Dow Jones Futures: What To Do After Today's Stock Market Dive As Russia-Ukraine War Continues

Dow Jones futures reversed higher in evening trade after Monday's stock market dive. Russia's ongoing Ukraine invasion, along with the West's response, remains the key focal point in the stock market today.

U.S. oil prices briefly surged above $130 a barrel Monday before pulling back sharply, as the U.S. and its allies are considering a ban on Russian oil and natural gas imports after the country's attack on Ukraine.

Investors need patience and discipline right now, keeping cash mostly on the sidelines to see if the market rally attempt can signal a new uptrend. Dow Jones health care giant UnitedHealth, Costco, CSX and Union Pacific are among those holding up well in the current stock market volatility. Meanwhile, Apple stock fell further below its 50-day moving average.

Stock Market Today

On Monday, the Dow Jones Industrial Average sold off 2.4%, while the S&P 500 lost 2.95%. The tech-heavy Nasdaq composite dived 3.6%. The Nasdaq closed in bear market territory, now down more than 20% from its recent high.

Among the Dow Jones leaders, Apple (AAPL) dropped 2.4% and Microsoft (MSFT) traded down 3.8% in today's stock market. UnitedHealth (UNH), a Dow Jones stock to watch, finished Monday just below a new buy point.

Electric-vehicle leader Tesla (TSLA) skidded more than 4% Monday.

Amid the volatile, headline-driven market, Anthem (ANTM), Costco (COST), CSX (CSX) and Union Pacific (UNP) are among Monday's top stocks to watch. Keep in mind that current stock market conditions should keep investors in cash and on the sidelines.

Microsoft and Tesla are IBD Leaderboard stocks. Costco and CSX were featured in this week's Stocks Near A Buy Zone column.

Dow Jones Today: Russian Invasion, Oil Prices

After Monday's market close, Dow Jones futures turned up 0.1% vs. fair value and S&P 500 futures rose 0.15%. Nasdaq 100 futures moved up 0.1% vs. fair value. Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.

Among exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 3.7%, and the SPDR S&P 500 ETF (SPY) lost 2.9% Monday.

The 10-year Treasury yield rose to 1.75% Monday, after closing at 1.72% on Friday.

U.S. oil prices climbed 3% Monday, as West Texas Intermediate crude settled around $119 a barrel, its highest close since Sept. 2008, per Dow Jones Market Data. On Sunday, Secretary of State Antony Blinken said that the U.S. and its allies are considering a ban on Russian oil and natural gas imports after the country's attack on Ukraine.

Russia continued to bombard Ukrainian cities, with low-level negotiators from both sides meeting for a third round of talks on Monday. Negotiators agreed on some plans to help people trapped in the fighting, but there was little other progress regarding a cease-fire. Russia's top diplomat is scheduled to meet with his Ukrainian counterpart in Turkey on Thursday.

Stock Market Rally Attempt: What To Do Now

The stock market posted more disappointing action Monday, as the major stock indexes ended with heavy losses. Despite Monday's losses, all three major stock indexes remain above their Feb. 24 intraday lows, which means Tuesday will be Day 9 of the ongoing rally attempt.

A follow-through day — signaling the start of a new uptrend — is still possible anytime now. However, even if a follow-through day occurs, there isn't a whole lot of merchandise to purchase, outside some strength in the precious metals, energy and agricultural chemicals areas of the market.

During market corrections, investors should be in cash. But don't tune out. Instead, keep a watchlist of top-performing stocks that are trying to hold up during the market weakness. Use the relative strength line to help you identify some emerging market leaders. You can also find stocks newly added to IBD's proprietary watchlists like the IBD 50 here.

Be sure to check out the IBD University on how to identify market bottoms and get invested after a follow-through day.

Friday's The Big Picture commented, "Cash is still king. As an asset class, it still outperforms the S&P 500 (down 9.2% since Jan. 1) and the Nasdaq (down about 15%) this year." Amid the current volatility, it's an important time to read and follow IBD's The Big Picture column.

If you're new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one key to the investment guidelines. IBD offers a broad range of growth stock lists, such as Leaderboard and SwingTrader.

Retail giant Costco cut gains to 0.6% Monday, but still handily outperformed the major stock indexes. COST shares are tracing the right side of a cup base that has a 571.59 buy point. COST stock shows a solid 93 out of 99 IBD Composite Rating, per IBD Stock Checkup. Investors can use the IBD Composite Rating to easily gauge the quality of a stock's fundamental and technical metrics.

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