Title: Dow Jones Futures Stagnate as Wall Street Awaits Fed Interest Rate Decision
Date: [Current Date]
The Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, remained relatively unchanged ahead of Tuesday’s open, suggesting a cautious sentiment among investors. The Dow Jones Industrial Average surged by over 500 points on Monday, as Wall Street prepares for the upcoming Federal Reserve interest rate decision on Wednesday. However, Tesla stock experienced a sharp decline, falling below the $200 price level.
The Federal Reserve meeting, scheduled to conclude at 2 p.m. ET on Wednesday, precedes Chairman Jerome Powell’s news conference. Market analysts anticipate no rate hike in this meeting, and only a slim possibility of a hike in the subsequent meeting on December 13.
This week, attention will also be focused on the release of the Labor Department’s October jobs report on Friday. Expectations are for a net gain of 172,000 jobs and an unemployment rate of 3.8%.
Meanwhile, Apple’s earnings announcement will take center stage in this week’s earnings reports, with the release scheduled for Thursday.
In Monday’s extended trading session, Arista Networks, Lattice Semiconductor, Monolithic Power, Pinterest, and Rambus were among the key earners making significant moves. Arista Networks saw a 3.5% rally, while Lattice Semiconductor shares dropped 14%. Monolithic Power’s stock surged over 8%, and Pinterest experienced a 10% increase. However, Rambus stock saw a slight dip in late action.
On Monday, the Dow Jones Industrial Average rallied by 1.6%, or 510 points, while the S&P 500 and Nasdaq composite both advanced by 1.2%. Tesla’s stock, on the other hand, fell by nearly 5%, while Nvidia, Apple, and Microsoft saw varying degrees of gains in today’s stock market.
Amidst the ongoing stock market correction, some stocks to watch include International Seaways, Lululemon Athletica, Light & Wonder, and Tradeweb Markets. Additionally, Dow Jones stocks Walmart and UnitedHealth are among the best stocks to observe during this period.
As market participants await the Fed’s interest rate decision, Dow Jones futures and other futures markets are showing little change in the pre-market session. It’s important to note that overnight trading activity doesn’t necessarily translate into actual trading during regular stock market hours.
Furthermore, Treasury yields remain near long-term highs, while oil prices experienced a significant decline of nearly 4%, settling just below $82.50 a barrel.
Given the current stock market correction, investors are advised to exercise caution when considering new positions. The recommended stock market exposure is set at a range of 0%-20%.
Looking ahead, if the Dow Jones and other indexes recover, it is anticipated that new stock market leaders will emerge in the coming weeks. Observing stocks that outperform the broader market is one way to identify potential leaders.
In the current market, Dow Jones stocks Walmart and UnitedHealth show promise. Walmart is tracing a cup base with a buy point of $165.85, while UnitedHealth is forming a handle in a massive consolidation, with a new buy point at $546.78.
In addition to these stocks, investors should keep an eye on International Seaways, Lululemon, Light & Wonder, and Tradeweb Markets, as they navigate market correction and potentially break out.
Overall, as the stock market remains in a correction phase, evaluating potential investments and closely monitoring market movement is crucial for successful decision-making.
Disclaimer: The information provided in this article is based on current market conditions and should not be considered as financial advice. It is always recommended to conduct thorough research and consult with a certified financial professional before making investment decisions.