Dow Jones Futures Fall: What to do after today’s stock market selloff ahead of key inflation report

Dow Jones Futures Fall: What to do after today’s stock market selloff ahead of key inflation report

Dow Jones futures were down after Monday’s selloff. A key inflation report – the Consumer Price Index – is due out Tuesday morning before the market opens.


stock market today

On Monday, the Dow Jones Industrial Average fell 1.2% and the S&P 500 fell 1.7%. The tech-heavy Nasdaq composite fell 2.2%. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 2.4% and the SPDR S&P 500 ETF (SPY) lost 1.7% on Monday.

Leader in electric vehicles You’re here (TSLA) slipped almost 5% on Monday. Twitter (TWTR) reversed its losses to end up 1.7% after Tesla CEO Elon Musk decided not to be a director of the company.

Overview of the US stock market today

HintSymbolPriceloss of profit% Switch
Dow Jones(0DJIA)34309.07-412.05-1.19
Nasdaq(0NDQC )13411.96-299.04-2.18
Russell 2000 (IWM)196.54-1.33-0.67
INN 50 (FFTY)35.89-0.71-1.94
Last Updated: 4:30 PM ET on 04/11/2022

Chip stocks were among the worst performers of the day. Nvidia (NVDA) fell 5.2% following an analyst’s downgrade. Advanced micro-systems (AMD) slipped 3.6% to its lowest level since July 2021.

As the uptrend in the stock market continues to deteriorate, the financial leader of Dow Jones American Express (AXP) — with Alphabet (GOOGL), Broadcom (AVGO), IBD Rating Watchlist Stock Edwards life sciences (THAT ONE), Raytheon Technologies (RTX) and Shell (SHEL) – are some of Tuesday’s best stocks to buy and watch.

Elsewhere among the Dow Jones leaders, Apple (AAPL) fell 2.55% and Microsoft (MSFT) traded down 3.9% in today’s stock market.

Microsoft and Tesla are IBD stocks. Edwards Lifesciences and Raytheon Technologies were in the Stocks Near A Buy Zone column this week.

Dow Jones Futures Today: Treasury Yields, Oil Prices, CPI

After Monday’s close, Dow Jones futures fell slightly, while S&P 500 futures lost 0.1% relative to fair value. Nasdaq 100 futures fell 0.15% 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 US Treasury yield extended a winning streak to seven sessions on Monday, hitting 2.78%, its highest level since January 2019. US oil prices fell more than 3% on Monday, crude West Texas Intermediate trading below $95 per barrel. Additionally, the worsening virus outbreak in China is raising concerns about potential demand.

Consumer prices in March are expected to have risen 1.1% for a year-on-year rate of 8.4% – according to Econoday estimates – which would be the fastest increase since December 1981. The consumer price index measures the rate of inflation. Meanwhile, the White House said it expects “headline CPI inflation in March (number) to be extraordinarily high due to Putin’s price hike.”

The Department of Labor will release the CPI at 8:30 a.m. ET.

Stock market rally struggles: what to do now

On Monday, the stock market posted another disappointing performance, with major equity indices ending with steep losses. The Nasdaq fell further below its 50-day line, which had been a key support level to watch.

Even though the underlying uptrend is still intact, it’s time to proceed with greater caution. Be wary of most new buying and focus only on stocks that have outstanding fundamentals and significant volume breakouts beyond correct buying points. Also, be flexible. The market may rebound and return to a “confirmed uptrend”, or the selloff may persist and lead to a correction.

Monday’s The Big Picture column commented: “The S&P 500 fell 1.7% and closed slightly below the 50-day moving average. The index is now trying to find support at this level. But if the Nasdaq is an indication the composite melted across its 50-day line on Monday after attempting to stall the previous two sessions.”

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.

Four 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 fell 3.3% on Monday, ending around 9% from last entry.

Keep an eye on the stock’s relative strength line. Amid its recent descent, the RS line is beginning to fade further from its former highs, meaning it has its work cut out for a potential breakout. The RS line measures a stock’s price performance against the S&P 500. The RS line should reach a new high on the day of the breakout or shortly thereafter to confirm the strength of a stock’s breakout.

Four growth stocks to watch in the currentrStock market rally

Stocks to buy and watch: Alphabet, Broadcom, Edwards, Raytheon, Shell

IBD’s recent 50 Stocks To Watch pick, Alphabet, shows a buy point of 2,875.97 in a cup with handle, according to IBD MarketSmith’s chart analysis. GOOGL shares are around 10% from entry after Monday’s 3.35% drop.

Broadcom fell another 1.1% on Monday as the chip stock moved further below an early entry at 614.74. Stocks are approaching the 7%-8% loss trigger. The stock has also dropped its support on its 50-day line in recent sessions. Meanwhile, stocks have set up another buy point, a handle entry at 645.41.

The IBD Ranking Watchlist stock Edwards Lifesciences continues to move up the right side of a cup base that shows a buy point of 131.83. Shares slid almost 2% on Monday. Monday’s weakness is likely the start of a handful that would lower the risk-optimal entry to 125.21.

Defense contractor Raytheon Technologies is within a 104.44 buy-point strike distance from a flat base. Shares rebounded 1.7% on Monday, trading just 2% off last entry.

Oil and gas producer Shell, IBD stock for the day April 1, is trading just below the buy point of 56.23 on a flat basis after Monday’s 1.4% drop.

Join IBD experts as they analyze the top stocks of the current stock market rally on IBD Live

Tesla Stock

Tesla stock slipped 4.8% on Monday, adding to Friday’s 3% decline. Shares of the electric vehicle giant ended Monday around 15% 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 closed Monday about 22% off that all-time high.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares fell 2.55% on Monday, still below a buy point of 176.75 in a double-bottom basis. The stock is about to trigger the sell rule with losses reduced from 7% to 8%. Alongside this double bottom entry, a handle buy point is also in play at 179.71. On the downside, AAPL stock dropped its 50-day support level on Monday, indicating that further weakness is likely.

Software leader Microsoft fell 3.9% on Monday as shares fall further below their 50- and 200-day lines. The stock is nearly 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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