Dow Jones futures, as well as S&P 500 futures and Nasdaq futures, experienced a slight dip on Monday morning as investors prepared for the Federal Reserve meeting scheduled later in the week. There is an expectation that the Fed will not raise its interest rate target this time, after 11 consecutive increases since early 2022. Wall Street predicts a 99% chance of interest rates remaining steady. However, it is unlikely that the committee will eliminate the possibility of additional rate hikes in the future. A pause in interest rate increases could shift the balance of power between hawks and doves.
Investors will also be focused on key earnings reports this week from companies including AutoZone, Darden Restaurants, FedEx, General Mills, and KB Home. Additionally, the ongoing United Auto Workers strike against General Motors, Ford, and Stellantis will continue to be monitored.
One notable performance in the stock market today is DoorDash, which saw a nearly 2% rally after receiving an upgrade from Mizuho Securities. The stock’s price target was also raised from 90 to 105. Another notable stock, Walt Disney, experienced a slight increase in early trade following an upgrade and price target hike from Raymond James.
In other news, Dow Jones tech icons Apple and Microsoft traded mixed ahead of the market open, while EV giant Tesla and Nvidia experienced slight declines. Alphabet and Meta Platforms both saw a small decrease in early action.
Meanwhile, Dow Jones futures were slightly lower compared to fair value, while S&P 500 futures and Nasdaq 100 futures were down as well. The 10-year U.S. Treasury yield was on the rise, and oil prices continued to set new highs for 2023.
Overall, the stock market saw struggles on Friday, with the Dow Jones Industrial Average losing 0.8%, the S&P 500 giving up 1.2%, and the Nasdaq composite selling off 1.6%.
Some stocks to watch include Caterpillar, which is building a new flat base, and Intel, which remains within the 5% buy range past a flat-base entry. Airbnb is tracing a cup-with-handle base, Amazon is back below a buy point in a flat base, Quanta Services is below a short consolidation and its 50-day support level, and Shopify is adding a handle to a cup base.
Tesla stock experienced a decline, while Apple and Microsoft stocks also saw some weakness on Friday. These stocks will continue to be closely monitored.
– CME FedWatch Tool
– Mizuho Securities
– Raymond James
– IBD MarketSmith pattern recognition
– IBD Data