Dow Jones futures fall as Walmart dives on Outlook; What to do before the Fed decision | Investor’s Business Daily


Dow Jones futures were significantly lower after Monday’s trading session. The two-day Federal Reserve meeting begins on Tuesday, followed by an interest rate decision on Wednesday afternoon.


Late Monday, Apple’s chip maker NXP semiconductor (NXPI) reported strong Q2 results, but the stock was still down almost 2% in extended trading. NXP stocks are forming new base after a strong rebound from their recent lows. Meanwhile, the discount giant Dow Jones Walmart (WMT) is down more than 9% after lowering its earnings outlook for the current quarter and full year.

Next up this week is Tech Earnings heating up, with reports due alphabet (GOOGL), (AMZN), Apple (AAPL), meta platforms (META) and Microsoft (MSFT).

Alphabet and Microsoft will report after the market close on Tuesday. Meta earnings are due on Wednesday. Amazon and Apple earnings are on Thursday.

stock market today

On Monday, the Dow Jones Industrial Average was up 0.3% and the S&P 500 was up 0.1%. And the tech-heavy Nasdaq Composite pared its decline to 0.4%, extending losses from Friday’s decline.

Overview of today’s US stock market

index symbol Price loss of gain % change
Dow Jones (0DJIA) 31990.00 +90.71 +0.28
S&P500 (0S&P5) 3966.72 +5.09 +0.13
Nasdaq (0NDQC) 11782.67 -51.44 -0.43
Russell 2000 (IWM) 180.52 +1.01 +0.56
IBD 50 (FFTY) 27.00 +0.19 +0.71
Last updated: 4:54 PM ET 7/25/2022

Among exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 0.6% and SPDR S&P 500 ETF (SPY) rose 0.1%.

Tesla (TSLA) slipped 1.4% on Monday. Among Dow Jones executives, Apple and Microsoft lost 0.7% and 0.6%, respectively, in today’s stock market.

The Dow Jones share in a volatile stock market environment UnitedHealth (UNH) – as well ELF beauty (ELEVEN), Quanta Services (PWR), Ultimate beauty (ULTA), Verra mobility (VRRM) and Apex Pharma (VRTX) – are among the stocks to keep an eye on. Keep in mind that continued volatility in stock markets is a reason to remain more conservative despite recent signs of strength.

UnitedHealth and Vertex are IBD Leaderboard stocks. ELF and Ulta were featured in this week’s ‘Stocks Near a Buy Zone’ column.

Dow Jones Futures Today: Treasury Yields, Oil Prices, Fed Meeting

After Monday’s close, Dow Jones futures were down 0.4% and S&P 500 futures down 0.3% from fair value. Nasdaq 100 futures fell 0.4% from fair value. Keep in mind that overnight action in Dow futures and elsewhere doesn’t necessarily translate to actual trading in the next regular trading session.

The 10-year Treasury yield trended higher on Monday, closing at 2.82%. Meanwhile, US oil prices rallied about 2%, with West Texas Intermediate trading near $97 a barrel.

The Fed’s two-day meeting begins on Tuesday. Wall Street expects the central bank to aggressively hike interest rates through the end of the year — and then reverse and cut them in six months. Another rate hike of 75 basis points is expected on Wednesday.

What to do with the current stock market rally?

Individual stock action has mostly improved over the past few trading sessions, which is a good place to start during a difficult stock market rally. However, be more conservative and keep positions small when it comes to new purchases. Do not increase exposure too quickly, especially when there is great uncertainty. Friday’s sell-off shows again the importance of being more cautious at this point.

Friday’s The Big Picture column commented: “Several sales days fell off the count on Thursday, which bodes well for the burgeoning uptrend. Despite solid weekly gains for indices, the uptrend remains under pressure, 4,000 for the S&P 500 and 32,000 for the Dow Jones.”

If you are new to IBD, you should take a look at the CAN SLIM stock trading system and basics. Recognizing chart patterns is a key to investing guidelines. IBD offers a wide range of growth stock lists such as Leaderboard and SwingTrader.

Investors can also create watch lists, find companies approaching a buy point, or develop custom screens at IBD MarketSmith.

Four Dow Jones stocks you should be watching right now

Keeping an Eye on Dow Jones Stocks: UnitedHealth

Health insurance giant and IBD leaderboard stock UnitedHealth is range-buying above the 518.80 buy point of its handle-based double bottom after gaining 1.55% on Monday, according to chart analysis by IBD MarketSmith.

UNH stock shows a solid 95 out of 99 perfect IBD Composite Ratings according to the IBD Stock Checkup. Investors can use the IBD Composite Rating to easily gauge the quality of a stock’s fundamental and technical metrics.

4 Top Growth Stocks to Watchrightde Stock market rally

Top stocks to watch: ELF, Quanta, Ulta, Verra, Vertex

ELF Beauty is back below a buy point of 33.54 in a mug with a handle after a recent slide. The RS line made a new high last week, which is a sign of a major outperformance in the stock markets. ELF shares rose 0.5% on Monday after Stifel Nicolaus raised his price target to 34 from 29.

Quanta Services puts the finishing touches on a cup-and-handle basis that has a buy point of 138.56, according to chart analysis by IBD MarketSmith. Meanwhile, an early entry at 133.68 is also in play. Shares rose 0.5% on Monday.

IBD Big Cap 20 stock Ulta Beauty is building flat base at 429.58 buy points. The base comes past a cup with Henkel’s entry of 426.93 in June on the wake of a failed breakout. Over the past few weeks, the stock has decisively recaptured its 50-day moving average, setting the stage for a new buy point. Ulta shares fell 1.3% on Monday.

Verra Mobility continues to trade under a cup with a buy point of 16.83 from Handle after gaining 0.4% on Monday. The stock’s RS line continues to show tremendous strength as it made another new high last week.

IBD leaderboard stock Vertex Pharmaceuticals is testing a cup and handle buy point of 279.23 amid a two-week pullback in shares, according to IBD MarketSmith chart analysis. The biotech leader is in the 5% buy zone rising to 293.19 after Monday’s gain of 1.2%. However, investors should wait for a crucial sign of support before buying the stock.

Join IBD experts as they analyze leading stocks from the current stock market rally on IBD Live

Tesla stock

Tesla shares slipped 1.4% on Monday, breaking an eight-day winning streak and giving back a small chunk of last week’s 13.4% gain.

Shares are at their highest since early May but are still about 35% off their 52-week high.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares fell 0.7% Monday, adding to Friday’s losses. Apple remains above its 50-day moving average after bullish action in recent weeks. The shares remain below their 200-day long-term moving average, which is emerging as a resistance level to watch. The stock is down about 17% from its 52-week high.

Microsoft fell 0.6% on Monday, falling back below its 50-day moving average. The stock closed about 26% below its 52-week high.

Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.


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