In the first hour trading on Monday, the Dow Jones Industrial Average gained nearly 250 points (0.8%) in the first hour. The Fed's Chair Jerome Powell is widely expected to maintain rates during the two-day session ending on Wednesday.
The Dow Jones Industrial Average held close to its morning highs, but other major indexes saw their gains eroded. Today, the S&P 500 index was up by 0.6%.
The Nasdaq also added 0.6% per hour. Magnificent 7 stocks all rose in a sputtering attempt to rally since the tech index cut its follow-through lows on October 20 and sent market into correction. On Monday, the Nasdaq was met with some resistance near its 200-day line.
The volume on the NYSE was lower than it had been at the same time last Friday.
The Russell 2000 small-cap index performed well, gaining 0.8%. Meanwhile, the Innovator IBD50 ETF (FFTY), rose by 0.5%.
Crude oil dropped 2% to $83.76 per barrel.
The yield on the benchmark 10-year Treasury bill rose by 4 basis points, to 4.89%. The yields remain near multi-year highs, but have eased after reaching 5% earlier this month and sending the stock market into a tailspin.
The Wall Street Journal reported that General Motors (GM), a major automaker, reached a tentative agreement with the United Auto Workers on Monday. GM is last among the automakers who have reached a pact.
UAW workers approved a labor agreement with Ford (F) over the weekend after the automaker agreed on an investment of $8.1 billion in new plants and wage increases of at least 30 percent for full-time employees. GM shares fell slightly, while Ford's dropped 1.7%.
Econoday reports that the October payroll increase is expected to be 183,000 jobs, a sharp drop from September's 336,000.
Dow Jones Stocks
McDonald's reported a solid third quarter. Sales worldwide rose by 11%, while comparable sales also increased by 9% as a result of price increases. Earnings rose 19%, to $3.19 a share. Stocks rose 1.5% during mid-morning trading.
Disney shares (DIS) surged on the news that Nelson Peltz’s Trian Fund Management now has more voting rights and control over the board, after acquiring Ike Perlmutter's Marvell shares. Disney stock has reversed a four-day loss streak. Next week, Disney is due to report earnings.
Apple (AAPL), Caterpillar (CAT), and Amgen (AMGN) all report earnings on Tuesday. Amgen (AMGN), too, reports on Tuesday. AAPL stock is testing its 200-day line while CAT is attempting to end a 3-day losing streak. AMGN is holding the 50 day line and below a buy-point of 268.24.
Stocks moving today
On Semiconductor, a company outside the Dow Jones index, has fallen over 15%, and is now below its 200-day line, after the Q3 sales, which were $2.2 billion, were almost flat with those of the same quarter in the previous year. The earnings per share fell to $1.39, down from $1.45 in the same quarter last year. The fourth-quarter forecast also indicates flat sales growth.
Lattice Semiconductor, Rambus (RMBS), and Wolfspeed (WOLF) will report after the close of the market. All three companies are below their key moving averges.
Advanced Micro Devices, Inc. (AMD) shares are also below the converging moving averages of 50- and 200 day ahead of Tuesday's earnings. Shares of Qualcomm are nearing the 50-day line, ahead of their earnings due on Wednesday.
Western Digital (WDC), which is not included in the Dow Jones Industrials, also saw a decrease in cloud revenue. Overall sales dropped 26% from the same quarter last year to $2.75 Billion. Data storage product maker Western Digital also lost $1.76 per share. The company has announced that it will separate its hard disk drive and flash memory businesses to create two independent public companies. The shares reversed upwards, clearing the 200 day line. They are now trying retaken the 50 day line.
IBD 50 Novo Nordisk's (NVO), which is a stock listed on the IBD 50, has retreated from its 50-day line. It also has an alternate entry at 100.88. The third quarter results will be released on Thursday. Eli Lilly's (LLY), which is also part of the IBD 50 index, is on the 50-day mark ahead of this week's earnings. Cardinal Health (CAH), with an buy point of 94.37, is forming the handle of a cup.