Dow Jones falls nearly 500 points on China Covid protests, Fed official comments

Dow Jones falls nearly 500 points on China Covid protests, Fed official comments
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Dow Jones futures were higher ahead of Tuesday’s open after the Dow Jones Industrial Average lost nearly 500 points on Monday. Investors will soon turn their attention to Fed Chair Jerome Powell’s Wednesday speech as key inflation data are released on Thursday.


Monday’s stock market weakness was due to a combination of the spreading Covid-19 protests in major cities in China and St. Louis Federal Reserve President Jim Bullard’s comments on interest rates.

And a Webcast interview with MarketWatchWhen asked how long he expects the Fed’s interest rate to stay in the 5% to 7% range, Bullard replied, saying, “I think we need to stay there throughout 2023 and into 2024.”

Bullard believes markets are still underestimating the extent to which the Fed must keep monetary policy tight to contain inflation. Traders estimate a 72 percent chance of a 50 basis point rate hike, compared to 80 percent a week ago at the upcoming central bank meeting, the bank said CME’s FedWatch tool.

This week’s earnings reports included CrowdStrike (CRWD), Dollar General (DG) and Intuitive (INTU). Also included is Dow Jones stock Foreclosure (CRM), along with snowflake (SNOW), Ultimate beauty (ULTA) and working day (WTAG).

stock market today

On Monday, the Dow Jones Industrial Average lost 1.45%, or 497 points, and the S&P 500 fell 1.5%. The tech-heavy Nasdaq Composite lost 1.6%. Under exchange traded fundsthe Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 1.5% and the SPDR S&P 500 (SPY) fell by 1.6%.

Solar stocks sold off sharply on Monday after an analyst downgraded its rating first sun (FSLR) impacted the rest of the industry. FSLR stock fell 3.4% after JPMorgan downgraded the stock from overweight to neutral on the stock’s strong performance over the past few weeks. array technologies (ARRY) and Swarm Technologies (CLOS) fell by 7.1% and 6.4% respectively. Array Technologies recently gave up a buy point while SHLS stock pulled back into a buy range above a buy point of 28.57.

Giant for electric vehicles Tesla (TSLA) was trading a fraction higher on Monday. Under Dow Jones Stocks, Apple (AAPL) traded down 2.6% and Microsoft (MSFT) declined by 2.3% today’s stock market.

IPO Guide array technologies, IBD Leaderboard warehouse Arista Networks (A NET), Celsius (CELCH) and Chubb (cb) – as well as Dow Jones names Boeing (B.A), Caterpillar (CAT) and rafters (CVX) – are among the top stocks to buy and watch.

Arista Networks is a IBD Leaderboard Stock and was a new IBD stocks of the day. Boeing is a IBD SwingTrader Stock and was one of the four leaders marked in this week “Stocks near a buy zone” column.. Celsius was Mondays IBD 50 Stocks To Watch Pick.

4 top growth stocks to buy and watchrightde Stock market rally

Dow Jones Futures Today: Treasury Yields, Oil Prices

Before Tuesday’s opening bell, Dow Jones futures rose 0.1%, while the S&P 500 gained 0.3%. The tech-heavy Nasdaq 100 futures rose 0.5% year over year. fair value. Think about the night action in Dow Jones futures and elsewhere not necessarily translated into actual trading in the next regular time stock market Meeting.

The 10-year Treasury yield rose to 3.7% on Monday, staying close to its recent lows. On Friday, the 10-year Treasury yield closed at 3.69%, the lowest close since Oct. 24. 4. Meanwhile, US oil prices turned higher after hitting their lowest levels since December 2021. West Texas Intermediate futures traded at around $77 a barrel.

IBD’s latest newsletter, MarketDiem, brings you actionable stock, options and crypto ideas straight to your inbox.

What to do in the stock market rally?

Now is an important time for reading IBD’s The Big Picture column with the stock market trend back into a “confirmed uptrend”.

While it’s fine to invest money in the current stock market, keep your exposure on the conservative side with small positions to start. Just because the stock market is in a confirmed uptrend doesn’t mean you have to be 100% invested. And given the choppy nature of the market, don’t be afraid to take a 10% profit when you have it.

(Cash IBD inventory lists how IBD 50 and Stocks near a buy zonefor more stock ideas.)

Five Dow Jones stocks to buy and watch

Dow Jones stocks to buy and watch: Boeing, Caterpillar, Chevron

Airplane maker Boeing fell 3.7% on Monday, falling back below the buy point from a cup basis of 173.95. Look for a crucial review of this entry before you consider buying Boeing stock.

Dow Jones member Caterpillar is on the verge of retaking its 238 cup base purchase point, corresponding IBD MarketSmith pattern recognition, and is less than 2% below the entry. CAT stock, with heavy exposure to China, fell 1.4% on Monday.

CAT camp boasts an impressive 96 out of 99 perfect IBD Composite Ratings IBD inventory check.

Energy giant Chevron fell 2.9% on Monday, giving up its 182.50 buy point on a consolidation basis.

Top stocks to buy and watch: Array, Arista, Celsius, Chubb

Solar leader and IPO stock Array Technologies gave up its buy point of 22.40 in a mug during Monday’s plunge, corresponding IBD MarketSmith pattern recognition. Shares are about 3% below entry. That would trigger further weakness 7%-8% loss limiting selling rule.

IBD Leaderboard Arista Networks stock remains range-buyed above a choppy base of 132.97 purchase point despite Monday’s 1.5% loss.

Energy drink maker Celsius was down 1.3% on Monday as the stock continues to form a cup base with a buy point of 118.29. Monday’s weakness could be the start of a potential deal that would offer lower entry.

Chubb is trading just below the 216.10 Cup-with-Henkel buy point on Monday after modest losses during the session. The 5% buy area will peak at 226.91.

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

Tesla stock

Tesla stock Inched up Monday but remains well below its 50-day and 200-day moving average lines. Shares are about 55% off their 52-week high.

Last week, the stock hit its lowest level since November. January 2020 and hit a new 52-week low at 166.19.

Dow Jones Leaders: Apple, Microsoft

Under Dow Jones Stocks, Apple shares were sold down 2.6% on Monday, falling below their 50-day support level. Apple iPhone Pro production could reportedly fall by 6 million units due to civil unrest and Covid restrictions in China. The stock is down more than 20% from its 52-week high.

Bloomberg reported that riots at Foxconn’s Zhengzhou plant could lead to a 6-million-unit failure in iPhone Pro production in 2022. And that figure could rise if Covid restrictions are extended by a few weeks, sources say. The Zhengzhou factory produces the vast majority of iPhone 14 Pro and Pro Max smartphones.

Microsoft slipped 2.3% on Monday, falling for the second straight session. The shares continue to hold above the 50-day moving average. The software giant remains about 30% 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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