Dow Jones futures were higher early Tuesday. The stock market rally found much-needed support ahead of Fed chief Jerome Powell's confirmation hearing Tuesday. Tesla stock reversed higher after erasing sharp losses Monday.
XThe Dow Jones Industrial Average declined 0.45% Monday. The S&P 500 dropped 0.1%, while the tech-heavy Nasdaq composite reversed slightly higher after recovering from huge losses.
Among the Dow Jones leaders, Apple (AAPL) inched higher Monday, while Microsoft (MSFT) moved up 0.1% in today's stock market. Also among the Dow 30, financial leaders Goldman Sachs (GS) and JPMorgan Chase (JPM) are near new buy points.
Electric-vehicle leader Tesla (TSLA) traded up 3% Monday. Its rival, Rivian (RIVN), dropped 5.6%. Lucid Group (LCID) fell 0.6%. And Chinese EV leaders Li Auto (LI) and Xpeng Motors (XPEV) were sharply lower Monday.
Among Monday's top stocks to buy and watch, Commercial Metals (CMC), Diamondback Energy (FANG), SVB Financial (SIVB) and Wells Fargo (WFC) are in or near new buy zones.
Microsoft and Tesla are IBD Leaderboard stocks. Commercial Metals and SVB Financial featured in this week's Stocks Near A Buy Zone column.
Dow Jones Futures Today: Powell Testimony
Ahead of the stock market open Tuesday, Dow Jones futures rose 0.2% vs. fair value, while S&P 500 futures were up 0.35%. Nasdaq 100 futures rose 0.55% vs. fair value. Remember that trading in Dow Jones futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
U.S. Stock Market Today Overview |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 36067.75 | -163.91 | -0.45 |
| S&P 500 | (0S&P5) | 4670.29 | -6.74 | -0.14 |
| Nasdaq | (0NDQC ) | 14942.83 | +6.93 | +0.05 |
| Russell 2000 | (IWM) | 215.25 | -0.82 | -0.38 |
| IBD 50 | (FFTY) | 41.74 | -0.18 | -0.43 |
Last Update: 4:28 PM ET 1/10/2022 |
||||
Among exchange traded funds, Innovator IBD 50 (FFTY) dropped 0.5%, as the ETF of top growth stocks briefly hit its lowest level since March 5, 2021. Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.1%. And the SPDR S&P 500 ETF (SPY) descended 0.1%.
The 10-year Treasury yield closed at 1.78% after trading as high as 1.8% Monday. The 10-year Treasury yield closed at its highest level since Jan. 17, 2020.
On Tuesday, Federal Reserve Chairman Jerome Powell will face questions at his Senate confirmation hearing. Powell is expected to win a second term as the head of the central bank.
Stock Market ETF Strategy And How To Invest
Stock Market Rally Finds Support
The stock market posted some positive action Monday, as the Nasdaq snapped a four-day losing streak and found support at its long-term 200-day line. The S&P 500 dropped for a sixth straight session, and gave up its key 50-day support level. However it did close sharply off its lows. The Dow Jones industrials halted Monday's slide around the 50-day line.
Friday's The Big Picture commented: "Growth investors should be defensive at this point. Some new buys in the energy and financial sectors are probably working well but aggressively increasing exposure doesn't make sense, particularly in the technology sector. Keep stocks on your watchlist showing relative strength. Some may be finding support at a key level, while others may still be near buy points."
Following Monday's stock market action, it's an important time to read IBD's The Big Picture.
Five Best Dow Jones Stocks To Watch Now
Dow Jones Stocks To Buy And Watch: Goldman Sachs, JPMorgan
Dow Jones stock Goldman Sachs rallied 0.4% Monday, ending just above the 50-day line. Shares are tracing a flat base with a 426.26 buy point, according to IBD MarketSmith chart analysis. An early entry at 412.76 is also in play.
JPMorgan shows a 173.06 buy point in a flat base after retaking the 50-day line in a 5.6% rally last week. JPM shares rose 0.1% Monday.
Three Top Growth Stocks To Watch In The Current Stock Market
Stocks To Buy And Watch: Commercial Metals, Diamondback, SVB Financial, Wells Fargo
IBD 50 stock Commercial Metals is trying to regain a 36.96 buy point from a cup base, according to IBD MarketSmith chart analysis, though it pared its gain to 0.6% Monday. Early Monday, the company posted fiscal first-quarter earnings that trounced estimates as strong margins helped overcome light revenue.
Oil producer Diamondback Energy is holding just above a 117.81 buy point, following Monday's 0.1% fall. The 5% buy area tops out at 123.70. Bullishly, the stock's RS line hit a new high on the breakout day, confirming the energy stock as a market leader. FANG stock boasts a perfect 99 IBD Composite Rating, per the IBD Stock Checkup.
SVB Financial is tracing a cup base with a 763.32 buy point. Shares could be adding a handle this week, but it's a bit too early to be considered proper. If the handle finishes, the new buy point will be 746.80. Shares skidded 3% Monday, closing at their 50-day moving average line.
Banking giant Wells Fargo is just past 5% buy range above a 52.67 buy point in a flat base after Monday's 1.1% rise. The 5% buy area went up to 55.30.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
EV Stocks: Li Auto, Xpeng, Lucid Motors, Rivian
Li Auto stock broke below its long-term 200-day moving average during Monday's 5.6% skid. There is no new buy point at this time with the stock nearly 30% off its 52-week high.
Xpeng Motors tumbled 5.4% Monday and is again trying to find support around its 200-day line. Shares had been forming a cup with handle, but that formation is gone now.
Among U.S.-based EV stocks, Lucid Motors shares declined 0.6% Monday. LCID stock remains extended past a 28.49 buy point in a cup-with-handle base, but huge gains have dwindled. Shares are again attempting to regain their 50-day line this week, which would be bullish for the stock's base-building prospects.
Recent initial public offering Rivian was down 5.6% Monday, extending a losing streak to six sessions that saw the stock hit all-time lows. RIVN shares closed Monday about 55% off their post-IPO highs. Continue to wait for an IPO base to form before considering a purchase. Recent sharp losses are a significant setback in the stock's basing process and there is no new buy point in sight with the stock at new lows.
Tesla Stock
Tesla stock traded up 3% Monday, snapping a four-day losing streak. Last week, the EV leader gave up its critical 50-day moving average line and triggered the 7%-8% loss-cutting sell rule from a 1,119.10 trend line buy point.
Shares traded as high as 1,243.49 on Nov. 4, but the stock ended Monday about 15% off that 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock turned barely higher after briefly hitting its lowest level since Dec. 20. Shares remain about 12% past a 153.27 buy point out of a cup-with-handle base, according to IBD MarketSmith chart analysis, after nearly hitting the 20%-25% profit-taking level.
Software leader Microsoft rose 0.1%, recovering from sharp losses. The top Dow Jones stock continues to etch a flat base with a 349.77 buy point, but the stock clearly has more work to do before a potential breakout.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
YOU MAY ALSO LIKE:
Top Growth Stocks To Buy And Watch
Learn How To Time The Market With IBD's ETF Market Strategy
Find The Best Long-Term Investments With IBD Long-Term Leaders
MarketSmith: Research, Charts, Data And Coaching All In One Place
How To Research Growth Stocks: Why This IBD Tool Simplifies The Search For Top Stocks
