Dow Jones futures rallied Monday morning, looking to rebound from Friday’s stock market sell-off. The Russia-Ukraine war, and the probability of a Federal Reserve rate hike this week, remain key focal points in the stock market today. Bonds dived, sending Treasury yields to their highest level since July 2019, while U.S. oil prices tumbled.
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Before Monday’s open, Occidental Petroleum (OXY) and Chevron (CVX) were both downgraded at Morgan Stanley. OXY shares slid more than 3%, and Chevron shares declined 2.6%.
Among the Dow Jones leaders, Apple (AAPL) fell more than 1% and Microsoft (MSFT) rose 0.3% in today’s stock market. UnitedHealth (UNH), a Dow Jones stock to watch, finished Thursday within striking distance of a new buy point.
Casino owner Las Vegas Sands (LVS) dropped 2.9% in early trade, after authorities in China imposed strict lockdowns due to rising coronavirus infections. Electric-vehicle leader Tesla (TSLA) declined nearly 1% early Monday, threatening to extend Friday’s sharp losses.
Amid the still volatile, headline-driven market, Costco (COST), Quanta Services (PWR), Union Pacific (UNP) and Vertex Pharmaceuticals (VRTX) are among Monday’s top stocks to watch. Keep in mind that current stock market conditions should keep investors largely in cash and on the sidelines.
Microsoft, Tesla and Vertex are IBD Leaderboard stocks. Quanta was Tuesday’s IBD Stock Of The Day. Costco was Tuesday’s IBD 50 Stocks To Watch pick and was featured in this week’s Stocks Near A Buy Zone column.
Dow Jones Today: Russia-Ukraine Talks, Oil Prices
Before Monday’s market open, Dow Jones futures traded 0.7% vs. fair value, well off early highs. S&P 500 futures gained 0.3%. Nasdaq 100 futures lost 0.4% in morning trade, with China-based names crowding the bottom of the list.
Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 0.4%, and the SPDR S&P 500 ETF (SPY) moved up 0.1% before Monday’s open.
Russian and Ukrainian diplomats reportedly planned to meet by video conference Monday, as cease-fire talks continued. So far, previous rounds of talks have yielded few results.
On Sunday, a Russian airstrike hit a Ukrainian military training base near the Polish border. In response, U.S. national security adviser Jake Sullivan said in an interview Sunday that any attack on Poland would bring “the full force of the NATO alliance to bear in responding to it.”
The 10-year U.S. Treasury yield surged Monday to 2.08%, its highest point since July 2019. U.S. oil prices tumbled more than 5% Monday, as West Texas Intermediate crude traded below $104 a barrel.
Stock Market Rally Attempt
The stock market posted more disappointing action Friday, as the major stock indexes finished with heavy losses.
Friday’s The Big Picture commented, “The stock market ended a painful week on a sour note as indexes fell after President Joe Biden intensified pressure on Russian counterpart Vladimir Putin. Stocks endured a bearish reversal that further dampened investor enthusiasm.”
If you’re new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one key to the investment guidelines. IBD offers a broad range of growth stock lists, such as Leaderboard and SwingTrader.
Investors also can create watchlists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.
Four Dow Jones Stocks To Watch Now
Dow Jones Stocks To Watch: UnitedHealth
Managed care giant UnitedHealth continues to show a 501.03 buy point in a double-bottom base. Shares ended Friday 4% away from their latest entry after the session’s 1.7% decline. UNH shares were unchanged early Monday.
Bullishly, the stock’s relative strength line is near new highs, indicating significant stock market outperformance.
Four Top Growth Stocks To Watch In The Current Stock Market Correction
Stocks To Watch: Costco, Quanta Services, Union Pacific, Vertex
Costco stock continues to build a cup base with a 571.59 buy point, according to IBD MarketSmith chart analysis. Keep an eye out for a handle to form, which would lower the risk-optimal entry. Bullishly, the stock’s relative strength line already hit new highs, a sign of extreme strength especially during periods of significant market weakness. Costco shares dipped 0.1% early Monday.
Tuesday’s IBD Stock Of The Day, Quanta Services, topped an 113.81 early buy point last week and is just below a 124.79 buy point in a consolidation. PWR shares were unchanged early Monday.
Union Pacific is in buy range above its 256.21 flat-base entry amid a three-day win streak. The 5% buy area goes up to 269.02. UNP shares were unchanged early Monday.
IBD Leaderboard stock Vertex Pharmaceuticals is tracing a flat base with a 255.03 buy point. Per Leaderboard analysis, Vertex Pharmaceuticals was boosted to a half position from quarter on a solid bounce off the 50-day line in recent sessions. VRTX shares edged up early Monday.
Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live
Tesla Stock
Tesla stock declined nearly 1% early Monday, threatening to add to Friday’s 5.1% skid. Shares are falling below their long-term 200-day moving average.
The stock traded as high as 1,243.49 on Nov. 4, but ended Friday about 36% off that all-time high.
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Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple is building a double-bottom base with a 176.75 buy point, according to IBD MarketSmith chart analysis. Shares remain relatively far from the potential entry following Friday’s 2.4% loss. Apple shares rose 1.1% Monday, as they again look for support around their 200-day line. AAPL stock moved down more than 1% early Monday. Foxconn, a key Chinese supplier, halted production at its locations in Shenzhen, China due to a new Covid-19 lockdown.
Software leader Microsoft dropped 1.9% Friday, adding to Thursday’s 1% loss. Shares are still far below the 200-day line, as they continue to build a new base. MSFT stock rose 0.3% early Monday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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The post Dow Jones Futures Pare Gains As Russia-Ukraine Talks Continue; Treasury Yields Surge, Oil Prices Tumble appeared first on Investor’s Business Daily.
