Dow Jones Futures Rise Ahead Of Fed Meeting; Apple Earnings, Jobs Report Loom

Dow Jones futures climbed Monday morning as Wall Street awaited the Federal Reserve's 2-day meeting. Apple's earnings will be released late Thursday.

The Fed meeting concludes at 2 pm. ET on Wednesday precedes Chairman Jerome Powell’s news conference. The markets see no chance of an interest rate increase and a very slim chance at the next meeting on December 13.

Powell will not want to rule out a rate increase, even though consumer spending has been on fire in the third-quarter. Before removing any risk of future rate hikes, the Fed will probably need to see that hiring has slowed to a crawl. But this is not the type of employment report that economists are expecting.

The Labor Department released its October jobs report on Friday. The report on employment is expected to show an increase of 172,000 net jobs, and a stable unemployment rate of 3.8%.

Apple's (AAPL), the Dow Jones machinery giant Caterpillar (CAT), Amgen (AMGN) and Pfizer(PFE) are also amongst this week's key earnings reports. Caterpillar, the Dow Jones machinery company (CAT), Amgen(AMGN)and Pfizer (PFE) are also releasing important earnings reports.

McDonald's and ON Semiconductor are the companies that released their earnings reports on Monday.

McDonald's shares rose nearly 3% during premarket trading while ON stock fell 4.5%.

Dow Jones Today: Oil prices, Treasury Yields

S&P 500 and Dow Jones futures both rose by 0.7% vs. fair values ahead of Monday's open. The Nasdaq futures, which are heavily tech-heavy, rose 0.8% against fair value.

The Nasdaq-100 tracker Invesco QQQ Trust, (QQQ), gained 0.7% while the SPDR S&P500 ETF, (SPY), rose 0.65% on Monday morning.

On Monday morning, the yield on 10-year U.S. Treasury bonds ticked up to 4.89%. The benchmark was 4.84% on Friday.

Prices of oil fell Monday morning as they continued to trade below the 50-day pivotal line. West Texas Intermediate futures dropped more than 1% and traded above $84 per barrel.

Stock Market Correction

The Dow Jones Industrial Average suffered the most on Friday as it dropped 1.1%. S&P 500 fell 0.5%, followed by the Nasdaq.

The Big Picture column on Friday stated, "The Nasdaq Composite fared the best of all major indexes, as it rose by 0.4%. However, it suffered a severe weekly decline of 2,6%. The index, which is heavily tech-based, was pushed back at its 200-day average and is now firmly below 13,000 levels. The Nasdaq's gains from 2023 have been eroded, leaving it with a gain of less than 22 percent for the year.

It is important to read IBD’s The Big Picture, as the market outlook remains in correction. Make sure you read about how to deal with a weak economic environment.

Stock Market Today: What Stocks Should You Watch?

According to IBD MarketSmith's chart analysis, Dow Jones retail giant Walmart has traced a cup-base with a buy point of 165.85. The shares extended their losing streak into three sessions on Friday, finishing right at the 50-day line. WMT's stock increased 0.4% on Monday.

UnitedHealth, the healthcare giant, has added a handle to an enormous consolidation and is showing a new buying point at $546.78. UNH shares rose 0.4% on Monday morning.

Stocks to Buy and Watch: Tradeweb Breaks out

International Seaways has broken out beyond a cup with handle's 48.40 entrance following a 2.6% gain on Friday. Remember that the correction in the market should prevent you from purchasing breakout stocks. INSW's stock rose another 1% on Monday morning.

Lululemon fell 0.5% on Friday. It is still below the 406.94-point buy point for a flat basis, according to IBD MarketSmith's pattern recognition. As a signal to buy, wait for a sustained move beyond that entry. LULU's stock rose 0.6% on Monday morning.

Light & Wonder, a maker of casino games, dropped 0.3% on Friday as the shares continued to trace a flat basis with a 79.97 purchase point. LNW's stock was unchanged on Monday morning.

After the company's earnings for its third quarter, Tradeweb broke through 87.53's buy point. Tradeweb's performance is unusually strong in an environment of weakness. TW stock gained 1% on Monday in premarket trading.

Tradeweb Markets TW 87.53 Flat Base

Source: IBD data as of Oct. 30, 2023

Magnificent Seven Stocks: Amazon Nvidia Tesla

Among Magnificent Seven stocks: Electric-vehicle titan Tesla (TSLA), Amazon (AMZN), and Nvidia(NVDA) both gained 0.3%, and respectively. Apple (MSFT), a Dow Jones technology icon, and Amazon (AMZN) also traded higher before today's opening of the stock market.

Amazon wanted to build on Friday's earnings-driven gain of 6.8%. The shares will try to retake the 50-day line. This is an important level to watch.

Nvidia, the graphics-chip maker, rose by 0.4% on Friday to end a two-day slide. The price of shares fell below 400 last week for the first since mid-June.

Tesla's stock rose by 0.75% on Friday, but it is still below the 200-day line. Shares are still trying to find support around that long-term line, but are about 30% below their 52-week peak.

Apple, one of the Magnificent 7 Dow Jones stocks, rose by 0.8% on Friday. This ended a two-day slide, but it is still below the 200 day line. Apple releases its fiscal fourth quarter report on Thursday.

Microsoft stock rose 0.6% on Friday as it remained below two previous entries - a 336.14 purchase trigger and a 340.86 buy point.