Futures Try To Rally After Big Sell-Off; Facebook Still In Focus

Dow Jones futures rose modestly Tuesday morning, along with S&P 500 futures and Nasdaq futures, after Facebook (FB), Nvidia (NVDA), Apple stock and other techs led Monday’s sell-off.


Crude oil prices and Treasury yields nudged higher Tuesday, continuing to support energy stocks and financials such Devon Energy (DVN) and Bank of America (BAC). Meanwhile, Tesla (TSLA) kept rising.

Facebook stock rose about 1% in premarket trading, after tumbling 4.9% on Monday, nearing its 200-day line amid a massive outage that affected various Facebook properties. That outage, which ended Monday evening, overshadowed the latest whistleblower revelations regarding Facebook practices. But the whistleblower, Francis Haugen, will testify before the Senate today .

Apple (AAPL) advanced just a fraction in the premarket after slumping 2.5% on Monday. AAPL stock is approaching its 200-day line as well. Nvidia stock climbed just over 1% before the open after skidding 4.7% on Monday, losing sight of its 50-day line.

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On the upside, Devon stock rose more than 2% after popping 5.3% to a new high on Monday, along with many other energy plays. BAC stock edged up about 1%, within a buy zone after rising slightly Monday, well off highs.

Tesla stock climbed a fraction Tuesday. The IBD Leaderboard stock topped 800 on Monday, the best since February, following Tesla’s strong Q3 deliveries, but faded for a 0.8% gain to 781.53. That’s still in buy range from a 764.55 handle buy point.

Dow Jones Futures Today

Dow Jones futures were up 0.5% vs. fair value. S&P 500 futures climbed 0.4%. Nasdaq 100 futures gained 0.4%.

Crude oil futures rose more than 1% after Monday’s solid gains to multi-year highs. The 10-year Treasury yield climbed a couple basis points after giving up most of Monday morning’s gains.

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

Stock Market Monday

The stock market suffered another big sell-off Monday, with the S&P 500 and Nasdaq composite undercutting Friday’s lows. That means their rally attempts that started Friday are over and have to start again. The Dow Jones did not undercut its recent low, so Monday was day two of a stock market rally attempt.

The Dow Jones Industrial Average fell 0.9% in Monday’s stock market trading. The S&P 500 index lost 1.3%. The Nasdaq composite gave up 2.1%, closing in on its 200-day line. The small-cap Russell 2000 retreated 1.1%.

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Market Rally Analysis

The Dow Jones will be on day three of a stock market rally attempt today, while the S&P 500 and Nasdaq are just hoping for a positive session to begin another rally attempt. It’s still unclear if this is a traditional correction or just another violent sector rotation out of tech and other growth stocks and into energy, fertilizers and perhaps financials.

It’s best to keep your exposure minimal. If you own DVN stock, Matador Resources (MTDR), SVB Financial (SIVB), Tesla stock or other winning stocks in healthy sectors, congratulations. But for tech, medtech, shipping and much of the market, it is not a healthy time to be significantly invested.

Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.

Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.


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