Dow Jones Futures Fall: Fed Minutes, Home Depot, Walmart Earnings Up Next

Dow Jones futures were lower after Monday’s stock market action. Dow Jones stocks Home Depot (HD) and Walmart (WMT) will report before Tuesday’s open followed by key economic data — Fed minutes and U.S. retail sales — on Wednesday.


Factory (UN) and ZipRecruiter (ZIP) were key earnings moves after the close on Monday. Fabrinet shares rose 12%, while ZipRecruiter shares fell 5% in extended trading.

Dow Jones Earnings: Home Depot, Walmart

Home improvement retailer Home Depot will report second-quarter results early Tuesday. Analysts expect the company to earn $4.95 per share on sales of $43.3 billion. HD shares closed Monday about 25% off their 52-week high.

Discount retailer Walmart extended a winning streak to seven sessions on Monday, rising 0.3%. Walmart Q2 earnings are expected to fall 9% year over year to $1.62 per share on revenue of $150.9 billion.

The stock market today

On Monday, the Dow Jones Industrial Average rose 0.45%, while the S&P 500 rose 0.4%. The tech-heavy Nasdaq composite climbed 0.6%, extending Friday’s gains.

US Stock Market Today Overview

Index Symbol Price Profit/loss % Change
Dow jones (USD 0) 33912.63 +151.58 +0.45
S&P 500 (0S&P5) 4297.14 +16.99 +0.40
Nasdaq (0NDQC) 13128.05 +80.86 +0.62
Russell 2000 (IWM) 201.07 +0.71 +0.35
IBD 50 (FFTY) 29.83 -0.12 -0.40
Last update: 4:34 PM ET 8/15/2022

Among exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.8%, and the SPDR S&P 500 (SPY) rose 0.4%.

EV giant Tesla ( TSLA ) ran 3.1% higher Monday. Among Dow Jones leaders, apple (AAPL) and Microsoft (MSFT) rose 0.6% and 0.5% respectively in today’s stock market.

In the healthy stock market environment, Dow Jones shares Cola (KO) and Merck (MRK) — as well as Albemarle (ALB), Costco (COST), Monolithic power systems (MPWR) and Ollie’s Bargain Outlet (OLLI) — is among the best stocks to buy and watch.

Albemarle is an IBD Leaderboard stock. Albemarle and Costco were featured in this week’s Stocks near a Buy Zone column.

Dow Jones Futures Today: Treasury Yields, Oil Prices, Fed Minutes

Ahead of Tuesday’s open, Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures were each down 0.1% relative to fair value. Keep in mind that overnight action in Dow Jones futures and elsewhere does not necessarily translate into actual trading in the next regular session.

The 10-year Treasury yield ticked lower on Monday, closing at 2.79% and extending Friday’s losses. At the beginning of August, the 10-year yield reached its lowest level since the beginning of April, but is now trying to recover. Meanwhile, US oil prices fell more than 3%, with West Texas Intermediate futures trading below $89 a barrel.

The Federal Reserve’s minutes from the last meeting will be published on Wednesday morning. The report is likely to reveal clues in the central bank’s thoughts on potential interest rate increases at the meeting in September. At the last Fed meeting, the central bank delivered a 75 basis point interest rate hike for the second meeting in a row, and Fed Chair Jerome Powell indicated a third such increase “may be appropriate” in September.

What to do in the current stock market rally

The stock rally remains healthy, with the Dow Jones Industrial Average on a four-day winning streak. The Nasdaq and the S&P 500 shrugged off Thursday’s downside and have risen for two straight sessions.

With the market showing signs of strength, investors have the green light to increase exposure but keep positions small to begin with. If a new purchase is making progress, methodically increase your exposure. There is still a lot of uncertainty for the stock market to navigate, so it still makes sense to have a good amount of cash on hand.

Friday’s The Big Picture column commented, “The stock market roared to end its fourth straight up week Friday. Indexes settled higher again, with encouraging inflation data encouraging bulls.”

If you are new to IBD, consider taking a look at the stock trading system and CAN SLIM basics. Recognizing chart patterns is a key to investment guidelines. IBD offers a wide variety of growth stock lists, such as Leaderboard and SwingTrader.

Investors can also create watch lists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.

Five Dow Jones stocks to watch now

Dow Jones stocks to watch: Coca-Cola, Merck

Dow Jones soft drink giant Coca Cola is building a flat base that has a buy point of 67.30. A handle entry of 65.14 is also in play. Shares are retreating from the 50-day line and nearing the early entry amid Monday’s 1.3% rally.

Merck is also building a flat base, a pattern showing a buy point of 95.82. Shares are trying to hold above their 50-day line amid Monday’s 0.5% drop, according to IBD MarketSmith chart analysis.

The MRK share shows a solid 94 out of a perfect 99 IBD Composite Rating, according to IBD Stock Checkup. Investors can use the IBD Composite Rating to easily measure the quality of a stock’s fundamental and technical metrics.

4 top growth stocks to watch right nowra stock market rally

Top stocks to watch: Albemarle, Costco, Monolithic, Ollie’s

IBD Leaderboard stock and lithium producer Albemarle is in buy territory after Friday’s breakout past a major cup with the handle’s buy point at 273.78. The 5% buy zone goes up to 287.47. Earlier last week, shares topped a minor cup with the handle’s 250.25 buy point. Shares rose 0.9% on Monday, extending a winning streak to four sessions.

Retail giant Costco builds a cup with a handle that displays a buy point of 552.81. The stock rose 1.6% on Monday and is about 3% off its last entry.

Recently IBD Stock Of The Day Monolithic Power Systems added a handle to a cup base last week, moving the correct buy point from 580.10 to 541.49. Meanwhile, shares remain above a 514.80 entry. The share rose 1.7 percent on Monday.

Ollie’s Bargain Outlet is back from its 10-week line – a critical support level – putting the top discount retailer in a new buying zone. Shares are also cutting a handle after a major cup base, setting the latest buy point at 72.37. Current price action is about 10% away from this entry. The share lost 0.4 percent on Monday.

Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live

Tesla shares

Tesla shares climbed 3.1% on Monday, closing at their highest level since May 4. Shares are once again trying to rise decisively above resistance around the 200-day line, which is a key level to watch. The 3-to-1 share split will take place on 24 August.

The stock is about 25% off its 52-week high.

Dow Jones Leaders: Apple, Microsoft

Among the Dow Jones stocks, Apple shares rose 0.6% on Monday, rising for the second day in a row. The stock continues to build to the right of a cup base that has a buy point at 179.71. Another interpretation could be a major double bottom extending back to January. Regardless, the point of purchase is identical. Keep an eye out for a potential handle that could form and provide a lower entry.

Bullishly, the stock’s relative strength line is already at new highs, indicating big stock market returns.

Microsoft gained 0.5% on Monday, closing just below its long-term 200-day line, which is a key resistance area to watch. The stock ended about 16% off its 52-week high.

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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