Title: Dow Jones Rallies Ahead of Federal Reserve Meeting, Apple Earnings Awaited
Subtitle: McDonald’s Stock Climbs on Strong Earnings Results
Date: [Insert Date]
The Dow Jones Industrial Average experienced a brief surge of 300 points on Monday as Wall Street eagerly awaited the two-day meeting of the Federal Reserve. While Apple’s earnings are scheduled to be released later in the week, McDonald’s stock saw a significant jump following strong earnings results.
The Federal Reserve’s meeting, set to conclude on Wednesday at 2 p.m. ET, precedes Chairman Jerome Powell’s news conference. Market analysts predict that there is no chance of a rate hike during this meeting and only a slim possibility of a hike at the subsequent meeting on December 13.
Despite this, with consumer spending soaring in the third quarter, Powell is unlikely to completely rule out a rate hike. The Fed would likely need to witness a significant slowdown in hiring before eliminating the risk of further rate hikes, but economists do not anticipate such a scenario in the upcoming employment report.
Speaking of employment, the Labor Department’s October jobs report is set to be released on Friday. Economists expect the report to reveal a net gain of 172,000 jobs and an unemployment rate of 3.8%.
In terms of upcoming earnings reports, all eyes are on Apple (AAPL) this week. Other important earnings reports include those of Dow Jones machinery giant Caterpillar (CAT), Amgen (AMGN), and Pfizer (PFE).
Monday saw the release of McDonald’s (MCD) and ON Semiconductor’s (ON) earnings reports. McDonald’s shares soared nearly 2% in morning trading, while ON stock plummeted 18% early in the day.
In the stock market, the Dow Jones Industrial Average rose 0.8% after the opening bell on Monday, with the S&P 500 also experiencing a 0.6% increase. The tech-heavy Nasdaq composite saw a 0.6% rally in morning action.
Meanwhile, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) gained 0.6%, and the SPDR S&P 500 ETF (SPY) rose by 0.65% early on Monday.
On the economic front, the yield on the 10-year U.S. Treasury bond edged higher to 4.9% on Monday morning, surpassing Friday’s settlement at 4.84%. However, oil prices experienced a decline, with West Texas Intermediate futures falling approximately 2% and trading just below $83 a barrel on Monday morning.
In light of the ongoing stock market correction, it is crucial to stay informed on the best stocks to watch. International Seaways (INSW), Lululemon Athletica (LULU), Light & Wonder (LNW), Tradeweb Markets (TW), Walmart (WMT), and UnitedHealth (UNH) are among the stocks worth monitoring during this period.
Walmart is currently forming a cup base with a buy point of 165.85, while UnitedHealth is adding a handle to a significant consolidation, indicating a new buy point at 546.78.
The four best stocks to watch in today’s stock market correction are International Seaways, Lululemon, Light & Wonder, and Tradeweb Markets. However, it is important to exercise caution when purchasing breakout stocks during a market correction.
Tesla (TSLA), Amazon (AMZN), and Nvidia (NVDA) are part of the “Magnificent Seven” stocks. Tesla experienced a 3% drop early on Monday, while Amazon and Nvidia gained 2.4% and 1%, respectively.
In terms of Dow Jones stocks, Apple rose 0.8% on Friday and Microsoft traded higher after today’s stock market open. Apple is still below the 200-day line but anticipates delivering its fiscal fourth-quarter report on Thursday. Microsoft stock rose 0.6% on Friday and 1.6% on Monday.
As the stock market remains in a correction phase, it is crucial to stay updated on the best growth stocks and the performance of the Dow Jones Industrial Average.