Dow Jones futures turned higher in evening trading after the stock market fell on Monday. The ongoing Russian invasion of Ukraine, along with the Western reaction, remains a key moment in the stock market today.
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U.S. oil prices briefly rose above $130 a barrel on Monday before plummeting as the U.S. and its allies consider imposing a ban on imports of Russian oil and natural gas following the country’s attack on Ukraine.
Investors need patience and discipline right now, holding cash mostly on the sidelines, to see if a market rally attempt can signal a new uptrend. Health care giant Dow Jones UnitedHealth, Costco, CSX and Union Pacific are among those weathering the current stock market volatility well. Meanwhile, Apple shares fell below their 50-day moving average.
Stock market today
On Monday, the Dow Jones Industrial Average fell 2.4% and the S&P 500 shed 2.95%. The Nasdaq technology composite fell 3.6%. The Nasdaq closed in bear market territory, down more than 20% from its recent high.
US stock market review today | ||||
|---|---|---|---|---|
| Indicator | Symbol | Price | Profit Loss | % Change |
| Dow Jones | (0JIA) | 32813.56 | -801.24 | -2.38 |
| S&P 500 | (0S&P5) | 4200.89 | -127.98 | -2.96 |
| Nasdaq | (0NDQC) | 12830.96 | -482.48 | -3.62 |
| Russell 2000 | (INM) | 193.82 | -4.84 | -2.44 |
| IBD 50 | (PFTI) | 36.59 | -1.53 | -4.01 |
Last updated: 4:54 pm ET, 03/07/2022 | ||||
Among the leaders of the Dow Jones an Apple (AAPL) fell 2.4% and Microsoft (MSFT) today the stock market fell by 3.8%. UnitedHealth (UNH), watchable Dow Jones stock closed just below a new buy point on Monday.
Electric vehicle leader Tesla (TSLA) fell more than 4% on Monday.
In a volatile market, Hymn (ANTM), Costco (PRICE), COAG (CSX) and Union Pacific (UNP) are among the top Monday stocks to keep an eye on. Keep in mind that current stock market conditions should keep investors in the cash and on the sidelines.
Microsoft and Tesla are on the IBD leaderboard. Costco and CSX were featured in the “Stocks Near the Buy Zone” column this week.
Dow Jones today: Russian invasion, oil prices
After the market closed on Monday, Dow Jones futures were up 0.25% relative to fair value, while S&P 500 futures were up 0.3%. Nasdaq 100 futures rose 0.2% from fair value. Remember that overnight action in Dow futures and elsewhere does not necessarily translate into real trading in the next regular stock market session.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 3.7%, while the SPDR S&P 500 ETF (SPY) shed 2.9% on Monday.
The 10-year Treasury yield rose to 1.75% on Monday after closing at 1.72% on Friday.
U.S. oil prices rose 3% on Monday as West Texas Intermediate settled at $119 a barrel, the highest close since September 2008, according to Dow Jones market data. On Sunday, Secretary of State Anthony Blinken said the US and its allies are considering imposing a ban on imports of Russian oil and natural gas following the country’s attack on Ukraine.
Russia continued shelling Ukrainian cities, and low-level negotiators from both sides met on Monday for a third round of talks. The negotiators agreed on some plans to help people trapped in the fighting, but there has been little progress on a ceasefire. A high-ranking Russian diplomat is scheduled to meet with his Ukrainian counterpart in Turkey on Thursday.
Stock market rally attempt: what to do now
The stock market showed a more disappointing performance on Monday, as major stock indexes closed with big losses. Despite Monday’s losses, all three major stock indexes remain above their February 24 intraday lows, meaning Tuesday will be the 9th day of the ongoing rally attempt.
The next day, signaling the start of a new uptrend, is still possible at any time. However, even if the next day comes, there aren’t many commodities to buy outside of some of the strengths of the precious metals, energy and agricultural chemicals markets.
During market corrections, investors should be in cash. But don’t switch off. Instead, keep a list of the top-performing stocks that are trying to hold their own during times of market weakness. Use the relative strength line to identify some emerging market leaders. You can also find stocks recently added to IBD’s own watchlists, such as the IBD 50, here.
Be sure to check out IBD University for tips on spotting market bottoms and investing after the day is done.
Friday’s The Big Picture commented, “Cash is still leading the way. As an asset class, they still outperform the S&P 500 (down 9.2% since Jan. 1) and the Nasdaq (down about 15%) this year.” With the current volatility, it’s time to read and follow IBD’s The Big Picture column.
If you’re new to IBD, consider taking a look at its stock trading system and the basics of CAN SLIM. Recognizing chart patterns is one of the keys to investment guidance. IBD offers a wide range of growth stock listings such as Leaderboard and SwingTrader.
Investors can also create watchlists, find companies close to the point of purchase or design their own screens in IBD MarketSmith.
Four Dow Jones stocks to watch now
Dow Jones stocks to watch: UnitedHealth
Managed care giant UnitedHealth is just below the 501.03 buy point in a double bottom base. Shares closed on Monday about 3% below their last record. UNH shares fell more than 2% on Monday.
In a bullish scenario, the relative strength line of stocks is at new highs, which indicates a significant lead in the stock market.
Four Major Growth Stocks to Watch in the Current SituationRStock Market Correction
Stocks to watch: Anthem, Costco, CSX, Union Pacific
The anthem returned below its entry level at 470.12 after falling 4.7% on Monday. On Wednesday, Anthem made the IBD Stock of the Day list.
Retail giant Costco cut earnings to 0.6% on Monday but still handily outperformed the major stock indexes. COST shares are trading on the right side of the bottom of the cup with a buy point of 571.59. COST shares post a solid 93 out of 99 IBD composite ratings from the IBD Stock Checkup. Investors can use the IBD Composite Rating to easily assess the quality of a stock’s fundamental and technical performance.
CSX is trying to break through the buy point 38.11 in the base of the cup. The stock broke after Monday’s entry but reversed 1.1% lower to close below a buy trigger. The 5% buy zone rises to 40.02.
Shares of IBD Leaderboard Union Pacific remain in the 5% buy zone despite falling 1.2% on Monday. Last week, UNP stock broke through the entry level at 256.21. The 5% buy zone peaks at 269.02.
Friday’s progress justified a quarter or half increase in position size, according to leaderboard analysis. The RS line has already hit new highs, which is a sign of a market leader.
Join IBD experts as they analyze leading stocks during the current stock market correction on IBD Live.
Tesla shares
Tesla shares fell more than 4%% on Monday, extending the losing streak to three sessions. The stock fell below its long-term 200-day moving average. A decisive break of the 200-day line on Monday signals the possibility of further weakness.
The stock traded as high as 1243.49 on Nov. 4, but fell about 35% from that all-time high by the end of Monday.
Dow Jones leaders: Apple, Microsoft
Among Dow Jones stocks, Apple is building a double-bottom base with a buy point of 176.75, according to IBD MarketSmith’s chart analysis. The stock is about 10% from its new buy point after losing 2.4% on Monday. AAPL stock found support at its long-term 200-day line on Feb. 24 but remains below its 50-day moving average.
The stock’s relative strength line remains near recent highs amid a weak stock market, indicating that institutions are hesitant to sell their Apple shares.
Shares in software leader Microsoft fell 3.8% on Monday to close below the 200-day mark. Stocks continue to build a new base.
Don’t forget to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more information on growth stocks and the Dow Jones Industrial Average.
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