Dow Jones Futures Rise: Stock Market Rally Diverges As Tech Stocks

Dow Jones futures were higher early Tuesday after tech stocks sold off sharply Monday, as President Biden picked Jerome Powell as Fed Chairman for a second term. Tesla stock rallied nearly 2% Monday, while Lucid Motors and Rivian skidded. And Zoom earnings beat estimates late.

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On Monday, the Dow Jones Industrial Average moved up less than 0.1% after slashing gains. The S&P 500 turned 0.3% lower, while the Nasdaq sold off 1.3% after briefly hitting a new high.

Among the Dow Jones leaders, Apple (AAPL) rose 0.3% Monday, while Microsoft (MSFT) moved down 1% in today’s stock market. Nike (NKE) is right at a new buy point after a recent breakout attempt.

Electric-vehicle leader Tesla (TSLA) gained nearly 2% Monday. EV peer Rivian (RIVN) skidded over 8%, while Lucid Motors (LCID) descended over 7%. Chinese EV leaders Li Auto (LI) and Xpeng Motors (XPEV) are near buy points.

Among the top stocks to buy and watch, Alphabet (GOOGL), Amazon (AMZN), Apple and Nucor (NUE) are in new buy zones.

Microsoft, Nucor and Tesla are IBD Leaderboard stocks. Amazon was featured in this week’s Stocks Near A Buy Zone story. Apple is an IBD SwingTrader stock.

Dow Jones Futures Today: Powell Picked As Fed Chief

Ahead of the stock market open Tuesday, Dow Jones futures moved up 0.1% vs. fair value, while S&P 500 futures edged higher. Nasdaq 100 futures lost 0.15% vs. fair value. Remember that extended and premarket action in Dow Jones futures and elsewhere doesn’t necessarily translate into actual trading performance in the next regular stock market session.

Among exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) lost 1.2%, while the SPDR S&P 500 ETF (SPY) dropped 0.3% Monday. The Innovator IBD 50 (FFTY) tumbled nearly 5%, its biggest one-day decline since Sept. 28.

Early Monday, President Joe Biden announced that he is nominating current Chairman Jerome Powell for a second term. Fed Governor Lael Brainard will be nominated as vice chair. The announcement comes as the inflation rate has surged to a 30-year high and become a hot political issue. In response, the 10-year Treasury yield jumped above 1.62%, snapping a three-day losing streak.

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Stock Market Rally

The stock market put in a poor performance Monday, as the Nasdaq and S&P 500 reversed lower after hitting new highs.

On Monday, The Big Picture commented, “In contrast, it was a brutal day for software stocks. Eight out of the bottom 10 industry group performers were in software, with Computer Software-Enterprise faring the worst.”

For daily stock market commentary, be sure to check out IBD’s The Big Picture.

Five Best Dow Jones Stocks To Watch Now

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