Dow Jones futures fell along with other major indexes on Tuesday as this week’s Federal Reserve meeting was set to begin later in the day. Artificial Intelligence Leaders Super Microcomputer (SMCI) stock market plunged today after the company announced a stock offering of 2 million shares.
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Dow Jones futures fell 0.1% vs. fair value in morning action, and S&P 500 futures fell 0.4%. Tech-heavy Nasdaq 100 futures fell 0.7 percent before the opening bell.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust ETF ( QQQ ) fell 0.6%, while the SPDR S&P 500 ETF ( SPY ) shed 0.4%.
The 10-year Treasury yield fell to 4.32 percent. Additionally, oil prices eased after Monday’s gains, as West Texas Intermediate futures traded around $82.70 a barrel.
AI stock Super Micro fell 10% Tuesday morning on a proposed stock offer to sell 2 million shares. Shares are poised to extend Monday’s steep losses after the company joined the S&P 500.
Be sure to read how to adjust to changing market conditions, along with IBD’s new exposure levels.
Stock Market Today: Economic Data, Fed Meeting
The Federal Reserve’s two-day policy meeting begins on Tuesday, with an interest rate decision on Wednesday.
Fed Chairman Jerome Powell may signal that a near-term rate cut could be on the cards, backing the odds for a June move. This will come as a surprise to the non-lending camp, or those who expect higher inflation to keep rates the same. Yet the Fed’s projections could lead to a lower rate cut in both 2024 and 2025 than they showed in December, surprising soft-landing forecasters.
Investors received more housing data, with the Commerce Department’s housing starts and permits for February released early. Housing starts rose to 1.521 million, above the 1.449 million estimate. And permits rose to 1.518 million, above the 1.5 million Econoday estimate.
Tuesday morning’s key earners included. StoneCo (STNE) and Tencent Music (TME). StoneCo shares fell more than 8%, while Tencent Music’s stock rose 0.7% in premarket trades.
Dow Jones on the rise
On Monday, the Dow Jones Industrial Average gained 0.2% and the S&P 500 gained 0.6%. The tech-heavy Nasdaq Composite rose 0.8 percent.
Monday’s Big Picture column commented, “One can’t ignore the fact that the S&P 500 easily erased its mild two-week losses on Monday. That’s more than a piece of comfort for IBD readers. is troubled by an unusually high number of distribution days. over the past 25 trading sessions for both the S&P large-cap gauge and the Nasdaq.”
Now is an important time to read IBD’s The Big Picture column amid the stock market’s continued rally. Be sure to read how to adjust to changing market conditions, along with IBD’s new exposure levels.
Learn how to time the stock market with IBD’s ETF Market Strategy.
The best stocks to buy and watch in the stock market today
Arista Networks (a trap), Duolingo (DUOL), Dex work (DXCM) and XP (XP) — plus Dow Jones components Disney (DIS), IBM (IBM) and Procter & Gamble (PG) — are among the best stocks to buy and watch in the stock market today.
Arista and Disney were featured in this Stocks Near A Buy Zone column.
An essential resource for daily breakouts is IBD MarketSurge’s “Breaking Out Today” list. This MarketSurge Growth shows 250 stocks that are breaking new past buy points. There were no new breakouts on Monday.
Meanwhile, the MarketSurge “Near Pivot” list shows stocks near buy points in bases like Arista Networks.
Get real-time buy and sell alerts on stock market leaders with the IBD Leaderboard.
Dow Jones stocks: Disney regains buy point
According to IBD MarketSurge chart analysis, Disney is moving ahead of the handle base’s 112.92 buy point with a big cup. And shares closed above their entry on Monday, up 1.7 percent. Disney stock fell 0.5 percent Tuesday morning.
IBM stock remains flat below the 196.90 buy point of the base, up 0.3 percent on Monday. Shares were flat on Tuesday.
Consumer products giant Procter & Gamble edged lower on Monday, still above a 158.38 buy point at a cup base. P&G stock fell on Tuesday.
4 Top Growth Stocks to Watch Stock market rally
Arista Stock Nearest Buy Point
Arista shares rose 4.2 percent on Monday, near the 292.66 flat-base buy point, according to the Market Surge chart. They are just 2% away from their latest buy trigger. Arista shares fell 1.5% on Tuesday morning.
IPO leader Duolingo is closing in on Handle’s 241.86 entry with the cup, but about 10% away from a buy point. Shares of Duolingo were down 0.5 percent on Tuesday.
Shares of Dexcom advanced 3.3% on Monday, regaining a 132.03 entry on a flat base. Shares of Dexcom were up 0.3 percent in early trading Tuesday.
Finally, Brazil-based XP lost 0.6% on Monday, holding support above its 50-day moving average. Shares are forming a cup with a handle that shows a 27.03 entry. XP stock was down 1.2% on Tuesday morning.
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Best bets on the stock market today
These are four of the best stocks to watch in today’s stock market, including the Dow Jones leader.
| Company Name | symbol | Correct the purchase point. | Type of purchase point |
|---|---|---|---|
| Novo Nordisk | (NVO) | 105.69 | Flat base |
| Merc | (MRK) | 119.65 | The base of the cup |
| Draft Kings | (DKNG) | 39.35 | The base of the cup |
| Spotify | (spot) | 202.88 | Flat base |
Source: IBD data as of February 28, 2024
Join IBD experts as they analyze the leading stocks in the current stock market rally on IBD Live.
Spectacular Seven Stocks: Nvidia, Tesla
Magnificent Seven Stocks Nvidia (NVDA) and Tesla ( TSLA ) fell 2.5% and 1.6%, respectively, in premarket action Tuesday.
Nvidia shares rose 0.7% on Monday, snapping a three-day losing streak. Nvidia is an IBD Leaderboard stock.
Tesla stock rose 6.3 percent from last week’s low. Still, shares are sharply below their 50- and 200-day moving averages and more than 40% off their 52-week highs.
Dow Jones Leaders: Apple, Microsoft
In the brilliant seven, Dow Jones stocks, apple (AAPL) and Microsoft ( MSFT ) traded lower before the stock market opened on Tuesday.
Apple stock rose 0.6% on Monday, hitting its highest level since March 4. Shares are sharply below their long-term 200-day line. Apple was down 0.2% on Tuesday.
Microsoft shares found support at the 50-day line, sending them to new highs last week. That put the software giant in a new buying territory. Shares of Microsoft fell 0.4% in the stock market today.
Be sure to follow Scott Leihtnen on X, formerly known as Twitter. @IBD_SLehtonen For more information on growth stocks, Dow Jones Industrial Average and Stock Market Today.
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