Dow Jones futures were higher ahead of Tuesday’s open after the Dow Jones Industrial Average sold off nearly 500 points Monday. Investors will soon shift their attention to Fed Chair Jerome Powell’s Wednesday speech, while key inflation data is due out Thursday.
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Monday’s stock market weakness was due to a combination of the spreading Covid-19 protests in major cities in China and St. Louis Federal Reserve President Jim Bullard’s comments on interest rates.
In a webcast interview with MarketWatch, Bullard responded to a question about how long he expects the Fed funds rate to stay in the 5% to 7% range, saying “I think we’ll have to stay there all during 2023 and into 2024.”
Bullard believes that markets are still underestimating the degree to which the Fed will need to keep policy tight in order to rein in inflation. Traders place a 72% chance of a 50 basis-point rate hike, down from 80% one week ago, in the central bank’s upcoming meeting, according to the CME’s FedWatch Tool.
Earnings reports this week include CrowdStrike (CRWD), Dollar General (DG) and Intuit (INTU). Also included is Dow Jones stock Salesforce (CRM), along with Snowflake (SNOW), Ulta Beauty (ULTA) and Workday (WDAY).
Stock Market Today
On Monday, the Dow Jones Industrial Average lost 1.45%, or 497 points, and the S&P 500 dropped 1.5%. The tech-heavy Nasdaq composite sold off 1.6%. Among exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) moved down 1.5% and the SPDR S&P 500 (SPY) fell 1.6%.
Solar stocks sold off sharply Monday, as an analyst downgrade of First Solar (FSLR) impacted the rest of the industry. FSLR stock declined 3.4% after JPMorgan downgraded the stock from overweight to neutral due to the stock’s strong performance in recent weeks. Array Technologies (ARRY) and Shoals Technologies (SHLS) tumbled 7.1% and 6.4%, respectively. Array Technologies gave up a recent buy point, while SHLS stock fell back into buy range above a 28.57 buy point.
Electric vehicle giant Tesla (TSLA) traded a fraction higher Monday. Among Dow Jones stocks, Apple (AAPL) traded down 2.6% and Microsoft (MSFT) declined 2.3% in today’s stock market.
IPO Leader Array Technologies, IBD Leaderboard stock Arista Networks (ANET), Celsius (CELH) and Chubb (CB) — as well as Dow Jones names Boeing (BA), Caterpillar (CAT) and Chevron (CVX) — are among the top stocks to buy and watch.
Arista Networks is an IBD Leaderboard stock and was a recent IBD Stock Of The Day. Boeing is an IBD SwingTrader stock and was one of the four leaders featured in this week’s Stocks Near A Buy Zone column. Celsius was Monday’s IBD 50 Stocks To Watch pick.
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Ahead of Tuesday’s opening bell, Dow Jones futures rose 0.1%, while the S&P 500 gained 0.15%. The tech-heavy Nasdaq 100 futures moved up 0.2% vs. fair value. Remember that overnight action in Dow Jones futures and…
Read More: Dow Jones Dives Nearly 500 Points On China Covid Protests, Fed