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Dow Jones futures were squarely lower following Monday’s stock market action. The Federal Reserve’s two-day meeting will kick off Tuesday, followed by an interest-rate policy decision Wednesday afternoon.
Late Monday, Apple chipmaker NXP Semiconductors (NXPI) reported strong Q2 results, but the stock still fell almost 2% in extended trade. NXP shares are forming a new base after a sharp rebound from its recent lows. Meanwhile, Dow Jones discount giant Walmart (WMT) dived more than 9% after lowering its profit outlook for the current quarter and full year.
Alphabet and Microsoft will report Tuesday after the market closes. Meta earnings are due out Wednesday. Amazon and Apple earnings are Thursday.
Stock Market Today
On Monday, the Dow Jones Industrial Average rose 0.3%, and the S&P 500 moved up 0.1%. And the tech-heavy Nasdaq composite pared its decline to 0.4%, extending losses from Friday’s decline.
U.S. Stock Market Today Overview
Last Update: 4:54 PM ET 7/25/2022
In the volatile stock market environment, Dow Jones stock UnitedHealth (UNH) — as well as ELF Beauty (ELF), Quanta Services (PWR), Ulta Beauty (ULTA), Verra Mobility (VRRM) and Vertex Pharmaceuticals (VRTX) — are among the stocks to watch. Keep in mind that ongoing stock market volatility is a reason to stay more conservative despite recent signs of strength.
Dow Jones Futures Today: Treasury Yields, Oil Prices, Fed Meeting
After Monday’s close, Dow Jones futures fell 0.4%, and S&P 500 futures dropped 0.3% vs. fair value. Nasdaq 100 futures were down 0.4% 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 Treasury yield ticked higher Monday, closing at 2.82%. Meanwhile, U.S. oil prices rebounded around 2%, with West Texas Intermediate trading near $97 per barrel.
The Fed’s two-day meeting will kick off Tuesday. Wall Street anticipates that the central bank will raise interest rates aggressively through the end of the year — and then turn around and start cutting them in six months. Another 75-basis-point rate hike is expected Wednesday.
What To Do In The Current Stock Market Rally
Individual stock action has been mostly improving in recent trading sessions, which is a good start during a struggling stock market rally. Still, be more conservative and keep positions small when it comes to new buys. Don’t raise exposure too quickly, especially amid plenty of uncertainty. Friday’s market sell-off reiterates the importance of being more cautious at this point.
Friday’s The Big Picture column commented, “Several distribution days fell off the count Thursday, a positive for the nascent uptrend. Despite solid weekly gains for the indexes, the uptrend remains under pressure. Indexes face resistance around round numbers; 12,000 for the Nasdaq composite, 4000 for the S&P 500 and 32,000 for the Dow Jones.”
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 Watch: UnitedHealth
Health insurance giant and IBD Leaderboard stock UnitedHealth is in buy range above its double-bottom-with-handle base’s 518.80 buy point after Monday’s 1.55% gain, according to IBD MarketSmith chart analysis.
UNH stock shows a solid 95 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. Investors can use the IBD Composite Rating to easily gauge the quality of a stock’s fundamental and technical metrics.
Top Stocks To Watch: ELF, Quanta, Ulta, Verra, Vertex
ELF Beauty is back below a 33.54 buy point in a cup with handle following a recent skid. The RS line hit a new high last week, which is a sign of big stock market outperformance. ELF shares rose 0.5% Monday, after Stifel Nicolaus raised its price target from 29 to 34.
Quanta Services is putting the finishing touches on a cup-with-handle base that has a 138.56 buy point, according to IBD MarketSmith chart analysis. Meanwhile, an early entry at 133.68 is also in play. Shares traded up 0.5% Monday.
IBD Big Cap 20 stock Ulta Beauty is building a flat base with 429.58 buy point. The base comes in the wake of a failed breakout past a cup with handle’s 426.93 entry in June. In recent weeks, the stock decisively reclaimed its 50-day line, setting the stage for a new buy point. Ulta shares fell 1.3% Monday.
Verra Mobility continues to trade below a cup with handle’s 16.83 buy point in the wake of Monday’s 0.4% gain. The stock’s RS line continues to show tremendous strength as it hit a another new high last week.
IBD Leaderboard stock Vertex Pharmaceuticals is testing a cup-with-handle’s 279.23 buy point amid a two-week pullback in shares, according to IBD MarketSmith chart analysis. The biotech leader is in the 5% buy area that goes up to 293.19 amid Monday’s 1.2% rise. But investors should wait for a decisive sign of support before purchasing the stock.
Tesla stock skidded 1.4% Monday, snapping an eight-day win streak and giving back a small part of last week’s earnings-fueled 13.4% surge.
Shares are at their highest level since early May, but are still about 35% off its 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares declined 0.7% Monday, adding to Friday’s losses. Apple remains above its 50-day line after bullish action in recent weeks. Shares remain below their long-term 200-day line, which looms as a resistance level to watch. The stock is about 17% off its 52-week high.
Microsoft dropped 0.6% Monday, falling back below its 50-day line. The stock closed about 26% 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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