Dow Jones futures had been decrease after Monday’s inventory market fall, as Fed Chief Powell mentioned the central financial institution would search to carry down “much too high” inflation. Treasury yields and U.S. oil costs surged Monday. And Dow Jones retailer Nike jumped on earnings after the shut.
Following final week’s correction-ending good points, traders have the inexperienced gentle to boost publicity by shopping for high shares breaking out previous correct purchase factors. Use the watchlist you curated throughout the latest inventory market correction. Or you too can discover inventory concepts by monitoring IBD’s proprietary watchlists, just like the IBD 50 and the IBD Big Cap 20.
Dow Jones well being care big UnitedHealth (UNH) — together with chip leaders Broadcom (AVGO), Alpha & Omega Semiconductor (AOSL) and GlobalFoundries (GFS) — are amongst these in or close to new purchase areas within the new inventory market uptrend. Meanwhile, Tesla inventory is attempting to decisively retake a key resistance stage, as a brand new base appears to be like to take form.
Late Monday, Nike reported better-than-expected fiscal-third quarter outcomes. NKE shares jumped about 5% in prolonged commerce.
Stock Market Today
On Monday, the Dow Jones Industrial Average slid 0.6% to snap a five-day win streak. The S&P 500 inched decrease and the tech-heavy Nasdaq composite misplaced 0.4%. The S&P 500 and Nasdaq snapped four-day win streaks. Among alternate traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) dropped 0.4%, and the SPDR S&P 500 ETF (SPY) declined lower than 0.1% Monday.
U.S. Stock Market Today Overview
Last Update: 4:34 PM ET 3/21/2022
Among the Dow Jones leaders, Apple (AAPL) rallied 0.85% and Microsoft (MSFT) traded down 0.4% in at the moment’s inventory market. UnitedHealth, a Dow Jones inventory to observe, stays in purchase vary after a latest breakout.
Electric-vehicle chief Tesla (TSLA) raced practically 2% larger Monday.
Amid the risky, headline-driven market, IBD Leaderboard inventory Arista Networks (ANET), Broadcom, Alpha & Omega Semiconductor, GlobalFoundries and CVS Health (CVS) are Monday’s high shares to purchase and watch.
Dow Jones Today: Oil Prices, Treasury Yields, Powell Comments
After Monday’s market shut, Dow Jones futures misplaced 0.2% vs. honest worth, whereas S&P 500 futures moved down 0.3%. Nasdaq 100 futures had been down 0.4% vs. honest worth. Remember that in a single day motion in Dow futures and elsewhere does not essentially translate into precise buying and selling within the subsequent common inventory market session.
The 10-year U.S. Treasury yield surged to 2.31% Monday, hitting its highest level since May 2019. U.S. oil costs jumped greater than 7% Monday, as West Texas Intermediate crude traded above $110 a barrel. Dow Jones power big Chevron (CVX) superior practically 2%, and is sharply above the 20%-25% profit-taking space from a cup base’s 113.21 entry.
Midday Monday, Fed Chief Powell mentioned in ready remarks for the National Association for Business Economics that “inflation is much too high” and the Federal Reserve will take the “necessary steps to ensure a return to price stability.” Options on the desk embody extra aggressive 50 foundation level will increase.
Stock Market Rally: What To Do Now
The inventory market posted modest losses Monday within the wake of Fed Chief Powell’s feedback. Despite Monday’s fall, the market pattern stays in an uptrend following final week’s sturdy good points.
During market uptrends, you need to steadily increase publicity in shares, as you sync your portfolio and mindset with the inventory market motion. Sometimes, shopping for alternatives are scant on a follow-through day, particularly after sustained downtrends.
As at all times, be conscious of potential promote guidelines and do not let losses surpass greater than 7%-8% on any particular person commerce.
Monday’s The Big Picture column commented, “But on Monday the Nasdaq met resistance at its 50-day shifting common, whereas the S&P 500 received stopped at its 200-day line. The S&P did manage to close above the neighboring 50-day average. The charts suggest the stock market could spend some time consolidating gains from last week’s surge before resuming its advance. That’s no reason to stop buying stocks right now, but it is a reminder that market volatility will make stock gains harder to gain and manage.”
If you are new to IBD, think about having a look at its inventory buying and selling system and CAN SLIM fundamentals. Recognizing chart patterns is one key to the funding pointers. IBD provides a broad vary of development inventory lists, reminiscent of Leaderboard and SwingTrader.
Dow Jones Stocks To Buy And Watch: UnitedHealth
Managed care big UnitedHealth reveals a 500.10 purchase level with a deal with entry on a double-bottom base. Shares ended Monday in purchase vary above their newest entry after the session’s 0.4% rise.
Bullishly, the inventory’s relative energy line is close to new highs, indicating important inventory market outperformance.
Stocks To Buy And Watch: Arista, Broadcom, Alpha & Omega, GlobalFoundries, CVS
IBD Leaderboard inventory Arista Networks is approaching a double backside’s 133.97 purchase level. ANET shares rallied 0.6% Monday, extending a win streak to 5 periods. Per Leaderboard commentary, Arista Networks cleared an aggressive entry close to 127 and joined the Leaders as a quarter-size place.
Chip big Broadcom slipped 1.5% Monday, because it continued to construct the proper aspect of a new cup base. The cup base’s correct purchase level is 677.86, however a extra aggressive entry at 614.74 is in play.
Chip chief Alpha & Omega Semiconductor is approaching a cup-with-handle’s 59.48 purchase level, in keeping with IBD MarketSmith chart evaluation. Shares are about 4% away from the entry after Monday’s 1.4% decline. But the deal with is 25% deep, excess of regular. This is an issue for the bottom, though deep handles typically type throughout market corrections.
Last week’s IPO Stock Of The Week, GlobalFoundries, is again beneath a cup base’s 73.35 purchase level following Monday’s 5.6% skid.
Tesla inventory rallied 1.7% Monday, rising for a fifth-straight session. Shares regained their long-term 200-day shifting common on Thursday; nonetheless quantity on the transfer was weak. Still, the retaking of assist may mark the early levels of a potential climb up the proper aspect of a brand new base. Now, the inventory is trying to decisively retake its 50-day line.
The inventory traded as excessive as 1,243.49 on Nov. 4, however ended Monday about 26% off that all-time excessive.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones shares, Apple shares rose 0.85% Monday, extending a win streak to 5 periods. The inventory moved additional again above its long-term 200-day line, and is testing resistance at its 50-day shifting common.
Software chief Microsoft misplaced 0.4% Monday, as shares attempt to convincingly retake their 50-day line. A brand new base is starting to take form.
Be positive to observe Scott Lehtonen on Twitter at @IBD_SLehtonen for extra on development shares and the Dow Jones Industrial Average.
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