Dow Jones futures were higher after Monday’s stock market rally ahead of Tuesday’s key inflation reading, the Labor Ministry’s consumer price index, or CPI. Apple stock made a bullish move on Monday, firmly retracing its long-term 200-day line.
The stock market today
On Monday, the Dow Jones Industrial Average rose 0.7%, while the S&P 500 rose 1.1%. The technology-heavy Nasdaq composite rose 1.3 percent. And the small-cap Russell 2000 gained 1.2%.
Among exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 1.2%, and the SPDR S&P 500 (SPY) rose 1.1%.
Overview of the US stock market today
|Dow jones||(USD 0)||32383.18||+231.47||+0.72|
Last update: 4:24 PM ET 9/12/2022
EV giant Tesla ( TSLA ) rose 1.6% Monday. Among Dow Jones leaders, apple (AAPL) and Microsoft (MSFT) traded up 3.85% and 0.8% respectively in today’s stock market.
In the current market volatility, Arista Networks (A WEB), DoubleVerify (DV), Palo Alto Networks (PANW) and Clean storage (PSTG) — as well as the Dow Jones stock Chevron (CVX) — is among the best stocks to buy and watch. Remember that the market’s increased volatility is a good reason for investors to be more defensive, even if recent indicators are constructive.
DoubleVerify is an IBD Leaderboard stock. Pure Storage is an IBD SwingTrader stock, while Chevron and Palo Alto were featured in this week’s Stocks Near a Buy Zone column.
Dow Jones Futures Today: Treasury Yields, Oil Prices, CPI Inflation Rate
Ahead of Tuesday’s open, Dow Jones futures rose 0.1% versus the real value, while S&P 500 futures and Nasdaq 100 futures also edged higher. 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 higher to 3.36% on Monday, hitting its highest close since June 15. US oil prices contributed to last week’s late rally, rising more than 1% on Monday. West Texas Intermediate futures traded back near $88 a barrel.
The Labor Department’s CPI inflation rate comes out Tuesday at 8:30 a.m. ET. Consumer prices are expected to fall 0.1% in August compared to the previous month. Inflation is expected to rise by 8.0% in August from a year ago. The producer price index, which measures wholesale inflation, comes out on Wednesday.
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What to do in the stock market rally
Despite constructive gains in recent sessions, ongoing volatility in the stock market keeps IBD’s market outlook at “uptrend under pressure.”
If the market is capable of a serious rally, you should have a watchlist of leading stocks that are nearing buy points. Some follow-up opportunities may also appear.
The best way to find emerging leadership in the stock market is by using the relative strength line. The RS line measures a share’s price development vs. S&P 500. If the stock outperforms the broader market, the RS line angles upward. If a stock lags the broad market, the line will point lower.
The RS line is plotted on all IBD and MarketSmith charts. In addition, the IBD Stock Screener includes a list of top-rated stocks with relative strength lines at new highs. MarketSmith also has the “RS Blue Line Dot” list, which looks for RS lines with new highs. (Starting today, IBD is giving MarketSmith free access for an entire week.)
Friday’s The Big Picture column commented, “The bullish session may have been enough to resume the uptrend, but volume has been weak behind the Nasdaq’s three-session winning streak, and the number of distribution days remains high for the Nasdaq and the S&P 500. That’s even after that the September 6 distribution day was canceled due to a 5% increase from today’s close. Meanwhile, there is an important inflation report lurking on Tuesday.”
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: Chevron
Dow Jones stock Chevron is building a cup-with-handle that has a buy point at 166.93 — according to IBD MarketSmith chart analysis — amid a strong performance by energy stocks so far this year. The share rose 1.6 percent on Monday.
CVX stock scores a strong 97 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.
3 top growth stocks to watch right nowra stock market rally
Top stocks to watch: Arista, DoubleVerify, Palo Alto, Pure Storage
Arista Networks has added a handle to a double-bottom base, placing the correct entry at 132.97, according to IBD MarketSmith chart analysis. Arista’s relative strength line is near highs, as the stock has retook its 200-day and 21-day lines. The ANET share rose 0.3 percent on Monday.
IBD Leaderboard stock DoubleVerify breaks out above a 28.07 buy point in a bottom base. Shares are in the 5% buy zone going up to 29.47, although it is being extended from moving averages. The DV share lost 0.4 percent on Monday. The company specializes in platforms to help advertisers better understand the effectiveness of ad spend and campaigns.
Cybersecurity leader Palo Alto Networks is nearing a 578.89 buy point in a cup with handles. An early entry around 560 is also in play due to a trendline, according to IBD Leaderboard commentary. The share rose 0.6 percent on Monday.
IBD SwingTrader stock Pure Storage is nearing a 31.62 buy point in a cup with handle. Meanwhile, an early entry is also in play after the stock moved above a downtrend within that handle. The stock rose 1.7 percent on Monday.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla shares rose 1.6% on Monday, extending a winning streak to five sessions and continuing the retreat from the 50-day line.
Shares in the EV giant found resistance at the 200-day line in recent months, but are now back above that level. The stock is still approx. 27% off its 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among the Dow Jones stocks, Apple shares rose 3.85% on Monday, definitely regaining their 200-day line. The stock is about 9% away from a cup-handled 176.25 buy point.
Microsoft rose 0.8% on Monday, rising for the fourth day in a row. The software giant is staying sharply below its 50- and 200-day lines. Shares are about 24% off their 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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