The Dow Jones Industrial Average briefly rose more than 400 points Tuesday after a cooler-than-expected reading in the producer price index, a key inflation gauge. Dow Jones stocks Home Depot and Walmart reported their quarterly earnings results ahead of the market open.
Early Tuesday, the Labor Department's producer price index (PPI), which measures the selling prices producers receive for their goods, came out at 8:30 a.m. ET. The overall PPI rose 0.2% in October vs. the previous month, below expectations for a 0.5% rise. At the wholesale level, inflation rose 8% from a year ago, lower than the 8.3% estimate.
Stock Market Today: Home Depot, Walmart Earnings
Home Depot declined nearly 1% despite topping Q3 estimates. Walmart jumped more than 5% after the company posted better-than-expected Q3 earnings and sales results and raised its full-year outlook. The discount giant also announced a new $20 billion stock buyback.
Netflix rallied 3% after Bank of America restarted coverage with a buy rating and a 370 price target. Electric-vehicle giant Tesla traded up 2.7% Tuesday morning. Dow Jones tech leaders Apple and Microsoft were also higher after today's stock market open.
Among the top stocks to buy and watch, IBD Leaderboard stock Arista Networks, IBD SwingTrader stock General Motors, GlobalFoundries, Mobileye and Phillips 66— as well as Dow Jones name Caterpillar — are among the top stocks to buy and watch.
Arista Networks is an IBD Leaderboard watchlist stock. Arista was also featured in last week's Stocks Near A Buy Zone column, as well as Monday's Stock Of The Day report. GlobalFoundries was also a recent IBD Stock Of The Day. And Mobileye was last week's featured IPO Leader.
Dow Jones Today: Oil Prices, Treasury Yields
After Tuesday's opening bell, the Dow Jones Industrial Average rose 1,1%, while the S&P 500 moved up 1.7%. The tech-heavy Nasdaq composite advanced 2.5% in morning action, boosted by China stocks extending their recent rally.
JD.com popped almost 8%. NetEase clocked a 6% gain. The iShares MSCI China ETF rallied 4.3% and the KraneShares CSI China Internet ETF swept more than 7% higher.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust traded up 2.4% early Tuesday, and the SPDR S&P 500 ETF gained 1.6%.
The 10-year Treasury yield dipped to 3.8% Tuesday morning after the cooler inflation data. Meanwhile, U.S. oil prices declined nearly 1%, as oil continues to slosh back and forth within its recent trading range. West Texas Intermediate futures held just above $85 a barrel.
Stock Market Rally
On Monday, the market took a breather after last week's powerful advance. The Dow Jones Industrial Average on Monday lost 0.6%, or 211 points, and the S&P 500 dropped 0.9%. The tech-heavy Nasdaq composite sold off 1.1%.
Monday's The Big Picture commented, "Remember, the bear market destroyed the leadership — much of it in tech — that led the prior bull market. Fresh leadership could take time to develop and prove itself. With the amount of breakouts and bases investors have to work with right now, an exposure level of 20% to 40% seems adequate, as The Big Picture has noted."
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 rose 0.7% Tuesday.
CAT stock boasts an impressive 97 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup.
4 Top Growth Stocks To Watch In The Current Stock Market Rally
Top Stocks To Buy And Watch: Arista, GM, GlobalFoundries, Mobileye, PSX
IBD Leaderboard stock Arista Networks tried to break out past a choppy base's 132.97 buy point amid Monday's 2.1% climb. Shares briefly topped the entry before closing just below it. ANET stock moved up 1.4% Tuesday.
Automaker and IBD SwingTrader stock General Motors gave up its cup-with-handle's 40.20 buy point during Monday's 2.8% drop. If the stock retakes the entry, the buy area tops out at 42.21. GM stock rose 2.3% early Tuesday.
Recent IBD Stock Of The Day GlobalFoundries is trading about 1% away from a 66.06 buy point in a cup base following Monday's 0.4% rise. GFS shares gained 3% Tuesday morning.
IPO Leader Mobileye broke out above an IPO base's 29.96 buy point, according to IBD MarketSmith pattern recognition, but shares reversed lower Monday and are back below it. The 5% chase zone would top out at 31.46. MBLY shares rose 5% early Tuesday.
Monday's IBD 50 Stocks To Watch pick, Phillips 66, is breaking out past a cup-with-handle base's 110.08 buy point. Shares broke out Friday, but gave up a part of those gains Monday. The stock is in the 5% buy zone, which goes up to 115.58. PSX stock was up 1% in early trade.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock declined 2.6% Monday, snapping a two-day win streak and erasing Friday's gains. 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 nearly 3% higher Tuesday morning.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares fell 0.4% Monday, but are still above their 50-day line after last week's gains. The stock traded up 2.8% Tuesday.
Microsoft lost 2.25% Monday, ending a two-day win streak. The software giant remains about 30% off its 52-week high. Microsoft shares rose 1.8% Tuesday morning.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
