Dow Jones Futures: Has the Stock Market Bottomed Out? Fed meet up next
Dow Jones futures were lower late Monday. The stock market recovered from heavy losses on Monday ahead of the Federal Reserve’s two-day political meeting. IBM revenue kicked off five Dow Jones members who reported revenue before Tuesday’s opening. Meanwhile, Microsoft revenue is due late Tuesday.
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On Monday, the Dow Jones Industrial Average climbed 0.3%, turning around after falling as much as 3.25%. The S&P 500 rose 0.3% after plunging as much as 4%, while the technology-heavy Nasdaq composite rose 0.6% after erasing a dive of 4.9%.
Among the Dow Jones executives, apple (AAPL) lost 0.5% on Monday, while Microsoft (MSFT) was up 0.1% in the current stock market.
Head of electric vehicles Tesla (TSLA) traded down 1.5% on Monday. Lucid group (LCID) deleted large losses. And Chinese EV leaders Li Auto (LI) and Xpeng engines (XPEV) ended just lower.
Among Monday’s best stocks to see, American International Group (AIG), Baker Hughes (BKR), CF Industries (CF) and ConocoPhillips (COP) is close to new buying zones. Remember that current stock market status warns investors to stay on the sidelines.
Microsoft and Tesla are IBD Leaderboard shares. ConocoPhillips featured in this week’s Stocks near a buy zone column.
Dow Jones today: Fed political meeting
After the stock market closed on Monday, Dow Jones futures fell 0.1% against fair value, while S&P 500 futures fell 0.15%. Nasdaq 100 futures fell 0.3% relative to fair value. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.5% on Monday, and the SPDR S&P 500 ETF (SPY) fell 1.2%.
US Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain / loss | % Change |
| Dow jones | (0DJIA) | 34366.67 | +101.30 | +0.30 |
| S&P 500 | (0S & P5) | 4410.50 | +12.56 | +0.29 |
| Nasdaq | (0NDQC) | 13855.13 | +86.21 | +0.63 |
| Russell 2000 | (IWM) | 201.69 | +4.70 | +2.39 |
| IBD 50 | (FFTY) | 37.86 | +0.27 | +0.72 |
Last updated: 16:28 ET 24/1/2022 |
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The Federal Reserve’s two-day political meeting starts on Tuesday with a political decision coming on Wednesday. The Fed is expected to end its asset purchases in March and then start raising interest rates in an effort to fight inflation.
The 10-year government interest rate ticked down to 1.73% on Monday, and fell for a second session in a row.
Has the stock market bottomed out?
The stock market staged a dramatic improvement on Monday, when all three major stock indices wiped out huge losses to turn higher. Even if it is a step in the right direction, one day there will be no trend, so the stock market remains in a correction. Investors should largely, if not completely, stand on the sidelines and cash. Avoid making new purchases and prepare for the next uptrend by building your watch list with stocks that have strong relative strengths and solid fundamentals.
Remember that investors should interpret the daily market action, not predict whether stocks will go up or down. Monday turned out to be day 1 in a new rally attempt. Now look for a follow-up day, which is when a large index shows strong volume increases heavier than the day before. Follow-up takes place already on day 4 of the rally trial. As long as large stock indices remain above Monday’s lowest level during the day, the rally attempt will be intact.
Friday’s The Big Picture commented: “Several indicators point to an oversold market, but that does not mean the bottom is close. Renewed signs of accumulation will certainly help the index, but there are no signs of that yet as institutional investors continue to close positions in growth stocks. “
In the midst of this latest weakness, it’s now an important time to check out IBD’s The Big Picture.
Five best Dow Jones stocks to see now
Dow Jones revenue: IBM reports; 4 more on deck
Dow Jones action IBM (IBM) reported better-than-expected fourth-quarter results after the market closed Monday. IBM shares rose more than 5% in expanded trading. IBM shares build a double-bottom base with a buy point of 146.10.
early tuesday, 3M (MMM), American Express (AXP), Johnson & Johnson (JNJ) and Verizon Communications (VZ) will report its quarterly results. All four Dow Jones shares are below their long-term 200-day lines.
Three peak growth stocks to be seen in the current weakness in the stock market
Shares to look at: AIG, Baker, CF, ConocoPhillips
AIG rose 0.2% on Monday, closing just above the 50-day moving average. AIG shares form a cup-with-handle base with a buy point of 62.35, according to IBD MarketSmith chart analysis.
Energy leader Baker Hughes continues to trade just below a buy point of 27.76 cups after Monday’s fall of 0.6%.
CF Industries is building a rising base with a buying point of 74.87. Shares rose further from the 50-day line, rising 3.6%. Bullishly, the stock’s RS line hit a new high, indicating strong stock market results.
Oil and gas giant ConocoPhillips took a three-day losing streak, rising 0.4% on Monday. The shares remain above a buy point of 78.08 in a consolidation. The COP stock has a perfect 99 IBD Composite Rating, according to the IBD Stock Checkup.
Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live
EV shares: Li Auto, Xpeng, Lucid Motors
Li Auto shares extended a losing streak to four sessions on Monday, falling 2.3%. The stock closed further below its long-term 200-day line.
Xpeng Motors, Tuesday’s IBD 50 Stocks To Watch selection, fell 4.4% on Monday, falling below the 200-day line.
Among US-based EV shares, Lucid Motors shares erased heavy losses on Monday, and traded unchanged. The LCID bearing remains extended past a purchase point of 28.49 in a cup with handle. Meanwhile, the stock’s base process experienced more problems during last week’s loss, and the stock is again back below the 50-day line.
Tesla shares
The Tesla share slipped 1.5% on Monday, briefly reaching its lowest level since October 18 during the session’s heavy dinner loss. The stock is now strongly below the 50-day line and approaching the 200-day moving average line.
The stock traded as high as 1,243.49 on November 4, but ended Monday with about 25% discount at the highest level in 52 weeks.
Dow Jones executives: Apple, Microsoft
Among Dow Jones shares, Apple shares fell another 0.5% on Monday, falling further below the 50-day key line. The stock remains about 6% past a buy point of 153.27 from a cup of handles, according to IBD MarketSmith chart analysis.
Software leader Microsoft rose 0.1% on Monday as the top Dow Jones stock found support at its long-term 200-day moving average line. Microsoft revenue is due after last Tuesday. Analysts expect the software giant to earn $ 2.31 per share on sales of $ 50.6 billion.
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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