Futures: Fed meeting, big profits on deck; What to do now
Dow Jones futures were little changed in extended trade after the Dow Jones Industrial Average fell 260 points on Monday. The Federal Reserve policy meeting is the headline of the week, along with the big results of Amazon (AMZN), Apple (AAPL), Alphabet (GOOGL) and Metaplatforms (META).
Fed meeting, big results
The Fed’s two-day meeting begins on Tuesday and the central bank is expected to raise the target federal funds rate by 25 basis points, to a range of 4.5% to 4.75%. Investors place a 99% probability of this increase in size, according to the CME’s FedWatch tool.
Late Monday, Apple Supplier NXP Semiconductors (NXPI) fell 4.5% in extended trading after reporting its fourth-quarter results.
Meta’s earnings are expected Wednesday evening, while Alphabet’s, Amazon’s and Apple’s earnings are set for Thursday after the close.
Other key earnings this week include Advanced micro-systems (AMD), Exxon Mobil (XOM), member of the Dow Jones Merck (M.K.R.) and Starbucks (SEX). Car manufacturers Ford (F) and General Motors (GM) must also report.
stock market today
On Monday, the Dow Jones Industrial Average fell 0.8% and the S&P 500 1.3%. The tech-heavy Nasdaq composite sold 2% lower. Among listed index funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 2% and the SPDR S&P 500 (TO SPY) fell 1.2%.
Electric vehicle giant You’re here (TSLA) was trading down 6.3% on Monday. Among Dow Jones stocks, Apple (AAPL) decreased by 2% and Microsoft (MSFT) fell 2.2% in the current stock market.
IBD Ranking Stock Leprechaun (IP), Etsy (ETSY) and wing stop (WING) — as well as Dow Jones stocks Chevron (CLC) and JPMorgan Chase (JPM) – are among the best stocks to buy and watch, with continued strength in the market rally.
Impinj is a IBD classification Stock. Etsy was a recent IBD Stock of the Day. Impinj and Wingstop were featured in this week’s Stocks Near A Buy Zone column.
4 most important growth stocks to buy and watch in the currentrStock market rally
Dow Jones Futures Today: Oil Price, Treasury Yields
Before Tuesday’s opening bell, Dow Jones futures, S&P 500 futures and technology-heavy Nasdaq 100 futures were little changed 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 rose to 3.55% on Monday, extending a three-session winning streak. Last week, the 10-year yield barely ended a three-week losing streak.
Oil prices fell more than 2% as markets look to this week’s OPEC meeting. West Texas Intermediate futures fell below $78 a barrel. Ministers from the Organization of the Petroleum Exporting Countries and its allies, including Russia (OPEC+) will meet on Wednesday. OPEC is generally expected to maintain current levels of oil production, but could discuss possible policy adjustments.
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What to do in the ongoing stock market rally
Now is an important time to read IBD’s The Big Picture column with the stock market trending in a “confirmed uptrend” amid strong gains over the past few sessions.
With more encouraging action last week, it makes sense for investors to increase exposure from 60% to 80%. But be prepared to act quickly because things can change quickly in the stock market, especially during this week’s news-driven market.
(Check IBD stock lists like the INN 50 and Stocks Near a Buy Zone, for additional stock ideas.)
Five Dow Jones Stocks to Buy and Watch Now
Dow Jones stocks to buy and watch: Chevron, JPMorgan
Energy giant Chevron fell sharply for a second consecutive session, slipping 2.9% on Monday. The shares broke above the 50-day average support level. Despite recent weakness, CVX stock adds a handful to a cup base, lowering the entry from 189.78 to 187.91, according to IBD MarketSmith’s chart analysis.
Banking giant JPMorgan remains in the buy range above a fixed base buy point of 138.76 despite losing 0.9% on Monday. JPM Stock shows a solid 94 out of a perfect IBD composite score of 99, according to the IBD inventory check. The composite rating is designed to help investors easily find the highest growth stocks.
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Top Stocks to Buy and Watch: Impinj, Etsy, Wingstop
IBD Leaderboard Impinj stock ended Monday below a buy point of 129.12 in a cup basis after its recent breakout, as the shares fell 2.9% on Monday. Look for a decisive rally from the buy point to signal another chance to buy stock.
Past: Impinj’s expertise lies in RF (radio frequency) semiconductors to identify, locate and authenticate objects. While losing money in 2020, the company earned 25 cents per share in 2021. And annual earnings are expected to rise 284% to 96 cents per share this year.
Etsy is back below a buy point of 137.01 in a handle cup after Monday’s 2.25% decline. If the stock regains entry, the 5% buy zone rises to 143.86.
Past: The Company is a provider of an online e-commerce platform where creators of arts and crafts, vintage items and other unique goods go to sell their wares. It has a unique business model that over the past few years has grown from an e-commerce niche market to a premier shopping destination in many categories.
Wingstop is rapidly approaching a buy point of 170.97 in an imbalanced cup basis. Keep an eye out for a potential grip to provide lower entry.
Past: The Dallas-based restaurant chain has more than 1,900 locations in the United States and international markets, according to Dow Jones Newswires. Its international locations include Mexico, Colombia, Panama, Singapore and the United Kingdom. The company added 40 net stores in the prior quarter. The results are expected on February 22. EPS is expected to increase 71%, with revenue up 40% to $101.1 million from the prior year period.
Join IBD experts as they analyze the top stocks of the current stock market rally on IBD Live
Tesla stock plunged 6.3% on Monday, ending a six-day winning streak and giving up some of last week’s 33% rise. Despite their strong rebound since Jan. 6, stocks are still below the 200-day line. Tesla stock closed about 56% off its 52-week high.
Early Monday, Tesla stock received an upgrade to Berenberg from the wedge to long. The new price target is 200, down from 255 previously.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares fell 2% on Monday, ending a two-day winning streak. But they are still holding above their 50-day line after strong gains over the past few sessions. The stock remains around 20% off its 52-week high. Apple will release its quarterly results on Thursday.
Microsoft stock slid 2.2% on Monday, ending just above its 50-day line, which it found last week. Shares remain 23% off the 52-week high.
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Futures: Fed meeting, big profits on deck; What to do now