Dow Jones futures were higher after today’s fall in the stock market, as the major stock indices sold out with large losses to reach new correction bottoms. Then President Joe Biden’s speech on inflation is scheduled for Tuesday.
CarGurus (CARG) and Microchip (MCHP) were important earnings factors after closing. CarGurus shares plunged 13% late. And the Microchip stock increased almost 3% expanded trading.
Elsewhere, Chinese EV leader Li Auto (LI), Peloton (PTON), Planet Fitness (PLNT) and TransDigm (TDG) is among the companies reporting Tuesday morning.
Dow Jones Futures Today: Treasury Yields, Biden Speech
After Monday’s close, Dow Jones futures rose 0.3% against fair value, and S&P 500 futures rose 0.35%. Nasdaq futures increased by 0.4% 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 bond traded as high as 3.13% on Monday, before closing at around 3.08%. The 10-year government interest rate is at its highest level since November 2018. Meanwhile, oil prices in the US fell almost 7%, with Texas Intermediate crude trading trading just over $ 102 a barrel.
President Biden will give a speech on Tuesday, highlighting his efforts to combat rising inflation. Wednesday comes the April consumer price index. Per Econoday, consumer prices are expected to rise 0.2% in April, compared with a 1.2% increase in March, which was the largest monthly increase in 42 years.
According to Bloomberg, the president plans to detail his legislative efforts before the midterm elections in November. Meanwhile, President Biden’s approval rating is back near February’s low.
The stock market today
On Monday, the Dow Jones Industrial Average sold 2%, while the S&P 500 fell 3.2%. The technology-heavy Nasdaq composite plunged 4.3 percent. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 3.9% and the SPDR S&P 500 ETF (SPY) fell 3.2% on Monday.
Tesla (TSLA) stock fell 9.1% on Monday. Dow Jones executives, apple (AAPL) fell 3.3% and Microsoft (MSFT) traded 3.7% lower in today’s stock market.
In the midst of a deeper stock market correction, Dow Jones is leading Chevron (CVX) and Merck (MRK) – together with Cheniere energy (LNG) and Exxon Mobile (XOM) – is among IBD’s best stocks to look at on Tuesday.
Microsoft and Tesla are IBD Leaderboard shares. Chevron was featured in this week’s Stocks near a buy zone column.
What to do after today’s stock market crash
On Monday, the Dow Jones industrial average, Nasdaq and S&P 500 reached new correction levels, as the stock market plunged. With the market at new correction levels, all rally attempts are complete, which means that investors should be on the lookout for an up-day to mark the start of a new rally attempt.
In the midst of the ever-deeper stock market correction, investors should largely – if not completely – stand on the sidelines. New purchases are prohibited. Keeping a watch list of stocks that are doing well in a declining market is also a good way to be prepared for the next upturn in the stock market.
Remember that leading stocks from the past may not be the leaders of the future. To help find stock managers emerging in a new market trend, use the relative strength line to see which stocks outperform the general market.
During a stock market correction, investors should identify companies whose stock prices are fighting the stock market’s downward trend. A strong RS line will point sharply higher, either in the base period or just after an outbreak.
Monday’s The Big Picture column commented: “Nasdaq’s loss of 4.3% on Monday cemented a three-day losing streak of more than 10%. It is the biggest drop in three days since March 2020 (during the pandemic bear market). There are three days, Loss of 1341 points is the largest recorded, according to Dow Jones Market Data. “
If you are new to IBD, you should 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: Chevron, Merck
Dow Jones leader and energy giant Chevron continues to build a flat base with a buying point of 174.86, according to IBD MarketSmith chart analysis. CVX shares fell 6.7% on Monday, placing them below the 50-day high.
The CVX stock has a perfect 99 IBD Composite Rating, per IBD Stock Checkup. Investors can use the IBD Composite Rating to easily measure the quality of a stock’s basic and technical calculations.
Drug leader Merck is under a cup with the handle’s 89.58 purchase points after a brief outburst attempt last week. The stock fell 0.85% on Monday, ending about 2% during the last listing.
On the positive side, the share’s relative strength line 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: Chenière, Exxon
The IBD Leaderboard share Cheniere Energy is one of the best shares to see despite the loss of 8.6% on Monday. The stock etches a flat base showing a buy point of 149.52, according to IBD MarketSmith chart analysis.
Energy giant Exxon Mobil broke out past a cup with handle purchase points of 89.90 last week. But stocks gave up entry and are about 6% below the buy point after Monday’s dive of 7.9%. The shaky eruption illustrates the danger of owning shares in the current market environment.
Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live
Tesla shares slipped more than 9% on Monday, extending a losing streak to three sessions and closing at the lowest level since March 14. The shares are sharply below the 50- and 200-day moving averages.
The stock traded as high as 1,243.49 on November 4 and is approximately 37% away from the record high.
Dow Jones executives: Apple, Microsoft
Among Dow Jones shares, Apple shares sold 3.3 percent on Monday. The stock falls further below its long-term 200-day line.
Software leader Microsoft fell 3.7% on Monday, reaching its lowest level since June 2021. Shares are sharply below the 50- and 200-day highs. The stock closed around 24% 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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