Dow Jones Reverses Lower Ahead Of Powell Speech; 7 Best Stocks To Buy And Watch
Dow Jones futures were slightly lower in extended trade ahead of Federal Reserve Chairman Jerome Powell’s speech Tuesday. The Dow Jones Industrial Average rallied as many as 305 points Monday before reversing lower.
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Powell Speech, Inflation Data, Earnings
Fed chief Powell will speak at the Sveriges Riksbank International Symposium on Central Bank Independence in Stockholm, Sweden. His speech is scheduled to start at 9 a.m. ET. Powell’s speech comes on the heels of Friday’s jobs report that saw wage growth cooling much more than expected and workers clocking fewer hours for a second straight month. The data should allow the Fed to further slow its pace of interest-rate hikes.
The 10-year Treasury yield ticked lower to 3.51% Monday, falling for a second straight session.
Jefferies (JEF) reported earnings that met estimates, and sales that topped forecasts. Jefferies shares lost more than 3% in extended trade.
Other companies reporting later this week include KB Home (KBH), Taiwan Semiconductor Manufacturing (TSM), Bank of America (BAC), Citigroup (C) and Wells Fargo (WFC). Dow Jones stocks JPMorgan Chase (JPM) and UnitedHealth Group (UNH) will also report this week.
Stock Market Today
On Monday, the Dow Jones Industrial Average fell 0.3%, and the S&P 500 lost 0.1%. The tech-heavy Nasdaq composite rallied 0.6%. Among exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) moved up 0.65% and the SPDR S&P 500 (SPY) inched lower.
Electric-vehicle giant Tesla (TSLA) traded up 5.9% Monday. Among Dow Jones stocks, Apple (AAPL) gained 0.4% and Microsoft (MSFT) rose 1% in today’s stock market.
Deere (DE), IBD Leaderboard stock ELF Beauty (ELF), Rio Tinto (RIO) and IBD SwingTrader stock Super Micro Computer (SMCI) — as well as Dow Jones names Caterpillar (CAT), Chevron (CVX) and Walmart (WMT) — are among the top stocks to buy and watch with the market back in rally mode.
ELF Beauty is an IBD Leaderboard stock. Super Micro is a new IBD SwingTrader idea. Caterpillar and Rio were featured in this week’s recent Stocks Near A Buy Zone column.
4 Top Growth Stocks To Buy And Watch In The Current Stock Market Rally
Dow Jones Futures Today: Oil Prices
Ahead of Tuesday’s opening bell, Dow Jones futures traded 0.3% below fair value, and S&P 500 futures moved down 0.35%. Tech-heavy Nasdaq 100 futures were down 0.4% vs. fair value. Remember that overnight action in Dow Jones futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
U.S. oil prices rallied more than 1% Monday, rebounding a bit from last week’s sharp losses. West Texas Intermediate futures traded just below $75 a barrel.
What To Do In The New Stock Market Rally
Now is an important time to read IBD’s The Big Picture column with the stock market trend back in a “confirmed uptrend” following Friday’s powerful gains in heavy volume, a stark divergence from recent action.
Friday’s positive action in high volume caused the IBD market outlook to shift into a new stock market rally. Nevertheless, it is still an uncertain environment, and exposure should be increased in a measured fashion. Investors should stick to 20% to 40% exposure for now.
(Check out IBD Stock Lists like the IBD 50 and Stocks Near A Buy Zone, for additional stock ideas.)
Five Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Buy And Watch: Caterpillar, Chevron, Walmart
Dow Jones member Caterpillar remains squarely in buy range above a flat base’s 239.95 buy point following Monday’s 0.9% decline, according to IBD MarketSmith pattern recognition. The buy zone goes up to 251.95. Bullishly, the stock’s relative strength line, a key technical indicator, is at new highs.
CAT stock shows a strong 98 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. The Composite Rating is designed to help investors easily find top growth stocks.
Energy giant Chevron again found stout resistance at its 50-day line, as it continues to build a cup base that has a 189.78 buy point.
Discount retailer Walmart reversed 1.25% lower Monday, falling back below its 50-day line. Shares are building a cup with handle that has a 154.74 buy point and are about 6% away from the latest entry.
Top Stocks To Buy And Watch: Deere, ELF Beauty, Rio, Super Micro
Recent IBD Stock Of The Day Deere is building a flat base with a 448.50 buy point. Shares are approaching their latest buy point, moving up 0.4% Monday.
IBD Leaderboard stock ELF Beauty gave up its 57.03…
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