Dow Jones futures were lower following Monday’s stock market fall. Despite Monday’s slight losses, the market uptrend has been strengthening. And seven top stocks to buy and watch include Dow Jones energy giant Chevron (CVX) and IBD Leaderboard stock Quanta Services (PWR).
Arista Networks (ANET), CF Industries (CF), Devon Energy (DVN), Diamondback Energy (FANG) and Mosaic (MOS) were key earnings reports after the close Monday.
ANET shares jumped 6% in extended trade on strong Q2 results. CF stock dropped more than 1%. Devon shares inched lower. Diamondback slipped less than 1%. And Mosaic was set to report shortly.
Meanwhile, Dow Jones stock Caterpillar (CAT), along with Incyte (INCY) and Uber Technologies (UBER), will report ahead of Tuesday’s open.
Stock Market Today
On Monday, the Dow Jones Industrial Average fell 0.1%, and the S&P 500 moved down 0.3%. The tech-heavy Nasdaq composite declined 0.2%, ending a three-day win streak.
U.S. Stock Market Today Overview
Last Update: 4:36 PM ET 8/1/2022
Among exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) dropped 0.1%, and the SPDR S&P 500 ETF (SPY) fell 0.3%.
Tesla (TSLA) slashed gains to less than 0.1% Monday. Among Dow Jones leaders, Apple (AAPL) and Microsoft (MSFT) lost 0.6% and 1%, respectively, in today’s stock market.
In the strengthening stock market environment, Dow Jones stocks Chevron and UnitedHealth (UNH) — as well as Cheniere Energy (LNG), Exxon Mobil (XOM), Quanta Services, Ulta Beauty (ULTA) and Vertex Pharmaceuticals (VRTX) — are among the top stocks to buy and watch.
Quanta, UnitedHealth and Vertex are IBD Leaderboard stocks. Chevron and Exxon were featured in this week’s Stocks Near A Buy Zone column.
Dow Jones Futures Today: Treasury Yields, Oil Prices
After Monday’s close, Dow Jones futures lost 0.2% vs. fair value, while S&P 500 futures fell 0.3%. Nasdaq 100 futures were down 0.2% vs. fair value. Remember that overnight action in Dow Jones futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
The 10-year Treasury yield ticked lower Monday, closing at 2.6% and falling for a fifth straight session. The 10-year yield is at its lowest level since early April. Meanwhile, U.S. oil prices tumbled around 5%, with West Texas Intermediate futures trading below $94 per barrel.
What To Do In The Current Stock Market Rally
Last week, IBD upgraded its market outlook from “uptrend under pressure” to “confirmed uptrend” due to improving stock market conditions.
Investors have the green light to boost their exposure to stocks, focusing on those breaking out past correct buy points. Gradually commit capital to leading stocks. Still, it’s not time to be overly aggressive.
Use each purchase as feedback on the current strength of the market rally. Don’t panic if you miss the first couple of breakouts. If the stock market uptrend is real, there will be plenty of time to buy stocks and make money. This is an important strategy because prior follow-throughs have failed this year and rallies have been cut short.
Friday’s The Big Picture column commented, “In a potentially dangerous week dominated by Big Tech earnings and the latest Fed meeting, indexes still managed to power higher. It seems Wall Street is increasingly inclined to believe the economy is turning a corner.”
If you’re new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one key to the investment guidelines. IBD offers a broad range of growth-stock lists, such as Leaderboard and SwingTrader.
Investors also can create watchlists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.
Five Dow Jones Stocks To Watch Now
Dow Jones Stocks To Watch: Chevron, UnitedHealth
Dow Jones energy giant Chevron is building the right side of a cup base that has a 182.50 buy point. Be on the lookout for a potential handle to offer a lower entry. Shares surged last week after the company’s strong earnings results. Chevron stock moved down 2% Monday.
Health insurance giant and IBD Leaderboard stock UnitedHealth is in buy range above its double-bottom-with-handle base’s 518.80 buy point after Monday’s 1.3% loss, according to IBD MarketSmith chart analysis.
UNH stock shows a solid 94 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. Investors can use the IBD Composite Rating to easily gauge the quality of a stock’s fundamental and technical metrics.
4 Top Growth Stocks To Watch In The Current Stock Market Rally
Top Stocks To Watch: Cheniere, Exxon, Quanta, Ulta, Vertex
Cheniere Energy is in a buy zone after crossing a trendline entry around 140. Now the stock is trying to break out past a double bottom’s 146.45 buy point. The relative strength line just hit fresh highs, a positive sign. Shares traded down 1.7% Monday.
Friday’s IBD Stock Of The Day Exxon Mobil reclaimed the 50-day line and topped an aggressive early entry around 93.24, as shares surged 4.6% Friday. But the energy giant gave up some ground Monday, falling 2.5%. Meanwhile, a cup-base entry at 105.67 is also in play.
IBD Leaderboard stock Quanta Services is back at a cup-with-handle base’s 138.56 buy point after Monday’s slight loss, according to IBD MarketSmith chart analysis. Quanta earnings are due on Thursday.
Ulta Beauty is building a flat base with a 429.58 buy point but is finding it hard to decisively retake its 50-day line amid Monday’s 1.4% gain. The base comes in the wake of a failed breakout past a cup with handle’s 426.93 entry in June.
Vertex Pharmaceuticals gave up its cup with handle’s 279.23 buy point and fell further below the 50-day line after Monday’s 2.35% decline. The company will report earnings on Thursday.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla stock slashed gains to less than 0.1% Monday but still extended its win streak to four sessions. Shares are at their highest level since early May and are finding resistance around their 200-day line, which is a key level to watch.
The stock is about 28% off its 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares fell 0.6% Monday, ending a three-day win streak. Last week, the stock regained its 200-day line for the first time since May 5.
Microsoft dropped 1% Monday but remains above its 50-day line. Still, the software giant is still ranging below its long-term 200-day line. The stock closed about 20% off its 52-week high.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
YOU MAY ALSO LIKE:
Top Growth Stocks To Buy And Watch
Learn How To Time The Market With IBD’s ETF Market Strategy
Find The Best Long-Term Investments With IBD Long-Term Leaders
MarketSmith: Research, Charts, Data And Coaching All In One Place
How To Research Growth Stocks: Why This IBD Tool Simplifies The Search For Top Stocks