Dow Jones Futures Fall 150 Points After Election Results.  Elon Musk is selling more Tesla shares

Dow Jones Futures Fall 150 Points After Election Results. Elon Musk is selling more Tesla shares

Dow Jones futures fell 150 points on Wednesday morning after early US election results showed Republicans favored to win a narrow majority in the House but fell short of expectations. Tesla stock rose on reports that CEO Elon Musk sold nearly $4 billion worth of Tesla stock in recent days.


Media giant Dow Jones Disney ( DIS ) plunged nearly 8% on an earnings surprise. Disney’s earnings were expected to rise 48% to 56 cents a share on revenue of $21.3 billion. Instead, the company’s earnings fell to 30 cents a share on sales of $20.5 billion.

Facebook parent Meta Platforms (META) rallied nearly 6%, leading the Nasdaq in early trade. The company said it would lay off about 13 percent of its workforce and cut its 2023 revenue outlook to between $34 billion and $37 billion, down from an earlier forecast of $34 billion to $39 billion.

Key drivers of earnings on Wednesday were Array Technologies (ARRY), Disney, Lucid Motors (LCID) and Warren Buffett stock Occidental Petroleum (ACID).

Shares of Array rose nearly 20%, while Lucid Motors fell more than 7%. OXY shares lost 1.5% in morning trading.

Electric vehicle giant Tesla ( TSLA ) traded a fraction on Wednesday morning. The Dow Jones Technology Leaders apple (AAPL) and Microsoft (MSFT) was clearly lower ahead of today’s market open.

Among the top stocks to buy and watch, Albemarle (ALB), IBD Leaderboard Watch List Stock Arista Networks (ANET) and CF Industries (CF) — as well as Dow Jones names Merck (MRK) and UnitedHealth Group (UNH) — are among the top stocks to buy and watch.

Arista Networks is an IBD Leaderboard Watch List stock. Albemarle was featured in this week’s Stocks Near a Buy Zone column, along with three other top stock ideas. UnitedHealth was IBD’s Stock Of The Day on Thursday.

IBD’s newest newsletter, MarketDiem, brings you actionable stock, options and crypto ideas straight to your inbox.

Dow Jones Today: Bond yields, oil prices

Ahead of Wednesday’s open, Dow Jones futures were down 0.6%, while S&P 500 futures were down 0.55% against fair value. Nasdaq 100 futures lost 0.7 percent in morning trade, with China-based names taking four of the index’s five biggest hits in early trade.

Stocks’ tepid response to Tuesday’s unfolding election tally could point to the effects already being baked into valuations. It may also suggest that markets are more interested in the next round of key inflation data, due out on Thursday morning.

Among exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust ( QQQ ) was trading down 0.5% early Wednesday and the SPDR S&P 500 ETF ( SPY ) was down 0.55%.

The yield on the 10-year note was steady around 4.13% on Wednesday morning, stopping after Tuesday’s drop at 4.12%.

Meanwhile, U.S. oil prices fell nearly 2 percent, with West Texas Intermediate futures falling below $88 a barrel. Weekly industry data released late Tuesday showed crude inventories rose more than expected. The official weekly numbers are expected to be released at 10:30 AM. ET.

Last week, WTI futures hit their highest since mid-October, but have since retreated.

Stock Market Rally Races

On Tuesday, the Dow Jones Industrial Average rallied 1%, while the S&P 500 gained 0.6%. The tech-heavy Nasdaq composite climbed 0.5%.

Tuesday’s The Big Picture commented: “It’s not easy watching indices move higher with growth stocks generally not participating. The Leaderboard is less than 50% invested, with only seven names. Be patient and wait for the better chart setups. Avoid chasing stocks that are up multiple days in a row. If more institutional money continues to come in from the margin, setups (bullish stock) shouldn’t be far behind.”

Now is an important time to read IBD’s The Big Picture column. After the recent selloff, investors should be more focused on playing defense than buying breakouts.

Five Dow Jones Stocks to Buy and Watch Now

Dow Jones Stocks To Buy and Watch: Merck, UnitedHealth

Dow Jones member and IBD 50 stock Merck remains out of range beyond the 93.12 buy point of the double bottom base, according to IBD MarketSmith standard recognition. Shares of Merck were lower on Wednesday.

Healthcare giant UnitedHealth is trying to retake a 553.23 buy point from a cup with a handle. Shares rose 1.5% on Tuesday, ending about 10 cents below their last entry. UNH stock was down Wednesday morning.

4 Top Growth Stocks to Watch at Current Stock Market Rally

Top stocks to buy and watch: Albemarle, Arista, CF

Lithium producer Albemarle is trying to break the 308.34 buy point of a cup base. Shares rose 6.8% on Tuesday, extending their winning streak to four sessions. ALB stock was down 0.7% early Wednesday.

IBD Arista Networks Leaderboard Watchlist stock is trying to break through the base’s erratic buy point of 132.97. ONEThe net stock lost more than 3% Wednesday morning.

CF Industries found support around its 50-day moving average amid Tuesday’s 4.2% rally. Shares are building a cup base that has a buy point of 119.70, according to IBD MarketSmith standard recognition. CF stock fell 0.6% on Wednesday.

Join IBD’s experts as they analyze top stocks in the current stock market rally on IBD Live

Tesla stock

Tesla shares fell another 2.9% on Tuesday, extending Monday’s sharp decline. Shares hit another new 52-week low and hit their lowest level since May 2021. 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 were trading 0.2% higher on Wednesday morning. According to regulatory disclosures, Musk sold 19.5 million Tesla shares Nov. 4-8, shortly after buying Twitter for $44 billion.

Dow Jones Leaders: Apple, Microsoft

Among the Dow Jones stocks, Apple shares rose 0.4% on Tuesday, marking a second straight day of gains. The stock fell 0.4% on Wednesday.

Microsoft rose another 0.4% on Tuesday, extending its winning streak to three sessions. The software giant remains about 35% off its 52-week high. Microsoft shares were down 0.5% on Wednesday morning.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.


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