Dow Jones futures were lower after Monday’s stock market action. Dow Jones Stocks DIY store (HD) and walmart (WMT) will report ahead of Tuesday’s opening, followed by key economic data — Fed minutes and US retail sales — on Wednesday.
factory (FN) and ZipRecruiter (ZIP) were the main movers after the closing Monday. Fabrinet shares were up 12%, while ZipRecruiter shares fell 5% in extended trading.
Dow Jones Earnings: Home Depot, Walmart
Home Improvement retailer Home Depot will report its Q2 results early Tuesday. Analysts expect the company to earn $4.95 per share on revenue of $43.3 billion. HD stocks closed about 25% from a 52-week high on Monday.
Discount retailer Walmart extended a win streak to seven sessions on Monday, up 0.3%. Walmart’s second quarter earnings are expected to decline 9% year over year to $1.62 per share on revenue of $150.9 billion.
Stock market today
On Monday, the Dow Jones Industrial Average rose 0.45%, while the S&P 500 rose 0.4%. The tech-heavy Nasdaq composite climbed 0.6%, extending Friday’s gains.
US stock market overview today
Last update: 4:34 PM ET 8/15/2022
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.8% and the SPDR S&P 500 (SPY) rose 0.4%.
EV giant Tesla (TSLA) was up 3.1% on Monday. Among Dow Jones leaders, Apple (AAPL) and Microsoft (MSFT) rose 0.6% and 0.5% respectively in today’s stock market.
In the healthy stock market environment, Dow Jones shares Coca Cola (KO) and Merck (MRK) — as well as Albemarle (ALB), Costco (COST), Monolithic Energy Systems (MPWR) and Ollie’s bargain outlet (OLLI) — are among the top stocks to buy and watch.
Albemarle is an IBD Leaderboard stock. Albemarle and Costco were featured in the Stocks near a buy zone column this week.
Dow Jones Futures Today: Treasury Yields, Oil Prices, Fed Minutes
Prior to Tuesday’s opening, Dow Jones futures, S&P 500 futures and Nasdaq 100 futures each fell 0.1% relative to fair value. Remember that overnight action in Dow Jones futures and elsewhere does not necessarily translate into actual trading in the next regular trading session.
10-year Treasury yields tapped lower Monday, closing at 2.79% and extending Friday’s losses. In early August, 10-year yields hit their lowest level since early April, but are now trying to recover. Meanwhile, US oil prices fell more than 3%, while West Texas Intermediate futures traded below $89 a barrel.
The Federal Reserve’s minutes from its last meeting will be released Wednesday morning. The minutes are likely to provide clues to the central bank’s thoughts on potential rate hikes at the September meeting. At the most recent Fed meeting, the central bank passed a 75 basis point rate hike for its second consecutive meeting, and Fed Chair Jerome Powell indicated a third such hike in September “might be appropriate.”
What to do in the current stock market rally?
The stock market rally remains healthy, with the Dow Jones Industrial Average on a four-day win streak. The Nasdaq and S&P 500 index shrugged on Thursday’s downside reversal and have risen for two consecutive sessions.
With the market showing signs of strength, investors have the green light to increase exposure but keep positions small to begin with. As a new purchase progresses, methodically increase exposure. There’s still a lot of uncertainty for the stock market to navigate, so it still makes sense to have a decent amount of cash on hand.
Friday’s Big Picture column noted, “The stock market roared, reaching its fourth straight week on Friday. Indices rose again, with encouraging inflation data encouraging bulls.”
If you are new to IBD, consider checking out CAN SLIM’s stock trading system and basics. Recognizing chart patterns is a key to investment guidelines. IBD offers a wide variety of growth stock lists such as Leaderboard and SwingTrader.
Investors can also create watchlists, find companies approaching a buying point, or develop custom screens at IBD MarketSmith.
Five Dow Jones Stocks To Watch Now
Dow Jones Stocks to Watch: Coca-Cola, Merck
Dow Jones soft drink giant Coca Cola is building a flat base with a buy point of 67.30. A handle input at 65.14 is also in play. Shares are recovering from their 50-day line and are approaching early entry during Monday’s 1.3% rally.
Merck is also building a flat base, a pattern showing a buy point of 95.82. According to the IBD MarketSmith chart analysis, stocks are trying to stay above their 50-day line during Monday’s 0.5% decline.
MRK stocks show a solid 94 out of a perfect 99 IBD Composite Rating, according to the IBD Stock Checkup. Investors can use the IBD Composite Rating to easily measure the quality of a stock’s fundamental and technical statistics.
4 top growth stocks to keep an eye onrent Stock Market Rally
Top Stocks to Watch: Albemarle, Costco, Monolithic, Ollie’s
IBD Leaderboard stock and lithium producer Albemarle is in the buy range after Friday’s breakout past a big cup with a buy point of 273.78 off the handle. The 5% buy zone goes up to 287.47. Earlier last week, stocks topped a smaller cup with the handle’s buy point of 250.25. Shares rose 0.9% Monday, extending a win streak to four sessions.
Retail giant Costco builds a cup with a handle that bears a 552.81 point of sale. The stock rose 1.6% on Monday and is about 3% away from its last entry.
Recent IBD Stock Of The Day Monolithic Power Systems added a handle to a cup base last week, moving the appropriate buy point from 580.10 to 541.49. Meanwhile, the stock remains above an entry of 514.80. The stock rose 1.7 percent on Monday.
Ollie’s Bargain Outlet recovers from its 10-week line – a critical support level – and puts the largest discount store in a new buying zone. Shares also cut a handle after a large cup base, bringing the latest buy point to 72.37. The current price action is about 10% away from that entry. The stock lost 0.4 percent on Monday.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla stock climbed 3.1% on Monday, closing at its highest level since May 4. The stocks are once again trying to decisively clear the resistance around their 200-day line, which is an important level to watch. The 3-for-1 stock split will take place on August 24.
The stock is about 25% lower than its 52-week high.
Dow Jones Leaders: Apple, Microsoft
Of the Dow Jones stock, Apple shares rose 0.6% Monday, rising for a second day in a row. The stock continues to build the right side of a cup base with a buy point of 179.71. Another interpretation could be a large double bottom dating back to January. Anyway, the point of sale is identical. Keep an eye out for a possible handle to mold and offer a lower input.
Bullish, the stock’s relative strength is already at new highs, indicating a major outperformance of the stock market.
Microsoft gained 0.5% on Monday, closing just below the long-term 200-day mark, which is an important resistance area to watch. The stock ended about 16% lower than its 52-week high.
Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more information on growth stocks and the Dow Jones Industrial Average.
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