Dow Jones futures were higher ahead of Tuesday’s open as the Federal Reserve’s two-day meeting is set to begin. The Dow Jones Industrial Average had its best month since 1976, rising nearly 14% in October.
The central bank’s two-day meeting begins on Tuesday, with an interest rate decision set for Wednesday afternoon. Investor sentiment shows an 85% probability of a 75-basis-point rise, According to CME.
The The central bank says it will not pivot — that is, the pace of its rate increases slowly — until the strong labor market shows clear signs of slowing. But once the job market starts rolling, the central bank’s strategy and a wide array of economic factors could change. That puts Friday’s jobs report under increased scrutiny.
Stock market today
On Monday, the Dow Jones Industrial Average fell 0.4% and the S&P 500 lost 0.7%. The tech-heavy Nasdaq composite was off 1%.
Among the best stocks to buy and watch, Dycom (DY), Senior Energy (LNG), Dollar General (DG) and Pure savings (PSTG) — as well as Dow Jones names Chevron (CVX) and UnitedHealth Group (UNH) — are among the best stocks to buy and watch. Remember that the current stock market rally is the perfect time for investors to look for stocks in their buy zones.
A senior IBD Leaderboard Stock. Dollar General is a IBD SwingTrader Stock. Pure savings Featured in this week’s Stocks Near a Buy Zone columnAlong with three other great stock ideas.
Dow Jones Futures Today: Treasury yields, oil prices
Before Tuesday’s opening bell, Dow Jones futures were 0.25% above fair value, while S&P 500 futures were up 0.3%. Nasdaq 100 futures gained 0.4% versus 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 Treasury yield rose to 4.07% on Monday, recovering some of last week’s losses. Meanwhile, US oil prices fell 2% as West Texas Intermediate futures traded near $86 a barrel.
revenue Season: AMD Revenue Tech
Third quarter earnings season Continuing this week, key reports come from energy companies Bp (Bp), Rat Lily (LLY), Uber Technologies (UBER) and Dow Jones stock Pfizer (PFE) All four are scheduled to report Tuesday morning. Advanced Micro Devices (AMD) and Airbnb (APNB) will be notified after the final Tuesday.
Earnings reports cause many big moves in stocks and require special attention. Strong earnings can spur new buy points above and buy zones, while a less-than-impressive announcement could send shares tumbling below key support levels.
The stock market’s reaction to an earnings release can often tell you more than earnings. If results look strong but the stock falls, investors may worry about the sustainability of growth, rising costs or other potential downsides.
As the market rallies, investors should keep an eye on companies that easily beat earnings results and have strong upside reactions. If the market can extend its recent gains, they could be one of the stock market leaders.
What to make of the ongoing stock market rally
Now is an important time to study IBD’s The Big Picture column. Following the recent gains, investors have given the green light to break past perfect buy points and buy the best stocks. But not all follow-ups work, so it’s important to raise exposure slowly and systematically as the new boom proves itself.
But not every follow-up results in a steady advance, which is why investors should gauge their exposure in the days and weeks following this signal, especially with the added risk of the Fed meeting to come. You want to buy in sync with the market so that you don’t get too caught up in a trend that could reverse you.
Remember, don’t panic if you miss the first two breakouts. The Nasdaq is still more than 30% off. If this stock market rally is real and meaningful, there will be plenty of time to buy stocks and make money in the coming weeks and possibly months.
And if the stock market starts to break again, you can reduce exposure without losing too much capital.
Dow Jones stocks to watch: Merck, UnitedHealth
Key stocks to watch: Senior, Dollar General, Dycom, Pure Savings
IBD Swing Trader Stock Dollar General is trying to break out above the 259.75 buy point on a cup base. TG shares lost 2.1% on Monday, ending below the entry. If the stock regains this critical level, the 5% chase zone will rise to 272.74.
Friday’s IBD Stock of the Day, Pure Storage is nearing a 31.62 buy point following three days of gains. The stock rose 1.15% on Monday.
Tesla stock It fell 0.4% on Monday, snapping a four-day winning streak. Shares are recovering after hitting a new 52-week low last week.
However, shares are about 45% off their 52-week highs and below their 50- and 200-day moving average lines.
Dow Jones Leaders: Apple, Microsoft
in the middle Dow Jones Stocks, Apple shares fell 1.5% on Monday and are about 16% off their 52-week high. Last week, the stock retook its 50-day line on the upside. Now, the stock is testing resistance at its long-term 200-day line.
Microsoft fell 1.6% on Monday, giving up part of Friday’s 4% rebound. Shares are near their Oct. 13 52-week low. The software company is more than 30% above its 52-week high.
Don’t forget to follow Scott Lehtonen on Twitter @IBD_SLehtonen Learn more about growth stocks and the Dow Jones Industrial Average.
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