Dow Jones fell 260 points ahead of Fed meeting, big gains; What to do now

Dow Jones futures were virtually unchanged in extended trading after the Dow Jones Industrial Average dropped 260 points on Monday. Federal Reserve policy meeting leads the week, along with big earnings results from Amazon (AMZN), An Apple (AAPL), Alphabet (google) and Platform Meta (META).




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Fed meeting, big earnings results

The two-day Fed meeting begins on Tuesday, and the central bank is expected to raise its target federal funds rate by 25 basis points, to a range of 4.5% to 4.75%. According to the CME FedWatch tool, investors estimate the likelihood of such an increase at 99%.

Late Monday Apple Supplier NXP Semiconductors (NXPI) was down 4.5% in extended trading after reporting its fourth quarter earnings results.

Meta’s earnings are due late Wednesday night, while Alphabet’s, Amazon’s and Apple’s earnings are due Thursday after the close.

Other major earnings this week include Advanced microdevices (AMD), ExxonMobil (XOM), member of the Dow Jones Merck (MRK) and Starbucks (SBUKS). 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 fell 1.3%. The Nasdaq technology composite fell 2%. Among exchange-traded funds, the Nasdaq 100 Invesco QQQ Trust (QQQ) tracker fell 2% and the S&P 500 (SPY) SPDR fell 1.2%.

Electric vehicle giant Tesla (TSLA) traded down 6.3% on Monday. Among the Dow Jones stocks An Apple (AAPL) decreased by 2% and Microsoft (MSFT) today the stock market fell 2.2%.

IBD promotions on the leaderboard impinge (PI), etsy (ETSI) and Wingstop (WING) – as well as Dow Jones stock Chevron (CVX) and JPMorgan Chase (JPM) is one of the best stocks to watch given the continued strength of the market.

Impinj is on the IBD leaderboard. Etsy was a recent IBD Stock Of The Day promotion. Impinj and Wingstop were featured in the “Stocks Near Buy Zone” column this week.


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Dow Jones Futures Today: Oil Prices, Treasury Bond Yields

Before Tuesday’s open, Dow Jones futures, S&P 500 futures and Nasdaq 100 tech futures were virtually unchanged from fair value. Remember that overnight action in Dow Jones futures and elsewhere does not necessarily translate into real trading in the next regular stock market session.

The 10-year US Treasury yield rose to 3.55% on Monday, extending the winning streak to three sessions. Last week, 10-year bond yields narrowly recovered from a three-week loss-making decline.

Oil prices fell more than 2% as markets look ahead to an OPEC meeting this week. Futures for West Texas Intermediate crude 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 expected to maintain its current level of oil production, but may discuss possible policy adjustments.


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What to do during the ongoing stock market rally

Now is a good time to read IBD’s “The Big Picture” column, which talks about the stock market’s trend in a “confirmed uptrend” amid strong gains in recent sessions.

With more encouraging action last week, it makes sense for investors to increase their exposure to 60-80%. But be prepared to act quickly as the stock market can change quickly, especially this week when the market is under the influence of the news.

(Check out IBD stock lists like IBD 50 and Stocks Near A Buy Zone for more stock ideas.)


Five Dow Jones stocks to buy and watch now


Dow Jones Stocks to Buy and Watch: Chevron, JPMorgan

Shares in energy giant Chevron fell sharply for the second straight session, falling 2.9% on Monday. Shares broke below the 50-day average support level. According to IBD MarketSmith’s chart analysis, despite recent weakness, CVX shares add a handle to the bottom of the cup, lowering entry from 189.78 to 187.91.

Banking giant JPMorgan remains in a buying range above its 138.76 base buying point despite losing 0.9% on Monday. JPM shares post a solid 94 out of a perfect IBD composite rating of 99 according to the IBD Stock Checkup. The Composite Rating is designed to help investors easily find the fastest growing stocks.


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Best Stocks to Buy and Watch: Impinj, Etsy, Wingstop

Shares of IBD Leaderboard Impinj closed below 129.12 buy points on cup base on Monday after a recent break as the stock fell 2.9% on Monday. Look for a strong buy point repeat to signal another chance to buy the stock.

Background: Impinj specializes in RF semiconductors for item identification, location and authentication. After losing money in 2020, the company earned 25 cents per share in 2021. Annual earnings are expected to rise 284% to 96 cents a share this year.

Etsy is back below 137.01 buying points in a cup and handle after falling 2.25% on Monday. If the stock returns to the entry, the 5% buy zone will rise to 143.86.

Background: The company operates an online e-commerce platform where creators of arts and crafts, vintage items and other unique items go to sell their products. It has a unique business model that has evolved over the past few years from a niche e-commerce market to a popular shopping destination in many categories.

Wingstop is fast approaching the 170.97 buy point at the skewed bottom of the cup. Keep an eye on the potential handle to suggest a lower entry.

Background: The Dallas-based restaurant chain has more than 1,900 locations in the US and internationally, according to Dow Jones Newswires. Its international offices include Mexico, Colombia, Panama, Singapore and the UK. The company added 40 stores in the previous quarter. Profits are due to be posted on February 22. Earnings per share are expected to rise 71% and revenue to rise 40% to $101.1 million year-over-year.


Join IBD experts as they analyze the leading stocks in the current stock market rally on IBD Live.


Tesla shares

Tesla shares fell 6.3% on Monday, snapping a six-day winning streak and losing some of last week’s 33% gain. Despite a strong rebound since January 6, the stock is still below the 200-day line. Tesla shares closed about 56% below their 52-week high.

Early Monday morning, Tesla stock was raised in Berenberg from hold to buy. The new target price is 200, up from 255.

Dow Jones leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares fell 2% on Monday, snapping a two-day winning streak. But they are still holding above their 50-day line after a strong rally in recent sessions. The stock remains about 20% below its 52-week high. Apple will report quarterly earnings on Thursday.

Microsoft shares fell 2.2% on Monday, closing just above the 50-day mark they rebounded last week. Shares remain 23% below their 52-week high.

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