Dow Jones Futures: Struggling stock rally faces key inflation report as oil prices crash


Dow Jones futures were little changed after Tuesday’s stock market plunge as U.S. oil prices crashed below $96 a barrel. A key inflation report – the Consumer Price Index – is due out before trading opens on Wednesday.


Early Wednesday, reports on the results of Delta Airlines (DAL) and Attached (QUICK) are available.

Banking giants JPMorgan Chase (JPM) and Morgan Stanley (MS), as well as Semiconductor manufacturing in Taiwan (TSM) will report Thursday morning. Citigroup (C), Dow Jones stock UnitedHealth (UNH) and Wells Fargo (WFC) wrap up the trading week with earnings reports on Friday morning.

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

After Tuesday’s close, Dow Jones, S&P 500 and Nasdaq 100 futures were little changed from fair value. Remember that overnight action on futures contracts on Dow and elsewhere does not necessarily translate into actual trading in the next regular trading session.

The 10-year Treasury yield fell to 2.95% on Tuesday, after Monday’s fall to 2.99%. Meanwhile, US oil prices fell more than 8%, with West Texas Intermediate trading below $96 a barrel.

The Department of Labor’s Consumer Price Index is due out Wednesday morning at 8:30 a.m. ET. Consumer prices are expected to rise 1.1% in June, according to Econoday estimates. Inflation is expected to jump to 8.8% in June from a year ago, from 8.6% year-on-year in May.

stock market today

On Tuesday, the Dow Jones Industrial Average fell 0.6%, while the S&P 500 fell 0.9%. The tech-heavy Nasdaq composite lost 0.95%. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 1% and the SPDR S&P 500 ETF (SPY) fell 0.9%.

You’re here (TSLA) slipped 0.5% on Tuesday. Among the leaders of the Dow Jones, Apple (AAPL) increased by 0.7% and Microsoft (MSFT) was trading down 4.1% in today’s stock market.

In a difficult stock market environment, the leaders of the Dow Jones Johnson & Johnson (JNJ), Merck (MRK) and UnitedHealth Group (UNH) — as well as Big BJ Club (BJ), Dollar Tree (DLTR), Northrop Grumman (NOC) and Quantum Services (PWR) – are among the stocks to watch. Keep in mind that continued stock market volatility is a reason to stay defensive.

Northrop and UnitedHealth are IBD ranked stocks. Dollar Tree is an IBD SwingTrader stock. BJ’s is an IBD 50 stock. Quanta was Thursday’s IBD stock of the day. Northrop was featured in this week’s Stocks Near A Buy Zone column.

Stock market rally in trouble

Monday’s The Big Picture column commented: “As has been the case for much of this year, investing in stocks should be done with one foot on the accelerator pedal and another on the brake. This year turns out to be a tough lesson in risk management.”

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.

Four Dow Jones stocks to watch now

Dow Jones stocks to watch: Johnson & Johnson, Merck

Dow Jones leader Johnson & Johnson remains below the 181.84 buy point of a double-bottom basis, according to IBD MarketSmith’s chart analysis. The company publishes its results on July 19. Shares of JNJ fell 1.4% on Tuesday.

Pharmaceutical giant Merck fell 0.7% on Tuesday and sits just below the 95.02 buy point of its flat base. Medical stocks in general, and biotechnology in particular, have shown increasing strength in recent stock market actions.

Health insurance giant and IBD Leaderboard UnitedHealth stock remains above the 507.36 buy point of its double-bottom basis after Tuesday’s 0.5% drop. Stocks are in the buy range. The UNH releases its second quarter results on Friday morning.

The UNH stock is posting a solid 96 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: BJs, Dollar Tree, Northrop, Quanta

IBD 50 stock BJ’s Wholesale is still in the 5% buy range above the 67 buy point of a mug with handle despite Tuesday’s 0.8% drop. The stock’s relative strength line is at new highs, a sign of significant stock market outperformance.

IBD SwingTrader stock Dollar Tree fell even lower than its tumbler with handle’s 166.45 buy point on Tuesday, losing 1.2%. On a positive note, the discount retailer’s RS line is at a new high. Dollar Tree stock is posting a solid 97 out of an IBD Composite Best Rating of 99, according to the IBD Stocks Balance Sheet.

Stock IBD Leaderboard Northrop Grumman is building a new flat base which has a buy point of 492.40. CNP shares fell 1.4% on Tuesday.

Quanta Services is putting the finishing touches on a mug with handle that has a buy point of 138.56, according to chart analysis from IBD MarketSmith. Shares are around 5% off last entry after Tuesday’s 2.6% drop.

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

Tesla Stock

Tesla stock fell 0.5% on Tuesday, extending losses after Monday’s 6.55% slide. Shares have fallen further below their 50-day line and remain deep below their 200-day line ahead of the company’s July 20 earnings release date.

Tesla stock traded as high as 1,243.49 on November 4. The shares are about 44% off that record.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares rose 0.7% on Tuesday, recouping some of Monday’s 1.5% decline. Apple recovered its 50-day line last week, but is now testing that key level. Stocks remain well below their long-term 200-day line. The stock is around 20% off its 52-week high. Apple’s earnings are due July 28.

Microsoft slid 4.1% on Tuesday, dropping its recently recovered 50-day line. The stock closed around 27% off its 52-week high. The software giant will release its quarterly results on July 26.

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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