Dow Jones futures were slightly higher late after Monday’s stock market rally. Twitter stock jumped as Tesla CEO Elon Musk signed a deal to buy the company in a deal worth $44 billion.
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Packing Company of America (PKG) was a key gainer after the close. PKG shares were up more than 1.5% in extended trading.
On Monday, the Dow Jones Industrial Average reversed from sharp losses and rallied 0.7%, while the S&P 500 gained 0.6%. The tech-heavy Nasdaq Composite gained 1.3%. Among exchange-traded funds, the Nasdaq 100 Tracker Invesco QQQ Trust (QQQ) was up 1.3% and the SPDR S&P 500 ETF (SPY) was up 0.6% on Monday.
Overview of today’s US stock market | ||||
|---|---|---|---|---|
| index | symbol | Price | loss of gain | % To change |
| Dow Jones | (0DJIA) | 34052.03 | +240.63 | +0.71 |
| S&P500 | (0S&P5) | 4296.43 | +24.65 | +0.58 |
| Nasdaq | (0NDQC) | 13004.85 | +165.56 | +1.29 |
| Russell 2000 | (IWM) | 193.89 | +1.21 | +0.63 |
| IBD 50 | (FFTY) | 33.94 | -0.29 | -0.85 |
Last updated: 4:42 PM ET 4/25/2022 | ||||
Oil stocks were among the weakest performers on the day as US oil prices fell more than 3%. West Texas Intermediate crude traded below $99 a barrel. Schlumberger (SLB) slipped more than 7%. Halliburton (HAL) declined 6.3%. and Baker Hughes (BKR) fell 4.5%.
Amid a fresh stock market correction, financial leader Dow Jones American Express (AXP) — along with Expedia (EXPE), IBD Leaderboard Stock LPL Finance (LPLA), Palo Alto Networks (PANW) and World Wrestling Entertainment (WWE) – are among the top stocks to watch on Monday.
Among Dow Jones executives Apple (AAPL) rose 0.7% and Microsoft (MSFT) was trading down 2.4% on today’s exchange.
Microsoft and Tesla are IBD Leaderboard stocks. Expedia and Palo Alto Networks were featured in this week’s “Stocks Near a Buy Zone” column.
Elon Musk buys Twitter
Twitter (TWTR) rose 5.7% after the company agreed to be acquired by Tesla CEO Elon Musk in a deal valued around $44 billion. Musk will privatize the company upon completion. Tesla (TSLA) shares fell 0.7% on Monday.
“Freedom of expression is the bedrock of a functioning democracy, and Twitter is the digital marketplace where matters important to the future of humanity are debated,” Musk said in written comments.
“I also want to make Twitter better than ever by improving the product with new features, open-sourcing algorithms to increase trust, defeat spam bots, and authenticate everyone,” he continued. “Twitter has tremendous potential – I look forward to working with the company and the user community to unlock it.”
Dow Jones Futures Today: Treasury Yields
After Monday’s close, all Dow Jones futures, S&P 500 futures and Nasdaq 100 futures were slightly higher than fair value. Keep in mind that overnight action in Dow futures and elsewhere doesn’t necessarily translate to actual trading in the next regular trading session.
The 10-year Treasury yield fell to 2.82% on Monday after closing at 2.9% on Friday. Last week, the 10-year government bond yield hit its highest level since December 2018.
Stock market correction continues: what to do now
On Monday, major stock indices showed positive action as major stock indices reverted from early losses to end with solid gains. However, the stock market outlook was downgraded to “market in correction” on Friday after further sharp losses.
Monday is day 1 of a new rally attempt. Amid the new stock market correction, investors should take profits and raise cash. Keeping a watch list of stocks that are doing well in a down market is also a good way to be prepared for the next stock market uptrend.
You can find many of the leaders of the next uptrend while the market is still correcting, which can be accomplished using the relative strength line. The RS line measures a stock’s price performance relative to the S&P 500. When the stock is outperforming the broader market, the RS line moves up. When a stock is underperforming the broad market, the line points down.
Monday’s The Big Picture column said: “Market optimists will appreciate that the S&P 500 has rallied higher around the 4200 level, roughly where the index hit lows in January, February and March. This indicated that the stock market may have bottomed. But it’s still too early to tell. The market needs to attempt a rally first.”
If you are new to IBD, you should take a look at the CAN SLIM stock trading system and basics. Recognizing chart patterns is a key to investing guidelines. IBD offers a wide range of growth stock lists, such as Leaderboard and SwingTrader.
Investors can also create watch lists, find companies approaching a buy point, or develop custom screens at IBD MarketSmith.
Five Dow Jones stocks to watch right now
Dow Jones stocks to buy and look at: American Express
Dow Jones financial stock American Express records a mug with a handle with a buy point of 194.45. Shares rose 2% on Monday and ended about 5% off the last entry.
Keep an eye on the stock’s relative strength line. Amid its recent surge, the RS line is gradually approaching its old highs, which means it is once again outperforming the broad market.
Three top growth stocks to watchrightent stock market correction
Stocks to watch: LPL, Expedia, Palo Alto, WWE
IBD leaderboard stock LPL Financial remains in a cup with grip above a 191.08 buy point, but double-digit gains faded during the recent slide. On April 21, shares are up as much as 15.5% above entry, meaning the stock is on the verge of triggering the round-trip-sell rule, according to chart analysis by IBD MarketSmith.
Thursday’s IBD stock Expedia builds a mug with a handle buying point of 204.08. Stocks are attempting to regain their 50-day moving average but are struggling at this key resistance level. EXPE stock shows 90 out of 99 perfect IBD Composite Ratings according to IBD Stock Checkup.
Leading cybersecurity stock Palo Alto Networks is finding much-needed support at its 50-day moving average after issuing a round-trip sell signal from a buy point of 572.77. Shares rose nearly 5% on Monday.
World Wresting Entertainment also found support around its 50-day moving average on Monday, cutting sharp losses to just 0.3%. Stocks are just below a buy point of 60.94 in a mug.
Join IBD experts as they analyze leading stocks in the latest stock market correction on IBD Live
Tesla stock
Tesla shares fell 0.7% on Monday, contributing to Friday’s 0.4% loss. Shares of the EV giant closed about 13% off Monday’s mug buy point of 1,152.97.
The stock traded as low as 1,243.49 on Nov. 4, about 20% off that all-time high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock triggered the 7%-8% loss cap rule from a buy point of 176.75 on a double bottom basis over the past few weeks. Apple stock found support at its 200-day long-term moving average and rose 0.7% on Monday.
Leading software provider Microsoft gained 2.4% on Monday but remains below its 50- and 200-day moving averages. The stock is down about 20% from its 52-week high.
Apple and Microsoft report earnings this week.
Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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