Dow Jones futures fall ahead of Fed meeting; Ford falls on inflation warning – Investor’s Business Daily | Jewelry Dukan

Dow Jones futures fell more than 200 points Tuesday morning ahead of the two-day Federal Reserve meeting. The 10-year Treasury yield jumped to another 11-year high.


ford (F) slipped more than 4% after warning it expects $1 billion more in supplier costs in the current third quarter due to inflation.

Diamondback Energy (FANG) was launched with an Overweight rating on KeyBanc. Stocks build a mug with a handle with an entry of 141.87. Western digital (WDC) was downgraded to hold from Deutsche Bank, sparking a 2% decline in early morning trading.

Elsewhere market leader in electric vehicles Tesla (TSLA) traded a fraction lower on Tuesday. Among the Dow Jones Industrials are tech titans Apple (AAPL) and Microsoft (MSFT) were slightly lower ahead of today’s market open. Nike (NKE) was downgraded from Barclays as shares fell more than 2% in morning trade.

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. Tesla was featured in this week’s “Stocks Near a Buy Zone” column.

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

Ahead of Tuesday’s opening bell, Dow Jones futures were down 0.7% from fair value, while S&P 500 futures were down 0.75%. Nasdaq 100 futures lost 0.8% 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 0.8% and SPDR S&P 500 ETF (SPY) is down 0.7% in early trade.

The 10-year Treasury yield jumped to 3.56% on Tuesday, hitting another new high. Meanwhile, US oil prices slipped as West Texas Intermediate futures traded near $85 a barrel.

The two-day Federal Reserve meeting begins Tuesday with a rate decision on Wednesday. Markets show an 82% chance of the central bank raising rates by 75 basis points and an 18% 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 Monday, indices spent most of the day making minor moves but rose in the last hour of trading. The Nasdaq Composite closed 0.8% higher. The S&P 500 rallied 0.7%, while the Dow Jones Industrial Average rose 0.6%.

Monday’s The Big Picture column commented, “One reason for the bearish change is the scarcity of realizable stocks. That remained the case on Monday, even with a positive end to the session in recent weeks. Many others have faltered in their entry. That’s pretty typical of a corrective market, and it separates the big stock pickers from everyone else.”

To prepare for a new stock market rally, investors should wait for a following day. When the market is in a correction, look for at least one major index to bottom.

The first day the index closes higher counts as day 1 of its attempted rally. Monday was day 1 of a rally attempt. Day 2 and Day 3 action is irrelevant as long as the index fails to undercut its recent low. Breaking below that low means the rally attempt is over and the market has to try again.

On Day 4 and beyond, expect the Nasdaq or S&P 500 to rise sharply with more volume than the previous session. This is a following day. It gives investors the green light to start buying leading stocks that break out past the correct buy points. It should align your portfolio and mindset with the stock market by gradually investing capital in leading stocks.

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.

Five Dow Jones stocks to watch right now

Keep an Eye on Dow Jones Stocks: Chevron, Merck

Dow Jones stock Chevron rose 0.3% on Monday and found crucial support around its 50-day moving average. Shares are trading about 6% off a cup, with Handle’s latest buy point at 166.93 — according to IBD MarketSmith chart analysis — amid a strong performance for energy stocks so far this year. The stock was down early Tuesday.

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 a fraction early Tuesday.

3 top growth stocks to buy and watchrightent stock market correction

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 were unchanged early Tuesday.

IBD leaderboard stock DoubleVerify remains below its 28.07 buy point in a bottoming base despite gaining 0.55% on Monday. DV shares are down Tuesday morning.

Vertex Pharmaceuticals fell back below its 50-day moving average after shedding 1.6% on Monday. 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 remained flat on Tuesday.

Join IBD experts as they analyze leading stocks in the latest stock market correction on IBD Live

Tesla stock

Tesla shares gained 1.9% on Monday, rebounding from Friday’s slight loss. Shares are nearing the buy point of the short basis at 314.74. In the meantime, keep an eye out for additional buy points if the stock can continue to climb higher on the right side of its larger consolidation that dates back to January.

Upbeat, the stock’s RS line is at its highest level since April. Shares are about 25% off their 52-week high.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares rose 2.5% on Monday, ending a two-day losing streak and reversing some of last week’s losses. Last week, the stock closed at its lowest level since July 18. Apple shares were down 0.3% on Tuesday morning.

Microsoft shed 0.1% on Monday, trimming losses after hitting a fresh 52-week low. The software giant is down about 30% from its 52-week high. Microsoft shares fell 0.5% early Tuesday.

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


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