Dow Jones futures plunged Monday morning in reaction to Moody’s warning on U.S. debt. However, Dow Jones aerospace giant Boeing (BA) saw a surge after Dubai carrier Emirates announced a massive $52 billion order for the company’s jets. Meanwhile, Moody’s Investors Service cut its U.S. outlook to negative from stable late Friday, citing high budget deficits and political polarization, while reaffirming its AAA rating on U.S. sovereign debt. Moody’s expects fiscal deficits to remain large and debt affordability to weaken due to higher interest rates and an ineffective approach to reducing government spending. The week ahead includes the release of October’s consumer price index on Tuesday, with a predicted 0.1% overall increase, as well as the producer price index and U.S. retail sales on Wednesday.
In other news, Boeing shares rallied 3.5% on Monday after Emirates placed a substantial order for the company’s aircraft at the Dubai Airshow. Key earnings movers for the session include Monday.com (MNDY), Tower Semi (TSEM), and Tyson Foods (TSN), with MNDY stock jumping 7.5% in premarket trade. Looking further ahead, Home Depot (HD), Walmart (WMT), and Cisco Systems (CSCO) are set to deliver earnings results this week.
As for Dow Jones today, futures signaled a 0.2% drop, with the S&P 500 futures moving down 0.3% and Nasdaq 100 futures dropping 0.35%. The yield on the 10-year U.S. Treasury bond ticked higher to 4.63%, and oil prices looked to add to Friday’s gains, with West Texas Intermediate futures edging higher. In addition, IBD’s latest newsletter MarketDiem offers actionable ideas for stocks, options, and crypto. On Friday, the Dow Jones Industrial Average rallied 1.15% and the S&P 500 advanced 1.6%, with the Nasdaq composite jumping 2.05%.
Looking specifically at the best stocks to watch, Amazon (AMZN), UnitedHealth (UNH), DraftKings (DKNG), and Uber Technologies (UBER) are among the top picks during the current market rally. Join IBD experts for an in-depth analysis of leading stocks in the current stock market rally on IBD Live. Lastly, among the “Magnificent Seven” stocks, Tesla (TSLA) traded up more than 1% early Monday, with Nvidia (NVDA) rising 0.7%. Meanwhile, Dow Jones tech icons Apple (AAPL) and Microsoft (MSFT) traded slightly lower. Be sure to follow Scott Lehtonen on X for more on growth stocks and the Dow Jones Industrial Average.
