Dow Jones Futures: What to do as the market correction continues
Dow Jones futures were slightly higher late after Monday’s stock market rally. Twitter shares surged as Tesla Chief Executive Elon Musk signed an agreement to buy the company in a deal worth $44 billion.
Packing Company of America (PKG) was a key driver of earnings after the close. Shares of PKG rose more than 1.5% in extended trade.
On Monday, the Dow Jones Industrial Average came back from steep losses to rebound 0.7%, while the S&P 500 rose 0.6%. The tech-heavy Nasdaq composite rose 1.3%. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) gained 1.3% and the SPDR S&P 500 ETF (SPY) rose 0.6% on Monday.
Overview of the US stock market today
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Last Updated: 4:42 PM ET on 04/25/2022
Oil stocks were among the worst performers of the day as US oil prices fell more than 3%. West Texas Intermediate crude was trading below $99 a barrel. Schlumberger (SLB) slipped more than 7%. Halliburton (HAL) fell 6.3%. And hugue baker (BKR) fell 4.5%.
In the midst of another stock market correction, the financial leader of Dow Jones American Express (AXP) — with Expedia (EXPE), shares of the IBD ranking LPL Financial (LPLA), Palo Alto Networks (PANW) and World wrestling entertainment (WWE) – are among the top Monday stocks to watch.
Among the leaders of the Dow Jones, Apple (AAPL) increased by 0.7% and Microsoft (MSFT) rose 2.4% in today’s stock market.
Microsoft and Tesla are IBD stocks. Expedia and Palo Alto Networks were featured in this week’s Stocks Near A Buy Zone column.
Elon Musk buys Twitter
Twitter (TWTR) jumped 5.7% after the company agreed to be acquired by Tesla CEO Elon Musk in a deal worth around $44 billion. Musk will take the company private upon completion. You’re here (TSLA) The stock fell 0.7% on Monday.
“Free speech is the foundation of a functioning democracy, and Twitter is the digital public square where issues vital to the future of humanity are debated,” Musk said in written remarks.
“I also want to make Twitter better than ever by enhancing the product with new features, making algorithms open source to increase trust, defeating spambots, and authenticating all humans,” he continued. “Twitter has enormous potential – I look forward to working with the company and the user community to unlock it.”
Dow Jones Futures Today: Treasury Yields
After Monday’s close, Dow Jones futures, S&P 500 futures and Nasdaq 100 futures were all slightly above fair value. Remember that overnight action on futures contracts on Dow Jones and elsewhere does not necessarily translate into actual trading in the next regular trading session.
The 10-year Treasury yield fell to 2.82% on Monday after closing Friday at 2.9%. Last week, the 10-year Treasury yield hit its highest level since December 2018.
The stock market correction continues: what to do now?
On Monday, major equity indices showed positive action, as major equity indices reversed from early losses to end with solid gains. However, the stock market outlook was downgraded on Friday to a “market correction” after steeper losses.
Monday is day 1 of another rally attempt. Amid the new stock market correction, investors are expected to take profits and raise cash. Additionally, keeping a watchlist of stocks that hold up well in a bear market is a good way to prepare for the next uptrend in the stock market.
You can find many leaders of the next uptrend while the market is still correcting, which can be done using the relative strength line. The RS line measures a stock’s price performance relative to the S&P 500. If the stock is outperforming the broader market, the RS line slopes up. If a stock is performing worse than the broader market, the line will point down.
Monday’s The Big Picture column commented: “Market optimists will appreciate that the S&P 500 has bounced around the 4200 level, roughly where the index hit lows in January, February and March. The Nasdaq low Monday also occurred in the vicinity of its February and March lows. This suggests that the stock market could have found a bottom. But it is too early to tell. The market must first initiate a rally attempt .
If you are new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one of the keys to investing guidelines. IBD offers a wide range of growth stock listings, such as Leaderboard and SwingTrader.
Investors can also create watchlists, find companies close to a buy point, or develop custom screens at IBD MarketSmith.
Five Dow Jones stocks to watch now
Dow Jones Stocks to Buy and Watch: American Express
Dow Jones financial stock American Express is charting a cup with handle with a buy point of 194.45. Shares rose 2% on Monday, ending around 5% from last entry.
Keep an eye on the stock’s relative strength line. Amid its recent rise, the RS range is beginning to approach its former highs, which means it is outperforming the overall market again.
Three growth stocks to watch in the currentrent Stock market correction
Stocks to Watch: LPL, Expedia, Palo Alto, WWE
IBD Leaderboard LPL Financial stock remains above a buy point of 191.08 in a handle cup, but double-digit gains have faded in the recent drop. On April 21, shares climbed as much as 15.5% above the entry, meaning the stock is about to trigger the round-trip sell rule, according to chart analysis. ‘IBD MarketSmith.
Thursday’s IBD stock Expedia builds a mug with handle with a buy point of 204.08. Stocks are trying to regain their 50-day line, but are struggling at this key resistance level. The EXPE stock is posting a 90 out of a perfect IBD composite rating of 99, according to the IBD stock balance sheet.
Leading cybersecurity stock Palo Alto Networks is finding much-needed support on its 50-day line after triggering a round-trip sell signal from a buy point of 572.77. Stocks rebounded nearly 5% on Monday.
World Wresting Entertainment also found support around its 50-day moving average on Monday, reducing the steep losses to just 0.3%. Stocks are just below a buy point of 60.94 in a handle cup.
Join IBD experts as they analyze the top stocks of the current market correction on IBD Live
Tesla stock fell 0.7% on Monday, adding to Friday’s 0.4% loss. Shares of the electric vehicle giant ended Monday about 13% off the 1,152.97 buying point of a cup with handle.
The stock traded as high as 1,243.49 on Nov. 4 and is about 20% off that all-time high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares triggered the 7% to 8% loss cut rule from a buy point of 176.75 in a double bottom basis in recent weeks. Apple stock found support at its long-term 200-day line, up 0.7% on Monday.
Software leader Microsoft rebounded 2.4% on Monday, but remains below its 50- and 200-day lines. The stock is around 20% off its 52-week high.
Apple and Microsoft release their results this week.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen to learn more about growth stocks and the Dow Jones Industrial Average.
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