Dow Jones Falls 260 Points Ahead of Fed Meeting, Big Earnings; What to do now

Dow Jones futures were lower at the open on Tuesday after the Dow Jones Industrial Average fell 260 points on Monday. The Federal Reserve’s policy meeting headlines the week, with big earnings results Amazon (AMZN), Apple (APL), letters (Google) and Meta platforms (Meta)




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Fed meeting, big earnings results

The central bank’s two-day meeting begins on Tuesday, and the central bank is widely expected to raise the target federal funds rate by 25 basis points to a range of 4.5% to 4.75%. Investors are placing a 99% probability on that rate of increase CME’s FedWatch tool.

Late Monday, an Apple supplier NXP Semiconductors (NXPI) fell 4.5% in extended trading after reporting its fourth-quarter earnings results.

Meta’s earnings are due late Wednesday, while Alphabet, Amazon and Apple are set for Thursday after earnings close.

This includes this week’s top earners Advanced Micro Devices (AMD), Exxon Mobil (XOM), member of Dow Jones Merck (MRK) and Starbucks (Sex) vehicle manufacturers Ford (F) and General Motors (GM) are also reported.

Stock market today

On Monday, the Dow Jones Industrial Average fell 0.8%, and the S&P 500 fell 1.3%. The tech-heavy Nasdaq composite was off 2%. in the middle Exchange Traded FundsNasdaq 100 tracker Invesco QQQ Trust (QQQwent down 2% and the SPDR S&P 500 (espionagefell 1.2%.

The electric vehicle giant Tesla (D.S.L.A) fell 6.3% on Monday. in the middle Dow Jones Stocks, Apple (APL) fell by 2% and Microsoft (MSFT) decreased by 2.2% Today’s stock market.

IBD Leaderboard Stock Imp (PI), Etsy (ETSY) and Wingstop (the wing) — as well as Dow Jones stocks Chevron (CVX) and JP Morgan Chase (JPM) — is one of the best stocks to buy and watch, with the current strength of the market rally.

Impinge is one IBD Leaderboard Stock. Etsy was recently IBD stock of the day. Impinch and Wingstop featured Near the column of this week’s stock buy zone.

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Dow Jones Futures Today: Oil Prices, Treasury Yields

Before Tuesday’s opening bell, Dow Jones futures were up 0.3% and moving against fair value, and S&P 500 futures lost 0.35%. Tech-heavy Nasdaq 100 futures were down 0.5% against fair value. Remember that it is an overnight operation Dow Jones futures The next routine elsewhere doesn’t necessarily translate into actual trading stock market session.

The 10-year U.S. Treasury yield rose to 3.55% on Monday, extending its winning streak to three sessions. Last week, the 10-year yield did not end a three-week losing streak.

Oil prices fell more than 2% as markets looked ahead OPEC meeting this week. West Texas Intermediate futures fell below $78 a barrel. Ministers from the Organization of the Petroleum Exporting Countries and its allies, including Russia (OPEC+), will meet on Wednesday. OPEC is widely expected to maintain current oil production levels, but may discuss possible policy changes.


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What to make of the ongoing stock market rally

Now is an important time to study IBD’s The Big Picture column With the stock market trending in a “confirmed uptrend” amid strong gains in recent sessions.

With last week’s more bullish action, it makes sense for investors to increase exposure to 60% to 80%. But be prepared to move quickly as things can change quickly in the stock market, especially during this week’s news-driven market.

(Check IBD stock listings such as IBD 50 And Stocks near a buy zone(for additional role ideas.)


Five Dow Jones Stocks to Buy and Watch Now


Dow Jones stocks to buy and watch: Chevron, JPMorgan

Energy giant Chevron fell 2.9% on Monday for a second straight session. The stock broke below the 50-day moving average support level. Despite the recent weakness, CVX stock added a handle to a cup base, lowering the step from 189.78 to 187.91. IBD MarketSmith Chart Analysis.

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Despite Monday’s 0.9% loss, banking giant JPMorgan remains in a buy range above the 138.76 flat-base buy point. JPM share Showing a solid 94 out of a perfect 99 IBD Joint Assessmentfor one IBD Stock Checkout. Composite Rating is designed to help investors easily find the best growth stocks.


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Best stocks to buy and watch: Impinj, Etsy, Wingstop

Share on the IBD Leaderboard Impinj ended Monday below a 129.12 buy point on the cup floor following its recent breakout move as shares fell 2.9% on Monday. Look for a decisive retracement of the buy point to signal another opportunity to buy the stock.

Background: Impinj’s expertise is in RF (Radio Frequency) semiconductors to identify, locate and authenticate objects. Despite losing money in 2020, the company earned 25 cents per share in 2021. And annual earnings per share are expected to rise 284% to 96 cents this year.

Etsy is down again 137.01 buy point in a Cup with handle after Monday’s 2.25% drop. If the stock re-enters, the 5% buy area rises to 143.86.

Background: The company provides an online e-commerce platform where creators of arts and crafts, antiques and other unique items sell their products. It has a unique business model that, over the past few years, has transformed it from a niche e-commerce marketplace to a top shopping destination across multiple categories.

Wingstop is fast approaching the 170.97 buy point in a lopsided cup base. Consider a possible handle to provide lower entry.

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Background: The Dallas-based restaurant chain has more than 1,900 locations in the U.S. and international markets, according to Dow Jones Newswires. The company added 40 stores in the previous quarter to its international locations in Mexico, Colombia, Panama, Singapore and the UK. Earnings will be released on February 22. EPS is expected to grow 71%, with a 40% increase in revenue to $101.1 million.


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Tesla stock

Tesla stock It fell 6.3% on Monday, snapping a six-day winning streak and giving up a chunk of last week’s 33% surge. Despite a strong rebound since January 6, shares are still below the 200-day line. Tesla stock closed about 56% off its 52-week high.

Earlier on Monday, Tesla stock improved Buy from PT at Berenberg. The new price target is reduced from 255 to 200.

Dow Jones Leaders: Apple, Microsoft

in the middle Dow Jones Stocks, Apple shares tumbled 2% on Monday, ending a two-day winning streak. But they still hold above the 50-day line following strong gains in recent sessions. The stock is about 20% off its 52-week high. Apple will report its quarterly earnings on Thursday.

Microsoft stock fell 2.2% on Monday, ending just above its 50-day line, which it regained last week. Shares are at 23% above their 52-week high.

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