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 attempt began on Monday as major stock indices returned from new correction lows. The 10-year government bond rate briefly peaked at 3% for the first time since December 2018. Next, the Federal Reserve’s two-day meeting begins on Tuesday.


Arista Network (A NET), Devon energy (DPN)Diamondback Energy (FANG), Expedia (EXPE), Mosaic (MOS) and NXP Semiconductors (NXPI) was an important factor in post-closing earnings.

Arista rose 4% in expanded trading after strong earnings results. Devon shares rose about 1%. The FANG share has risen. Expedia increased almost 5%. Mosaic fell about 3%. NXP shares rose about 1 percent.

Stock exchange today

On Monday, the Dow Jones Industrial Average rose 0.3%, while the S&P 500 rose 0.6%. The technology-heavy Nasdaq composite material rose 1.6 percent. 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.

Overview of the US stock market today

Index Symbol Price Profit / 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) increased 0.2% and Tesla (TSLA) stock rose 3.7% on Monday.

Among the other Dow Jones executives, Apple (AAPL) increased 0.2% and Microsoft (MSFT) is trading 2.5% higher on today’s stock market.

In the midst of a deepening stock market correction, Dow Jones is heading Merck (MRK) – along with IBD Leaderboard stock 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 in this week’s Stocks columns near a buy zone.

Dow Jones Futures Today: Treasury Yields, Fed Meeting

After Monday’s close, Dow Jones futures rose 0.25% relative to fair value, while S&P 500 futures rose 0.4%. Nasdaq 100 futures rose 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 stock market session.

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

The Fed’s two-day political meeting starts on Tuesday. Markets fully expect politicians to announce a half-point rate hike when this week’s Federal Reserve meeting ends Wednesday at 7 p.m. 14 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 market rally attempt: What to do now

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

Still, investors should stay on the defensive. This means that you avoid new purchases until a follow-up day. Before now, keep a watch list of stocks that are holding up well in a declining market. They may become some of the stock market leaders in the next uptrend.

Searching for the next trend leaders while the market is still recovering is a challenge. A useful method is to use the relative strength line of a stock. The RS line measures the price performance of a share in relation to the S&P 500. If the share performs better than 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% to below Wednesday’s low, killing its incipient rally attempt. The index suffered its fourth-quarter decline and fell 13.2% for the month, the worst monthly fall since October 2008. “

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

Investors can also create watchlists, find companies approaching a point of purchase, or develop custom displays at IBD MarketSmith.

Five Dow Jones shares to see now

Dow Jones shares to see: Merck

Dow Jones drug stock 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 around 2% below the most recent entry.

Positive, the stock’s relative strength line is at new heights, indicating large stock market yields under the current stock market correction.

Three Top Growth stocks to see in Curenrent Stock market correction

Shares to see: Chenière, Exxon, WWE

IBD Leaderboard stock Cheniere Energy is one of the best stocks to see after finding support around its 50-day moving average on Monday. Shares etched 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 and moved the correct buying point from 91.61 to 89.90. Shares returned from early losses to climb 1.4% on Monday. The Exxon stock is about 4% away from the new entry.

World Wrestling Entertainment remains below its 50-day moving average despite Monday’s rise of 2.4%. A crucial repeat of the 50-day benchmark would be bullish on the stock’s outlook. Meanwhile, stocks 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 dive of 13%. The shares ended just below their 200-day line.

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

Dow Jones executives: Apple, Microsoft

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

Software leader Microsoft rose 2.5% on Monday, regaining some of Friday’s 4.2% drop. The shares are significantly below their 50- and 200-day limits. The stock closed around 20% from its highest level in 52 weeks.

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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