Futures: New Rally Attempt Begins; 6 Key Earnings Movers

Futures: New Rally Attempt Begins; 6 Key Earnings Movers

Dow Jones futures were higher after a new stock market rally attempt began Monday, as the major stock indexes rebounded from fresh correction lows. The 10-year Treasury yield briefly topped 3% for the first time since December 2018. Next up, the Federal Reserve’s two-day meeting kicks off Tuesday.


Arista Networks (ANET), Devon Energy (DVN), Diamondback Energy (FANG), Expedia (EXPE), Mosaic (MOS) and NXP Semiconductors (NXPI) were key earnings mover after the close.

Arista rallied 4% in extended trade after strong earnings results. Devon shares climbed about 1%. FANG shares inched higher. Expedia jumped almost 5%. Mosaic slid around 3%. NXP shares moved up about 1%.

Stock Market Today

On Monday, the Dow Jones Industrial Average rose 0.3%, while the S&P 500 moved up 0.6%. The tech-heavy Nasdaq composite advanced 1.6%. Among exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 1.7%, and the SPDR S&P 500 ETF (SPY) moved up 0.6% Monday.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 33063.61 +86.40 +0.26
S&P 500 (0S&P5) 4155.58 +23.65 +0.57
Nasdaq (0NDQC ) 12536.02 +201.38 +1.63
Russell 2000 (IWM) 186.97 +2.02 +1.09
IBD 50 (FFTY) 32.36 -0.09 -0.28
Last Update: 4:30 PM ET 5/2/2022

Twitter (TWTR) moved up 0.2% and Tesla (TSLA) stock raced 3.7% higher Monday.

Among the other Dow Jones leaders, Apple (AAPL) moved up 0.2% and Microsoft (MSFT) traded 2.5% higher in today’s stock market.

Amid a deepening stock market correction, Dow Jones leader Merck (MRK) — along with IBD Leaderboard stock Cheniere Energy (LNG), Exxon Mobil (XOM) and World Wrestling Entertainment (WWE) — are among Monday’s top stocks to watch.

Microsoft and Tesla are IBD Leaderboard stocks. Exxon and Merck were featured in this week’s Stocks Near A Buy Zone column.

Dow Jones Futures Today: Treasury Yields, Fed Meeting

After Monday’s close, Dow Jones futures rose 0.25% vs. fair value, while S&P 500 futures moved up 0.4%. Nasdaq 100 futures gained 0.55% vs. fair value. Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

The 10-year Treasury yield briefly topped 3% Monday, before closing at 2.99%. The 10-year Treasury yield hit a new 52-week high and is at its highest level since December 2018. Meanwhile, U.S. oil prices revered from sharp losses, with Texas Intermediate crude trading above $105 a barrel.

The Fed’s two-day policy meeting kicks off Tuesday. Markets fully expect policymakers to announce a half-point rate-hike when this week’s Federal Reserve meeting wraps up on Wednesday at 2 p.m. ET. And that’s expected to be followed by more of the same — if not an even bigger hike — in the next two Fed meetings.

New Stock Market Rally Attempt: What To Do Now

On Monday, the major stock indexes hit new correction lows before reversing higher. While one day doesn’t make a trend, it was a step in the right direction. Monday was Day 1 of a new rally attempt, which means a follow-through day can occur as soon as Thursday.

Still, investors should remain on the defensive. That means avoiding new purchases until a follow-through day. For now, keep a watchlist of stocks that are holding up well in a down market. They could be some of the stock market’s leaders in the next uptrend.

Searching for the next uptrend’s leaders while the market is still correcting is a challenge. One helpful method is to use a stock’s relative strength line. The RS line measures a stock’s price performance vs. the S&P 500. If the stock is outperforming the broader market, then the RS line angles upward. If a stock is performing worse than the broad market, then the line will point lower.

Friday’s The Big Picture column commented, “The Nasdaq composite slumped 4.2% and undercut Wednesday’s low, killing its nascent rally attempt. The index suffered its fourth-straight weekly decline and slumped 13.2% for the month, the worst monthly decline since October 2008.”

If you’re new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one key to the investment guidelines. IBD offers a broad range of growth stock lists, such as Leaderboard and SwingTrader.

Investors also can create watchlists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.

Five Dow Jones Stocks To Watch Now

Dow Jones Stocks To Watch: Merck

Dow Jones drug stock Merck is below a cup with handle’s 89.58 buy point following a brief breakout attempt last week. Shares dipped 1.2% Monday, ending about 2% below the latest entry.

Positively, the stock’s relative strength line is at new highs, indicating big stock market outperformance during the current stock market correction.

Three Top Growth Stocks To Watch In The Current Stock Market Correction

Stocks To Watch: Cheniere, Exxon, WWE

IBD Leaderboard stock Cheniere Energy is one of the top stocks to watch after finding support around its 50-day moving average Monday. Shares are etching a flat base that shows a 149.52 buy point, according to IBD MarketSmith chart analysis.

Last week, energy giant Exxon Mobil added a handle to a cup base, moving the correct buy point from 91.61 to 89.90. Shares reversed from early losses to climb 1.4% Monday. Exxon stock is about 4% away from the new entry.

World Wrestling Entertainment remains below its 50-day moving average despite Monday’s 2.4% climb. A decisive retake of the 50-day benchmark would be bullish for the stock’s prospects. Meanwhile, shares are just below a 60.94 buy point in a cup with handle.

Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live

Tesla Stock

Tesla stock raced 3.7% higher Monday after the stock broke down through its 50- and 200-day moving averages during last week’s 13% dive. Shares finished just below their 200-day line.

Shares of the EV giant finished Monday about 22% away from a cup-with-handle base’s 1,152.97 buy point. The stock traded as high as 1,243.49 on Nov. 4 and is about 27% away from that all-time high.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares reversed from sharp losses Monday, moving up 0.2%. The stock is still below its long-term 200-day line.

Software leader Microsoft rallied 2.5% Monday, recovering a part of Friday’s 4.2% skid. Shares are sharply below their 50- and 200-day lines. The stock closed around 20% off its 52-week high.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.


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MarketSmith: Research, Charts, Data And Coaching All In One Place

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