Futures contracts: what to do after today’s stock market crash?

Dow Jones futures were higher after Monday’s stock market plunge. Major stock indices have sold off with heavy losses to new lows in 2021, as Treasury yields hit their highest level since 2011.


Next, more inflation data is due out Tuesday along with the Labor Department’s Producer Price Index, while the much-anticipated two-day Federal Reserve meeting also kicks off.

Dow Jones Futures Today: Treasury Yields, Oil Prices, Inflation, Fed Meeting

After Monday’s close, Dow Jones futures were up 0.5% relative to fair value, and S&P 500 futures were up 0.6%. Nasdaq 100 futures gained 0.75% relative to fair value. Remember that overnight action on futures contracts on Dow Jones and elsewhere does not necessarily translate into actual trading in the next regular trading session.

The 10-year Treasury yield jumped to 3.36% on Monday, its highest level since April 2011. Meanwhile, US oil prices remain near recent highs, with the West Texas Intermediate trading around $121 on Monday. barrel. In early March, WTI briefly rose above $130 a barrel.

Producer prices are expected to rise 0.8% in May after rising 0.5% in April, according to Econoday. Producer inflation is expected to jump 11% year-on-year. The Producer Price Index is a measure of price strength based on the selling prices received by domestic producers for their production.

The Fed will begin its final two-day policy meeting on Tuesday, and the central bank is widely believed to raise its benchmark interest rate by half a percentage point on Wednesday. But expectations that the Fed will be forced to act even more aggressively this year have been on the rise since Friday’s inflation report.

stock market today

On Monday, the Dow Jones Industrial Average plunged 2.8%, while the S&P 500 fell 3.9%. The tech-heavy Nasdaq composite fell 4.7%. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 4.65% and the SPDR S&P 500 ETF (SPY) fell 3.8%.

Overview of the US stock market today

Index Symbol Price loss of profit % To change
Dow Jones (0DJIA) 30518.06 -874.73 -2.79
S&P500 (0S&P5) 3749.91 -150.95 -3.87
Nasdaq (0NDQC ) 10809.23 -530.79 -4.68
Russell 2000 (IWM) 170.14 -8.45 -4.73
INN 50 (FFTY) 29.49 -1.80 -5.75
Last Updated: 4:28 PM ET 06/13/2022

Oracle (ORCL) released its results after Monday’s close. Oracle shares jumped 12% in extended trade after the company reported better-than-expected earnings and sales results.

You’re here (TSLA) stock slipped more than 7% on Monday. Among the leaders of the Dow Jones, Apple (AAPL) lost 3.8% and Microsoft (MSFT) was trading down 4.2% in today’s stock market.

As the stock market correction worsens, Dow Jones leaders Chevron (CLC), Merck (MRK) and Travelers (TRV) — with Carlisle (CSL), EquityHealth (HQY), Northrop Grumman (NOC) and World fight Entertainment (WWE) – are among the top IBD stocks to watch on Tuesday.

WWE is an IBD rating action. World Wrestling Entertainment was featured in this week’s Stocks Near A Buy Zone column.

What to do after today’s stock market crash

On Monday, the Dow Jones, Nasdaq and S&P 500 industrials hit new corrective lows as the stock market plunged. Investors should be on the lookout for a bullish day to signal the start of another rally attempt.

Amid the deepening stock market correction, investors are likely to be mostly, if not entirely, on the sidelines. New purchases are prohibited. Additionally, keeping a watchlist of stocks that hold up well in a bear market is a good way to prepare for the next uptrend in the stock market.

Keep in mind that the top stocks of the past may not be the leaders of the future. To help identify emerging market leaders in a new uptrend in the market, use the relative strength line to see which stocks are outperforming the general market.

During a stock market correction, investors need to identify companies whose stock prices are struggling against the downtrend of the stock market. A strong RS line will point significantly higher, either during the base period or shortly after a breakout.

Monday’s The Big Picture column commented: “After falling at the open, the indices remained weak through the close. The four-day losing streak in the major indices is now the biggest since March 2020, according to Dow Jones Market Data. The precipitous fall rivals the Covid stock market crash that year. Except this time, we’ve already been in a market decline for at least five months.

If you are new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one of the keys to investing guidelines. IBD offers a wide range of growth stock listings, such as Leaderboard and SwingTrader.

Investors can also create watchlists, find companies close to a buy point, or develop custom screens at IBD MarketSmith.

Five Dow Jones stocks to watch now

Dow Jones stocks to watch: Chevron, Merck, Travelers

Dow Jones leader and energy giant Chevron shed the 174.86 buy point from its flat base, according to IBD MarketSmith’s chart analysis, after Monday’s 4.6% decline. The CVX stock enjoys a perfect composite rating of 99 IBD, according to the IBD Stock Balance Sheet. Investors can use the IBD Composite Rating to easily assess the quality of a stock’s fundamental and technical metrics.

Merck, a Dow Jones and IBD Big Cap 20 stock, fell even lower than its tumbler with handle’s 89.58 buy point on Monday, as shares fell another 2.5%. The stock dropped its support around its key 50-day line on Friday, which is a sell signal.

Insurance giant Travelers continues to build a flat base with a buy point of 188.08. Stocks are still below their 50-day line after Monday’s 0.9% drop.

Two growth stocks to watch in the currentrent Stock market correction

Stocks to watch: Carlisle, HealthEquity, Northrop, WWE

Recent IBD stock of the day Carlisle shows a flat base with a buy point of 275.23, even as the stock fell 4.6% on Monday to abandon its 50-day line.

HealthEquity plots a cup with a handle with a buy point of 66.23, as stocks reversed 0.9% higher on Monday. The stock is finding support around its key 50-day line and is just 2% off the last entry. Keep in mind that the weak market environment should hold you back.

Northrop Grumman found much-needed support at its 50-day moving average on Friday, but remains around 3% below the 477.36 buy point of its tumbler with handle. CNP shares fell 0.7% on Monday.

IBD Leaderboard World Wrestling Entertainment stock is testing the buy point of 63.81 on a flat basis, according to IBD MarketSmith’s chart analysis, as WWE shares edged higher on Monday. On May 25, the stock staged a strong breakout after the entry. But stocks are just above the latest entry in the new wave of selling in the market.

According to the ranking commentary, the relative strength line of WWE stocks has been at all-time highs and gaining momentum since January. The base is first floor, a bonus for the map.

Join IBD experts as they analyze the top stocks of the current stock market rally on IBD Live

Tesla Stock

Tesla stock slipped 7.1% on Monday, adding to Friday’s 3.1% decline. The stock is well below its 50 and 200 day moving averages.

The shares traded as high as 1,243.49 on November 4. The shares are about 48% off that record.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares sold 3.8% on Monday, hitting their lowest level since June 2021. The stock is well below its long-term 200-day line and is around 28% off. its 52-week high.

Software leader Microsoft lost 4.2% on Monday and remains well below its 50- and 200-day lines. The stock closed more than 30% off its 52-week high.

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


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