Dow Jones futures were higher ahead of Tuesday’s open. The Dow Jones Industrial Average ended in a bear market, down 20% or more from a recent high, selling more than 300 points on Monday.
stock market today
On Monday, the Dow Jones Industrial Average fell 1.1%, while the S&P 500 fell 1%. The tech-heavy Nasdaq composite fell 0.6%. And the small cap Russell 2000 lost 1.4%.
In the ongoing weakness of stock markets, DoubleVerify (DV), Hostess Brands (TWNK), Neurocrine Biosciences (NBIX), Toro (tax included) and Vertex Pharmaceuticals (VRTX) — as well as the Dow Jones stock UnitedHealth (A H) – are among the best stocks to watch. Keep in mind that the deepening stock market correction is a great reason for investors to stay away.
Dow Jones Futures Today: Treasury Yields, Oil Prices
Before Tuesday’s open, Dow Jones futures were up 0.35% relative to fair value, while S&P 500 futures gained 0.3%. Nasdaq 100 futures rose 0.35% above fair value. Remember that overnight action in Dow Jones Futures and elsewhere does not necessarily translate into actual trading over the next stock Exchange session.
The 10-year Treasury yield jumped to 3.87% on Monday, hitting a new high. The 10-year Treasury yield is at its highest level since April 2010, when it peaked around 4.01%. Meanwhile, U.S. oil prices continued to decline on Monday, dropping nearly 3%. West Texas Intermediate futures were trading below $77 a barrel, their lowest level since early January.
What to do in the worsening stock market correction
Amid continued selling on major equity indices, IBD’s market trend remains in a “correcting market”. This means investors need to be on the defensive and on the sidelines.
To prepare for another stock market rally, investors should wait for a tracking day. When the market is in a correction, look for at least one major clue to attempt a bottom. We are still looking for the first day the index will close higher counts like day 1 of its rally attempt. Day 2 and Day 3 action is irrelevant until the index breaks above its last low. If this low is undercut, the rally test is over and the market must try again.
On day 4 and later, you are looking for a strong rise in the Nasdaq or S&P 500 in higher volume than the previous session. This is a follow-up day. This gives investors the green light to start buying top-tier stocks overshooting the fair buy points. It should synchronize your portfolio and mindset with the stock market action by gradually committing capital to leading stocks.
Nevertheless, it is important that investors take advantage of this downtime. Now is the perfect opportunity to study market dips and to build a strong watchlist best performing stocks. Many long-term leaders tend to break out at or near the trailing, market bottom signal. Missing that first opportunity can be a costly mistake.
Monday’s The Big Picture column commented: “At one point on Monday, the Nasdaq composite was up 1.4%. This turned out to be a mirage, as stock indices quickly faded and closed with more losses. The fake rally was symptomatic of bear markets, when stocks often find strength in the early morning, but buyers disappear at the close.”
Dow Jones stocks to watch: UnitedHealth
Dow Jones UnitedHealth stock fell 1% on Monday, halting its slide around the long-term 200-day line. The shares are building a flat base that has a buy point of 553.23, according to IBD MarketSmith graphical analysis. With shares around 8% off their 52-week high, they have their work cut out for a potential breakout.
UNH stock shows a solid 95 over a perfect 99 IBD Composite Ratingspeak IBD Stock Check. Investors can use the IBD Composite Rating to easily assess the quality of a stock’s fundamental and technical metrics.
Top stocks to watch: DoubleVerify, Hostess, Neurocrine, Toro, Vertex
IBD Ranking Stock DoubleVerify is still below its buy point of 28.07 in a bottom basis despite rising 0.55% on Monday. According to the rankings commentary, DoubleVerify has reversed below an early trendline entry near 27 into a bottom base and is looking for support near its 50-day line.
The maker of Twinkie Hostess Brands is in the 5% buy zone above the 23.23 buy point of a mug with handle, according to IBD MarketSmith graphical analysis. On the upside, Hostess’ RS line reaches new heights. Keep in mind that the weak market trend should keep you away, but it is one of the main stocks to watch.
Wednesday’s IBD 50 Stocks To Watch pick, Neurocrine Biosciences, builds a flat base that has a buy point of 109.36. Shares finally abandoned support around their 50-day line on Monday, falling 2.8%. Despite Monday’s drop, the RS line hit a new high last week, so the stock avoided much of the market weakness.
Vertex Pharmaceuticals falls below its 50-day line again after Monday’s 2.35% loss. It forms a flat base with a buy point of 306.05. The resilience of the title makes it a great idea to watch.
Tesla Stock rose 0.25% on Monday, ending a four-day losing streak. Still, stocks are significantly below their 50-day line after last week’s heavy losses.
Last week, the stock’s relative strength line hit its highest level since April, but has fallen sharply in recent sessions. The shares are down about 34% from their 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones Stocks, Apple shares climbed 0.2% on Monday, ending a three-day losing streak. The stock is trading near recent lows, even as its RS line hit a new high on Monday.
Microsoft lost 0.2% on Monday, ending just after Friday’s 52-week low. The software giant is more than 30% off its 52-week high.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen to learn more about growth stocks and the Dow Jones Industrial Average.
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