Dow Jones futures were higher ahead of Tuesday’s open as the Federal Reserve’s two-day meeting is about to begin. The Dow Jones Industrial Average had its best month since 1976, jumping almost 14% in October.
Late Monday, Arista Networks (ANET) and Apple provider NXP Semiconductors (NXPI) were the main earnings drivers. ANET stock fell 1% in extended trade, while NXPI stock rose around 1%.
The Fed’s two-day meeting begins on Tuesday, with an interest rate decision set for Wednesday afternoon. Investor sentiment shows an 85% chance of a 75 basis point hike, according to the CME.
The Fed says it won’t pivot — which means slowing its pace of rate increases — until the strong labor market shows clear signs of slowing. But once the labor market begins to recover, the Fed’s strategy and a wide range of economic factors are likely to change. This puts Friday’s employment report under greater scrutiny.
stock market today
On Monday, the Dow Jones Industrial Average fell 0.4% and the S&P 500 lost 0.7%. The tech-heavy Nasdaq composite fell 1%.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 1.2% and the SPDR S&P 500 (SPY) fell 0.7%.
VE Giant You’re here (TSLA) fell 0.4% on Monday. Among Dow Jones stocks, Apple (AAPL) traded down 1.5% and Microsoft (MSFT) lost 1.6% in the current stock market.
Among the best stocks to buy and watch, Dycom (DY), Energy Cheniere (LNG), General dollar (DG) and Pure storage (PSTG) – as well as Dow Jones names Chevron (CLC) and UnitedHealth Group (UNH) – are among the best stocks to buy and watch. Keep in mind that the ongoing stock market rally is the perfect time for investors to look for stocks in their buy zones.
Cheniere is an IBD ranking title. Dollar General is an IBD SwingTrader stock. Pure Storage was featured in this week’s Stocks Near A Buy Zone column, along with three other stock ideas.
4 most important growth stocks to buy and watch in the currentrStock market rally
Dow Jones Futures Today: Treasury Yields, Oil Prices
Before Tuesday’s opening bell, Dow Jones futures rose 0.25% above fair value, while S&P 500 futures rose 0.3%. Nasdaq 100 futures gained 0.4% relative to fair value. Remember that overnight action on futures contracts on Dow Jones and elsewhere does not necessarily translate into actual trading in the next regular trading session.
The 10-year Treasury yield rose to 4.07% on Monday, recouping some of last week’s losses. Meanwhile, US oil prices fell 2%, with West Texas Intermediate futures trading near $86 a barrel.
Earnings Season: AMD gains on deck
The third quarter earnings season continues this week, with key reports coming from the energy giant PB (PB), Eli Lily (THERE IS), UberTechnologies (UBER) and Dow Jones stock Pfizer (EFP). All four are due to report Tuesday morning. Advanced micro-systems (AMD) and Airbnb (ABNB) will report after the close on Tuesday.
Earnings reports are driving many of the biggest moves in stocks, and they require close attention. Strong earnings can fuel major stocks above new buy points and into buy zones, while a less-than-impressive news can push stocks below key support levels.
The stock market’s reaction to an earnings release can often tell you more than the earnings themselves. If results look strong but the stock still slips, investors may worry about the sustainability of growth, rising costs, or other potential negative effects.
With the market in rally mode, investors should follow companies that easily beat earnings results and have strong upside reactions. They could be among the stock market leaders if the market is able to extend its recent gains.
What to do in the ongoing stock market rally
Now is an important time to read IBD’s The Big Picture column. Following recent gains, investors have the green light to buy the best stocks overtaking the correct buy points. But not all follow-ups work, so it’s important to increase exposure slowly and methodically as the new uptrend proves its worth.
But not all follow-ups result in a sustained uptrend, so investors should assess their level of exposure in the days and weeks following this signal, especially with the added risk of the next market meeting. the Fed. You want to buy in sync with the market so you don’t get too into an uptrend that could reverse on you.
Remember, don’t panic if you miss the first pushes. The Nasdaq is still more than 30% off its all-time high. If this stock market rally is real and meaningful, you’ll have plenty of time to buy stocks and make money over the weeks and potentially months to come.
And if the stock market starts to crash again, you can reduce exposure without losing too much capital.
Five Dow Jones Stocks to Buy and Watch Now
Dow Jones stocks to watch: Merck, UnitedHealth
Dow Jones and IBD 50 member Merck is out of the buy range past the 93.12 double bottom buy point, according to IBD MarketSmith pattern recognition.
Health giant UnitedHealth exceeds 553.23 point of purchase of a cup with handle, according to IBD MarketSmith. Shares rebounded 0.75% on Monday, closing just above the stock’s last entry.
Top stocks to watch: Cheniere, Dollar General, Dycom, Pure Storage
According to IBD MarketSmith’s chart analysis, IBD Leaderboard Cheniere Energy stock is just one cup short with the handle’s buy point of 178.69. LNG stock rose 1.1% on Monday.
IBD Swing Trader Dollar General stock is trying to break above a buy point of 259.75 in a cut basis. DG shares fell 2.1% on Monday, finishing below entry. If the stock retakes this critical level, the 5% pursuit zone will rise to 272.74.
Dycom tries to break 120.55 buy point by a cup basis. Shares slid 1.85% on Monday, falling below the buy point and out of the 5% buy zone which rises to 126.58.
Friday’s IBD stock, Pure Storage, is approaching a buy point of 31.62 after three days of gains. The stock was up 1.15% on Monday.
Join IBD experts as they analyze the top stocks of the current stock market rally on IBD Live
Tesla stock fell 0.4% on Monday, ending a four-day winning streak. The stock is bouncing back after hitting a new 52-week low last week.
Still, stocks are around 45% off their 52-week high and significantly below their 50- and 200-day moving averages.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares fell 1.5% on Monday and are about 16% off their 52-week high. Last week, the stock found its way back up to its 50-day line. Now, stocks are testing resistance at their long-term 200-day line.
Microsoft fell 1.6% on Monday, giving up part of Friday’s 4% rebound. Stocks are near their 52-week low on Oct. 13. The software giant remains more than 30% 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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