Dow Jones Rises: A Perfect Setup For Santa Claus Rally? Tesla's … – Investor's Business Daily

BREAKING: Futures Erase Losses, Yields Fall As Bank Of Japan Stays Course
Register for Virtual SummitRegister for Virtual Summit
The Dow Jones Industrial Average added to early gains, up nearly 0.4% at noon on Tuesday. The blue chip index has been testing its 50-day moving average.
The S&P 500 rose 0.1% in the first hour and added a  few points into the lunch hour. The Nasdaq rose at the same pace.
Volume on the NYSE and the Nasdaq was sharply lower, compared to the same time on Monday.
The small-cap Russell 2000 reversed after falling 0.2% and traded higher by 0.7%.
The Bank of Japan raised its 10-year bond yield cap to 0.5% overnight, up from 0.25%. The Nikkei fell over 2% while the yen strengthened compared to the U.S. dollar. The yield on the U.S. 10-year Treasury note surged 11 basis points to 3.69%.
The string of down days and thinning holiday volume, ahead of the Personal Income and Outlays numbers on Friday, may present a perfect setup for a Santa Claus rally. However, investors should be cautious as the market continues to struggle with fears of recession and mounting interest rates. And any upside reversal will likely be short-lived.
The embattled Twitter takeover took a new turn late Monday after the poll verdict agreed that Tesla‘s (TSLA) CEO should quit as Twitter chief. Elon Musk responded by restricting voting power to Twitter Blue members. Earlier, 10 million+ Twitter users, or over 57%, said that Musk should leave.
Daiwa analysts lowered Tesla’s price target to 177 due to the “Twitter distraction.” Evercore ISI followed suit, lowering the firm’s target by a staggering 100, to 200. On Monday, Oppenheimer analyst Colin Rusch downgraded the stock to perform from outperform, due to “severely damaged” sentiment toward Tesla.
Tesla shares are down over 5% at noon. The stock has lost more than 40% since the Twitter takeover in October.
Futures Rise As Dow Giant Jumps; Market Halts Slide, Tesla Dives Again
Shares of Apple (AAPL) fell after JPMorgan analyst Samik Chatterjee lowered the price target for the Dow Jones leader to 190 from 200 while maintaining an overweight rating. Shares shed nearly 1% midday.
UnitedHealth (UNH) slumped below its 50-day line last week and is in correction. Merck (MRK) and Pfizer (PFE) are holding above the 50-day moving average.
Energy stocks in the Dow Jones index are reversing to the upside this week.
Exxon (XOM) and Chevron (CVX) both gained over 1% as the day advanced. Crude oil fell 0.5% to trade at $75.06 per barrel.
Steel Dynamics (STLD) gained over 2% ahead of its entry into the S&P 500. Tenaris (TS) rallied over 1% in early trading. This steel stock is an IBD Leaderboard candidate.
Super Micro Computer (SMCI) will join the S&P 400 index. Shares are surging over 7% today.
Shares of General Mills (GIS) fell over 4% despite strong earnings and sales.
Elsewhere, the iShares Silver Trust ETF (SLV) rose nearly 4% in today’s trading.
FedEx (FDX) and Nike (NKE) earnings are on tap after the closing bell. Micron (MU) and Carnival (CCL) are due Wednesday.
FDX fell to its 50-day line Tuesday afternoon while Nike fell less than 1%. MU fell over 1% at noon and CCL slipped fractionally.
Please follow VRamakrishnan @IBD_VRamakrishnan for more news on the stock market today.
Top Growth Stocks To Buy And Watch
Learn How To Time The Market With IBD’s ETF Market Strategy
Find The Best Long-Term Investments With IBD Long-Term Leaders
MarketSmith: Research, Charts, Data And Coaching All In One Place
How To Research Growth Stocks: Why This IBD Tool Simplifies The Search For Top Stocks
3:47 PM ET Futures rose and yields fell as the Bank of Japan stayed dovish. The market rally paused while Tesla stock jumped….
3:47 PM ET Futures rose and yields fell as the Bank of Japan…
Strong performances by S&P 500 stocks Caterpillar and Freeport McMoRan reveal several drivers for the industrial economy. (©Vadim Ratnikov/Shutterstock)
Get instant access to exclusive stock lists, expert market analysis and powerful tools with 2 months of IBD Digital for only $20!
Get market updates, educational videos, webinars, and stock analysis.
Learn how you can make more money with IBD’s investing tools, top-performing stock lists, and educational content.
Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. The information has been obtained from sources we believe to be reliable; however no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Authors may own the stocks they discuss. The information and content are subject to change without notice.
*Real-time prices by Nasdaq Last Sale. Realtime quote and/or trade prices are not sourced from all markets.
Ownership data provided by Refinitiv and Estimates data provided by FactSet.
© 2000-2023 Investor’s Business Daily, LLC. All rights reserved


Leave a Comment