Dow Jones Futures: what to do as another attempt at a stock market rally begins; Next Fed meeting

Dow Jones futures were higher after another bid for a stock rally began on Monday, as major stock indices rebounded from new corrective lows. The 10-year Treasury yield briefly rose above 3% for the first time since December 2018. Then the Federal Reserve two day meeting starts Tuesday.


Arista Networks (A NET), Devon Energy (NDV)Diamondback Energy (CROC), Expedia (EXPE), Mosaic (MOS) and NXP Semiconductors (NXPI) were the main drivers of earnings after the close.

Arista rebounded 4% in extended trade after strong results. Devon shares rose around 1%. FANG shares rose slightly. Expedia jumped almost 5%. Mosaic slipped about 3%. NXP shares rose about 1%.

stock market today

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

Overview of the US stock market today

Hint Symbol Price loss of profit % Switch
Dow Jones (0DJIA) 33063.61 +86.40 +0.26
S&P500 (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
INN 50 (FFTY) 32.36 -0.09 -0.28
Last Updated: 4:30 PM ET on 05/02/2022

Twitter (TWTR) increased by 0.2% and You’re here (TSLA) the stock rose 3.7% on Monday.

Amongst others Dow Jones Leaders, Apple (AAPL) increased by 0.2% and Microsoft (MSFT) traded up 2.5% in stock market today.

Amid a deepening stock market correction, the Dow Jones leader Merck (M.K.R.) – in the same way IBD classification Stock Energy Cheniere (LNG), Exxon Mobil (XOM) and World wrestling entertainment (WWE) – are among the top Monday stocks to watch.

Microsoft and Tesla are IBD classification shares. Exxon and Merck were presented in this week Stocks near a buy zone column.

Dow Jones Futures Today: Treasury Yields, Fed Meeting

After Monday’s close, Dow Jones futures were up 0.25% relative to fair value, while S&P 500 futures were up 0.4%. Nasdaq 100 futures gained 0.55% relative to 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 Treasury yield briefly rose above 3% on Monday, before closing at 2.99%. The 10-year Treasury yield hit a new 52-week high and is at its highest level since December 2018. Meanwhile, US oil prices rebounded after steep losses, with Texas Intermediate crude trading at the above $105 a barrel.

The Fed’s two-day policy meeting starts Tuesday. Markets expect policymakers to announce a half-point rate hike when this week’s Federal Reserve meeting ends Wednesday at 2 p.m. ET. And that should be followed by the same – if not an even bigger hike – at the next two Fed meetings.

Another attempt at a stock market rally: what to do now?

On Monday, the main stock indexes reached new corrective lows before returning to the upside. Although one day does not make a trend, it was a step in the right direction. Monday was Day 1 of another rally attempt, which means a follow-up day can take place 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 watchlist of stocks that hold up well in a bear market. They could be among the stock market leaders in the next uptrend.

Finding the leaders of the next uptrend as the market continues to correct is a challenge. A useful method is to use a stock relative force line. The RS line measures a stock’s price performance relative to the S&P 500. If the stock is outperforming the broader market, the RS line slopes up. If a stock is performing worse than the broader market, the line will point down.

Friday’s The Big Picture column commented: “The Nasdaq composite fell 4.2% and broke above Wednesday’s low, killing its nascent rally attempt. The index suffered its fourth consecutive weekly decline and fell of 13.2% for the month, the worst monthly decline since October 2008.”

If you’re new to IBD, consider taking a look at its stock trading system and The basics of CAN SLIM. To acknowledge chart templates is one of the key investment guidelines. IBD offers a wide range of growth stock listsas Ranking and Swing Trader.

Investors can also create watchlists, find companies close to a point of purchaseor develop custom screens on IBD MarketSmith.

Five Dow Jones stocks to watch now

Dow Jones stocks to watch: Merck

Dow Jones drug stock Merck is below a cup with the handle’s 89.58 buy point after a brief breakout attempt last week. Shares fell 1.2% on Monday, ending around 2% below the last entry.

Positively, the stock is relative force line is at new highs, indicating strong stock market outperformance during the current stock market correction.

Three growth stocks to watch in the currentrent Stock market correction

Stocks to watch: Cheniere, Exxon, WWE

IBD classification Cheniere Energy stock is one of the top stocks to watch after finding support around its 50-day moving average on Monday. Actions are an engraving flat bottom which shows a buy point of 149.52, according to IBD MarketSmith graphical analysis.

Last week, energy giant Exxon Mobil added a manipulate to a cup base, moving the good point of purchase from 91.61 to 89.90. Shares reversed after early losses to climb 1.4% on Monday. Exxon’s stock is about 4% off new entry.

World Wrestling Entertainment remains below its 50-day moving average despite rising 2.4% on Monday. A decisive rally in the 50-day benchmark would be bullish for the stock’s outlook. Meanwhile, shares are just below a buy point of 60.94 in a handle cup.

Join IBD experts as they analyze the top stocks of the current market correction on IBD Live

Tesla Stock

Tesla stock rose 3.7% on Monday after the stock broke through its 50- and 200-day moving averages in last week’s 13% drop. The shares finished just below their 200-day line.

Shares of the electric vehicle giant ended Monday about 22% off the buying point of 1,152.97 on a cup-and-handle basis. The stock traded as high as 1,243.49 on Nov. 4 and is about 27% off that all-time high.

Dow Jones Leaders: Apple, Microsoft

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

Software leader Microsoft rebounded 2.5% on Monday, recovering some of Friday’s 4.2% slippage. The shares are significantly below their 50 and 200 day lines. The stock closed about 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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