Dow Jones futures: what to do as the stock market correction continues; Elon Musk buys Twitter

Dow futures rose slightly of late after the stock market rose on Monday. Twitter stock jumped as Tesla CEO Elon Musk signed a deal to buy the company in a $44 billion deal.


American Packaging Company (PKG) was the main driver of earnings after the close. PKG shares rose more than 1.5% in extended trade.

On Monday, the Dow Jones Industrial Average reversed sharp losses to gain 0.7%, while the S&P 500 gained 0.6%. The Nasdaq Technology Composite Index advanced 1.3%. Among the exchange-traded funds, the Nasdaq 100-tracked Invesco QQQ Trust (QQQ) Index is up 1.3%, and the SPDR S&P 500 ETF (SPY) is up 0.6% on Monday.

US stock market overview today

index Code price win/loss % change
Dow Jones (0 DJIA) 34052.03 +240.63 +0.71
Standard & Poor’s 500 (0S&P5) 4296.43 +24.65 +0.58
Nasdaq (0NDQC) 13004.85 +165.56 +1.29
Contact 2000 (IWM) 193.89 +1.21 +0.63
defect 50 (fifty fifty) 33.94 -0.29 -0.85
Last update: 4:42 PM ET 4/25/2022

Oil stocks were among the weakest performing stocks today, with US oil prices down more than 3%. West Texas Intermediate crude was trading at less than $99 a barrel. Schlumberger (SLB) slipped more than 7%. Halliburton (HAL) decreased 6.3%. And Baker Hughes (BKR) is down 4.5%.

Amid a new stock market correction, Dow Jones financial leader American Express (AXP) – along with Expedia (EXPE), IBD Leaderboard Inventory LPL Financial (LPLA), Palo Alto Networks (PANW) and world wrestling entertainment (WWE) – Among the biggest stocks to watch on Monday.

Among the leaders of Dow Jones, apple (AAPL) rose 0.7% and Microsoft (MSFT) is up 2.4% in the stock market today.

Microsoft and Tesla are IBD Leaderboard shares. Expedia and Palo Alto Networks featured in this week’s Stocks Near A Buy Zone column.

Elon Musk buying Twitter

Twitter (TWTR) jumped 5.7% after the company agreed to be acquired by Tesla CEO Elon Musk in a deal worth about $44 billion. Musk will take the company especially upon completion. Tesla TSLA stock fell 0.7% Monday.

“Freedom of speech is the bedrock of a functioning democracy, and Twitter is the digital city arena where matters vital to humanity’s future are discussed,” Musk said in written notes.

“I also want to make Twitter better than ever by improving the product with new features, making open source algorithms to increase trust, defeating spam bots, and authenticating all humans,” he continued. “Twitter has tremendous potential – I look forward to working with the company and the user community to unlock it.”

Dow futures contracts today: Treasury yields

After Monday’s close, futures for the Dow Jones, S&P 500 and Nasdaq 100 indexes rose slightly against fair value. Remember that overnight action in Dow Jones futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.

The 10-year Treasury yield fell to 2.82% on Monday after closing at 2.9% on Friday. Last week, the 10-year Treasury yield reached its highest level since December 2018.

Stock Market Correction Continues: What to Do Now

On Monday, the major stock indices showed a positive move, with the major stock indexes reversing from early losses to end with solid gains. However, Friday’s stock market outlook was lowered to “the market is in a correction” after more steep losses.

Monday is the first day of trying a new pool. Amidst the new stock market correction, investors should take profits and collect cash. Also, keeping a watch list of stocks that are well holding in a bear market is a good way to prepare for the next stock market bullish trend.

You can find many next uptrend leaders while the market is still correcting, which can be done using the relative strength line. The RS line measures the stock’s price performance against the S&P 500 Index. If the stock is outperforming the broader market, the RS line tends to the upside. If the stock is performing worse than the broad market, the line will indicate a decline.

Monday’s The Big Picture column commented, “Market optimists will estimate that the S&P 500 has bounced around the 4200 level, roughly where the index hit lows in January, February and March. The Nasdaq’s decline on Monday also occurred near the February and March lows. This suggests that The stock market could have found a bottom. But it’s too early to tell. The market should first start trying to rally.”

If you are new to IBD, consider taking a look at the CAN SLIM Stock Trading System and Basics. Recognizing chart patterns is one of the keys to investing guidance. IBD offers a wide range of developing stock listings, such as Leaderboard and SwingTrader.

Investors can also create watch lists, find companies close to a point of purchase, or develop custom displays at IBD MarketSmith.

Five Dow Jones stocks to watch right now

Dow Jones Buy & Watch: American Express

Dow Jones Financial Stock American Express tracks a cup with a handle with 194.45 buy points. Shares are up 2% on Monday, ending about 5% away from the most recent entry.

Watch the stock’s relative strength line. Amid its recent rally, the RS line is starting to approach its old highs, which means it is once again outperforming the broad market.

Top Three Growth Stocks to Watch on Cursstock market correction

Stocks to watch: LPL, Expedia, Palo Alto, WWE

IBD Leaderboard LPL Financial stock remained above its 191.08 buy point in a cup with a handle, but the double-digit gains faded during the recent slide. On April 21, stocks rose 15.5% above the entry level, which means the stock is close to activating the back-and-forth sell-off, according to IBD MarketSmith chart analysis.

IBD Stock Of The Day on Thursday, Expedia, builds a cup with a handle worth 204.08 buy points. Stocks are trying to recover the 50-day line, but are facing some problems at this key resistance level. EXPE 90 stock 99 IBD grade shows the perfect compound, for every IBD stock check.

Top cybersecurity Palo Alto Networks is finding much-needed support at the 50-day line after triggering a round-trip sell signal from the 572.77 buy point. Shares are up nearly 5% on Monday.

World Wresting Entertainment also found support around the 50-day moving average on Monday, cutting sharp losses to just 0.3%. The stock is just under 60.94 pips in a cup with a handle.

Join IBD experts as they analyze the leading stocks in the current stock market correction on IBD Live

Tesla Stock

Tesla stock fell 0.7% on Monday, adding to Friday’s loss of 0.4%. Shares of the electric vehicle giant on Monday ended roughly 13% away from their 1,152.97 point cup buying point.

The stock traded as high as 1,243.49 on November 4th which is 20% off its all-time high.

Dow Jones Leaders: Apple and Microsoft

Among Dow Jones stocks, Apple shares launched a 7%-8% base to cut losses from 176.75 buying points at a double-bottom base in recent weeks. Apple stock found support at its long-term 200-day line, rising 0.7% on Monday.

Software leader Microsoft rose 2.4% on Monday, but remained below its 50 and 200 days lines. The stock is about 20% off its 52-week high.

Apple and Microsoft announce earnings this week.

Make sure to follow Scott Lehtonen on Twitter at Tweet embed Learn more about developing stocks and the Dow Jones Industrial Average.

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