Dow Jones Futures: The stock market sells off before the Fed meeting; Tesla Stock Breaks Key Support

Dow Jones futures were slightly higher after Monday’s stock market sales ahead of this week’s Fed meeting. Tesla shares broke through an important level of support, while Apple turned sharply after reaching record highs. And the stock market leaders Advanced Micro Devices and Nvidia fell sharply.


On Monday, the Dow Jones Industrial Average fell 0.9 percent. The S&P 500 also lost 0.9 percent, while the Nasdaq sold 1.4 percent. Small-cap Russell 2000 fell 1.4%.

Among the Dow Jones executives, apple (AAPL) reversed 2.1% lower on Monday after reaching all-time highs, while Microsoft (MSFT) fell 0.9% in the current stock market. Home Depot (HD) and Nike (NKE) remains below new purchase points.

Head of electric cars Tesla (TSLA) slipped 5% Monday. Its rival, Rivian (RIVN), climbed 3.7%. Lucid group (LCID) returned 4%. And Chinese electric car executives Li Auto (LI) and Xpeng engines (XPEV) had big losses.

Among Monday’s best stocks to see, Arista Networks (ET NETT), Powered brands (DRVN) and Louisiana-Pacific (LPX) is in or near new buying zones. In the midst of the latest volatility in the stock market, investors should continue to develop watch lists, and avoid making new purchases before the market’s current rally attempt starts a follow-up day.

Microsoft and Tesla are IBD Leaderboard shares. Arista was in this week’s Stocks Near A Buy Zone column and was Monday’s IBD Stock Of The Day. , while Driven Brands was in last week’s IPO Leaders story.

Dow Jones Futures Today: Fed Meeting

After the stock market closed on Monday, Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, were slightly higher relative to fair value. Remember that actions before the market in Dow Jones futures and elsewhere do not necessarily translate into actual trading in the next regular stock market session.

Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 1.4% on Monday, while the SPDR S&P 500 ETF (SPY) fell 0.9%. Innovator IBD 50 ETF (FFTY) fell 3.4%, approaching the lowest correction level.

Overview of the US stock market today

Index Symbol Price Gain / loss % Change
Dow jones (0DJIA) 35652.07 -318,92 -0.89
S&P 500 (0S & P5) 4669.21 -42.81 -0.91
Nasdaq (0NDQC) 15413.28 -217,32 -1.39
Russell 2000 (IWM) 216.20 -3.71 -1.69
IBD 50 (FFTY) 43.98 -1.56 -3.43
Last updated: 16:28 ET 13/12/2021

Elsewhere, 10-year government bond yields fell to around 1.42% on Monday.

On Tuesday, the Federal Reserve’s two-day meeting begins with the Fed giving its decision on Wednesday after the end of the policy meeting. The Fed is expected to move quickly to phase out its bond buying program and signal that it will raise interest rates next year in an attempt to curb rapidly rising inflation. The Federal Reserve’s new quarterly economic projections are expected to set two rate hikes for 2022.

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Attempts at stock exchange rally

The major stock indices showed weak results on Monday, when Nasdaq again tested its critical 50-day benchmark index. Despite the losses, Monday marked Day 6 with new rally attempts on the Nasdaq and S&P 500, and Day 8 for the Dow Jones industry.

Although the indices are still trying to launch a rally, the market correction is not over yet; several days is not a trend. From day 4 onwards, you are looking for a large index that will rise sharply in higher volumes than the day before. It will indicate a follow-up day, and signal the start of a potential trend.

Until such a signal emerges, the market outlook remains a market in correction. Investors should avoid new purchases and maintain watch lists of top-growth stocks. Make sure you keep a close eye on your portfolio to ensure that you protect your gains and reduce losses quickly.

Now, while the market continues to correct, it’s a good time to look for stocks that could be the next trend leaders. One tool that is useful in such a search is the relative strength line. The RS line measures a share price development vs. S&P 500. If the stock surpasses the wider market, the RS line angles upwards. If a stock performs worse than the broad market, the line will point lower.

After Friday’s session, The Big Picture commented: “Nasdaq managed to close just above its 50-day moving average. Investors will want to see it carry the momentum further in the coming week as the stock market tries to return to a confirmed uptrend. unstable period. “

For more daily stock market comments, check out IBD’s The Big Picture.

