Dow Jones futures were higher late Monday, as the stock market rally attempt continues. Elon Musk and Twitter continue to engage in debate over the number of fake accounts on the social media site. Looking ahead, Home Depot and Walmart earnings are due out ahead of Tuesday’s market open. And Fed Chair Jerome Powell will give a speech later Tuesday.
Take-Two (TTWO) was a key earnings mover after the close. Take-Two stock rallied around 3% in extended trade.
Dow Jones Futures Today: Treasury Yields, Oil Prices
Ahead of Tuesday’s open, Dow Jones futures rose 1.2% vs. fair value, while S&P 500 futures moved up 1.5%. Nasdaq 100 futures gained 1.9% vs. fair value. Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
The 10-year Treasury yield dropped to 2.87% Monday, as it continues to pull back since trading as high as 3.16% last week. Meanwhile, U.S. oil prices jumped more than 3%, with Texas Intermediate crude trading above $114 a barrel. The price of WTI crude is at its highest point since late March.
Stock Market Today: Twitter Stock Plunges
On Monday, the Dow Jones Industrial Average inched higher, while the S&P 500 moved down 0.4%. The tech-heavy Nasdaq composite sold off 1.2%. Among exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) slid 1.2%, and the SPDR S&P 500 ETF (SPY) moved down 0.4% Monday.
Twitter stock plunged 8.2% Monday, as Elon Musk said a Twitter deal is “not out of the question,” but potentially at a lower price. The comment comes as Musk and Twitter Chief Executive Parag Agrwal spar over the number of fake accounts on Twitter.
Musk is committed to paying $54.20 per share. Twitter shares closed at 37.39 Monday — below April 1’s closing price of 39.31. On April 4, Twitter soared more than 23% after Musk reported owning a 9.2% passive stake in the social media company, becoming its largest shareholder.
As the stock market searches for a potential bottom, Dow Jones leaders Chevron (CVX) and Merck (MRK) — along with Aspen Technology (AZPN), Cheniere Energy (LNG), Eli Lilly (LLY) and Exxon Mobil (XOM) — are among IBD’s top stocks to watch for Tuesday.
Merck and Microsoft are IBD Leaderboard stocks. Eli Lilly and Merck were featured in this week’s Stocks Near A Buy Zone column.
What To Do Ahead Of A Potential New Uptrend
The major stock indexes posted mixed action Monday. The Dow Jones industrials rose, but the Nasdaq and S&P 500 finished with moderate losses.
On a technical basis, Monday was Day 3 of a rally attempt, which means a follow-through day can occur as soon as Tuesday. At this point, investors should keep watchlists primed with leading stocks. To help pinpoint stock leaders that emerge in a new market uptrend, use the relative strength line to see which stocks are outperforming the general market.
Friday’s The Big Picture column commented, “So while many investors have likely raised quite a lot of cash and are afraid to touch equities, the market still needs a new host of excellent companies that show the key elements of CAN SLIM investing: rising fundamentals, outperformance vs. most stocks today, and evidence of rising fund ownership.”
If you’re new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one key to the investment guidelines. IBD offers a broad range of growth stock lists, such as Leaderboard and SwingTrader.
Investors also can create watchlists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.
Five Dow Jones Stocks To Watch Now
Dow Jones Stocks To Watch: Chevron, Merck
Dow Jones leader and energy giant Chevron continues to build a flat base that has a 174.86 buy point, according to IBD MarketSmith chart analysis. CVX shares traded up 3.1% Monday, placing them just below their latest buy point.
Merck, a Dow Jones and drug industry leader, is in buy range above a cup-with-handle’s 89.58 buy point, as shares rallied more than 2% Monday, according to IBD MarketSmith chart analysis. The 5% buy area goes up to 94.06.
Positively, the stock’s relative strength line is at new highs, indicating big stock market outperformance during the current stock market correction.
Four Top Growth Stocks To Watch In The Current Stock Market Rally Attempt
Top Stocks To Watch: Aspen, Cheniere, Exxon, Eli Lilly,
IBD 50 stock Aspen Technology is trading just below a saucer-with-handle’s 168.99 buy point in the wake of the May 4 breakout. Last week, the stock fell as much as 7.1% below the entry before rebounding and finding support at the 50-day line. Meanwhile, another handle entry at 170.26 is also in play.
Cheniere Energy is one of the top stocks to watch, even as it struggles to retake its 50-day line. Shares are etching a flat base that shows a 149.52 buy point, according to IBD MarketSmith chart analysis.
Energy giant Exxon Mobil again broke out past a cup-with-handle’s 89.90 buy point, rising 2.4% Monday. Shares are in the 5% buy area that goes up to 94.40.
Pharmaceutical giant Eli Lilly jumped nearly 3% Monday after the company announced the Food and Drug Administration (FDA) approved Mounjaro, a new injection for type 2 diabetes. Shares of the IBD Leaderboard stock are rebounding from their 50-day moving average line and are approaching a flat base’s 314.10 buy point.
Tesla stock skidded nearly 6% Monday, giving up the entirety of Friday’s 5.7% surge. Shares are sharply below their 50- and 200-day moving averages.
The stock traded as high as 1,243.49 on Nov. 4 and is more than 40% away from that all-time high amid a recent losing streak.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares declined 1.1% Monday. The stock is falling further below its long-term 200-day line.
Software leader Microsoft rose 0.15% Monday, but remains sharply below its 50- and 200-day lines. The stock closed around 25% off its 52-week high.
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