Dow Jones futures were higher late after today’s stock market fall, as the 10-year Treasury yield hit another 52-week high. Tech earnings will kick off this week with highly-anticipated results from Netflix (NFLX) and Tesla (TSLA).
Stock Market Today
On Monday, the Dow Jones Industrial Average dropped 0.1%, and the S&P 500 moved down less than 0.1%. The tech-heavy Nasdaq composite fell a bit more than 0.1%. Among exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.1%, and the SPDR S&P 500 ETF (SPY) inched higher.
Electric-vehicle leader Tesla (TSLA) raced 2% higher Monday ahead of this week’s earnings results. Twitter (TWTR) jumped 7.5% after the company adopted a “poison pill” plan to deter Tesla Chief Executive Elon Musk’s buyout.
U.S. Stock Market Today Overview
Last Update: 4:26 PM ET 4/18/2022
Despite the struggling stock market rally, Dow Jones leaders American Express (AXP) and Caterpillar (CAT) — along with IBD Leaderboard watchlist stock Edwards Lifesciences (EW), Murphy Oil (MUR), Raytheon Technologies (RTX), Shell (SHEL) and Ulta Beauty (ULTA) — are among Monday’s top stocks to buy and watch.
Microsoft and Tesla are IBD Leaderboard stocks. Caterpillar and Edwards Lifesciences were featured in this week’s Stocks Near A Buy Zone column. Edwards was also Monday’s IBD Stock Of The Day. And Caterpillar is an IBD SwingTrader stock.
Dow Jones Futures Today: Treasury Yields, Oil Prices
After Monday’s close, Dow Jones futures rose 0.3% vs. fair value, and S&P 500 futures gained 0.4%. Nasdaq 100 futures climbed 0.6% 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 U.S. Treasury yield rose to 2.86% Monday, its highest level since December 2018. Meanwhile, U.S. oil prices rallied about 1%, trading just above $107 a barrel.
Stock Market Rally Struggles: What To Do Now
On Monday, the stock market finished with modest losses, extending Thursday’s sharp declines.
Even though the underlying uptrend is still intact, it’s time to proceed with a greater degree of caution. Be wary of most new purchases and focus only on stocks that have exceptional fundamentals and heavy-volume breakouts past correct buy points. Also, be flexible. The market may rebound and move back into “confirmed uptrend,” or the heavy selling could persist and lead to a correction.
Thursday’s The Big Picture column cautioned, “The Nasdaq has wiped out all gains from its March 18 follow-through and is below its 50-day moving average. The S&P 500 is still above its March 16 follow-through, for now.”
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.
Dow Jones Stocks To Buy And Watch: American Express, Caterpillar
Dow Jones financial stock American Express is tracing a cup with handle with a 194.45 buy point. Shares rose 1.8% Monday, extending a win streak to three sessions and ending about 5% away from the latest entry.
Meanwhile, IBD SwingTrader stock Caterpillar is in buy range past a cup-with-handle’s 227.15 buy point following Thursday’s breakout move. The 5% buy area goes up to 238.51. A bullish indicator — the stock’s RS line is at its highest level since June 2021. Shares rallied almost 1% Monday.
Stocks To Buy And Watch: Edwards, Murphy, Raytheon, Shell, Ulta
IBD Leaderboard watchlist stock Edwards Lifesciences now shows a cup with handle with a 125.21 buy point as a result of last week’s weakness. EW shares were down 0.6% Monday.
Defense contractor Raytheon Technologies finished just below a flat base’s 104.44 buy point after shares inched higher Monday.
Oil-and-gas producer Shell, the April 1 IBD Stock Of The Day, is in buy range above a flat base’s 56.23 buy point after Monday’s 0.4% rise. The 5% buy area goes up to 59.04.
Ulta Beauty shares are in the 5% buy range past a cup-with-handle’s 408.83 buy point, according to IBD MarketSmith chart analysis. The buy area goes up to 429.27. The stock’s relative strength line is at a new high, which is a key sign of market leadership. ULTA shares were up less than 0.1% Monday.
Netflix earnings are expected late Tuesday and analysts say the company could be expecting its slowest growth in 10 years. The company’s earnings are expected to fall 22% to $2.92 per share on revenue of $7.93 billion. Sales are expected to rise 11% vs. the year-ago period.
NFLX shares are more than 50% off their 52-week high following Monday’s 1% decline.
Tesla earnings are due out after the close Wednesday. The EV giant is expected to report earnings per share of $2.26 on sales of $17.59 billion, representing year-over-year increases of 143% and 69%, respectively.
At the start of April, Tesla reported that it delivered 310,048 vehicles in the first quarter, up 68% from the year-earlier period and just below analyst estimates of 312,000.
Tesla stock raced 2% higher Monday, recovering a part of Thursday’s 3.7% decline. Shares of the EV giant finished Monday about 13% away from a cup-with-handle’s 1,152.97 buy point.
The stock traded as high as 1,243.49 on Nov. 4. and ended Monday about 19% away from that all-time high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares triggered the 7%-8% loss-cutting rule from a 176.75 buy point in a double-bottom base, falling below the 50-day line. Meanwhile, a handle buy point is the latest entry to watch at 179.71. The stock lost 0.1% Monday.
Software leader Microsoft rose 0.25% Monday, but remains sharply below its 50-and 200-day lines. The stock is 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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