Dow Jones futures were higher after today’s stock market downturn as major stock indexes sold out at heavy losses to reach new correction lows. President Joe Biden’s next speech on inflation is scheduled for Tuesday.
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CarGurus (CARG) and Microchip (MCHP) were key drivers of post-closure profits. Shares of CarGurus fell 13% overdue. And shares of Microchip rose nearly 3% in expanded trading.
Elsewhere, Chinese electric vehicle leader Li Auto (LI), Peloton (PTON), Planet Fitness (PLNT) and TransDigm (TDG) are among the companies reporting on Tuesday morning.
Dow Jones futures today: government bond yields, Biden’s speech
Following the close on Monday, Dow Jones futures rose 0.1% to fair value and S&P 500 futures rose 0.15%. Nasdaq futures rose 0.2% from fair value. Remember that the action at night in Dow futures and elsewhere does not necessarily turn into actual trading in the next regular session of the stock market.
Yields on 10-year bonds traded up 3.13% on Monday before closing around 3.08%. Yields on 10-year government bonds are at their highest level since November 2018. Meanwhile, US oil prices fell nearly 7%, with Texas Intermediate trading just over $ 102 a barrel.
President Biden will deliver a speech on Tuesday, stressing his efforts to fight rising inflation. The consumer price index for April will be published on Wednesday. At Econoday, consumer prices are expected to rise 0.2% in April from 1.2% in March, the biggest monthly improvement in 42 years.
According to Bloomberg, the president plans to detail his legislative efforts ahead of the November by-elections. Meanwhile, President Biden’s approval rating is back near its lowest point in February.
Stock market today
On Monday, the Dow Jones Industrial Average sold 2%, while the S&P 500 fell 3.2%. The Nasdaq technology composite fell 4.3%. Among traded funds, the Tracker Nasdaq 100 Invesco QQQ Trust (QQQ) fell 3.9% and the SPDR S&P 500 ETF (SPY) fell 3.2% on Monday.
Shares of Tesla (TSLA) fell 9.1% on Monday. The leaders of Dow Jones, Apple (AAPL) fell 3.3%, and Microsoft (MSFT) traded 3.7% lower in today’s stock market.
Amid deepening stock market adjustments, Dow Jones leaders Chevron (CVX) and Merck (MRK) – along with Cheniere Energy (LNG) and Exxon Mobil (XOM) – are among the best IBD stocks to face. watching on Tuesday.
Microsoft and Tesla are shares of IBD Leaderboard. Chevron was introduced in the stock column near the buying area this week.
What to do after today’s stock market crash
On Monday, the Dow Jones, Nasdaq and S&P 500 hit new lows after the stock market collapsed. With the market at new corrective lows, all rally attempts are over, which means that investors have to look up day to mark the beginning of a new rally attempt.
Against the background of the deepening correction of the stock market, investors should be mostly – if not entirely – on the sidelines. New purchases are prohibited. Also, keeping a watch list of stocks that are doing well in a falling market is a good way to be prepared for the next uptrend in the stock market.
Keep in mind that the leading actions of the past may not be the leaders of the future. To help determine the leaders of stocks emerging in a new market uptrend, use the relative strength line to see which stocks outperform the overall market.
During a stock market adjustment, investors need to identify companies whose stock prices are struggling with the downtrend in the stock market. A strong RS line will point sharply higher, either during the base period or soon after a breakout.
The Big Picture column on Monday commented: “Nasdaq’s 4.3% loss on Monday solidified a three-day losing streak of more than 10%. This is the biggest three-day decline since March 2020 (during the pandemic bear market). Its three-day loss of 1,341 points is the largest in history according to Dow Jones market data. “
If you are new to IBD, consider looking at its stock trading system and the basics of CAN SLIM. Recognition of chart patterns is one of the keys to investment guidelines. IBD offers a wide range of lists of growth stocks, such as Leaderboard and SwingTrader.
Investors can also create watch lists, find companies approaching a point of purchase, or develop custom screens at IBD MarketSmith.
Five shares of Dow Jones to watch now
Dow Jones monitoring shares: Chevron, Merck
Dow Jones leader and energy giant Chevron continues to build a flat base with 174.86 points to buy, according to an analysis of IBD MarketSmith’s chart. Shares of CVX traded down 6.7% on Monday, putting them below their 50-day line.
The availability of CVX boasts a perfect IBD Composite Rating, to check the IBD Stock. Investors can use the IBD Composite Rating to easily assess the quality of the main and technical indicators of the shares.
Drug leader Merck is under a glass with 89.58 points to buy after a brief breakthrough attempt last week. Shares fell 0.85% on Monday, ending about 2% below the last record.
Positively, the relative strength of the shares is at new highs, which shows a great superiority of the stock market during the current correction of the stock market.
Three stocks with the highest growth to observe in the current stock market adjustment
Watching shares: Cheniere, Exxon
Shares of IBD Leaderboard Cheniere Energy are one of the best stocks to watch, although they lost 8.6% on Monday. The shares cut a flat base, which shows 149.52 points for purchase, according to an analysis of the chart of IBD MarketSmith.
Energy giant Exxon Mobil topped the cup with 89.90 points to buy last week. But shares declined to enter and are about 6% below the buy point after falling 7.9% on Monday. The volatile breakout illustrates the danger of owning any stock in the current market environment.
Join IBD experts as they analyze leading stocks in the current IBD Live stock market adjustment
Tesla shares
Shares of Tesla fell more than 9% on Monday, extending a series of losses to three sessions and closed at its lowest level since March 14. Stocks are well below their 50- and 200-day moving averages.
The shares traded up to 1243.49 on November 4 and are about 37% of this highest peak of all time.
Leaders of Dow Jones: Apple, Microsoft
Among Dow Jones shares, Apple shares sold 3.3% on Monday. Shares are still falling below their long-term 200-day line.
Software leader Microsoft fell 3.7 percent on Monday, reaching its lowest level since June 2021. Shares are well below their 50- and 200-day lines. Shares closed about 24% of their 52-week high.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more information on growth stocks and the Dow Jones Industrial Average.
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