Dow Jones Futures Fall Ahead Of Fed, Apple Earnings, Jobs Report
Dow Jones stock futures were lower ahead of Tuesday's open, with the Federal Reserve's two-day policy meeting set to kick off in the wake of JPMorgan Chase's (JPM) purchase of failed First Republic Bank (FRC). Meanwhile, Apple (AAPL) earnings are Thursday, with the April jobs report out Friday.
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Late Monday, Arista Networks (ANET), CF Industries (CF), Diamondback Energy (FANG), Lattice Semiconductor (LSCC), MGM Resorts (MGM), NXP Semiconductor (NXPI) and Vertex Pharmaceuticals (VRTX) were on the move after earnings.
Arista shares slid 3.6% in extended trade despite the company's better-than-expected Q1 earnings and sales results. CF Industries was quiet after its earnings report.
FANG stock declined 2% after its Q1 results, while Lattice shares climbed 0.5% after a strong earnings report.
MGM stock jumped 1.5%, set to move higher above a 45.09 cup-with-handle entry. Finally, Vertex shares descended more than 2% after hours. They ended regular session trading out of buy range Monday, far above a 325.29 cup-base entry.
Fed Meeting To Start
A main focal point this week is the two-day Federal Reserve meeting, which will wrap up with a policy decision Wednesday afternoon. As of Monday, markets overwhelmingly expect a hike in the coming week and see odds of another in June at just below 30%, according to the CME FedWatch Tool.
If the Fed opts to forgo a rate hike on Wednesday, amid bank fragility and indications that the economy and job market are softening, markets likely will celebrate — at least briefly. A hike and announcement of a pause on further hikes also could generate a relief rally. The third option, hiking and keeping an additional June hike on the table, likely wouldn't go down well with Wall Street.
Stock Market Today
On Monday, the Dow Jones Industrial Average fell 0.1%, with JPMorgan one of the big winners. JPM stock rallied 2.1%. The S&P 500 edged lower, while the tech-heavy Nasdaq composite lost 0.1%.
EV leader Tesla (TSLA) traded down 1.5% Monday. Among Dow Jones stocks, Apple (AAPL) inched lower and Microsoft (MSFT) lost 0.55% in today's stock market action.
InMode (INMD), IBD Leaderboard stock Las Vegas Sands (LVS), Arista Networks and Paccar (PCAR) — as well as Dow Jones stocks JPMorgan Chase, Nike (NKE) and Visa (V) — are among the top stocks to watch in the now-struggling stock market.
JP Morgan was featured in this week's Stocks Near A Buy Zone column. InMode was a recent IBD Stock Of The Day. Paccar received an IBD Stock Analysis close-up on Thursday.
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Dow Jones Stock Futures Today: Oil Prices, Treasury Yields
Ahead of Tuesday's opening bell, Dow Jones futures, along with S&P 500 futures and S&P 100 futures were all down about 0.1% vs. fair value in overnight trading. Remember that overnight action in Dow Jones futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
The 10-year U.S. Treasury yield jumped to 3.57% Monday. Since early April, the 10-year yield has rebounded from its lowest level since mid-September. U.S. oil prices dropped Monday, as West Texas Intermediate futures settled just below $76 a barrel.
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What To Do In The Stock Market Rally
Now is an important time to read IBD's The Big Picture column with the stock market trend in an "uptrend under pressure."
Amid Monday's slight loss, the market outlook remains in an "uptrend under pressure," which means investors should be more on the defensive than aggressively buying breakout stocks. IBD's recommended exposure currently sits at 20% to 40%.
Two useful IBD MarketSmith lists to check right now are "Breaking Out Today" and "Near Pivot." The latter shows stocks nearing buy points in bases, and the other flags stocks rising past buy points during the session.
To find more stock ideas, check IBD Stock Lists, like IBD 50, Big Cap 20 and Stocks Near A Buy Zone. These features identify bullish patterns and buy points and should be checked every day.
Learn How To Time The Market With IBD's ETF Market Strategy
Dow Jones Stocks To Buy And Watch: JPMorgan, Nike, Visa
JPMorgan shares rallied past a cup-with-handle's 141.88 buy point, but closed below the entry Monday, with a 2.1% rally, according to IBD MarketSmith pattern recognition.
Nike shares rose 0.95% Monday, breaking out past a cup-with-handle's 127.59 buy point.
Visa shares remain in buy range above a 230.15 cup-with-handle buy point. The buy range goes up to 241.66.
Best Stocks To Buy And Watch: InMode, Paccar
InMode finished Monday just shy of a cup-with-handle's 38.48 buy point, with a 0.9% climb, according to IBD MarketSmith.
Backstory: The company makes noninvasive platforms that tighten skin and obliterate fat cells. It's also moving into the women's health realm with gynecological offerings. UBS analyst Danielle Antalffy says InMode provides a lower-cost alternative to traditional plastic surgery.
Paccar is finding support around its 50-day line, as shares extended a win streak to three sessions Monday. The stock is approaching a flat base's 76.82 buy point, with an early entry at 75.83 also in play.
Backstory: The producer of heavy-duty semi-trucks topped first-quarter estimates Tuesday, reporting a 96% earnings spike. At CES 2022, Paccar exhibited connected and autonomous trucks. The company behind the Kenworth, Peterbilt and DAF nameplates showcased three vehicles.
Arista Networks, Las Vegas Sands
Arista Networks is building a flat base with a 171.54 buy point, as it finds support around its 50-day line. Earnings came out late Monday and ANET stock dropped more than 3% in extended trade.
Backstory: Santa Clara, Calif.-based Arista sells computer network switches that speed up communications among racks of computer servers packed into "hyperscale" data centers. These internet data centers are designed to ratchet up computing horsepower when demand surges.
IBD Leaderboard stock Las Vegas Sands moved further out of the 5% buy range above a 60.40 buy point in a cup with handle, as LVS stock rose 1.5% Monday. The buy zone topped out at 63.42. On Monday, Macau officials said April gaming revenue surged 450% year over year to hit a three-year high.
Backstory: In recent weeks, Las Vegas Sands smashed earnings expectations for the first quarter and signaled a "robust recovery" in China's Macau gaming hub. The casino stock posted earnings of 28 cents per share, up from a loss of 40 cents per share a year ago. Revenue vaulted nearly 125% to $2.12 billion.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock slid 1.5% Monday, holding near its lowest level since Jan. 26. In recent weeks, shares triggered the 7%-8% loss rule from a buy point at 200.76 in a cup with handle. And they are trading sharply below their 50-day line, a key level.
The stock closed Monday 50% off its 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares edged slightly lower Monday, snapping a two-day win streak. They remain solidly above a 157.48 buy point and out of the buy range that ran up to 165.35.
Microsoft shares are sharply above a flat base's 276.86 buy point despite a 0.55% drop Monday. The 5% buy area went up from the buy point to 290.70. MSFT stock hit a 52-week high on Friday.
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Source: Investor's Business Daily
