Dow Jones Surges; Tesla Rival jumps on sale in China; Bitcoins one hour block time

The Dow Jones Industrial Average pared its gains and was trading 0.7% higher by midday after rising nearly 600 points in early trade.

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The S&P 500, which matched the Dow’s early gains, also gave up the bulk of its gains to trade 0.7% higher. The Nasdaq rose more than 2% in early trade, but eased and was up 0.6% by 12:00 pm ET.

Volume on the NYSE and on the Nasdaq was higher compared to midday on Monday.

Crude oil fell to $82.50 a barrel.

The yield on the benchmark 10-year government bond climbed back above 4%. The small-cap Russell 2000 gave up half of its early gains to trade 1% higher. And the Innovator IBD 50 (FFTY) ticked 0.5% higher.

Stocks are moving today

Energy shares set up potential buy points.

ConocoPhilips (COP) has been in a buy zone with a buy point at 115.57. Dow Jones component Exxon Mobil (XOM) is in a flat base and nearing a buy point at 105.67.

Among IBD 50 stocks, Murphy USA (MUSA) is nearing a buy point at 303.19 in a flat base. It is testing its 50-day moving average.

EOG Resources (EOG) is in a cup-with-handle base showing a buy point at 130.41. Devon energy (DVN) is also in a cup-with-handle base with a 75.37 entry.

Warren Buffett bet and Tesla (TSLA) rival BID ( BYDDF ) is up nearly 3% after preliminary estimates predicted a whopping $764.5 million to $820 million in third-quarter sales.

The 300% increase from last year is likely to offset skyrocketing production costs, while profits for the Chinese EV maker are expected to quadruple.

Shares in Tesla are up 1% ahead of earnings on Wednesday.

Industrial production increased by 0.4% in September. Manufacturing and mining rose while supplies fell. Capacity utilization of 80.3 showed the economy was in full swing and was 0.7% higher than its long-term average since 1972. The motor vehicle assembly rate was slightly higher at 10.65 million from August’s 10.64 million and the highest since November 2020. 2018 and the 2019 average rate was 11.11 million. According to Coamerica’s chief economist, Bill Adams, increases in production and capacity utilization support monetary tightening. On the other hand, the NAHB Housing index fell to its lowest since 2012, excluding the Covid-affected months. Chief Economist at LPL Financial, Jeffrey Roach sees more disadvantages in the housing market as interest rates rise.

Dow Jones Megacaps Release Q3 Reports

Dow Jones leader Goldman Sachs (GS) is up more than 4% after strong earnings. Bond trading revenue rose 41% from last year, bringing in revenue of $11.98 billion and earnings of $8.25 per share. Equity trading and investment banking revenues declined. GS shares are nearing their 50-day moving line.

Johnson & Johnson (JNJ) beat views with revenue of $23.8 million and earnings of $2.55 per share. The Dow Jones shares pared gains after downgrading its outlook for the full year, due to waning demand for Covid vaccines.

Netflix ( NFLX ) earnings are on tap after Tuesday’s closing bell. The stock is trading higher and is approaching a buy point of 252.09 in a long consolidation.

Goal ( TGT ) shares are up over 5% after Jefferies analyst Corey Tarlowe upgraded it to a hold buy with a $185 price target. The shares are approaching the 50-day mark.

Cryptocurrencies

Bitcoin took 85 minutes to mine a block on Monday, leaving 13,000 transactions in limbo with a pending status. The usual time to mine a block is 10 minutes.

Mining woes have hit an all-time high despite the crypto bear market. The leading cryptocurrency is trading below $20,000 but is off recent lows below the $18,500 level.

Follow Vidya Ramakrishnan on Twitter @IBD_Vidya

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