Dow Jones futures, S&P 500 futures, and Nasdaq 100 futures were all higher in overnight trade ahead of Tuesday’s open. The Dow Jones Industrial Average saw a surge of over 500 points on Monday in anticipation of the Federal Reserve interest rate decision on Wednesday. Tesla stock, on the other hand, dropped below the $200 price level. The Fed meeting is scheduled to conclude at 2 p.m. ET on Wednesday, followed by Chairman Jerome Powell’s news conference. The market does not anticipate a rate hike this time, and the chances of a hike in the subsequent meeting on December 13 are slim. Additionally, the October jobs report from the Labor Department will be released on Friday, with an expected net gain of 172,000 jobs and an unemployment rate of 3.8%. Apple earnings will also be a highlight this week, with a late release scheduled for Thursday. Key earnings movers late on Monday included Arista Networks, Lattice Semiconductor, Monolithic Power, Pinterest, and Rambus. Of these, Arista Networks saw a rally of 3.5% in extended trade, while Lattice Semiconductor saw a plunge of 14%. Monolithic Power jumped over 8%, and Pinterest surged 10% higher. Finally, Rambus stock saw a slight decline in late action. The Dow Jones Industrial Average rallied 1.6% on Monday, gaining 510 points, while the S&P 500 and the Nasdaq composite both advanced 1.2%. Tesla stock dropped nearly 5%, while Nvidia gained 1.6%. Meanwhile, Apple and Microsoft traded higher, with the former up 1.2% and the latter up 2.3%. Some notable stocks to watch during the ongoing stock market correction include International Seaways, Lululemon Athletica, Light & Wonder, Tradeweb Markets, Walmart, and UnitedHealth. It is important for investors to remain cautious during this time and only consider new positions with a recommended stock market exposure of 0%-20%. A new stock market rally attempt began on Friday with modest gains on the Nasdaq, and a follow-through day can occur as early as Wednesday, if the rally attempt continues. Investors should look for new stock market leadership to emerge over the coming weeks, particularly stocks that are outperforming the broader market. The relative strength line is a useful tool for identifying such stocks. Walmart and UnitedHealth, both Dow Jones stocks, are currently showing favorable chart patterns with potential buy points. International Seaways, Lululemon, Light & Wonder, and Tradeweb Markets are also worth watching, despite the market correction. Tesla stock experienced a significant decline of 4.8% on Monday and closed below the $200 price level for the first time in several months. The stock is now more than 30% off its 52-week high. Among Dow Jones stocks, Apple and Microsoft both saw positive movement on Monday, with Apple adding 1.2% and Microsoft gaining 2.3%.
Dow Jones Futures Surge: Apple Q2 Earnings and Fed Meeting Awaited; Tesla Stocks Plummet Under $200
