Dow Jones futures rose after stock market action on Monday. On Wednesday, a key inflation report – the Labor Department’s Consumer Price Index – is due out. Nvidia shares fell more than 6% after the chip giant issued a revenue warning for the current quarter.
AIG shares rose nearly 1%. Vaccine maker Novavax tumbled 33% after cutting 2022 revenue guidance due to lack of demand for its Covid-19 vaccine. Shockwave rose nearly 8% in early trade. Video game maker Take-Two fell about 7%.
Stock Market Today: Nvidia Stock Dives
On Monday, the Dow Jones Industrial Average rose 0.1%, while the S&P 500 fell 0.1%. The tech-heavy Nasdaq composite fell 0.1%, extending Friday’s light losses.
Graphics-chip maker Nvidia (NVDA) triggered a sell-off in chip stocks later Monday warns that its earnings outlook Its fiscal second quarter will fall short of earlier estimates. The company reported preliminary sales of $6.7 billion for the quarter ended July 31. It had previously forecast sales for the period of $8.1 billion. It will announce the official results on August 24. The Vaneck Semiconductor ETF (SMHIt was down 1.7% on Monday. Fellow chip stock Advanced Micro Devices (AMD) decreased by more than 2%.
In a strengthening stock market environment, Dow Jones stocks Coke (There is) and United Health (UNH) – as well as Monolithic Power Systems (MPWR), Ollie’s Bargain Outlet (Ollie) and Vertex Pharmaceuticals (VRTX) — are among the best stocks to buy and watch.
Dow Jones futures today: Treasury yields, oil prices, inflation report
Dow Jones futures rose less than 0.1% ahead of Tuesday’s open. Nasdaq 100 futures were down 0.4%. Remember that it is an overnight operation Dow Jones futures The next routine elsewhere doesn’t necessarily translate into actual trading stock market session.
The 10-year Treasury yield fell on Monday, ending at 2.76% and giving up part of Friday’s surge. The 10-year yield is trying to rebound after hitting its lowest level since early April. Meanwhile, US oil prices rose more than 1.5%, with West Texas Intermediate futures trading above $90 a barrel.
The Labor Department’s Consumer Price Index will be released early Wednesday. Consumer prices are expected to rise 0.2% in July, down from June’s 1.3% rise, Econoday estimates. However, inflation is expected to rise 8.7% in July from a year ago, easing from June’s 9.1% year-on-year rise.
What to make of the current stock market rally
In recent weeks, IBD upgraded its market outlook from “under pressure” to “confirmed bullish.”
As the market shows signs of strength, investors have the green light to increase exposure, but keep small positions to begin with. As new buying begins to progress, systematically increase exposure. There is still a lot of uncertainty going into the stock market, so it still makes sense to have a fair amount of cash on hand.
Friday’s The Big Picture column “It was another resilient performance for the stock market on Friday, making bulls feel good about a confirmed rally.”
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Dow Jones stocks to watch: Coca-Cola, UnitedHealth
Dow Jones Soda Co. Coca-Cola is forming the right side of a flat base with a buy point of 67.30. Shares are testing their 50-day line amid a three-day losing streak as they fell 0.65% on Monday.
UNH share Showing a solid 94 out of a perfect 99 IBD Joint Assessment, for one IBD Stock Checkout. Investors can use the IBD Composite Rating to easily gauge the quality of a stock’s fundamental and technical metrics.
Key stocks to watch: Monolithic, Ollie, Vertex
Thursday is the IBD stock of the day Monolithic Power Systems continues to build the right side of integration with a 580.10 point of purchase. Meanwhile, shares are about 3% above an initial entry of 514.80. Consider a potential handle to provide another alternative buying point. Shares rose 0.6% on Monday.
Ollie’s Bargain Outlet is recovering from that 10 week line – An important support level – placing the best discount seller in a new buying zone. Stocks also carve a Handle after a large cup base, placing a recent buy point at 72.37. Current price action is about 10% away from that entry.
IBD SwingTrader Shares of Vertex Pharmaceuticals rose 2.1% on Monday, leaving Buy limit The last one cup with handle Entry at 279.23. 5% Chase zone goes up to 293.19. The stock’s June 23 breakout is back on track following last week’s Q2 earnings results.
Tesla shares gained 0.8% on Monday, recovering a small portion of Friday’s 6.6% slide. Last week, shares hit their highest level since early May, but have now found resistance at their 200-day line, a key level to watch. The company announced a 3-for-1 stock split on Friday, August 24th.
The stock is about 30% off its 52-week high.
Dow Jones Leaders: Apple, Microsoft
in the middle Dow Jones Stocks, Apple shares fell 0.3% on Monday, extending losses to three sessions. In the latest session, the stock recovered its 200-day line for the first time since May 5.
Microsoft fell 0.9% on Monday, falling for the second day in a row. The software company is still below its long-term 200-day line. The stock closed about 20% off its 52-week high.
Don’t forget to follow Scott Lehtonen on Twitter @IBD_SLehtonen Learn more about growth stocks and the Dow Jones Industrial Average.
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