Dow futures rose early Tuesday, as the stock market continued to slide in the wake of Friday’s plunge — which was driven by Hard words from Federal Reserve Chairman Jerome Powell Heading to the last two sessions of August. The August jobs report is due from the Labor Department on Friday morning.
stock market today
On Monday, the Dow Jones Industrial Average fell 0.6%, while the S&P 500 lost 0.7%. The heavy Nasdaq Composite is down 1%. Small cap Russell 2000 fell 0.9%.
US stock market overview today
|Standard & Poor’s 500||(0S & P5)||4030.76||-26.90||-0.66|
Last update: 4:40 PM ET 8/29/2022
In light of the continued weakness of the stock market, Arista Networks (Network), costco (cost), GlobalFoundries (GFS) And the Ulta Beauty (ULTA) – as well as the shares of Dow Jones chevron (CVX) And the McDonald’s (MCD) – among the top stocks to buy and watch. Keep in mind that the increased volatility in the market is a good reason for investors to be more defensive.
Dow futures today: Treasury yields, oil prices, and jobs report
Ahead of Tuesday’s open, Dow Jones futures are up 0.7% against fair value, and S&P 500 futures are up 0.8%. Nasdaq 100 futures are up 1.1% against fair value. Remember to work overnight in Dow Jones futures contracts and elsewhere that does not necessarily translate into actual circulation in the next regular session Stock market session.
The 10-year Treasury yield rose to 3.11% on Monday, extending last week’s gains. The 10-year Treasury yield closed at its highest level since June 28. Meanwhile, US oil prices are up more than 4%, with West Texas Intermediate crude futures trading around $97 a barrel.
The August jobs report is due from the Labor Department on Friday morning. The US economy is expected to add 293,000 jobs in August – according to Econoday estimates – down from July’s increase of 528000. Average hourly earnings in August are expected to rise 0.4% from the previous month and 5.2% on an annual basis.
What to do with the current stock market weakness
On Friday, stock market weakness led to a change in market expectations for IBD to “uptrend under pressure.”
An “uptrend under pressure” is a warning sign, telling you that an uptrend may be running out of steam and about to slide into a correction. Although the primary uptrend remains intact, it is time to proceed with caution.
During “uptrends under pressure” investors should be careful about making any new purchases. Focus only on stocks with exceptional fundamental and technical strength. Be disciplined and flexible. At this point, the market could stabilize and return to a “confirmed uptrend”, or it could fall into a correction.
The current environment is the perfect time to look for stocks that hold up best. An easy way to determine the leadership of the stock market is to use line of relative strength. The RS line is strong while the stock market suffers from strong technical indicators.
Friday big picture column He commented, “The stock market was rising on the hope of a soft landing for the US economy. But Powell’s speech reminded Wall Street that more rate hikes are on the way so that inflation doesn’t stay high. There is a little over 60% chance that the Fed will raise the rate.” prime lending by another 75 basis points in September. That should raise the federal funds rate to 3% to 3.25%.”
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Dow Jones stocks to watch: Chevron, McDonald’s
Chevron in Dow Jones is building a teacup base with 182.50 buying points, amid a strong performance of energy stocks this year so far. Early entry at 164.76 plays too. The stock was up 0.75% on Monday.
CVX stock Shows a strong 97 out of a perfect 99 IBD compound classification, for every IBD stock check. Investors can use the IBD composite rating to easily gauge the quality of a stock’s fundamental and technical metrics.
McDonald’s shares are now down about 3% below 265.56 cups with a handle after Monday’s 0.5% drop, according to IBD Market Smith Graph analysis. Stocks are trying to find support around the main 50-day line.
Top stocks to watch: Arista, Costco, GlobalFoundries, Ulta
Arista Networks added a handle to the double-bottom base, placing the correct insert at 132.97, according to IBD Market Smith Graph analysis. Arista’s relative strength line is flat near the recent highs despite the recent market weakness, which is a bullish sign. ANET stock was down 1.2% on Monday.
IBD Leaderboard Costco stock fell more than its 552.81 buy point from a cup with a handle, as shares fell on Monday. Costco shares halted their slide on Monday around the 200-day line. Wait for a bullish entry to recover before buying a stock.
GlobalFoundries fell below a double bottom 61.98 buy points on Friday, slip of 6%. An alternate entry, from a knob, is operated at 66.06. GFS stock is down 2.65% on Monday.
Ulta Beauty, the leading cosmetics company, is located above a double bottom 417.08 pips long after Monday’s 1.5% gain. Stocks are in buy territory, but the current market weakness should give you some pause.
Tesla shares It fell 1.1% on Monday, extending its losing streak into three sessions. The electric car giant’s shares continue to see strong resistance around the 200-day line.
Tesla is now more than 30% off its 52-week high.
Dow Jones Leaders: Apple and Microsoft
within Dow Jones stockApple shares fell another 1.4% on Monday, trading away from a cup with a buy point with a 10% handle at 176.25. The stock closed at the 200 day line. To the upside, the stock’s relative strength line held steady at new highs, indicating a flat performance in the stock market.
Microsoft stock fell 1.1% on Monday, falling through the 50-day streak to close at its lowest level since July 26. Shares are down nearly 24% from a 52-week high.
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