What To Do Ahead Of The Fed Meeting

Dow Jones futures were higher ahead of Tuesday’s open as the Federal Reserve’s two-day meeting begins. The Dow Jones Industrial Average had its best month since 1976, rising nearly 14% in October.




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end of monday Arista Networks (ANET) and Apple supplier NXP Semiconductors (NXPI) were the main drivers of earnings. ANET shares were down 1% in extended trading, while NXPI shares were up about 1%.

The Fed’s two-day meeting begins on Tuesday with an interest rate decision due Wednesday afternoon. According to CME, investor sentiment indicates an 85% chance of a 75-basis increase.

The Fed says it won’t change — that is, slow its pace of growth — until the strong labor market shows clear signs of slowing. But as the labor market begins to turn around, the Fed’s strategy and a host of economic factors are likely to change. This puts Friday’s jobs report under more scrutiny.

Today’s stock market

The Dow Jones Average fell 0.4% and the S&P 500 fell 0.7% on Monday. The technology-heavy Nasdaq composite was down 1%.

Among exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust ( QQQ ) fell 1.2% and SPDR S&P 500 ( SPY ) fell 0.7%.

Giant EV Tesla ( TSLA ) fell 0.4% on Monday. Among the Dow Jones stocks, apple ( AAPL ) fell 1.5% and Microsoft ( MSFT ) lost 1.6% in the stock market today.

Among the best stocks to buy and watch, Dycom (DY), Cheniere Energy (LNG), Dollar General (DG) and Pure stock (PSTG) – also known as the Dow Jones Chevron (CVX) and UnitedHealth Group (UNH) is one of the best stocks to buy and watch. Remember that the current rally in the stock market is the best time for investors to look for stocks in their buy zones.

Cheniere is an IBD Leaderboard stock. Dollar General is an IBD SwingTrader stock. This week’s clean stock is placed in the near stock column of the buy zone, along with three other stock ideas.

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4 Rising Growth Stocks to Buy and Watch at CurrStock market rally


Dow Jones futures today: Treasury yields, oil prices

Before Tuesday’s opening bell, Dow Jones futures were up 0.5% at fair value, while S&P 500 futures were up 0.8%. Nasdaq 100 futures rose 1.1% against fair value. Keep in mind that overnight action in Dow Jones futures and elsewhere does not necessarily translate into actual trading in the next stock market session.

The 10-year Treasury yield rose to 4.07% on Monday, recovering some of last week’s losses. Meanwhile, U.S. crude fell 2% as West Texas Intermediate futures traded around $86 a barrel.

Income Season: AMD income on deck

Third-quarter earnings season continues this week, with key reports coming from the largest energy company BP (BP), Eli Lilly (LLY), Uber technologies (UBER) and Dow Jones stocks Pfizer (PFE). All four are due to report on Tuesday morning. Small advanced devices (AMD) and Airbnb (ABNB) reports after the close on Tuesday.

Earnings reports drive many of the biggest moves in stocks, and they warrant special attention. Strong earnings can push stocks higher above new buy points and into buy zones, while a less impressive announcement can push stocks below key support levels.

The stock market’s reaction to earnings releases can tell you more than the earnings themselves. If results are strong but the stock still slips, investors may be concerned about the sustainability of growth, rising costs or other potential downsides.

With the market in rally mode, investors should be on the lookout for companies that easily generate earnings results and have strong upside reactions. They could be among the stock market leaders if the market can extend its recent gains.

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What to Do in the Continuing Stock Market Rally

Now is a great time to read IBD’s The Big Picture column. After recent gains, investors have the green light to buy high-quality stocks that have broken past valid buy points. But not all follow-ups work, so it’s important to increase exposure slowly and methodically as a new trend proves itself.

But not every retracement leads to a sustained rally, so investors should determine their level of exposure in the days and weeks that follow the signal, especially with added risk from the upcoming Fed meeting. You want to buy in sync with the market so you don’t overextend yourself on the upside that might come back to you.

Remember, if you miss the first two pairs, don’t panic. The Nasdaq is still more than 30% off its record high. If this stock market rally is real and meaningful, then there will be plenty of time to buy stocks and make money in the coming weeks and possibly months.

And if the stock market crashes again, you can reduce exposure without losing too much capital.


Five Dow Jones Stocks to Buy Now and Watch


Dow Jones stocks to watch: Merck, UnitedHealth

Dow Jones and IBD 50 stock Merck is out of double-buy range at 93.12 buy points, according to MarketSmith’s IBD sample recognition.

Health care giant UnitedHealth broke out of a bowl with a handle buy point of 553.23, according to IBD MarketSmith. Shares were up 0.75% on Monday, slightly above the stock’s last entry.

Top stocks to watch: Cheniere, Dollar General, Dycom, Pure Warehouse

According to IBD MarketSmith’s chart analysis, Cheniere Energy’s IBD Leaderboard stock is just shy of a cup with a handle buy point of 178.69. LNG shares rose 1.1% on Monday.

IBD Swing Trader Dollar General stock is trying to break through the 259.75 buy point on a cup base. Shares of DG lost 2.1% on Monday and ended at the lower end of the session. If the stock retraces this key level, the 5% retracement area will reach 272.74.

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Dycom is trying to break through the buy point of 120.55 a cup base. Shares fell 1.85% on Monday, falling from a buy point and a 5% buy zone at 126.58.

Friday’s IBD Stock of The Day, Pure Storage, is nearing a 31.62 buy point after three days of gains. Shares rose 1.15% on Monday.


Join IBD’s experts as they analyze leading stocks in the stock market rally on IBD Live


Tesla shares

Tesla shares fell 0.4% on Monday, snapping a four-day winning streak. Stocks are rebounding after hitting new 52-week lows last week.

However, the stock is about 45% off its 52-week high and sharply below the 50- and 200-day moving averages.

Dow Jones Leaders: Apple, Microsoft

Among the Dow Jones stocks, Apple shares fell 1.5% on Monday and are about 16% off their 52-week high. Last week, the stock retook its 50-day line. Now, the stock is testing resistance at the long-term 200-day line.

Microsoft fell 1.6% on Monday, losing some of Friday’s 4% return. Shares are near a 52-week low on Oct. 13. The software giant remains more than 30% off its 52-week high.

Be sure to follow Scott Lehtonen on Twitter @IBD_SLehtonen For more information on growth stocks and the Dow Jones Industrial Average.

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