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Dow Jones Futures: Apple, Tesla, Microsoft, Fed Meeting On Tap As Bears Rule;


Dow Jones futures will open on Sunday evening, along with S&P 500 futures and Nasdaq futures, heading into a massive week of earnings from Apple to Tesla as well as a key Federal Reserve meeting. The stock market correction took a firm hold last week, with the major indexes suffering sharp losses and breaking several key support levels.




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Even sectors of strength, notably financials, came under heavy pressure. So far bulls have made only momentary charges, with investors quick to sell rebounds instead of buying the dip. It’s a time to be heavily defensive.

Tesla stock and Dow Jones giants Apple (AAPL), Microsoft (MSFT) and Caterpillar (CAT) are on tap this week, along with dozens of other quality companies. But the main event will likely be the Federal Reserve meeting on Jan. 25-26.

The Fed meeting announcement Wednesday afternoon and Fed chief Jerome Powell’s news conference could set the tone for the stock market and Treasury yields for weeks to come. The Fed is expected to continue its accelerated bond taper, staying on track to end asset purchases by mid-March.

But the real issue is what happens next. Fed chief Powell will likely offer commentary on the timing and pace of interest rate hikes and balance sheet reductions. Talk of reducing the balance sheet, and at a fast clip, has been a big reason why the 10-year Treasury yield has spiked and the stock market has entered a correction.

Tesla (TSLA) and Microsoft stock are on IBD Leaderboard. MSFT stock is on the IBD Long-Term Leaders list. Tesla stock is on the IBD 50 list.

The video embedded in this article discusses the market correction in depth, while also analyzing Apple stock, UnitedHealth (UNH) and J.B. Hunt Transportation Services (JBHT).

Dow Jones Futures Today

Dow Jones futures open at 6 p.m. ET on Sunday, along with S&P 500 futures and Nasdaq 100 futures.

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.


Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live


Coronavirus News

Coronavirus cases worldwide reached 346.63 million. Covid-19 deaths topped 5.56 million.

Coronavirus cases in the U.S. have hit 71.31 million, with deaths above 887,000.

Coronavirus cases in the U.S. are falling, albeit from extremely high levels. New York and other states hit early by the omicron Covid variant are leading the decline. Deaths have picked up in the past few weeks, but not nearly as much as new cases.

Stock Market Correction

The market correction took hold last week and didn’t let go, with the major indexes falling every day of the holiday-shortened week.

The Dow Jones Industrial Average tumbled 4.6% in last week’s stock market trading. The S&P 500 index skidded 5.7%. The Nasdaq composite plunged 7.6%. The small-cap Russell 2000 dived 8%.

The 10-year Treasury yield spiked to a two-year high of 1.87% intraday Wednesday, but closed the week down slightly at 1.75%.

Crude oil futures rose 2.2% to $85.14 a barrel, despite pulling back slightly late in the week from their highest levels since 2014.

ETFs

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) plummeted 11.4% last week, while the Innovator IBD Breakout Opportunities ETF (BOUT) tumbled 8.6%. The iShares Expanded Tech-Software Sector ETF (IGV) retreated 5.2%, with MSFT stock a major component. The VanEck Vectors Semiconductor ETF (SMH) dived 11.5%, as the formerly resilient chip sector broke hard.

SPDR S&P Metals & Mining ETF (XME) tumbled 10% last week. The Global X U.S. Infrastructure Development ETF (PAVE) slumped 6.4%. U.S. Global Jets ETF (JETS) descended 6.2%. SPDR S&P Homebuilders ETF (XHB) stepped down 7.7%. The Energy Select SPDR ETF (XLE) lost 3.2%, even amid rising energy prices. The Financial Select SPDR ETF (XLF) retreated 6.5%. The Health Care Select Sector SPDR Fund (XLV) fell 3.45%

Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) slumped 10.9% last week and ARK Genomics ETF (ARKG) 9.7%. Tesla stock remains the No. 1 holding across ARK Invest’s ETFs.


Five Best Chinese Stocks To Watch Now


Microsoft Stock

Microsoft earnings are due Tuesday night, providing insight to other software makers and cloud-computing giants. Microsoft stock had looked strong at the end of 2021, but has slumped in the new year. Shares fell 4.6% to 296.03 last week, and are closing in on their 200-day line. A strong rebound from the 200-day could offer a buying opportunity for MSFT stock as a Long-Term Leader.

For a traditional position trade, investors should wait until Microsoft regains the 50-day line at least, which likely wouldn’t happen without the broader market staging a real rebound. The official buy point is 349.77 from a flat base, according to MarketSmith analysis.

The relative strength line for Microsoft stock has fallen over the past two months, but hasn’t plunged. The RS line, the blue line in the charts provided, actually…



Read More: Dow Jones Futures: Apple, Tesla, Microsoft, Fed Meeting On Tap As Bears Rule;

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