Dow Jones futures rose Tuesday morning ahead of the Federal Reserve’s two-day meeting. The Russia-Ukraine war, a steep market sell off in China, and the probability of a Fed rate hike this week, remain key focal points in the stock market today. Treasury yields held at their highest level since July 2019, while U.S. oil prices dived.
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Before Tuesday’s open, Coupa Software (COUP) plunged 30% on its quarterly earnings report and management’s guidance for the current fiscal year.
Among the Dow Jones leaders, Apple (AAPL) inched lower and Microsoft (MSFT) rose 0.4% in today’s stock market. UnitedHealth (UNH), a Dow Jones stock to watch, finished Monday within striking distance of a new buy point.
Electric-vehicle leader Tesla (TSLA) edged higher early Tuesday, looking to rebound from Monday’s sharp losses. Overnight, Tesla raised its prices in China and the U.S. for the second time in less than a week.
Amid the still volatile, headline-driven market, Costco (COST), Quanta Services (PWR), Regeneron Pharmaceutical (REGN) and Vertex Pharmaceuticals (VRTX) are among Tuesday’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 a recent IBD Stock Of The Day. Costco and Regeneron were featured in this week’s Stocks Near A Buy Zone column.
Dow Jones Today: Russia-Ukraine Talks, Fed Meeting
Before Tuesday’s market open, Dow Jones futures edged higher vs. fair value. S&P 500 futures gained 0.1%. Nasdaq 100 futures rose 0.3% in morning trade. 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) rose 0.3%, and the SPDR S&P 500 ETF (SPY) moved up 0.1% before Tuesday’s open.
China’s markets sold off hard for a second day, with Hong Kong’s Hang Seng index plummeting 5.7% and the Shanghai Composite taking a 5% hit. Markets in Europe traded lower near mid-session, with Frankfurt’s DAX and the CAC-40 in Paris each down more than 1%.
The 10-year U.S. Treasury yield ticked down to 2.12% following Monday’s surge to 2.14%, its highest point since July 2019.
U.S. oil prices dived more than 8% Tuesday, as West Texas Intermediate crude traded below $94 a barrel. Chevron (CVX) swooned more than 3% to the bottom of the Dow industrials. Oil stocks crowded the bottom of the S&P 500, with Occidental Petroleum (OXY) and APA Corp. (APA) down hardest.
The Federal Reserve’s two-day meeting kicks off Tuesday. Expectations call for the central bank to raise interest rates by a quarter percentage point, which would be the first increase since 2018. The Fed decision will be at 2:00 p.m. ET on Wednesday.
Stock Market Correction
The stock market posted more disappointing action Monday, as the tech-heavy Nasdaq ended with heavy losses.
Monday’s The Big Picture commented, “The stock market correction took another turn for the worse Monday as the glamour stocks of 2020 continued to fall harder than key indexes. And the Nasdaq composite, falling 2%, took out its Feb. 24 intraday low. Translation: Its latest rally attempt has gone kaput.”
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 shows a 500.10 buy point with a handle entry on a double-bottom base. Shares ended Monday 3% away from their latest entry after the session’s 1.05% rise. UNH shares were unchanged early Tuesday. UNH was Monday’s IBD Stock Of The Day.
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, Regeneron, Vertex
Costco stock now shows a cup with handle with a 545.39 buy point, according to IBD MarketSmith chart analysis. 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 were flat early Tuesday.
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 Tuesday.
Regeneron Pharmaceutical decisively cleared an early entry at 645.10 during Monday’s session. Meanwhile, the stock is moving closer to a 673.96 buy point in a flat base. REGN shares were flat Tuesday.
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 lower early Tuesday.
Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live
Tesla Stock
Tesla stock inched higher early Tuesday, looking to rebound from Monday’s 3.6% decline. Shares remain sharply below their long-term 200-day moving average.
Early Tuesday, Tesla raised its car prices in China and the U.S. for the second time in less than a week. In the U.S., Tesla raised prices for all of its models by 5%-10%. On Sunday, CEO Elon Musk tweeted, “Tesla & SpaceX are seeing significant recent inflation pressures in raw materials & logistics.”
The stock traded as high as 1,243.49 on Nov. 4, but ended Monday about 38% off that all-time high.
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Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple broke down through its long-term 200-day line with sharp losses Monday. Apple shares edged lower Tuesday.
Software leader Microsoft dropped 1.3% Monday, extending a losing streak to three sessions. Shares are still far below the 200-day line, as they continue to build a new base. MSFT stock rose 0.4% early Tuesday.
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 Rise Ahead Of Fed Meeting; Tesla Raises Car Prices appeared first on Investor’s Business Daily.
