Dow Jones Futures Rise After Stock Market Sells Off Ahead Of Fed Meeting; Elon Musk Sells More Tesla Stock

Dow Jones futures were somewhat higher pursuing Monday's banal marketplace sell-off up of this week's Fed meeting. Tesla banal broke down done a cardinal enactment level, portion Apple reversed sharply aft hitting grounds highs. And banal marketplace leaders Advanced Micro Devices and Nvidia fell sharply.

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On Monday, the Dow Jones Industrial Average dropped 0.9%. The S&P 500 besides mislaid 0.9%, portion the Nasdaq sold disconnected 1.4%. The small-cap Russell 2000 declined 1.4%.

Among the Dow Jones leaders, Apple (AAPL) reversed 2.1% little Monday aft hitting all-time highs, portion Microsoft (MSFT) declined 0.9% successful today's banal market. Home Depot (HD) and Nike (NKE) stay beneath caller buy points.

Electric conveyance leader Tesla (TSLA) skidded 5% Monday. Its rival, Rivian (RIVN), climbed 3.7%. Lucid Group (LCID) bounced 4%. And Chinese EV leaders Li Auto (LI) and Xpeng Motors (XPEV) posted crisp losses.

Among Monday's apical stocks to watch, Arista Networks (ANET), Driven Brands (DRVN) and Louisiana-Pacific (LPX) are successful oregon adjacent caller bargain zones. Amid the caller banal marketplace volatility, investors should inactive beryllium processing watchlists, and debar making caller purchases until the market's existent rally effort stages a follow-through day.

Microsoft and Tesla are IBD Leaderboard stocks. Arista featured successful this week's Stocks Near A Buy Zone file and was Monday's IBD Stock Of The Day. , portion Driven Brands was successful past week's IPO Leaders story.

Dow Jones Futures Today: Fed Meeting

After the banal marketplace adjacent Monday, Dow Jones futures, on with S&P 500 futures, roseate 0.2% vs. just value, portion Nasdaq 100 futures gained 0.1%. Remember that premarket enactment successful Dow Jones futures and elsewhere doesn't needfully construe into existent trading successful the adjacent regular stock market session.

Among exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) dropped 1.4% Monday, portion the SPDR S&P 500 ETF (SPY) descended 0.9%. The Innovator IBD 50 ETF (FFTY) slid 3.4%, nearing correction lows.

U.S. Stock Market Today Overview

Elsewhere, the 10-year Treasury output traded down to astir 1.42% Monday.

On Tuesday, the Federal Reserve's two-day gathering volition footwear disconnected with the Fed acceptable to merchandise its determination connected Wednesday pursuing the decision of the argumentation meeting. The Fed is expected to determination rapidly to upwind down its bond-buying programme and awesome that it volition rise involvement rates adjacent twelvemonth successful an effort to curb fast-rising inflation. The Federal Reserve's caller quarterly economical projections are expected to pencil successful 2 complaint hikes for 2022.

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Stock Market Rally Attempt

The large banal indexes posted anemic performances Monday, arsenic the Nasdaq again tested its captious 50-day benchmark. Despite the losses, Monday marked Day 6 of new rally attempts connected the Nasdaq and S&P 500, and Day 8 for the Dow Jones industrials.

Although indexes are inactive attempting to initiate a rally, the marketplace correction isn't implicit yet; respective days don't marque a trend. Starting connected Day 4, you are looking for a large scale to emergence sharply successful higher measurement than the anterior day. That would bespeak a follow-through day, and awesome the commencement of a imaginable uptrend.

Until specified a awesome appears, the market outlook remains a marketplace successful correction. Investors should beryllium avoiding caller purchases and maintaining watchlists of apical maturation stocks. Be definite to support a adjacent oculus connected your portfolio to marque definite you're protecting your gains and cutting losses quickly.

Now, portion the marketplace is inactive correcting, it's a bully clip to hunt for stocks that could go the adjacent uptrend's leaders. One instrumentality adjuvant successful specified a hunt is the relative spot line. The RS enactment measures a stock's terms show vs. the S&P 500. If the banal is outperforming the broader market, past the RS enactment angles upward. If a banal is performing worse than the wide market, past the enactment volition constituent lower.

After Monday's session, The Big Picture commented: "Parsing the sector, however, bundle remains a occupation spot. The iShares Expanded-Tech Software ETF (IGV) is much than 9% beneath anterior highs. Cybersecurity and endeavor bundle are main culprits successful the bundle sector. Those manufacture groups are disconnected astir 11% and 18%, respectively, from anterior highs."

For much regular banal marketplace commentary, cheque retired IBD's The Big Picture.

Five Best Dow Jones Stocks To Watch Now

Stocks Market Leaders Sell Off: AMD, Nvidia

Chip giants Advanced Micro Devices (AMD) and Nvidia (NVDA) sold disconnected 3.4% and 6.75%, respectively, Monday.

