April Webinar RegistrationApril Webinar Registration


Stock Futures Up Ahead Of Fed's Yellen; 5 Areas Of Market Strength

Futures for the S&P 500 index, Nasdaq 100 and Dow industrials rose slightly Tuesday morning vs. fair value ahead of notable economic data and comments from Federal Reserve chief Janet Yellen.

X The Nasdaq composite led Monday's selling, testing its 50-day moving average as Facebook (FB) plunged through that key support, Tesla (TSLA) triggered multiple sell signals and Apple (AAPL) kept falling.

Meanwhile, a large number of mostly tech breakouts joined Apple and Tesla underwater, including Alibaba (BABA), Square (SQ) and Nvidia (NVDA). The Nasdaq composite slid 0.9%, while the big-cap Nasdaq skidded 1.1%, below its 50-day. But the S&P 500 index and Dow industrials lost just 0.2%.

S&P 500 index futures rose a fraction Tuesday morning above fair value, Dow futures were up 0.1% and Nasdaq 100 futures climbed 0.2%.

August new-home sales data and the Consumer Confidence Index for September will released at 10 a.m. ET. Federal Reserve chief Janet Yellen will give the keynote speech at the annual meeting of the National Association for Business Economics in Cleveland at 12:45 p.m. ET, with several other Fed officials set to speak today.

Tech stocks, especially longtime big-cap leaders like Facebook, are having a rough go right now. But there are several sectors and specific industry groups that are faring well, with Dow components Boeing (BA), Chevron (CVX) and Home Depot (HD) in or near buy zones.


IBD'S TAKE: Don't rely on market pundits telling you where they think the market is heading next year. Listen to what the market is saying right by following the major market averages and leading stocks. Read IBD's Stock Market Today columns throughout the market day, and the end-of-day The Big Picture (open access through Oct. 8) for timely analysis.


Top Techs Tumble

Facebook had been trading tightly in a flat base just below a buy point. But shares fell 4.5% to 162.87 on Monday in heavy volume, tumbling below their 50-day moving average and undercutting the low of their current consolidation. Tesla extended its post-breakout reversal to more than 7% below its 370.10 entry — and through its 50-day to boot — making that buy point invalid. Nvidia round-tripped a 9.5% gain from a buy point, sinking 4.5% to 171, below the 174.66 entry. Apple fell 0.9% to 150.55, following a 5% sell-off last week.

Facebook, Tesla and Apple shares did rise a fraction in premarket trading Tuesday. Nvidia climbed nearly 3% after announcing late Monday that it will supply AI-focused chips to several Chinese cloud-computing and server firms.

Oil & Gas

Oil and gas groups and stocks continue to rack up big and steady gains, as crude oil prices have rebounded to their best levels since April.

Royal Dutch Shell (RDSA) and Valero (VLO) have cleared buy points, while BP (BP) and the Dow's Chevron are close.

The key question for these stocks and the broader sector is whether oil and other energy prices keep rising — and when and how quickly shale operators ramp up their production.

U.S. crude futures dipped 0.4% in premarket trading to $52 a barrel.

Transports

Despite Tesla's recent reversal, the broad transportation sector is healthy, from shipping giants FedEx (FDX) and UPS (UPS) to General Motors (GM) and Fiat Chrysler (FCAU) to trucking firms J.B. Hunt Transport (JBHT) and Old Dominion Freight Line (ODFL) to auto- and truck-parts firms such as Dana (DCN) and Lear (LEA) to RV makers Winnebago (WGO) and Thor Industries (THO).

Aerospace And Defense

Focusing on single-industry success stories, IBD's Aerospace/Defense group is faring well. Boeing and Northrop Grumman (NOC) are among those in buy zones. General Dynamics (GD) is close.

Hotels

Hilton Worldwide (HLT), Marriott International (MAR), and Hyatt Hotels (H) are among several hotel operators that have broken out. But they've generally broken out on light-to-lackluster volume. Casino stocks have been doing well, though Melco Resorts (MLCO) fell below a buy point and Wynn Resorts (WYNN) nearly did so.

Builders

D.R. Horton (DHI), Toll Bros. (TOL) and LGI Homes (LGIH) are all near buy points.

On a related note, Home Depot crept out to a buy point on Monday, but in below-average volume.

RELATED:

The Big Picture: Tech Stocks Crushed As Nasdaq Reaches A Key Test

Why Tesla May Not Be Leading This Part Of The Self-Driving Race

75 Recent Breakouts, And This Stock Is The Biggest Winner So Far?

New High Analysis: Nasdaq Sell-Off Spares These 7 Stocks

Facebook Down As Zuckerberg Scraps Stock Plan, Will Sell Shares