Dow Jones futures were squarely lower Tuesday morning, threatening to give back a part of Monday’s stock market bounce. Tech giants Alphabet (GOOGL) and Microsoft (MSFT) — along with Dow Jones stock Visa (V) — will report their quarterly earnings results late Tuesday.
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3M (MMM), Packaging Corporation of America (PKG), PepsiCo (PEP), Raytheon Technologies (RTX) and UPS (UPS) were key earnings movers Tuesday morning.
3M fell 1%. Packaging Corp. rallied 3.5%. PepsiCo shares dipped 0.2%. Raytheon moved down almost 1%. And UPS stock gained about 2% ahead of Tuesday’s open.
Twitter (TWTR) edged up 0.5% after Monday’s 5.7% jump. And electric-vehicle giant Tesla (TSLA) eased lower Tuesday morning. On Monday, Twitter agreed to be acquired by Tesla CEO Elon Musk in a deal worth about $44 billion.
Among the Dow Jones leaders, Apple (AAPL) and Microsoft were both modestly lower in today’s stock market.
Amid a new stock market correction, Dow Jones leader American Express (AXP) — along with IBD Leaderboard stock LPL Financial (LPLA), Expedia (EXPE), Palo Alto Networks (PANW) and World Wresting Entertainment (WWE) — are among Tuesday’s top stocks to watch.
Microsoft and Tesla are IBD Leaderboard stocks. Expedia and Palo Alto Networks were featured in this week’s Stocks Near A Buy Zone column.
Dow Jones Today: Treasury Yields, Oil Prices
Ahead of Tuesday’s open, Dow Jones futures declined 0.6%, while S&P 500 futures dropped 0.5% vs. fair value. Nasdaq 100 futures declined 0.55% vs. fair value. 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) lost 0.55%. The SPDR S&P 500 ETF (SPY) moved down 0.5%.
The 10-year Treasury yield ticked down to 2.79% Tuesday after closing Monday at 2.82%. Last week, the 10-year Treasury yield hit its highest level since December 2018. Meanwhile, U.S. oil prices were up nearly 1%, as Texas Intermediate crude traded just above $99 a barrel.
Stock Market Correction
On Monday, the major stock indexes showed positive action, as the major stock indexes reversed from early losses to end with solid gains. However, the stock market outlook was downgraded Friday to a “market in correction” after more sharp losses.
Monday’s rebound, after three straight declines, marked Day 1 of a new rally attempt. Amid the new stock market correction, investors should be taking profits and raising cash. Also, keeping a watchlist of stocks holding up well in a down market is a good way to be prepared for the next stock market uptrend.
You can find many of the next uptrend’s leaders while the market is still correcting, which can be done by using the relative strength line. The RS line measures a stock’s price performance vs. the S&P 500. If the stock is outperforming the broader market, then the RS line angles upward. If a stock is performing worse than the broad market, then the line will point lower.
Monday’s The Big Picture column commented, “Market optimists will appreciate that the S&P 500 bounced around the 4200 level, roughly where the index made lows in January, February and March. The Nasdaq’s low Monday also occurred in the neighborhood of its February and March bottoms. That suggested the stock market could have found a bottom. But it’s too early to tell. The market must first start a rally attempt.”
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.
Five Dow Jones Stocks To Watch Now
Dow Jones Earnings: 3M
Dow Jones stock 3M reported better-than-expected first-quarter earnings results Tuesday morning. Shares climbed 0.5% in early morning trade.
MMM shares ended Monday almost 30% off their 52-week high.
Dow Jones Stocks To Buy And Watch: American Express
Dow Jones financial stock American Express finished Monday about 5% away from a cup with handle’s 194.45 buy point after Monday’s 2% rise. AXP shares inched lower Tuesday morning.
Keep an eye on the stock’s relative strength line. Amid its recent rise, the RS line is starting to move closer to its old highs, meaning it is again outperforming the broad market.
Four Top Growth Stocks To Watch In The Current Stock Market Correction
Stocks To Watch: LPL, Expedia, Palo Alto, WWE
IBD Leaderboard stock LPL Financial remains above a 191.08 buy point in a cup with handle, but double-digit gains faded during the recent slide. On April 21, shares climbed as much as 15.5% above the entry, which means that the stock is close to triggering the round-trip sell rule, according to IBD MarketSmith chart analysis. LPLA shares were flat early Tuesday.
Thursday’s IBD Stock Of The Day, Expedia, is building a cup with handle with a 204.08 buy point. Shares are trying to regain their 50-day line, but are having some trouble at that key resistance level. EXPE stock shows a 90 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. Shares slipped 1.4% Tuesday morning.
Top cybersecurity stock Palo Alto Networks is finding much-needed support at its 50-day line after triggering a round-trip sell signal from a 572.77 buy point. Shares rallied almost 5% Monday. PANW stock dipped 0.6% early Tuesday.
World Wresting Entertainment also found support around its 50-day moving average Monday, slashing sharp losses to just 0.3%. Shares are just below a 60.94 buy point in a cup with handle. WWE stock was unchanged Tuesday morning.
Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live
Tesla Stock
Tesla stock was essentially unchanged Tuesday morning, following Monday’s 0.7% decline.
Shares of the EV giant finished Monday about 13% away from a cup-with-handle’s 1,152.97 buy point. The stock traded as high as 1,243.49 on Nov. 4 and is about 19% away from that all-time high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares triggered the 7%-8% loss-cutting rule from a 176.75 buy point in a double-bottom base in recent weeks. Apple stock found support at its long-term 200-day line, rising 0.7% Monday. Shares showed little change Tuesday morning.
Software leader Microsoft rallied 2.4% Monday, but remains below its 50- and 200-day lines. The stock is about 20% off its 52-week high. Shares inched lower Tuesday morning. Microsoft earnings are due out after the close. Analysts expect the company to earn $2.19 per share on sales of about $49 billion.
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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