Dow Jones futures: what to do after today’s stock market crash; Fed meeting, key inflation report next

Dow Jones futures rose after the stock market crashed on Monday. Major stock market indices traded sharply to new lows in 2021, as Treasury yields rose to their highest level since 2011.

More inflation data with the Department of Labor’s producer price index are due to be released on Tuesday, while the long-awaited two-day Federal Reserve meeting will also begin.

Dow Jones futures today: Treasury yields, oil prices, inflation, Fed meeting

Following Monday’s close, Dow Jones futures rose 0.3% from fair value, and S&P 500 futures rose 0.4%. Nasdaq 100 futures gained 0.55% from fair value. Remember that overnight action on Dow futures and elsewhere does not necessarily translate into actual trading at the next normal stock market session.

10-year Treasury yields rose to 3.36% on Monday, their highest level since April 2011. Meanwhile, US oil prices remain close to recent highs, with West Texas Intermediate trading at around $ 121 a barrel. In early March, the WTI briefly topped $ 130 a barrel.

Producer prices are expected to rise 0.8% in May after rising 0.5% in April, according to Econoday. Producer inflation is expected to rise by 11% year-on-year. The producer price index is a measure of price strength based on the selling prices received by domestic producers for their production.

The Fed will begin its last two-day policy meeting on Tuesday, and the central bank is expected to raise its benchmark interest rate by half a percentage point on Wednesday. But expectations that the Fed will be forced to move even more aggressively this year are rising since Friday’s hot inflation report.

Today’s bag

On Monday, the Dow Jones Industrial Average fell 2.8%, while the S&P 500 fell 3.9%. The Nasdaq technology compound fell 4.7%. Among the traded funds, the Nasdaq 100 Invesco QQQ Trust (QQQ) tracker fell 4.65% and the SPDR S&P 500 ETF (SPY) fell 3.8%.

US stock market overview

Index Symbol Dow Jones Price Gain / Loss Rate Change (0DJIA) 30518.06 -874.73 -2.79 S&P 500 (0S & P5) 3749.91 -150.95 -3.87 Nasdaq (0NDQC) 10809.23 -50.23 -50.23 Russell -5,436.0 (10809.23) FFTY) 29.49 -1.80 -5.75 Last updated: 16:28 ET 13/06/2022

Oracle (ORCL) reported gains after closing on Monday. Oracle shares rose 12% in extended trading after the company reported better-than-expected earnings and sales results.

Shares of Tesla (TSLA) skidded more than 7% on Monday. Among the leaders of the Dow Jones, Apple (AAPL) sold 3.8% and Microsoft (MSFT) listed 4.2% on the current stock market.

As stock market correction worsens, Dow Jones leaders Chevron (CVX), Merck (MRK) and Travelers (TRV), along with Carlisle (CSL), HealthEquity (HQY), Northrop Grumman (NOC) and World Wrestling Entertainment (WWE): They are among the most important actions of IBD to watch on Tuesday.

WWE is an IBD qualifying bag. World Wrestling Entertainment appeared in the Stocks Near A Buy Zone column this week.

What to do after today’s stock market crash

On Monday, industrialists Dow Jones, Nasdaq and S&P 500 hit new lows as the stock market plunged. Investors should look forward to an optimistic day that marks the beginning of a new attempt at concentration.

In the midst of deepening stock market correction, investors should be mostly, if not completely, on the sidelines. New purchases are out of range. Also, keeping track of stocks that hold up well in a bear market is a good way to be prepared for the next stock market uptrend.

Keep in mind that the leading actions of the past may not be the leading actions of the future. To help identify stock leaders emerging from a new upward market trend, use the relative strength line to see which stocks are outperforming the overall market.

During a stock market correction, investors should identify companies whose stock prices are struggling against the downward trend of the stock market. A strong RS line will point much higher, either during the base period or shortly after a break.

Monday’s column The Big Picture commented: “After falling in the opening, the indices remained weak at the close. The four-day streak of losses of the main indices is now the largest since March 2020, according to “Dow Jones Market Data. The precipitous fall. Rivals with the fall of the Covid market that year.

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

Investors can also create watch lists, find businesses near a point of purchase, or develop custom screens in IBD MarketSmith.

Five Dow Jones stocks to watch now

Dow Jones stocks to watch: Chevron, Merck, travelers

Dow Jones leader and energy giant Chevron gave up 174.86 points of purchase from its flat base, according to analysis by the IBD MarketSmith chart, after falling 4.6% on Monday. CVX’s stock has a perfect composite score of 99 IBD, according to the IBD stock review. Investors can use the IBD compound rating to easily measure the quality of the fundamental and technical metrics of a stock.

Merck, a stock of Dow Jones and IBD Big Cap 20, fell even further below the 89.58-point buyout of its handle cup on Monday, as shares fell another 2.5%. Shares gave up support around its 50-day key line on Friday, which is a sell signal.

Insurance giant Travelers continues to build a flat base with a point of purchase of 188.08. Shares are further below their 50-day line after falling 0.9% on Monday.

Two most important growth stocks to observe in the current stock market correction

Actions to watch: Carlisle, HealthEquity, Northrop, WWE

The recent existence of IBD on the day Carlisle shows a flat base with a buy point of 275.23, although shares fell 4.6% on Monday to give up its 50-day line.

HealthEquity is plotting a cup with a handle with a buy point of 66.23, as shares reversed 0.9% more on Monday. Stocks are finding support around their 50 day key line and are only 2% of the last entry. Keep in mind that the weak market environment should keep you out of the way.

Northrop Grumman found much-needed support for its 50-day moving average on Friday, but it remains about 3% below the 477.36 point of purchase of its cup with handle. Shares of NOC fell 0.7% on Monday.

IBD Leaderboard’s World Wrestling Entertainment shares are testing the 63.81 buy-off from a flat base, according to analysis from the IBD MarketSmith chart, as WWE shares rose on Monday. On May 25, the shares staged a sharp break after entry. But stocks are just above the latest entry in the new wave of sales in the market.

According to the rating table’s comment, the relative strength of WWE’s line of action is at an all-time high and has been gaining ground since January. The base is the first stage, a bonus for the graphic.

Join IBD Experts as they analyze the main stocks of the current stock market rebound on IBD Live

Tesla stock

Shares of Tesla slipped 7.1% on Monday, adding to the 3.1% drop on Friday. Stocks are well below their 50- and 200-day moving averages.

Shares traded at 1,243.49 on Nov. 4. Shares are around 48% of this all-time high.

Dow Jones leaders: Apple, Microsoft

Among Dow Jones equities, Apple shares were up 3.8% on Monday, reaching their lowest level since June 2021. Shares are well below their 200-day-long line. term and are around 28% of their 52-week maximum.

Microsoft’s software leader lost 4.2% on Monday and remains well below its 50- and 200-day lines. Shares closed more than 30% of their 52-week high.

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