Dow futures rose ahead of Tuesday’s opening, as the two-day Federal Reserve meeting begins. The Dow Jones Industrial Average had its best month since 1976, rising nearly 14% in October.
late on monday, Arista Networks (Network) and Apple’s supplier NXP Semiconductor (NXPI) were the main driver of profits. ANET shares are down 1% in extended trading, while NXPI shares are up about 1%.
The Federal Reserve’s two-day meeting begins on Tuesday, with an interest rate decision set for Wednesday afternoon. Investor sentiment shows 85% probability of an increase of 75 basis points, According to CME.
The The Fed says it won’t pivot – i.e. slowing down the pace of rate increases – until a strong labor market shows clear signs of slowing down. But once the labor market begins to turn around, the Fed’s strategy and a wide range of economic factors are likely to change. This puts Friday’s jobs report under increased scrutiny.
stock market today
On Monday, the Dow Jones Industrial Average fell 0.4% and the Standard & Poor’s lost 0.7%. The tech-heavy Nasdaq Composite Index sold 1%.
Among the top stocks to buy and watch, Dicom (DY), Cheniere Energy (liquefied natural gas), general dollar (DJ) And the pure storage (PSG) – as well as the names of Dow Jones chevron (CVX) And the United Health Group (United nations) – among the top stocks to buy and watch. Keep in mind that a continuous rally in the stock market is the perfect time for investors to look for stocks in their buying areas.
Cheniere is IBD Leaderboard stock. general dollar is IBD SwingTrader stock. pure storage This week appeared in the stock column near the buy zonealong with three other ideas for the hottest stocks.
Dow futures today: Treasury yields, oil prices
Before the opening bell on Tuesday, Dow Jones futures were 0.5% above fair value, while S&P 500 futures were up 0.8%. Nasdaq 100 futures are up 1.1% against fair value. Remember to work overnight in Dow Jones futures contracts and elsewhere that does not necessarily translate into actual circulation in the next regular session Stock market session.
The 10-year Treasury yield rose to 4.07% on Monday, recouping part of last week’s losses. Meanwhile, US oil prices fell 2% as West Texas Intermediate crude futures traded near $86 a barrel.
earnings Season: AMD earnings on deck
Third quarter earnings season This week continues, with major reports coming in from the energy giant BP (BP), Eli Lilly (LLY), Uber Technologies (Uber) and Dow Jones Pfizer (PFE). The four are due to report on Tuesday morning. Advanced Micro Devices (AMD) And the Airbnb (ABNB) after closing on Tuesday.
Earnings reports cause many of the biggest moves in stocks, and they require special focus. Strong earnings can fuel big stocks above new buying points and into buy zones, while a less than impressive announcement can push stocks below key support levels.
The stock market’s reaction to the earnings release can often tell you more than the earnings themselves. If the results look strong but the stock is falling anyway, investors may be concerned about the sustainability of growth, higher costs, or other potential downsides.
With the market entering bullish mode, investors should track companies that easily outperform earnings results and have strong bullish 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. After the recent gains, investors got the go-ahead to buy the big stocks that crossed the right buy points. But not all follow-ups work, so it is important to increase exposure slowly and methodically, as the new uptrend proves itself.
But not every follow-up results in a sustainable uptrend, which is why investors need to gauge their exposure in the days and weeks that come after this signal, especially with the added risk from the upcoming Fed meeting. You want to buy in tandem with the market so as not to overcommit to the uptrend that could turn back on you.
Remember, don’t panic if you miss the first couple of breakouts. The Nasdaq is still more than 30% behind 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 over the coming weeks and possibly months.
And if the stock market starts to crash again, you can reduce your exposure without losing a lot of capital.
Dow Jones stocks to watch: Merck, UnitedHealth
Top Stocks to Watch: Cheniere, Dollar General, Dycom, and Pure Storage
IBD Swing Trader Stock Dollar General is trying to surpass 259.75 buying points at the base of the cup. On Monday, DG shares lost 2.1%, to close below the entry level. If the stock regains this critical level, the 5% chase zone would rise to 272.74.
Friday stock from IBD, Pure Storage, is close to its 31.62 buy point after three days of gains. On Monday, the stock rose 1.15%.
Tesla stock It fell 0.4% on Monday, cutting a four-day winning streak. The stock is recovering after hitting a 52-week low last week.
However, shares are down about 45% from their 52-week highs and sharply below the 50- and 200-day moving average lines.
Dow Jones Leaders: Apple and Microsoft
within Dow Jones stockApple shares are down 1.5% on Monday, down nearly 16% from their 52-week high. Last week, the stock retraced the 50-day bullish streak. Now, stocks are testing resistance at the long-term 200-day line.
Microsoft stock fell 1.6% on Monday, giving up part of Friday’s 4% recovery. Stocks approached their lowest level on October 13 in 52 weeks. The software giant is still more than 30% off its 52-week high.
Make sure to follow Scott Lehtonen on Twitter at Tweet embed Learn more about developing stocks and the Dow Jones Industrial Average.
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