Futures
Dow Jones, Futures Mixed as Tesla Loses on Musk Pay Rejection
2024-12-03
The Dow Jones Industrial Average and other major indexes witnessed a mixed trading trend on Tuesday as Wall Street responded to the morning's employment data. Tesla (TSLA), a prominent player in the market, faced early losses after a Delaware judge rejected its 2018 pay package. This event had a significant impact on the stock's performance.
Early Market Movements and Key Indicators
After the opening bell, the Dow Jones Industrial Average dropped by 0.2%, while the S&P 500 saw a slight decline of 0.1%. In contrast, the tech-heavy Nasdaq composite managed to gain 0.1% in morning trades. The 10-year Treasury yield also ticked lower to 4.18%, and oil prices climbed, with West Texas Intermediate futures trading around $69.20 per barrel. Among exchange traded funds, the Invesco QQQ Trust (QQQ) rose 0.1%, while the SPDR S&P 500 ETF (SPY) was down modestly after the open.Tesla's Setback
Tesla skidded 1% on Tuesday following a late Monday decision by Delaware Judge Kathaleen McCormick. The judge stuck with her January decision that Tesla's board was overly influenced by Elon Musk when awarding the original pay deal in 2018. At that time, the pay deal was worth approximately $56 billion. This setback had a direct impact on Tesla's stock price and market sentiment.Economic Data and Job Openings
On the economic front, the U.S. Labor Department's Job Openings and Labor Turnover Survey (JOLTS report) showed job openings at a rate of 7.744 million. The report was expected to show job openings at a 7.49 million rate in October, slightly higher than the previous month's 7.443 million. This data provides insights into the labor market and its potential impact on the stock market.Stock Market Movers and Earnings
Key earnings movers on Tuesday morning included Credo (CRDO) and Zscaler (ZS). Credo soared 36%, while Zscaler stock plunged more than 5% in early trading. Elsewhere, AT&T (T) jumped 3.5% after the company announced its expectations of free cash flow to be more than $18 billion in 2027. Shares closed Monday in the buy range above a 22.34 flat-base entry.Stock Market Leaders and Notable Moves
Among the best companies to watch on the stock market today are Embraer (ERJ), Cloudflare (NET), TJX (TJX), and Tradeweb Markets (TW). Dow Jones components making notable moves were Amazon.com (AMZN), Apple (AAPL), Microsoft (MSFT), and Sherwin-Williams (SHW). Apple featured in the Stocks Near A Buy Zone column. There was one new stock on IBD MarketSurge's "Breaking Out Today" list Friday, namely Apple. To find additional stock ideas, one can check IBD Stock Lists like IBD 50, Big Cap 20, and Stocks Near A Buy Zone.Industry Group and IPOs
This industry group and 4 IPOs have polished 20 "perfect" gems. Dow Jones leader Sherwin-Williams is breaking out past a 392.57 buy point in a flat base, with shares adding 0.1% on Tuesday. Outside the Dow Jones index, Cloudflare has broken out in recent weeks, topping a 99.17 buy point in a cup with handle. The 5% buy zone runs up to 104.13, but shares are just out of buy range following Monday's rally. Embraer is in buy range above an alternative entry at 39.46 and is a recent IBD Stock Of The Day, with shares down 0.6% early Tuesday. Retailer TJX is above a 121.13 flat-base entry following strong gains, and its stock inched up 0.2% in early Tuesday trading. Finally, Tradeweb closed Monday just below a 136.13 entry in a flat base, but its stock gained 0.6% in morning action on Tuesday.Magnificent Seven Stocks and Their Movements
Among Magnificent Seven stocks, Alphabet (GOOGL) edged higher after the opening bell. Shares have plunged below their 50-day line in recent weeks but are now rebounding. Meta Platforms (META) is rapidly approaching a flat base's 602.95 buy point, with shares ticking up 0.5% on Tuesday. Among Dow Jones components in the Magnificent Seven, Amazon stock rallied sharply in recent sessions, decisively retaking a 201.20 buy point and adding 0.5% in early trading on Tuesday. Shares of Apple are breaking out above a flat base's 237.49 entry, with the stock up 0.5% on Tuesday morning. Microsoft shares gained 0.2% on Tuesday morning, reclaimed its 50-day line, a key level to watch during recent gains. Nvidia stock rose 0.5% on Tuesday, with the artificial intelligence titan looking to rebound following a sharp pullback over the last few trading sessions. Shares are bouncing from their 10-week moving average line, an important area to watch, which places Nvidia stock in a new buy area.Be sure to follow Scott Lehtonen on X at @IBD_SLehtonen for more on growth stocks, the Dow Jones Industrial Average, and the stock market today.