Dow Jones futures were higher early on Tuesday as the stock market continues to slide from Friday’s slide, boosted by dovish talk from Federal Reserve Chairman Jerome Powell ahead of the final two August sessions. The Labor Department’s jobs report for August will be released Friday morning.
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Today’s stock market
On Monday, the Dow Jones Industrial Average fell 0.6%, while the S&P 500 lost 0.7%. The Nasdaq tech composite fell 1%. And the small-cap Russell 2000 fell 0.9%.
Among funds traded, Nasdaq 100 tracker Invesco QQQ Trust ( QQQ ) fell 1% and the SPDR S&P 500 ( SPY ) fell 0.7%.
Overview of the US stock market
Index Symbol Price Gain/Loss Percentage Change Dow Jones (0DJIA) 32099.65 -183.75 -0.57 S&P 500 (0S&P5) 4030.76 -26.90 -0.66 Nasdaq (0NDQC ) 12017.65 -183.75 -0.57 -183.75 Russell -18.04 -18.018. FFTY) 29.48 -0.08 -0.27 Last updated: 4:40 PM ET 08/29/2022
Electric vehicle giant Tesla ( TSLA ) slipped 1.1% on Monday. Among the Dow Jones leaders, Apple (AAPL) and Microsoft (MSFT) were down 1.4% and 1.1%, respectively, in today’s trade.
In the current stock market weakness, Arista Networks (ANET), Costco (COST), GlobalFoundries (GFS), and Ulta Beauty (ULTA), as well as shares of Dow Jones Chevron (CVX) and McDonald’s (MCD), are among the main actions. to shop and look. Note that increased market volatility is a good reason for investors to be more defensive.
Costco is an IBD ranked stock following a recent breakout, while Chevron and Ulta Beauty appeared in the Stocks column near a buy zone this week.
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Dow Jones futures today: Treasury yields, oil prices, jobs report
Before Tuesday’s open, Dow Jones futures were up 0.7% from fair value, and S&P 500 futures were up 0.8%. Nasdaq 100 futures rallied 1.1% from fair value. Remember that overnight action in Dow Jones futures and elsewhere does not necessarily translate into actual trading in the next normal stock market session.
The 10-year Treasury yield rose to 3.11% on Monday, extending last week’s gains. The 10-year Treasury yield closed at its highest level since June 28. Meanwhile, US oil prices rose more than 4%, with West Texas Intermediate futures trading around $97 a barrel.
The Labor Department’s jobs report for August will be released Friday morning. The U.S. economy is expected to add 293,000 jobs in August, according to Econoday estimates, compared with an increase of 528,000 in July. Average hourly earnings in August are expected to increase 0.4% from the previous month and 5.2% year-over-year.
What to do in the current weakness of the stock market
On Friday, stock market weakness led to a change in IBD’s market outlook to “uptrend under pressure.”
An “uptrend under pressure” is a warning signal, telling you that the uptrend may be running out of steam and about to fall into a correction. While the underlying bullish trend is still intact, now is the time to proceed with caution.
During “uptrends under pressure,” investors should be careful about making new purchases. Focus only on stocks with exceptional fundamental strength and technique. Stay disciplined and flexible. At this point, the market could stabilize and return to a “confirmed uptrend,” or it could fall into a correction.
The current environment is the perfect time to look for stocks that are holding up better. An easy way to identify stock market leadership is to use the relative strength line. A strong RS line while the stock market struggles is a strong technical indicator.
Friday’s The Big Picture column commented, “The stock market had been rallying on hopes of a soft landing for the U.S. economy. But Powell’s speech reminded Wall Street that there is more rate hikes so that inflation doesn’t remain stubbornly high. The Fed Futures traders put the chances at just over 60% that the Fed will raise its key lending rate by another 75 basis points in September. That would bring the Fed funds rate at 3% to 3.25%.
If you are new to IBD, consider checking out their Stock Trading System and CAN SLIM Basics. Recognizing chart patterns is a key to investment guidelines. IBD offers a wide range of growth stock lists, including Leaderboard and SwingTrader.
Investors can also create watch lists, find companies near a buy point, or develop custom screens in IBD MarketSmith.
Five Dow Jones Stocks to Watch Now
Dow Jones stocks to watch: Chevron, McDonald’s
Dow Jones Chevron shares are building a cup base that has a buy point at 182.50, amid a strong performance by energy stocks so far this year. An early entry at 164.76 is also in play. Shares rose 0.75% on Monday.
CVX stock scores a strong 97 out of a perfect 99 IBD Composite Rating, according to IBD Stock Check. Investors can use the IBD Composite Rating to easily measure the quality of a stock’s fundamental and technical metrics.
Shares of McDonald’s are now 3% below an entry at 265.56 cups with handle after falling 0.5% on Monday, according to IBD MarketSmith Chart Analysis. The stock is trying to find support around its key 50-day line.
The 4 most important growth stocks to watch in the current stock market rally
Top Stocks to Watch: Arista, Costco, GlobalFoundries, Ulta
Arista Networks added a handle to a double-bottom base, placing the correct entry at 132.97, according to IBD MarketSmith chart analysis. Arista’s relative strength line remains near recent highs despite recent market weakness, a bullish sign. ANET shares fell 1.2% on Monday.
IBD Leaderboard Costco shares fell further below their 552.81 cup-with-handle buy point as the stock moved lower on Monday. Costco stock halted its decline on Monday around its 200-day line. Wait for a bullish recovery from the entry before buying stocks.
GlobalFoundries fell below the double bottom’s 61.98 buy points on Friday, sliding 6%. An alternative entry, from a handle, is in play at 66.06. Shares of GFS fell another 2.65% on Monday.
Cosmetics leader Ulta Beauty is just above a double bottom’s 417.08 buy points after Monday’s 1.5% gain. The stock is in a buy zone, but the current market weakness should give you some pause.
Join IBD’s experts as they analyze the top stocks in the current stock market rally on IBD Live
Tesla stock
Tesla shares fell 1.1% on Monday, extending a losing streak to three sessions. Shares of the electric vehicle giant continue to see strong resistance around its 200-day line.
Tesla is now more than 30% off its 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares fell another 1.4% on Monday as they trade about 10% away from a cup with the handle’s buy point at 176.25. The stock closed right at its 200-day line. Optimistically, the stock’s relative strength line holds at new highs, indicating consistent stock market outperform.
Microsoft fell 1.1% on Monday, falling through its 50-day line and closing at its lowest level since July 26. The stock is about 24% off its 52-week high.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more growth stocks and the Dow Jones Industrial Average.
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