Dow Jones Futures: What to do when a new stock market rally attempt begins; Fed meeting next

Dow Jones futures were higher after a new stock market rally attempted on Monday, as the major stock indices rose from new correction bottoms. The 10-year government interest rate peaked briefly at 3% for the first time since December 2018. The Federal Reserve’s two-day meeting will then begin on Tuesday.


Arista Network (ET NETT), Devon energy (DPN)Diamondback Energy (LAP), Expedia (EXPE), Mosaic (MOS) and NXP Semiconductors (NXPI) was an important factor for earnings after closing.

Arista rose 4% in expanded trading after strong earnings results. Devon shares rose around 1%. The FANG stock rose higher. Expedia jumped almost 5%. Mosaic fell around 3%. NXP shares rose around 1%.

The stock market today

On Monday, the Dow Jones Industrial Average rose 0.3%, while the S&P 500 rose 0.6%. The technology-heavy Nasdaq composite rose 1.6%. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 1.7%, and the SPDR S&P 500 ETF (SPY) rose 0.6% on Monday.

US Stock Market Today Overview

Index Symbol Price Gain / loss % Change
Dow jones (0DJIA) 33063.61 +86.40 +0.26
S&P 500 (0S & P5) 4155.58 +23.65 +0.57
Nasdaq (0NDQC) 12536.02 +201.38 +1.63
Russell 2000 (IWM) 186.97 +2.02 +1.09
IBD 50 (FFTY) 32.36 -0.09 -0.28
Last update: 16:30 ET 5/2/2022

Twitter (TWTR) rose 0.2% and Tesla (TSLA) shares rose 3.7% on Monday.

Among the other Dow Jones executives, apple (AAPL) rose 0.2% and Microsoft (MSFT) traded 2.5% higher in today’s stock market.

In the midst of a deeper stock market correction, Dow Jones is leading Merck (MRK) – along with IBD Leaderboard storage Cheniere energy (LNG), Exxon Mobile (XOM) and World Wrestling Entertainment (WWE) – is among Monday’s best stocks to see.

Microsoft and Tesla are IBD Leaderboard shares. Exxon and Merck were featured in this week’s Stocks near a buy zone column.

Dow Jones Futures Today: Treasury Yields, Fed Meeting

At the close on Monday, Dow Jones futures rose 0.25% to fair value, while S&P 500 futures rose 0.4%. Nasdaq 100 futures increased by 0.55% relative to fair value. Keep in mind that overnight trading in Dow futures and elsewhere does not necessarily translate into actual trading in the next regular trading session.

The 10-year government interest rate peaked briefly at 3% on Monday, before closing at 2.99%. The 10-year government bond yield reached a new 52-week high and is at its highest level since December 2018. Meanwhile, oil prices in the US fell after heavy losses, with Texas Intermediate crude trading above $ 105 per barrel.

The Fed’s two-day political meeting starts on Tuesday. Markets fully expect decision-makers to announce a half-point rate hike when this week’s Federal Reserve meeting concludes on Wednesday. 14.00 ET. And it is expected to be followed by more of the same – if not an even bigger increase – in the next two Fed meetings.

New stock exchange rally attempt: what to do now

On Monday, the major stock indices reached new correction bottoms before turning higher. Although one day is not a trend, it was a step in the right direction. Monday was day 1 of a new rally attempt, which means that a follow-up day can occur as early as Thursday.

Nevertheless, investors should remain on the defensive. This means avoiding new purchases until a follow-up day. For now, keep a watch list of stocks that are doing well in a declining market. They could become some of the stock market leaders in the next upswing.

Looking for the next trend leaders while the market is still recovering is a challenge. A useful method is to use a stock’s 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.

Friday’s The Big Picture column commented: “The Nasdaq composite fell 4.2%, falling below Wednesday’s lowest level, killing the incipient rally attempt. The index suffered its fourth consecutive week decline and fell 13.2% for the month, the worst monthly decline since October 2008. “

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

Investors can also create watch lists, find companies approaching a point of purchase, or develop custom monitors at IBD MarketSmith.

Five Dow Jones shares to see now

Dow Jones shares to see: Merck

Dow Jones drug maker Merck is under a cup with the handle’s 89.58 buy points after a brief outburst attempt last week. Shares fell 1.2% on Monday, ending about 2% during the last listing.

On the positive side, the share’s relative strength is at new heights, which indicates large stock market returns during the current stock market correction.

Three top growth stocks to see in timerent stock market correction

Shares to look at: Cheniere, Exxon, WWE

The IBD Leaderboard stock Cheniere Energy is one of the best stocks to see after finding support around its 50-day moving average on Monday. The stock etches a flat base showing a buying point of 149.52, according to IBD MarketSmith chart analysis.

Last week, energy giant Exxon Mobil added a handle to a cup base, moving the correct buying point from 91.61 to 89.90. The stock turned from early losses to climb 1.4% on Monday. Exxon shares are about 4% away from the new listing.

World Wrestling Entertainment is still below the 50-day moving average despite Monday’s rise of 2.4%. A decisive repetition of the 50-day benchmark would be bullish on the stock’s outlook. Meanwhile, the shares are just below a buy point of 60.94 in a cup with handles.

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

Tesla shares

Tesla shares rose 3.7% higher on Monday after the stock broke through its 50- and 200-day moving averages during last week’s 13% dive. The shares ended just below the 200-day limit.

Shares in the EV giant ended Monday about 22% away from a cup-with-handle buy point of 1,152.97. The stock traded as high as 1,243.49 on November 4 and is approximately 27% away from the record high.

Dow Jones executives: Apple, Microsoft

Among Dow Jones shares, Apple shares reversed from heavy losses on Monday, rising 0.2%. The stock is still below its long-term 200-day line.

Software leader Microsoft increased 2.5% on Monday, restoring part of Friday’s 4.2% drop. The stock is strong below its 50- and 200-day lines. The stock closed around 20% of 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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