Five best Dow Jones stocks to see now

Shares Market leaders sell by: AMD, Nvidia

Chip giants Advanced micro devices (AMD) and Nvidia (NVDA) sold from 3.4% and 6.75%, respectively, on Monday.

Both stocks remain above the 50-day line, but their pillows disappear. If their 50-day lines are unable to offer significant support, further weakness will be expected.

Dow Jones shares to see: Home Depot, Nike

The Home Depot share stays just below a buy point of 416.66 in a three-week tight formation. Home Depot is one of the best Dow Jones athletes in 2021, up 52.6% so far this year through Monday’s closing. Shares fell 2.4 percent on Monday.

Retail leader Nike is tracking a new flat base that has a buying point of 179.20, according to IBD MarketSmith chart analysis. Shares are trying to find support around their 50-day line after Monday’s loss of 1.3%.

Four peak growth stocks to be seen in the current stock market correction

Shares to look at: Arista, Driven, Louisiana-Pacific

Monday’s IBD Stock Of The Day, Arista Networks, shows a flat base with a buy point of 134.24. The ANET stock shows a strong 97 of a perfect 99 IBD Composite Rating, according to the IBD Stock Checkup. The stock rose 1.2 percent on Monday.

On the positive side, the stock’s RS line is close to new highs, indicating significant stock market results during the recent weakness in the major stock indices.

IPO Leader Driven Brand shares attempted a breakout Monday past a cup with the handle’s 33.47 buy point, according to IBD MarketSmith chart analysis. But stocks turned lower and fell above 1% to close below the entrance.

Louisiana-Pacific is in the buying area past 73.76 buying points in a cup with handles after Monday’s loss of 2.6%. The buying area of ​​5% tops at 77.45.

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

EV shares: Li Auto, Xpeng, Lucid Motors, Rivian

Li Auto triggered a 7% -8% loss-reducing sales rule below a cup-with-handle base’s 34.93 buy point after last week’s fall, but is trying to pick up again. The stock is on the 50-day line after finding support around the long-term 200-day moving average. A new base can be formed. The stock fell 3.4 percent on Monday.

Xpeng Motors triggered the return signal from a buy point of 48.08 during the beginning of December’s strong sales. But XPEV shares are back at their 50-day support level. Wait until the stock forms a new base, which will offer a new listing. The stock fell 3.2 percent on Monday.

Lucid Motors shares rose Friday’s 3.1% bounce, and rose 4% on Monday. The LCID share is still extended to a buy point of 28.49 in a cup with handles, but large gains have diminished. Shares are now trying to find support on their 50-day line.

The hot listing Rivian returned from Friday’s decline of 0.6%, rising 3.7% on Monday after MotorTrend named the Rivian R1T the truck of the year in 2022, calling it “the most remarkable truck we have ever driven”.

RIVN shares closed on Monday with approximately a 34% discount after the listing. The decline is a potential positive for investors who remain disciplined and wait for a listing base to be formed before considering a purchase. The latest weakness is the start of Rivian’s first base formation, and last week’s advance is a step in the right direction.

Tesla shares

Tesla shares slipped 5% on Monday, breaking through their most important 50-day support level, which is a critical measure to see. The stock closed below its 50-day line for the first time since June 22.

The stock traded as high as 1,243.49 on November 4, but the stock ended Monday at about 22% of its 52-week high.

TSLA shares stay sharp above a 764.55 buy point in a cup with handles. The EV giant is working on a new base, even though it needs another week to form, with a probable buying point of 1,202.05. Drawing a trend line from record highs can offer an early entry around 1150.

Dow Jones executives: Apple, Microsoft

Among Dow Jones stocks, Apple shares reversed from record highs on Monday, closing lower after trading as high as 182.13. Shares plunged 2.1% on Monday, closing about 15% past a 153.27 buy point from a cup with a handle, according to IBD MarketSmith chart analysis. The stock is approaching the 20-25% profit zone.

Software giant Microsoft lost 0.9% on Monday, giving up part of Friday’s 2.8% gain. Equities found much-needed support on their 50-day line last week and are once again approaching new highs. On October 18, the Microsoft stock broke past a flat base’s buying point of 305.94. The buy zone of 5% peaked at 321.24, so the stock is expanding.

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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