Both stocks stay supra their 50-day line, but their cushions are disappearing. If their 50-day lines are incapable to connection important support, past further weakness would beryllium expected.

Dow Jones Stocks To Watch: Home Depot, Nike

Home Depot banal remains conscionable beneath a 416.66 bargain constituent successful a three-weeks-tight formation. Home Depot is 1 of the apical Dow Jones performers successful 2021, up 52.6% twelvemonth to day done Monday's close. Shares traded down 2.4% Monday.

Retail person Nike is tracing a caller level basal that has a bargain constituent astatine 179.20, according to IBD MarketSmith illustration analysis. Shares are trying to find enactment astir their 50-day enactment pursuing Monday's 1.3% loss.

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Stocks To Watch: Arista, Driven, Louisiana-Pacific

Monday's IBD Stock Of The Day, Arista Networks, shows a flat base with a 134.24 bargain point. ANET stock shows a beardown 97 retired of a cleanable 99 IBD Composite Rating, according to the IBD Stock Checkup. Shares were up 1.2% Monday.

Positively, the stock's RS enactment is conscionable disconnected caller highs, indicating important banal marketplace outperformance during the caller weakness successful the large banal indexes.

IPO Leader Driven Brand shares attempted a breakout Monday past a cup with handle's 33.47 buy point, according to IBD MarketSmith illustration analysis. But shares reversed lower, falling implicit 1% to adjacent beneath the entry.

Louisiana-Pacific is successful bargain scope past a 73.76 bargain constituent successful a cupful with grip aft Monday's 2.6% loss. The 5% bargain scope tops retired astatine 77.45.

Join IBD experts arsenic they analyse starring stocks successful the existent banal marketplace correction connected IBD Live

EV Stocks: Li Auto, Xpeng, Lucid Motors, Rivian

Li Auto triggered the 7%-8% loss-cutting merchantability rule beneath a cup-with-handle base's 34.93 bargain constituent aft past week's tumble, but is trying to rebound. Shares are astatine their 50-day enactment aft uncovering enactment astir the semipermanent 200-day moving average. A caller basal could beryllium forming. Shares moved down 3.4% Monday.

Xpeng Motors triggered the round-trip merchantability signal from a 48.08 bargain constituent during aboriginal December's crisp sell-off. But XPEV shares are backmost astatine their 50-day enactment level. Wait for the banal to signifier a caller base, which would connection a caller entry. The banal was down 3.2% Monday.

Lucid Motors shares added to Friday's 3.1% bounce, climbing 4% Monday. LCID stock remains extended past a 28.49 bargain constituent successful a cup-with-handle base, but immense gains person dwindled. Shares are present trying to find enactment astatine their 50-day line.

Hot archetypal nationalist offering Rivian rebounded from Friday's 0.6% decline, rising 3.7% Monday aft MotorTrend named the Rivian R1T its 2022 Truck of the Year, calling it "the astir singular motortruck we've ever driven."

RIVN shares closed Monday astir 34% disconnected their post-IPO highs. The diminution is simply a imaginable affirmative for investors remaining disciplined and waiting for an IPO base to signifier earlier considering a purchase. The caller weakness is the commencement of Rivian's archetypal basal formation, and past week's beforehand is simply a measurement successful the close direction.

Tesla Stock

Tesla stock skidded 5% Monday, breaking down done their key 50-day enactment level, which is simply a captious benchmark to watch. The banal closed beneath its 50-day enactment for the archetypal clip since June 22.

Late Monday, U.S. securities filings showed Chief Executive Elon Musk sold different 934,091 Tesla shares worthy astir $906.5 million. In addition, helium exercised banal options to bargain 2.13 cardinal shares of Tesla stock.

Shares traded arsenic precocious arsenic 1,243.49 connected Nov. 4, but the banal ended Monday astir 22% disconnected its 52-week high.

TSLA shares stay sharply supra a 764.55 bargain constituent successful a cup with handle. The EV elephantine is moving connected a caller base, though that needs different week to form, with a apt 1,202.05 bargain point. Drawing a inclination enactment from the grounds precocious could connection an aboriginal introduction astir 1,150.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple banal reversed from grounds highs Monday, closing little aft trading arsenic precocious arsenic 182.13. Shares slid 2.1% Monday, closing astir 15% past a 153.27 bargain constituent retired of a cup-with-handle base, according to IBD MarketSmith illustration analysis. The banal is approaching the 20%-25% profit-taking zone.

Software elephantine Microsoft mislaid 0.9% Monday, giving up a portion of Friday's 2.8% gain. Shares recovered much-needed enactment astatine their 50-day enactment past week and are erstwhile again approaching caller highs. On Oct. 18, Microsoft stock broke retired past a flat base's 305.94 bargain point. The 5% bargain portion topped retired astatine 321.24, truthful the banal is extended.

Be definite to travel Scott Lehtonen connected Twitter astatine @IBD_SLehtonen for much connected maturation stocks and the Dow Jones Industrial Average.

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