Dow Jones futures and other major stock indexes fell on Tuesday as Wall Street prepared for the start of the Federal Reserve’s two-day policy meeting. In the meantime, Tesla (TSLA) fell sharply on the stock market today on reports of new layoffs Amazon (AMZN) results are due after the market close.
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Dow Jones futures fell 0.5% from fair value premarket, while S&P 500 futures fell 0.4%. Technology-focused Nasdaq 100 futures were down 0.4% before the opening bell.
Early Tuesday, the 10-year Treasury yield rose to 4.67%. Additionally, oil prices rose as West Texas Intermediate futures traded at around $82.90 per barrel.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) lost 0.5%, while the SPDR S&P 500 ETF (SPY) lost 0.4%.
Tesla shares slipped more than 3% on Tuesday morning after The Information reported that the electric vehicle giant laid off two senior executives and plans to lay off hundreds more employees, frustrated by falling sales and the pace of job cuts so far.
On Monday, Tesla shares rose more than 15%, reaching their 50-day moving average for the first time since early January.
Stock market today: Fed meeting
The Federal Reserve’s two-day meeting is sure to be in the spotlight this week when it begins on Tuesday. And the Fed meeting statement and comments from Fed Chair Jerome Powell on Wednesday afternoon will provide clues as to when interest rate cuts might occur. But that really depends on the economic data.
The latest consumer confidence data will be released on Tuesday at 10 a.m. ET. The Conference Board’s consumer confidence index is expected to fall to 104.0 in April from 104.7 in March.
Tuesday’s key earnings reports include: Coke (KO), Lattice semiconductors (LSCC), Microstrategy (MSTR), NXP Semiconductor (NXPI) and PayPal (PYPL).
Coca-Cola shares fell 0.4% in premarket trading, while Lattice shares fell 4.7%. MicroStrategy fell nearly 7%, while NXP shares rose 4%. And PayPal shares rose 6.1% ahead of the market open.
The Magnificent Seven member Amazon is expected to report after the market closes. Amazon shares have bullishly reclaimed their 50-day line in recent sessions. The shares rose 0.6% premarket.
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Dow Jones is rising
On Monday, the Dow Jones Industrial Average rose 0.4% and the S&P 500 rose 0.3%. The tech-heavy Nasdaq Composite gained 0.4%.
Monday’s “The Big Picture” column said: “Both indexes have reached the test of their 50-day moving averages, a line that could become an important chart signal this week. A return above this would be a good sign for the market. But if the indices encounter resistance and roll over, another downtrend in the market is entirely possible.”
Now is an important time to read Investor’s Business Daily’s “The Big Picture” column amid the ongoing stock market moves. Be sure to read about how IBD’s new exposure levels can help you adapt to changing market conditions.
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The best stocks to watch in the stock market today
Chipotle Mexican Grill (CMG), Texas Roadhouse (TXRH) and Tradeweb Markets (TW) – plus Dow Jones component American Express (AXP) – are one of the best companies to keep an eye on on the stock market today.
Texas Roadhouse is featured in this “Stocks Near a Buy Zone” column.
An essential resource for daily breakouts is IBD MarketSurge’s Breaking Out Today list. It shows MarketSurge Growth 250 stocks breaking out past new buy points. Additionally, the MarketSurge Near Pivot list displays stocks that are near buy points in the bases.
For more stock ideas, check out IBD stock lists like IBD 50, Big Cap 20, and Stocks Near a Buy Zone. These features identify bullish patterns and buy points and can be checked daily.
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Dow Jones: American Express
American Express is rebounding from support around its 50-day moving average with heavy volume. The bullish rebound took the software leader into new buy territory as shares climbed above a 231.69 entry in a short consolidation. Shares fell 1.1% on the stock market today.
The 3 top growth stocks to keep an eye on Stock market today
Outside the Dow Jones Index, Chipotle rose another 0.7% on Monday, closing further above a 3,023.98 buy point in a short consolidation, according to IBD MarketSurge. Chipotle shares fell 0.5% before Tuesday’s open.
Texas Roadhouse is just above a flat base buy point of 157.12. The stock rose 1.1% on Monday. And shares were up 2.4% on Tuesday morning.
Tradeweb remains below its 50-day moving average as it forms a flat base with a 108.04 buy point. Shares were flat on Tuesday.
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Stock market today: Companies to watch
These are four stocks in or near the buy zone of today’s stock market.
| Company Name | symbol | Right buying point | Type of buy point |
|---|---|---|---|
| American Express | (AXP) | 231.69 | Consolidation |
| Texas Roadhouse | (TXRH) | 157.12 | Flat base |
| Chipotle | (CMG) | 3,023.98 | Consolidation |
| Tradeweb Markets | (TW) | 108.04 | Flat base |
Source: IBD data as of April 22, 2024
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The seven great stocks: Nvidia
Magnificent Seven stock Nvidia (NVDA) fell 0.9% in premarket action on Tuesday.
Nvidia shares rose slightly on Monday, adding to Friday’s bullish gains. With the stock back above its 50-day line, consolidation has created a new buy point at 974, while aggressive investors can use 906.13 as an early entry.
Dow Jones leaders: Apple, Microsoft
Among the Dow Jones stocks in the Magnificent Seven are Apple (AAPL) and Microsoft (MSFT) traded lower before the open on Tuesday.
Apple shares rose 2.5% on Monday after Bernstein upgraded the stock to “outperform” from “market perform.” For the first time since late January, shares reached their 50-day line. Apple lost a fraction on the stock market today.
Microsoft shares slipped 1% on Monday and are still below their 50-day line. The software giant is building a new flat base with a 430.82 buy point. Shares fell 0.4% on Tuesday.
Be sure to follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen Learn more about growth stocks, the Dow Jones Industrial Average, and the stock market today.
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