Dow Jones Futures Fall: 7 Top Stocks to Buy and Watch in Today’s Stock Market
Dow Jones futures fell 200 points on Tuesday after Monday’s stock market plunge. Despite Monday’s slight losses, the market’s uptrend has strengthened. And the top seven stocks to buy and watch include energy giant Dow Jones Chevron (CVX) and IBD ranking stocks Quantum Services (REP).
Arista Networks (A NET), CF Industries (CF), Devon Energy (DVN), Diamondback Energy (FANG) and Mosaic (MOS) were the leading earnings reports after Monday’s close.
ANET shares jumped 6% in extended trade on strong second-quarter results. CF shares fell more than 1%. Devon shares fell slightly. Diamondback slipped less than 1%. And Mosaic was down almost 3%.
Meanwhile, Dow Jones stock caterpillar (CAT), as well as Incyte (INCY) and UberTechnologies (UBER), will report ahead of Tuesday’s opening.
stock market today
On Monday, the Dow Jones Industrial Average fell 0.1% and the S&P 500 fell 0.3%. The tech-heavy Nasdaq composite fell 0.2%, ending a three-day winning streak.
Overview of the US stock market today
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Last Updated: 4:36 PM ET on 08/01/2022
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 0.1% and the SPDR S&P 500 ETF (SPY) fell 0.3%.
You’re here (TSLA) pared its gains to less than 0.1% on Monday. Among the leaders of the Dow Jones, Apple (AAPL) and Microsoft (MSFT) lost 0.6% and 1% respectively in the current stock market.
Against the backdrop of strengthening equity markets, Dow Jones Chevron and UnitedHealth (UNH) — as well as Energy Cheniere (LNG), Exxon Mobil (XOM), QuantaServices, Ultimate beauty (ULTA) and Vertex Pharmaceuticals (VRTX) – are among the best stocks to buy and watch.
Quanta, UnitedHealth and Vertex are stocks in the IBD ranking. Chevron and Exxon were featured in this week’s Stocks Near A Buy Zone column.
Dow Jones Futures Today: Treasury Yields, Oil Prices
Prior to Tuesday’s open, Dow Jones futures lost 0.6% relative to fair value, while S&P 500 futures fell 0.7%. Nasdaq 100 futures fell 0.8% from 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 on Monday, closing at 2.6% and falling for a fifth consecutive session. The 10-year rate is at its lowest level since early April. Meanwhile, US oil prices fell about 5%, with West Texas Intermediate futures trading below $94 a barrel.
What to do in the current stock market rally
Last week, IBD raised its market outlook from “uptrend under pressure” to “uptrend confirmed” due to improving market conditions.
Investors have the green light to increase their exposure to stocks, focusing on those that exceed the correct buy points. Gradually commit capital to leading stocks. However, now is not the time to be too aggressive.
Use each buy as a feedback on the current strength of the market rally. Don’t panic if you miss the first pushes. If the uptrend in the stock market is real, you will have plenty of time to buy stocks and earn money. This is an important strategy as previous follow-ups have failed this year and rallies have been cut short.
Friday’s The Big Picture column commented: “In a potentially dangerous week dominated by Big Tech earnings and the latest Fed meeting, the indices still managed to rally. It looks like Wall Street is getting stronger. more inclined to believe that the economy is turning a corner.”
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 watch: Chevron, UnitedHealth
Dow Jones energy giant Chevron is building the right side of a cup base that has a buy point of 182.50. Be on the lookout for a potential handle to provide lower entry. Shares surged last week after the company’s strong results. Chevron stock fell 2% on Monday.
Health insurance giant and IBD Leaderboard UnitedHealth stock is in the buy range above the 518.80 buy point of its double-bottomed base with handle after the 1.3% loss Monday, according to IBD MarketSmith’s chart analysis.
The UNH stock is posting a solid 94 out of a perfect IBD composite rating of 99, according to the IBD Stocks Balance Sheet. Investors can use the IBD Composite Rating to easily assess the quality of a stock’s fundamental and technical metrics.
4 growth stocks to watch in the currentrStock market rally
Top stocks to watch: Cheniere, Exxon, Quanta, Ulta, Vertex
Cheniere Energy is in a buy zone after breaking a trendline entry around 140. Now the stock is trying to break above the 146.45 buy point of a double bottom. The relative strength line has just reached new highs, a positive sign. The shares traded down 1.7% on Monday.
Friday’s IBD Exxon Mobil stock recovered the 50-day line and broke above an aggressive early entry around 93.24, as shares jumped 4.6% on Friday. But the energy giant lost ground on Monday, falling 2.5%. Meanwhile, a cutting base entry at 105.67 is also in play.
IBD Leaderboard Quanta Services stock is back at the buy point of 138.56 from a handle cup basis after Monday’s slight loss, according to IBD MarketSmith’s chart analysis. Quanta’s results are expected on Thursday.
Ulta Beauty is building a flat base with a buy point of 429.58 but is struggling to decisively retake its 50-day line amid Monday’s 1.4% gain. The base comes on the heels of a failed breakout after a cup-with-handle entry at 426.93 in June.
Vertex Pharmaceuticals gave up its cut with the 279.23 buy point of the handle and fell even lower below the 50-day line after Monday’s 2.35% decline. The company will release its results on Thursday.
Join IBD experts as they analyze the top stocks of the current stock market rally on IBD Live
Tesla stock pared its gains to less than 0.1% on Monday, but still extended its winning streak to four sessions. Stocks are at their highest level since early May and are finding resistance around their 200-day line, which is a key level to watch.
The stock is around 28% off its 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares fell 0.6% on Monday, ending a three-day winning streak. Last week, the stock found its 200-day line for the first time since May 5.
Microsoft fell 1% on Monday but remains above its 50-day line. Still, the software giant is still trading below its long-term 200-day line. The stock closed around 20% off its 52-week high.
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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