Dow Jones futures were down after Monday’s selloff. A key inflation report – the Consumer Price Index – is due out Tuesday morning before the market opens.
stock market today
On Monday, the Dow Jones Industrial Average fell 1.2% and the S&P 500 fell 1.7%. The tech-heavy Nasdaq composite fell 2.2%. Among exchange traded fundsthe Nasdaq 100 Invesco QQQ Trust tracker (QQQ) fell 2.4%, and the SPDR S&P 500 ETF (TO SPY) lost 1.7% on Monday.
Overview of the US stock market today
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Last Updated: 4:30 PM ET on 04/11/2022
As the uptrend in the stock market continues to deteriorate, the financial leader of Dow Jones American Express (AXP) – in the same way Alphabet (GOOGL), Broadcom (AVGO), IBD classification watch list stock Edwards life sciences (THAT ONE), Raytheon Technologies (RTX) and Shell (SHEL) – are among Tuesday’s best stocks to buy and watch.
Dow Jones Futures Today: Treasury Yields, Oil Prices, CPI
After Monday’s close, Dow Jones futures fell 0.15%, while S&P 500 futures lost 0.25% to fair value. Nasdaq 100 futures fell 0.3% from fair value. Remember that overnight action in Futures contracts on Dow and elsewhere does not necessarily translate into actual trading over the next stock Exchange session.
The 10-year US Treasury yield extended a winning streak to seven sessions on Monday, hitting 2.78%, its highest level since January 2019. US oil prices fell more than 3% on Monday, crude West Texas Intermediate trading below $95 per barrel. As well, Worsening virus outbreak in China raises concerns about potential demand.
Consumer prices in March are expected to have risen 1.1% for a year-on-year rate of 8.4% – according to Econoday estimates – which would be the fastest increase since December 1981. The consumer price index measures the rate of inflation. Meanwhile, the White House said it expects “headline CPI inflation in March (number) to be extraordinarily high due to Putin’s price hike.”
The Department of Labor will release the CPI at 8:30 a.m. ET.
Stock market rally struggles: what to do now
On Monday, the stock market posted another disappointing performance, with major equity indices ending with steep losses. The Nasdaq fell further below its 50-day line, which had been a key support level to watch.
Even though the underlying uptrend is still intact, it’s time to proceed with greater caution. Be wary of most new buying and focus only on stocks that have outstanding fundamentals and significant volume breakouts beyond correct buying points. Also, be flexible. The market may rebound and return to a “confirmed uptrend”, or the selloff may persist and lead to a correction.
Monday’s Big Picture column commented: “The S&P 500 fell 1.7% and closed slightly below the 50-day moving average. The index is now trying to find support at this level. But if the Nasdaq is any indication, the composite melted through its 50-day line on Monday after trying to hold in the previous two sessions.”
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Dow Jones Stocks to Buy and Watch: American Express
Dow Jones financial stock American Express is charting a cup with handle with a buy point of 194.45. Shares fell 3.3% on Monday, ending around 9% from last entry.
Keep an eye on inventory relative line of force. Amid its recent descent, the RS line is beginning to fade further from its former highs, meaning it has its work cut out for a potential breakout. The RS line measures a stock’s price performance against the S&P 500. The RS line should reach a new high on the day of the breakout or shortly thereafter to confirm the strength of a stock’s breakout.
Stocks to buy and watch: Alphabet, Broadcom, Edwards, Raytheon, Shell
Recent IBD 50 Actions to Watch pick, Alphabet, shows a buy point of 2,875.97 in a cup with handle, according to IBD MarketSmith graphical analysis. GOOGL shares are around 10% from entry after Monday’s 3.35% drop.
Broadcom fell another 1.1% on Monday as the chip stock moved further below an early entry at 614.74. Stocks are approaching the 7%-8% loss trigger. The stock has also dropped its support on its 50-day line in recent sessions. Meanwhile, stocks have set up another buy point, a handle entry at 645.41.
IBD classification Edwards Lifesciences watchlist shares continue to advance on the right side of a cup bottom which shows a 131.83 point of purchase. Shares slid almost 2% on Monday. Monday’s weakness is likely the start of a handful that would lower the risk-optimal entry to 125.21.
Defense contractor Raytheon Technologies is within striking distance of a flat base 104.44 point of purchase. Shares rebounded 1.7% on Monday, trading just 2% off last entry.
Oil and gas producer Shell on April 1 IBD stock of the dayis just below the buy point of 56.23 on a flat basis after Monday’s 1.4% drop.
Tesla Stock slipped 4.8% on Monday, adding to Friday’s 3% decline. Shares of the electric vehicle giant ended Monday around 15% off the 1,152.97 buying point of a cup with handle.
The stock traded as high as 1,243.49 on Nov. 4 and closed Monday about 22% off that all-time high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones Stocks, Apple shares fell 2.55% on Monday, still below a buy point of 176.75 in a double-bottom basis. The title is about to trigger the Sell rule with loss reduction from 7% to 8%. Alongside this double bottom entry, a handle buy point is also in play at 179.71. On the downside, AAPL stock dropped its 50-day support level on Monday, indicating that further weakness is likely.
Software leader Microsoft fell 3.9% on Monday as shares fall further below their 50- and 200-day lines. The stock is nearly 20% off its 52-week high.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen to learn more about growth stocks and the Dow Jones Industrial Average.
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