Futures fall as 10-year Treasury yield rises ahead of Fed meeting – Investor’s Business Daily | Jewelry Dukan

Dow Jones futures fell more than 200 points Monday morning as the 10-year Treasury yield rose to an 11-year high ahead of the Federal Reserve’s interest rate decision on Wednesday. The major stock indices threatened to amplify the stock market losses of the past week.


AutoZone (AZO) was a gainer on Monday morning. Shares of the auto parts retailer rose 2.5% on better-than-expected fourth-quarter results. Other key reporters this week include Costco (COSTS), darden restaurants (DRI), General Mills (GIS) KB Home (KBH) and lennar (LEN).

Elsewhere market leader in electric vehicles Tesla (TSLA) traded down 1% on Monday. Among the Dow Jones Industrials are tech titans Apple (AAPL) and Microsoft (MSFT) were both significantly lower ahead of today’s market open.

In the current weakness of the market Continental Resources (CLR) DoubleVerify (DV), Apex Pharma (VRTX) – as well as Dow Jones stocks rafters (CVX) and note (MRK) – are among the top stocks to watch. Keep in mind that the new stock market correction is good reason for investors to stay on the sidelines for most, if not all.

DoubleVerify is an IBD leaderboard stock, but its position size has been trimmed during last week’s losses. Chevron was featured in last week’s “Stocks Near a Buy Zone” column.

Dow Jones Today: Treasury Yields, Oil Prices, Fed Meeting

Ahead of Monday’s opening bell, Dow Jones futures were down 0.75% from fair value, while S&P 500 futures were down 0.7%. Nasdaq 100 futures lost 0.7% in morning action. Keep in mind that overnight activity in Dow Jones futures and elsewhere doesn’t necessarily translate to actual trading in the next regular trading session.

Among exchange-traded funds, Nasdaq 100-tracker Invesco QQQ Trust (QQQ) is down 0.7% and SPDR S&P 500 ETF (SPY) is down 0.75% in early trade.

The 10-year government bond yield rose to 3.51% on Monday, beating an 11-year high of 3.48% posted on June 14. Meanwhile, US oil prices fell more than 2% early Monday as West Texas Intermediate futures traded near $82 a barrel.

The two-day Federal Reserve meeting begins Tuesday with a rate decision on Wednesday. Markets are showing an 80% chance of the central bank raising rates by 75 basis points and a 20% chance of a 100 basis point hike. Investors will be on the lookout for clues as to the pace of future rate hikes and how high the central bank will ultimately go.

stock market correction

On Friday, the Nasdaq Composite fell the widest margin of the major indices but closed at session highs. Still, it slipped 0.9% for the day and 5.5% for the week. It has now fallen in four of the past five weeks.

Friday’s The Big Picture column commented, “Since being dismissed near its 200-day moving average, the Nasdaq has fallen below all of its major moving averages. It’s now down almost 28% in 2022.”

Don’t switch off during the stock market correction. Instead, create watch lists to use the relative strength line to find leadership in emerging markets. The RS line measures a stock’s price performance against the S&P 500. When the stock is outperforming the broader market, the RS line moves up. When a stock underperforms the broad market, the line points down.

If you are new to IBD, you should take a look at the CAN SLIM stock trading system and 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 watch lists, find companies approaching a buy point, or develop custom screens at IBD MarketSmith.

Five Dow Jones stocks to watch right now

Keep an Eye on Dow Jones Stocks: Chevron, Merck

Dow Jones stock Chevron fell 2.6% on Friday, ending about 6% off a cup with Handle’s last buy point at 166.93 — according to IBD MarketSmith chart analysis — amid a strong performance for energy stocks this year so far. The stock lost 1.3% early Monday.

CVX stock is showing a strong 97 out of 99 perfect IBD Composite Ratings, according to the IBD Stock Checkup. Investors can use the IBD Composite Rating to easily gauge the quality of a stock’s fundamental and technical metrics.

The drug giant Merck is also fighting against the downward trend on the stock markets. Stocks are building a flat base with a buy point of 95.82 but are stuck below their 50-day moving average. Merck shares lost 0.5% early.

3 top growth stocks to buy and watchrightde Stock market rally

Top stocks to watch: Continental, DoubleVerify, Vertex

Oil explorer and producer Continental Resources is building a mug with a buy point of 72.80, according to chart analysis by IBD MarketSmith. The relative strength line made a new high last week but remains slightly off its 52-week high. CLR shares fell 1.5% early Monday.

IBD leaderboard stock DoubleVerify gave up its 28.07 buy point in a bottoming basis during Friday’s 4.3% decline. DV shares were flat on Monday morning.

Vertex Pharmaceuticals is just above its 50-day moving average after gaining 0.7% on Friday. The stock has held up well throughout the ongoing market weakness, indicated by an RS line approaching new highs. There’s no new base yet, but the stock’s resilience makes it a top idea to watch. Vertex shares were flat on Monday.

Join IBD experts as they analyze leading stocks from the current stock market rally on IBD Live

Tesla stock

Tesla stock fell on Friday, posting a two-day winning streak. Stocks remain above their 200-day moving average, which is an important level to watch. The electric vehicle giant was down 1% on Monday morning.

Tesla arguably has a short base within a much larger consolidation that has a buy point of 314.74. Upbeat, the stock’s RS line is at its highest level since April. Shares are about 27% off their 52-week high.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares fell another 1.1% on Friday, ending the week down and ending at the lowest level since July 18. Apple shares lost 0.8% on Monday.

Microsoft lost 0.3% on Friday, holding just above its June lows. The software giant is down about 30% from its 52-week high. Microsoft shares fell 0.75% Monday morning.

Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.


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