Dow Jones futures rose ahead of the opening Tuesday as the Federal Reserve’s two-day meeting kicks off. The Dow Jones Industrial Average had its best month since 1976, up nearly 14% in October.
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late monday, Arista Networks (A NETWORK) and Apple supplier NXP Semiconductors (NXPI) were important earners. Shares of ANET fell 1% in expanded trading, while shares of NXPI were up around 1%.
The Fed’s two-day meeting will begin Tuesday afternoon with a rate decision. Investor sentiment shows that there is an 85% probability of a 75bps increase. according to CME.
this Fed says it won’t come back – that is, to slow the pace of rate increases – until the strong labor market shows clear signs of slowing down. But once the job market begins to roll, Fed strategy and a wide array of economic factors are likely to change. That puts Friday’s jobs report under further 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 was sold at a 1% discount.
between exchange-traded fundsNasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 1.2% and the SPDR S&P 500 (SPY) fell 0.7%.
electric vehicle giant tesla (TSLA) fell 0.4% on Monday. between Dow Jones stocks, Apple (AAPL) traded down 1.5% and Microsoft (MSFT) lost 1.6% today’s stock market.
Among the best stocks to buy and watch, dycom (DY), Cheniere Energy (LNG), Dollar General (headquarters) and Pure Storage (PSTG) — and also Dow Jones names strip (CVX) and United Health Group (UNH) — 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 buy zones.
Cheniere a IBD Leaderboard stock available. Dollar General a IBD SwingTrader stock available. Pure Storage Featured in this week’s Stocks Near a Buying Zone columnalong with three other best stock ideas.
Top 4 Stocks to Buy and Watch on Curyearen Stock Rally
Dow Jones Futures Today: Treasury Yields, Oil Prices
Before the opening bell on Tuesday, Dow Jones futures were up 0.25% above fair value, while S&P 500 futures were up 0.3%. Nasdaq 100 futures gained 0.4% to fair value. Remember that overnight action Dow Jones futures and elsewhere it doesn’t necessarily turn into real trade on the next regular trade Exchange session.
The 10-year Treasury yield rose to 4.07% on Monday, reversing some of last week’s losses. Meanwhile, US oil prices fell 2%, with West Texas Intermediate futures trading around $86 a barrel.
Earning Season: AMD Gains on Deck
Third quarter earnings season continues this week with important reports from the energy giant BP (BP), Eli Lilly (LLY), Uber Technologies (UBER) and Dow Jones stock Pfizer (PFE). All four will report Tuesday morning. advanced micro devices (AMD) and Airbnb (ABNB) will report after closing Tuesday.
Earnings reports cause many of the biggest moves in stocks and require special focus. Strong gains could feed top stocks above new buy points and into overbought zones, while an unimpressive announcement could cause shares to drop below key support levels.
The stock market’s reaction to a earnings release can often tell you more than the earnings themselves. If results look strong but the stock still slides, investors may be concerned about the sustainability of growth, rising costs, or other potential downsides.
When the market is in rally mode, investors should watch for companies that easily beat earnings results and have strong upside reactions. If the market can extend their recent gains, they could be among the stock market leaders.
What to Do in the Continuing Stock Market Rally
Now is an important time to read IBD’s Big Picture column. After recent gains, investors gave the green light to buy the best stocks, leaving behind the right buy spots. But not all follow-ups work, so it’s important to increase exposure slowly and methodically as the new uptrend proves itself.
But not every follow-up results in a sustained uptrend, so investors need to gauge their risk levels in the days and weeks after that signal, especially with the extra risk from the upcoming Fed meeting. You want to buy in sync with the market, so as not to become overly attached to an uptrend that could turn you around.
Remember, don’t panic if you miss the first few breaks. The Nasdaq is still more than 30% off its all-time high. If this stock market rally is real and meaningful, there will be plenty of time to buy stocks and make money in the weeks and potentially months ahead.
And if the stock market starts to fail again, you can reduce risk without losing too much capital.
Five Dow Jones Stocks to Buy and Watch Now
Dow Jones Stocks To Watch: Merck, UnitedHealth
Dow Jones member and IBD 50 stock Merck is out of purchasing range double bottom point93.12 point of purchase, according to this IBD MarketSmith pattern recognition.
Health giant UnitedHealth beats a 553.23 handled cup point of purchase, according to this IBD MarketSmith. Shares gained 0.75% on Monday and closed just above the stock’s last entry.
Best Stocks to Watch: Cheniere, Dollar General, Dycom, Pure Storage
IBD Leaderboard stock Cheniere Energy is just shy of a cup with the handle’s 178.69 buy point. IBD MarketSmith chart analysis. LNG shares rose 1.1% on Monday.
IBD Swing Trader stock Dollar General is trying to exceed the 259.75 buying point on cup basis. DG shares ended below the entry, losing 2.1% on Monday. If the stock retakes this critical level, the 5% trailing zone will go up to 272.74.
Dycom trying to escape trap and cup base 120.55 point of purchase. Shares tumbled 1.85% below the buy point on Monday and exited the 5% buy zone as high as 126.58.
Friday’s IBD Stocks, Pure Storage nearing point of purchase of 31.62 after three days of gains. The stock rose 1.15% on Monday.
Tesla Stock
Tesla stock It fell 0.4% on Monday, ending its four-day winning streak. The stock is rallying after hitting a 52-week low last week.
Still, the shares are about 45% from their 52-week high and sharply below the 50 and 200-day moving average lines.
Dow Jones Leaders: Apple, Microsoft
between Dow Jones stocksApple shares were down 1.5% on Monday and were down nearly 16% from their 52-week high. Last week, the stock rebounded its 50-day line higher. Now, shares are testing resistance at the long-term 200-day line.
Microsoft fell 1.6% on Monday, giving up some of Friday’s 4% recovery. Stocks are close to October. 13 52 week low. The software giant continues to discount more than 30% at its 52-week high.
Be sure to follow Scott Lehtonen on Twitter. @IBD_SLehtonen For more information on growth stocks and the Dow Jones Industrial Average.
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