Dow Jones futures fell 100 points after Monday’s plunge. Despite Monday’s slight losses, the market’s uptrend has strengthened. And seven top stocks to buy and watch include Dow Jones energy giant Chevron (CVX) and IBD Leaderboard Shares Quanta Services (PWR).
Arista Networks (A NET), CF Industries (CF), Devon Energy (DVN), Diamondback energy (FANG) and Mosaic (MOS) were the main earnings reports after the closing Monday.
ANET shares rose 6% in extended trading on strong Q2 results. CF shares fell more than 1%. Devon shares rose lower. Diamondback fell less than 1%. And Mosaic was due to report shortly.
Meanwhile, Dow Jones Shares caterpillar (CAT), along with incyte (INCY) and Uber technologies (UBER), reports 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.
US stock market overview today
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Last update: 4:36 PM ET 8/20/22
Of the 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%.
Tesla (TSLA) cut profits below 0.1% Monday. Among Dow Jones leaders, Apple (AAPL) and Microsoft (MSFT) lost 0.6% and 1% respectively in the current stock market.
In the increasingly strong stock market environment, Dow Jones has shares Chevron and UnitedHealth (UNH) — as well as Cheniere Energy (LNG), Exxon Mobil (XOM), Quanta Services, Ulta Beauty (ULTA) and Vertex Pharmaceuticals (VRTX) — are among the top stocks to buy and watch.
Quanta, UnitedHealth and Vertex are IBD Leaderboard stocks. Chevron and Exxon were featured in the Near Buy Zone Equities section this week.
Dow Jones Futures Today: Treasury Yields, Oil Prices
After Monday’s close, Dow Jones futures lost 0.3% against fair value, while S&P 500 futures fell 0.4%. Nasdaq 100 futures fell 0.3% from fair value. Remember that overnight action in Dow Jones futures and elsewhere does not necessarily translate into actual trading in the next regular trading session.
10-year Treasury yields tapped lower Monday, closing at 2.6% and falling for a fifth straight session. The 10-year yield is at its lowest level since early April. Meanwhile, US oil prices fell about 5%, while West Texas Intermediate futures traded 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 “confirmed uptrend” on the back of improving stock market conditions.
Investors have the green light to increase their exposure to stocks, focusing on those that move past the right buying points. Gradually invest capital in leading stocks. Still, it is not time to be overly aggressive.
Use each purchase as feedback on the current strength of the market rally. Don’t panic if you miss the first few pimples. If the stock market uptrend is real, there is plenty of time to buy stocks and make money. This is an important strategy as previous follow-throughs this year have failed and rallies have broken down.
Friday’s column The Big Picture noted, “In a potentially dangerous week dominated by Big Tech’s gains and the latest Fed meeting, indices still managed to move higher. It appears that Wall Street increasingly inclined to believe that the economy is turning a corner.”
If you’re new to IBD, consider checking out CAN SLIM’s stock trading system and basics. Recognizing chart patterns is a key to investment guidelines. IBD offers a wide variety of growth stock lists such as Leaderboard and SwingTrader.
Investors can also create watchlists, find companies approaching a buying 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 with a buy point of 182.50. Be wary of a possible grab handle to provide a lower entry. Shares rose last week following the company’s strong earnings results. Chevron stock fell 2% on Monday.
Health insurance giant and IBD Leaderboard stock UnitedHealth is in the buy range above the 518.80 buy point of the handle base double bottom after Monday’s 1.3% loss, according to the IBD MarketSmith chart analysis.
UNH stocks show a solid 94 out of a perfect 99 IBD Composite Rating, according to the IBD Stock Checkup. Investors can use the IBD Composite Rating to easily measure the quality of a stock’s fundamental and technical statistics.
4 top growth stocks to keep an eye onrent Stock Market Rally
Top Stocks to Watch: Cheniere, Exxon, Quanta, Ulta, Vertex
Cheniere Energy is in a buy zone after crossing a trendline around 140. Now the stock is trying to break past the buy point of 146.45 on a double bottom. The relative strength line just hit new highs, a positive sign. The stock was down 1.7% on Monday.
Friday’s IBD stock, Exxon Mobil, retook the 50-day line, hitting an aggressive early entry around 93.24, while shares rose 4.6% on Friday. But the energy giant lost some ground on Monday, falling 2.5%. Meanwhile, a cup-base entry at 105.67 is also in play.
IBD Leaderboard stock Quanta Services is back at a buy point of 138.56 with a head-to-head after Monday’s slight loss, according to IBD MarketSmith chart analysis. Quanta earnings are expected on Thursday.
Ulta Beauty is building a flat base with a buy point of 429.58, but is struggling to resolutely recapture its 50-day line amid Monday’s 1.4% gain. The base comes in the wake of a botched breakout past a handle cup’s 426.93 entry in June.
Vertex Pharmaceuticals gave up its cup with the handle’s buy point of 279.23 and fell further below the 50-day line after Monday’s 2.35% drop. The company will announce its profit on Thursday.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla shares fell below 0.1% on Monday, but still extended its profit streak to four sessions. Shares are at their highest level since early May and are experiencing resistance around their 200-day line, which is an important level to watch.
The stock is about 28% lower than its 52-week high.
Dow Jones Leaders: Apple, Microsoft
Of the Dow Jones stock, Apple shares fell 0.6% on Monday, ending a three-day gains streak. Last week, the stock regained its 200-day line for the first time since May 5.
Microsoft fell 1% on Monday, but remains above the 50-day line. Even so, the software giant is still below its long-term 200-day mark. The stock closed about 20% from its 52-week high.
Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more information on growth stocks and the Dow Jones Industrial Average.
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