Dow Jones futures were higher ahead of Tuesday's open, along with S&P 500 futures and Nasdaq 100 futures, in overnight trade. The Dow Jones Industrial Average surged more than 500 points Monday, as Wall Street braces for Wednesday's Federal Reserve interest rate decision. Meanwhile, Tesla stock dived below the 200 price level.
The Fed meeting, which wraps up at 2 p.m. ET on Wednesday, preludes Chairman Jerome Powell's news conference. Markets see zero chance of a rate hike and only a slim chance of a hike at the subsequent meeting on Dec. 13.
Speaking of which, the Labor Department's October jobs report is out Friday. The employment report is expected to show a net gain of 172,000 jobs and a steady 3.8% unemployment rate.
Further, Apple earnings headlines this week's earnings reports, with a late release Thursday.
Late Monday, key earnings movers included Arista Networks, Lattice Semiconductor, Monolithic Power, Pinterest and Rambus.
ANET stock rallied 3.5% in extended trade, while Lattice shares plunged another 14%. MPWR stock jumped more than 8%, as Pinterest shares raced 10% higher. Finally, Rambus stock inched lower in late action.
Stock Market Today: Dow Jones Rallies
On Monday, the Dow Jones Industrial Average rallied 1.6%, or 510 points, while the S&P 500 moved up 1.2%. The tech-heavy Nasdaq composite advanced 1.2%.
Electric-vehicle giant Tesla dived nearly 5% Monday, while stock market leader Nvidia gained 1.6%. Meanwhile, Dow Jones tech icons Apple and Microsoft traded sharply higher in today's stock market, with AAPL stock up 1.2% and Microsoft shares up 2.3%.
International Seaways, Lululemon Athletica, Light & Wonder and Tradeweb Markets — as well as Dow Jones stocks Walmart and UnitedHealth — are among the best stocks to watch in the ongoing stock market correction.
Lululemon and Walmart both featured in this Stocks Near A Buy Zone column.
Dow Jones Today: Oil Prices, Treasury Yields
Ahead of Tuesday's opening bell, Dow Jones futures rose 0.4% vs. fair value, while S&P 500 futures gained 0.3%. Nasdaq 100 futures were up 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.
On Monday, the 10-year U.S. Treasury yield remains near its long-term highs, settling at 4.87%. Meanwhile, oil prices tumbled almost 4%, as West Texas Intermediate futures closed just below $82.50 a barrel.
Stock Market Correction: What To Do Now
Now is an important time to read IBD's The Big Picture column, with the stock market outlook still in a market correction.
Amid the recent weakness, IBD investors should remain very cautious about taking on new positions, with a recommended stock market exposure at a 0%-20% level.
A new stock market rally attempt kicked off Friday, with the Nasdaq's modest gains. That means a follow-through day can occur on the Nasdaq as soon as Wednesday, or Day 4, of the rally attempt.
In the meantime, look for new stock market leadership to emerge over the coming weeks if the Dow Jones and other indexes can rebound. Watch for stocks holding up better than the broader market.
One way to do this is by using the relative strength line. The RS line measures a stock's price performance vs. the S&P 500. Keep an eye on stock charts in which the line is trending upward, which means the stock is outperforming the S&P.
The RS line is in all IBD charts and IBD MarketSmith. In addition, the IBD Stock Screener includes a list of top-rated stocks with lines at new highs. MarketSmith also has the "RS Blue Line Dot" list, which screens for RS lines at new highs.
A MarketSmith list to find stocks during market downturns is "Near Pivot." It shows stocks nearing buy points in bases.
Dow Jones Stocks: Walmart, UnitedHealth
Dow Jones retail titan Walmart is tracing a cup base with a 165.85 buy point, according to IBD MarketSmith chart analysis. Shares snapped a three-day losing streak Monday, rallying 1.2%. WMT stock founds support at its key 50-day line.
Health care giant UnitedHealth is adding a handle to a massive consolidation, and showing a new buy point at 546.78. UNH stock moved up 1% Monday.
4 Top Growth Stocks To Watch In The Stock Market Correction
Stocks To Buy And Watch: Tradeweb Breaks Out
International Seaways is trying to break out past a cup-with-handle's 48.40 entry, but gave up the entry during Monday's 2.4% drop. Keep in mind the market correction should keep you from buying breakout stocks.
Lululemon climbed 1.3% Monday, still below a flat base's 406.94 buy point, according to IBD MarketSmith pattern recognition. Wait for another sustained move past that entry as a buy signal.
Casino games maker Light & Wonder bounced 0.7% Monday, as shares continue to trace a flat base with a 79.97 buy point.
Tradeweb broke out of a flat base's 87.53 buy point Thursday after the company's third-quarter earnings. TW stock added 1.2% Monday and is showing unusual strength in a weak environment.
Learn How To Time The Market With IBD's ETF Market Strategy
Best Stocks In Today's Stock Market Action
These are four best stocks to watch in today's stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| International Seaways | 48.40 | Cup with handle | |
| Walmart | 165.85 | Cup base | |
| Lululemon | 406.94 | Flat base | |
| Tradeweb Markets | 87.53 | Flat base |
Source: IBD Data As Of Oct. 30, 2023
Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live
Tesla Stock
Tesla stock dived 4.8% Monday, closing below the 200 price level for the first time since May 26. Shares tumbled further below their 200-day line after giving up that key level in recent sessions.
Shares are more than 30% off their 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple added 1.2% Monday, extending Friday's gains. Shares are trying to stem their recent slide around the 200-day line, but are still below that level. Apple delivers its fiscal fourth-quarter report late Thursday.
Microsoft stock bounced 2.3% Monday, adding to Friday's gains and erasing a large part of Thursday's dive. Shares are finding support around their 50-day line and moving closer to an early buy trigger at 346.20.
Be sure to follow Scott Lehtonen on X/Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
