Dow Jones falls as investors fear higher interest rates through 2023; Tesla stock drop

Dow futures rose ahead of Tuesday’s open after the Dow Jones Industrial Average sold off by more than 480 points on Monday. Tesla stock fell after multiple reports said Tesla plans to reduce its production of electric cars in China, where demand appears to be faltering.

The EV giant has refuted the reports, calling claims that it has reduced production in China untrue. Still, investors left the stock down more than 6% near today’s lows.

More Fed rate hikes to 2023?

The stock market headed south on Monday, as stronger-than-expected economic data stoked concerns that the Federal Reserve will continue aggressively raising interest rates next year due to a strong labor market. Early Monday, the ISM Services report came in better than expected, with a reading of 56.5 in November versus 54.4 in October. ISM Services is a measure of business conditions in the United States in the service sector. A reading above 50 indicates expansion and a reading below 50 indicates contraction.

Monday’s economic data came directly on the heels Friday’s strong jobs report Which showed that employers added 263,000 jobs to the payroll while the unemployment rate held steady at 3.7% and wages jumped.

According to Timiraos’ Nick Wall Street JournalFed officials have signaled plans to raise the benchmark interest rate by 0.5 percentage point at their meeting next week, but rising wage pressures may prompt them to continue raising it to levels higher than investors currently expect.

Timiraos continued, “Policy makers expect price pressures to subside appreciably next year, but rapid wage growth or rising inflation in the labour-intensive service sectors of the economy may prompt more of them to support a hike in their benchmark rate next year above the 5% currently expected by investors. “

The 10-year Treasury yield jumped to 3.59% on Monday, rebounding from last week’s sharp losses.

This week’s earnings reports include: Sports + Outdoor Academy (aso), AutoZone (AZO), from Broadcom (AVGO), Sina (CIEN), Lululemon Athletica (Lulu), Initial deal breaker (OLLI) And the Toll Brothers (TOL).

stock market today

On Monday, the Dow Jones Industrial Average lost 1.4%, or 482 points, and the S&P 500 fell 1.8%. The Nasdaq Composite Heavy Sold 1.9%. within Exchange money tradedNasdaq 100 Invesco QQQ Trust Tracker (QQQ(down 1.7% and the SPDR S&P 500 Index)spy) decreased by 1.8%.

electric car giant Tesla (TSLA) fell 6.4% on Monday. within Dow Jones stockAnd the apple (AAPL) decreased by 0.8% and Microsoft (MSFT) decreased by 1.2% in stock market today.

Celsius (CELH), Chubb (Cb), dexcom (DXCM) And the Kosovo Liberation Army (KLAC) – as well as the names of the Dow Jones Larva (cat), chevron (CVX) And the Home Depot (HD) – among the top stocks to buy and watch.

Dexcom is a IBD Leaderboard stock. Caterpillar and Home Depot appeared In this week Arrows near the buy zone column. The percentile was recent IBD 50 shares to watch and a New America stock. It was a caterpillar on Thursday Stock today.

4 growth stocks to buy and watch in Cursstock market rally

Dow futures today: oil prices

Before the opening bell on Tuesday, Dow Jones futures were up 0.2% against fair value, while S&P 500 futures were up 0.25%. Futures for the Nasdaq 100 Technology Industry Index rose 0.3% against fair value. Remember to work in overnight Dow Jones futures contracts and elsewhere that does not necessarily translate into actual trading in the next regular session Stock market session.

US oil prices pared early gains, falling more than 3%. West Texas Intermediate futures traded just above $77 a barrel. Crude oil prices initially rose after European Union sanctions On the Russian crude oil entered into full force.

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What to do in the stock market

Now is an important time to read IBD’s The Big Picture column With the stock market trend back to a “confirmed uptrend”.

While it’s true that the S&P 500 Composite and Nasdaq are still in confirmed uptrends, the lineup of actionable stocks has been disappointing. It wasn’t easy to increase exposure.

When it comes to new purchases, what kind of feedback do you get? Do new purchases make progress from purchasing points? In this case, it’s okay to give them some space. But do not be afraid to take partial profits if the profit reaches at least 10%. If new purchases go the wrong way, cut losses when the stock drops 3% to 4%, rather than waiting 7% base Let’s go.

Light and flexible trading is the best course of action at the moment. If the uptrend starts to gain traction again, there will be plenty of opportunities for increased exposure. And don’t be afraid to look for early entries, rather than waiting for the stock to reach a traditional buying point.

(paying off IBD inventory listings Like the defect 50 And the Stocks near the buy zonefor additional stock ideas.)

Five Dow Jones stocks to buy and watch now

Dow Jones stocks to buy and watch: Caterpillar, Chevron, Home Depot

Dow Jones member Caterpillar Corp. is close to recovering 238 of its cup bases Point purchaseAnd the to me IBD MarketSmith Pattern Recognition, and about 2% less than the entrance. CAT stock fell 1.5% on Monday.

CAT stock It features a perfect 94 out of 99 IBD compound rating, per IBD stock check.

Energy giant Chevron fell 2.5% on Monday, dropping further below the 182.50 buy point on the consolidation base.

Home Depot, the home improvement retailer, ended Monday nearly 4% short of 333.08 buy points for the base of the cup following the stock’s 2.4% decline.

Top stocks to buy and watch: Celsius, Chubb, Dexcom, KLA

Energy drink maker Celsius fell 3.5% on Monday, snapping a three-day winning streak. The stock is trying to break through the 118.29 buy base of the cup, but it is almost 4% below the entry point, to me IBD MarketSmith Pattern Recognition.

Insurance giant Chubb is trading just under 216.10 points long for a cup with handle on Monday after losing 1.7% for the session. Buying space is 5%, high at 226.91.

IBD Leaderboard Dexcom stock is close to an alternate entry at 123.46 despite Monday’s drop of 1.3%. The shares are about 5% off their most recent one Point purchase.

A new long-term leader in IBD The KLA continues to hold below 392.60 points over a cup handle amid a three-day losing streak, with shares down 0.25% on Monday. The RS line continues to hold at new highs, which is a sign of the stock market’s leadership.

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

Tesla stock

Tesla stock It fell 6.4% on Monday, snapping a three-day winning streak and giving up all of last week’s gains.

In recent weeks, the stock has reached its lowest level since November 23, 2020, and reached a new 52-week low of 166.19. Since then, the stock has rebounded but remains sharply below the 50- and 200-day moving average lines. Shares are down about 55% from their 52-week high.