Dow Jones futures were little changed late after Monday’s stock market rally. Twitter stock jumped as Tesla Chief Executive Elon Musk inked a deal to buy the company in a deal worth $44 billion.
Packaging Corporation of America (PKG) was a key earnings mover after the close. PKG shares rallied more than 1.5% in extended trade.
On Monday, the Dow Jones Industrial Average reversed from sharp losses to rally 0.7%, while the S&P 500 moved up 0.6%. The tech-heavy Nasdaq composite advanced 1.3%. Among exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) gained 1.3%, and the SPDR S&P 500 ETF (SPY) rose 0.6% Monday.
U.S. Stock Market Today Overview
|Last Update: 4:42 PM ET 4/25/2022|
Oil stocks were among the day’s weakest performers, as U.S. oil prices fell more than 3%. West Texas Intermediate crude traded below $99 a barrel. Schlumberger (SLB) slid more than 7%. Halliburton (HAL) declined 6.3%. And Baker Hughes (BKR) dropped 4.5%.
Amid a new stock market correction, Dow Jones financial leader American Express (AXP) — along with Expedia (EXPE), IBD Leaderboard stock LPL Financial (LPLA), Palo Alto Networks (PANW) and World Wrestling Entertainment (WWE) — are among Monday’s top stocks to watch.
Among the Dow Jones leaders, Apple (AAPL) rose 0.7% and Microsoft (MSFT) traded up 2.4% in today’s stock market.
Microsoft and Tesla are IBD Leaderboard stocks. Expedia and Palo Alto Networks were featured in this week’s Stocks Near A Buy Zone column.
Elon Musk Buying Twitter
Twitter (TWTR) jumped 5.7% after the company agreed to be acquired by Tesla CEO Elon Musk in a deal worth about $44 billion. Musk will take the company private upon completion. Tesla (TSLA) stock dipped 0.7% Monday.
“Free speech is the bedrock of a functioning democracy, and Twitter is the digital town square where matters vital to the future of humanity are debated,” Musk said in written remarks.
“I also want to make Twitter better than ever by enhancing the product with new features, making the algorithms open source to increase trust, defeating the spam bots, and authenticating all humans,” he went on to say. “Twitter has tremendous potential — I look forward to working with the company and the community of users to unlock it.”
Dow Jones Futures Today: Treasury Yields
After Monday’s close, Dow Jones futures, S&P 500 futures and Nasdaq 100 futures were little changed 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.
The 10-year Treasury yield ticked down to 2.82% Monday after closing Friday at 2.9%. Last week, the 10-year Treasury yield hit its highest level since December 2018.
Stock Market Correction Continues: What To Do Now
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 is 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.
Friday’s The Big Picture column commented, “After getting turned away at its 200-day moving average Thursday, the S&P 500 plunged 2.8%, taking out Monday’s low. The index is still holding above the March 16 follow-through day’s low, but the weak action was enough to change IBD’s market outlook to a market correction.”
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 Stocks To Buy And Watch: American Express
Dow Jones financial stock American Express is tracing a cup with handle with a 194.45 buy point. Shares rose 2% Monday, ending about 5% away from the latest entry.
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.
Three 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.
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.
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.
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.
Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live
Tesla stock dipped 0.7% Monday, adding to Friday’s 0.4% loss. 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 20% 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.
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.
Apple and Microsoft report earnings this week.
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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