Dow Jones Futures: After Stock Market Rally’s Ugly Outside Week, Here’s What To Do

Dow Jones futures tilted higher Sunday evening, along with S&P 500 futures and Nasdaq futures.

The stock market rally suffered heavy damage last week in the wake of a hawkish Fed outlook and weak economic data that raised concerns that the Federal Reserve will drive the economy into a recession. The Nasdaq and S&P 500 index closed the week below their 50-day moving averages.

Megacap stocks remain a drag on the major indexes, especially Apple (AAPL) and Tesla (TSLA), with TSLA stock plunging to fresh bear market lows. Amazon.com (AMZN) and Google parent Alphabet (GOOGL) aren’t too far away from their lows. Microsoft didn’t lose too much for the week but fell back from the 200-day line. Nvidia (NVDA), which had been part of a chip rebound, reversed lower, back below key support.

But the megacaps aren’t hiding underlying strength. Most stocks that had flashed buy signals in recent days and weeks turned south. Leading sectors also suffered.

Insulet (PODD), Commercial Metals (CMC), Elf Beauty (ELF), Peabody Energy (BTU) and Dow Jones giant Caterpillar (CAT) are holding up relatively well. None are actionable right now, however.

Investors should be wary of making any buys in the current market, but focused on trimming exposure and building up watchlists.

The video embedded in this article reviewed the market action in depth, while also analyzing Insulet, Elf Beauty and CAT stock.

Dow Jones Futures Today

Dow Jones futures edged up vs. fair value. S&P 500 futures tilted higher and Nasdaq 100 futures rose 0.1%.

The 10-year Treasury yield rose 3 basis points to 3.51%.

Crude oil futures edged higher.

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live