handle to a massive consolidation, and showing a new buy point at 546.78. UNH stock climbed 0.4% Monday morning.
4 Top Growth Stocks To Watch In The Stock Market Correction
Stocks To Buy And Watch: Tradeweb Breaks Out
International Seaways is breaking out past a cup-with-handle's 48.40 entry following a 2.6% advance Friday. Keep in mind the market correction should keep you from buying breakout stocks. INSW stock moved down 2% Monday morning.
Lululemon dropped 0.5% Friday, still 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 0.6% Monday morning.
Casino games maker Light & Wonder dropped another 0.3% Friday, as shares continue to trace a flat base with a 79.97 buy point. LNW stock was slightly lower early Monday.
Tradeweb broke out of a flat base's 87.53 buy point Thursday after the company's third-quarter earnings. Tradeweb is showing unusual strength in a weak environment. TW stock added almost 2% in early trades Monday.
Best Stocks In Today's Stock Market Action
These are four best stocks to watch in today's stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| International Seaways | 48.40 | Cup with handle | |
| UnitedHealth | 546.78 | Handle entry | |
| Lululemon | 406.94 | Flat base | |
| Tradeweb Markets | 87.53 | Flat base |
Source: IBD Data As Of Oct. 30, 2023
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Magnificent Seven Stocks: Amazon, Nvidia, Tesla
Among the so-called "Magnificent Seven" stocks, electric-vehicle giant Tesla skidded 3% early Monday, while Amazon and Nvidia gained 2.4% and 1%, respectively. Meanwhile, Dow Jones tech icons Apple and Microsoft traded higher after today's stock market open.
Amazon was looking to add to Friday's 6.8% earnings-fueled gain. Shares will look to retake their 50-day line, which is a key level to watch.
Graphics-chip giant Nvidia rose 0.4% Friday, ending a two-day skid. Last week, shares under the 400 price level for the first time since mid-June.
Tesla stock rose 0.75% Friday, still squarely under the 200-day line. Shares are trying to find support at that long-term level, and are around 30% off their 52-week high.
Shares moved down 3% early Monday, hitting a fresh recent low.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks in the Magnificent Seven, Apple rose 0.8% Friday, ending a two-day skid but still below the 200-day line. Apple delivers its fiscal fourth-quarter report on Thursday. AAPL stock moved up 0.6% Monday.
Microsoft stock moved up 0.6% Friday, as shares remain below two earlier entries — a 336.14 buy point and a 340.86 buy trigger. And MSFT stock rose 1.6% Monday.
Be sure to follow Scott Lehtonen on X/Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
