Dow Jones futures fell 130 points after Monday’s stock market crash. Despite Monday’s slight losses, the market’s uptrend has strengthened. Among the top seven stocks to buy and watch is energy giant Dow Jones rafters (CVX) and IBD Leaderboard Stocks Quanta Services (PWR).
Arista Networks (A NET), CF industries (CF), Devonian energy (DVN), Diamondback Energy (CATCH) and mosaic (MOS) were the main earnings reports after the close on Monday.
ANET shares rose 6% in extended trading on strong Q2 results. CF stock fell more than 1%. Devon stocks fell by an inch. Diamondback slipped less than 1%. And Mosaic lost nearly 3%.
Meanwhile, the Dow Jones stock Caterpillar (CAT), along with incyte (INCY) and Uber Technologies (UBER), will report ahead of Tuesday’s opening.
stock market today
On Monday, the Dow Jones Industrial Average fell 0.1% and the S&P 500 fell 0.3%. The tech-heavy Nasdaq Composite fell 0.2%, ending a three-day winning streak.
Overview of today’s US stock market
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Last updated: 4:36 PM ET 08/01/2022
Among exchange-traded funds, Nasdaq 100-tracker Invesco QQQ Trust (QQQ) fell 0.1% and SPDR S&P 500 ETF (SPY) fell 0.3%.
Tesla (TSLA) slashed gains to less than 0.1% on Monday. Among Dow Jones executives Apple (AAPL) and Microsoft (MSFT) lost 0.6% and 1% respectively in today’s stock market.
In a strengthening stock market environment, Dow Jones stocks Chevron and UnitedHealth (UNH) – as well Chen energy (LNG), Exxon Mobile (XOM), Quanta Services, Ultimate beauty (ULTA) and Apex Pharma (VRTX) – are among the top stocks to buy and watch.
Quanta, UnitedHealth, and Vertex are IBD Leaderboard stocks. Chevron and Exxon were featured in this week’s “Stocks Near a Buy Zone” column.
Dow Jones Futures Today: Treasury Yields, Oil Prices
After Monday’s close, Dow Jones futures were down 0.4% from fair value, while S&P 500 futures were down 0.5%. Nasdaq 100 futures fell 0.5% from fair value. Keep in mind that overnight action in Dow Jones futures and elsewhere does not necessarily result in actual trading in the next regular trading session.
The 10-year government bond yield traded lower on Monday, closing at 2.6% and falling for the fifth straight day. The 10-year yield is at its lowest level since early April. Meanwhile, US oil prices fell about 5%, with West Texas Intermediate futures trading below $94 a barrel.
What to do with the current stock market rally?
Last week, IBD upgraded its market outlook to “uptrend confirmed” from “uptrend under pressure” on improving stock market conditions.
Investors have the green light to increase their exposure to stocks and focus on those that are breaking out past the right buy points. Gradually invest your capital in leading stocks. Still, it’s not the time to be overly aggressive.
Use each purchase as feedback on the current strength of the market rally. Don’t panic if you miss the first few bursts. If the stock market uptrend is real, there will be plenty of time to buy stocks and make money. This is an important strategy as previous follow-throughs this year have failed and rallies have been abandoned.
Friday’s The Big Picture column commented: “Indices still managed to gain in a potentially dangerous week dominated by big tech gains and the last Fed meeting.
If you are new to IBD, you should take a look at the CAN SLIM stock trading system and basics. Recognizing chart patterns is a key to investing guidelines. IBD offers a wide range of growth stock lists such as Leaderboard and SwingTrader.
Investors can also create watch lists, find companies approaching a buy point, or develop custom screens at IBD MarketSmith.
Five Dow Jones stocks to watch right now
Keep an Eye on Dow Jones Stocks: Chevron, UnitedHealth
Dow Jones energy giant Chevron is building the right side of a cup base with a buy point of 182.50. Keep an eye out for a possible grip to provide a lower entry. Shares rose last week after the company’s strong earnings results. Chevron shares are down 2% on Monday.
Health insurance giant and IBD leaderboard stock UnitedHealth is range-bound above the buy point of its double bottom with handle basis of 518.80 after shedding 1.3% on Monday, according to chart analysis by IBD MarketSmith.
UNH stock shows a solid 94 out of 99 perfect IBD Composite Ratings according to the IBD Stock Checkup. Investors can use the IBD Composite Rating to easily gauge the quality of a stock’s fundamental and technical metrics.
4 Top Growth Stocks to Watchrightde Stock market rally
Top stocks to watch: Cheniere, Exxon, Quanta, Ulta, Vertex
Cheniere Energy is in a buy zone after surpassing a trendline entry by 140. Now the stock is trying to break out of the buy point of a double bottom at 146.45. The relative strength line just made new highs, a positive sign. Shares traded 1.7% lower on Monday.
Friday’s IBD stock of the day, Exxon Mobil, reclaimed the 50-day moving average and beat an aggressive early entry by 93.24 as shares rose 4.6% on Friday. But the energy giant dipped slightly on Monday, falling 2.5%. Meanwhile, a cup base entry at 105.67 is also in play.
IBD leaderboard stock Quanta Services is back at the buy point from a cup-and-handle basis of 138.56 after Monday’s modest loss, according to chart analysis by IBD MarketSmith. Quanta earnings are due on Thursday.
Ulta Beauty is setting up a flat base with a buy point of 429.58 but is finding it difficult to decisively reclaim its 50-day moving average amid Monday’s 1.4% gain. The base comes past a cup with Henkel’s entry of 426.93 in June on the wake of a failed breakout.
Vertex Pharmaceuticals gave up its cup with the buy point of 279.23 and fell further below the 50-day moving average after Monday’s 2.35% drop. The company will announce the results on Thursday.
Join IBD experts as they analyze leading stocks from the current stock market rally on IBD Live
Tesla stock slashed gains to less than 0.1% on Monday but still extended its winning streak to four sessions. Stocks are at their highest since early May and are facing resistance around their 200-day moving average, which is a key level to watch.
The stock is down about 28% from its 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares fell 0.6% on Monday, ending a three-day winning streak. Last week, the stock touched its 200-day moving average for the first time since May 5th.
Microsoft fell 1% on Monday but remains above its 50-day moving average. Nonetheless, the software giant is still trading below its 200-day long-term moving average. The stock closed about 20% below its 52-week high.
Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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