Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, were lower in overnight trade, signaling a potential decline in the stock market at Tuesday’s open. Investors are awaiting key inflation data, as well as upcoming reports on personal spending and housing starts. Meanwhile, Tesla stock saw a slight rebound on Monday after a series of losses, ahead of the company’s third-quarter delivery report. Additionally, Nike is set to report its fiscal first-quarter 2024 results on Thursday, with analysts anticipating a drop in profits and slowing revenue growth.
In Monday’s stock market, the Dow Jones Industrial Average edged up slightly, while the S&P 500 and Nasdaq composite saw moderate gains. Notably, Tesla and Nvidia experienced positive movements, while tech giants Apple and Microsoft also showed higher closing prices. Stocks to watch in the ongoing stock market correction include Airbnb, DraftKings, Meta Platforms, Uber, Amgen, and Caterpillar. Investors are advised to reduce market exposure and focus on building a strong watchlist of potential leaders in preparation for the next uptrend.
Looking ahead, Dow Jones futures dropped, as did other futures, but it is important to note that overnight movements do not always translate to actual trading during regular market hours. The 10-year U.S. Treasury yield reached new highs on Monday, while oil prices dipped slightly. It is recommended to refer to IBD’s The Big Picture column to determine investment strategies during this correction period. The relative strength line, which measures a stock’s performance against the S&P 500, can be a valuable tool in identifying stocks that are outperforming the market. Key stocks to watch include Amgen, Caterpillar, Airbnb, DraftKings, Meta Platforms, and Uber, as they continue to form various chart patterns with specific buy points. Tesla stock, although experiencing a slight increase on Monday, remains below its 50-day line and analysts predict lower delivery numbers for Q3. Apple and Microsoft stocks are also being closely monitored, as they continue to build bases and attempt to recover from recent losses.