Futures contracts: what to do before the CPI inflation rate data

Futures contracts: what to do before the CPI inflation rate data

Dow Jones futures were higher after Monday’s stock market rally ahead of Tuesday’s key inflation reading, the Labor Department’s Consumer Price Index, or CPI. Apple stock made a bullish move on Monday, decisively retracing its 200-day long-term line.




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stock market today

On Monday, the Dow Jones Industrial Average advanced 0.7%, while the S&P 500 rose 1.1%. The tech-heavy Nasdaq composite rose 1.3%. And the small-cap Russell 2000 gained 1.2%.

Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 1.2% and the SPDR S&P 500 (SPY) climbed 1.1%.

Overview of the US stock market today

Index Symbol Price loss of profit % To change
Dow Jones (0USD) 32383.18 +231.47 +0.72
S&P500 (0S&P5) 4110.69 +43.33 +1.07
Nasdaq (0NDQC ) 12266.41 +154.10 +1.27
Russell 2000 (IWM) 189.73 +2.33 +1.24
INN 50 (FFTY) 28.52 +0.13 +0.46
Last Updated: 4:24 PM ET 09/12/2022

VE Giant You’re here (TSLA) rebounded 1.6% on Monday. Among the leaders of the Dow Jones, Apple (AAPL) and Microsoft (MSFT) traded up 3.85% and 0.8%, respectively, in today’s stock market.

In the current market volatility, Arista Networks (A NET), DoubleVerify (DV), Palo Alto Networks (PANW) and Pure storage (PSTG) – as well as Dow Jones stocks Chevron (CVX) – are among the best stocks to buy and watch. Keep in mind that increased market volatility is a good reason for investors to be more defensive, even if recent indicators are constructive.

DoubleVerify is an IBD ranking action. Pure Storage is an IBD SwingTrader stock, while Chevron and Palo Alto were in the Stocks Near A Buy Zone column this week.

Dow Jones Futures Today: Treasury Yields, Oil Prices, CPI Inflation Rate

Ahead of Tuesday’s open, Dow Jones futures were up 0.1% relative to fair value, while S&P 500 and Nasdaq 100 futures also rose. Remember that overnight action on futures contracts on Dow Jones and elsewhere does not necessarily translate into actual trading in the next regular trading session.

The 10-year Treasury yield rose to 3.36% on Monday, hitting its highest closing level since June 15. US oil prices added to late gains from last week, climbing more than 1% on Monday. West Texas Intermediate futures traded near $88 a barrel.

The Department of Labor’s CPI inflation rate is due out Tuesday at 8:30 a.m. ET. Consumer prices are expected to fall 0.1% in August from the previous month. Inflation is expected to increase by 8.0% in August compared to a year ago. The producer price index, which measures wholesale inflation, will be released on Wednesday.


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What to do during the stock market rally

Despite constructive gains in recent sessions, continued equity market volatility keeps IBD’s market outlook at a “pressurized uptrend”.

If the market is able to mount a serious rebound, then you should have a watchlist of major stocks approaching buy points. Some follow-up opportunities may also appear.

The best way to find leadership in emerging stock markets is to use the relative strength line. The RS line measures a stock’s price performance relative to the S&P 500. If the stock is outperforming the broader market, the RS line slopes up. If a stock is lagging the general market, the line will point down.

The RS line is drawn on all IBD and MarketSmith charts. Additionally, the IBD Stock Screener includes a list of top rated stocks with relative strength lines to new highs. MarketSmith also has the “RS Blue Line Dot” listing, which filters RS lines to new highs. (Starting today, IBD MarketSmith is offering free access for a full week.)

Friday’s The Big Picture column commented: “The bullish session might have been enough to resume the uptrend, but volume has been lackluster behind the Nasdaq’s three-fight winning streak, and the number of distribution days remains. high for the Nasdaq and S&P 500. That’s even after the September 6 distribution day was canceled due to a 5% rise from the day’s close. on inflation looms on Tuesday.

If you are new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one of the keys to investing guidelines. IBD offers a wide range of growth stock listings, such as Leaderboard and SwingTrader.

Investors can also create watchlists, find companies close to a buy point, or develop custom screens at IBD MarketSmith.


Five Dow Jones stocks to watch now


Dow Jones Stocks to Watch: Chevron

Dow Jones Chevron stock is building a cup with a handle that has a buy point of 166.93 – according to IBD MarketSmith’s chart analysis – amid strong performance by energy stocks so far this year. The stock was up 1.6% on Monday.

The CVX stock is posting a solid 97 out of a perfect IBD Composite Rating of 99, according to the IBD Stocks Balance Sheet. Investors can use the IBD Composite Rating to easily assess the quality of a stock’s fundamental and technical metrics.


3 most important growth stocks to watchrStock market rally


Top stocks to watch: Arista, DoubleVerify, Palo Alto, Pure Storage

Arista Networks added a handle to a double bottom base, placing the correct entry at 132.97, according to IBD MarketSmith’s chart analysis. Arista’s relative strength line is near the highs as the stock has resumed its 200 and 21 day lines. ANET shares rose 0.3% on Monday.

IBD Leaderboard DoubleVerify stock breaks above the 28.07 buy point in a low base. Stocks are in the 5% buy zone rising up to 29.47, although it is moving away from the moving averages. DV stock fell 0.4% on Monday. The company specializes in platforms to help advertisers get a better idea of ​​the effectiveness of their ad spend and campaigns.

Cybersecurity leader Palo Alto Networks is approaching a buy point of 578.89 in a mug with handle. An early entry around 560 is also in play due to a trendline, according to the IBD rankings commentary. Shares rose 0.6% on Monday.

IBD SwingTrader Pure Storage stock is approaching a buy point of 31.62 in a cup with handle. Meanwhile, an early entry is also in play after the stock broke above a downtrend line in this handle. Shares rose 1.7% on Monday.


Join IBD experts as they analyze the top stocks of the current stock market rally on IBD Live


Tesla Stock

Tesla stock rebounded 1.6% on Monday, extending a five-session winning streak and continuing its rebound from the 50-day line.

Shares of the electric vehicle giant have found resistance at their 200-day line in recent months, but are now back above that level. The stock remains around 27% off its 52-week high.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares rose 3.85% on Monday, decisively regaining their 200-day line. The stock is around 9% off a buy point at 176.25 on a mug with handle.

Microsoft rose 0.8% on Monday, up for a fourth straight day. The software giant remains well below its 50 and 200 day lines. Shares are around 24% off their 52-week high.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen to learn more about growth stocks and the Dow Jones Industrial Average.

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