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Dow Jones Futures Fall As Bitcoin Soars; Oil Prices Jump As EU Bans Russian Oil

Dow Jones futures fell Tuesday morning, pausing after last week’s sharp gains and ahead of the final trading session for May. Bitcoin briefly soared above $32,000, and U.S. oil prices jumped to a two-month high as European Union leaders imposed a partial oil embargo on Russia.

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Electric-vehicle giant Tesla (TSLA) traded up more than 1% Tuesday morning. Specialty chemicals maker Linde (LIN) dipped nearly 2%, backing away from a buy point, despite positive analyst actions. Elsewhere, Dow Jones tech leaders Apple (AAPL) and Microsoft (MSFT) both traded a fraction lower in today’s stock market.

Amid a stock market rally, Dow Jones leaders Chevron (CVX) and Merck (MRK) — along with Livent (LTHM), Eli Lilly (LLY), Northrop Grumman (NOC), World Wrestling Entertainment (WWE) and ZIM Integrated Shipping (ZIM) — are among IBD’s top stocks to buy and watch for Tuesday.

WWE is an IBD Leaderboard stock. Northrop is on IBD SwingTrader. And Livent was featured in last week’s Stocks Near A Buy Zone column. ZIM was last week’s featured IPO Leader.

Dow Jones Today: Treasury Yields, Oil Prices, Bitcoin

Before Tuesday’s open, Dow Jones futures fell 0.5% vs. fair value, while S&P 500 futures moved down 0.4%. Nasdaq 100 futures declined 0.1%, even as China-based issues surged on news that China was set to begin easing Covid lockdown measures starting Wednesday. JD.com (JD) and Baidu (BIDU) rallied more than 6% each.

Remember that trading in Dow Jones 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 0.1%. The SPDR S&P 500 ETF (SPY) moved down 0.5%.

The 10-year Treasury yield rebounded to 2.82% Tuesday morning after closing Friday at 2.74%. Last week, the 10-year Treasury yield hit its lowest level since mid-April. Meanwhile, U.S. oil prices jumped nearly 4% as the European Union agreed to end ship-borne oil trade with Russia. West Texas Intermediate crude traded near $119 a barrel.

The price of Bitcoin surged over the long weekend, trading around $31,800 Tuesday morning, according to CoinDesk. Bitcoin traded as high as $32,157 Monday before paring gains. ProShares Bitcoin Strategy ETF (BITO) soared more than 10% Tuesday morning.

Stock Market Rally

The major stock indexes posted more positive action Friday, as the tech-heavy Nasdaq composite surged to a 6.8% gain for the week, notching its first weekly advance since the start of April.

Friday’s The Big Picture column commented, “Overall market action was pleasing. The Nasdaq benefited in an outsized way, closing the session up 3.3% amid outperformance by tech stocks. It has now clambered above the 21-day exponential moving average, though it remains 6% below the key 50-day moving average. It closed the week with a meaty 6.8% gain.”

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.

Investors also can create watchlists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.

Five Dow Jones Stocks To Watch Now

Dow Jones Stocks To Watch: Chevron, Merck

Dow Jones leader and energy giant Chevron is trading in a buy range above a flat base‘s 174.86 buy point, according to IBD MarketSmith chart analysis, following Friday’s 1% climb. The 5% buy zone tops out at 183.60. CVX shares rose 1% Tuesday, as oil prices rose and Barclays upped the stock’s price target from 183 to 196.

CVX stock boasts a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. Investors can use the IBD Composite Rating to easily gauge the quality of a stock’s fundamental and technical metrics.

Merck, a Dow Jones stock, is still in buy range past a cup-with-handle’s 89.58 buy point, as shares rose 0.8% Friday. The 5% buy area goes up to 94.06. MRK shares fell 0.8% Tuesday morning.

The stock’s relative strength line hit a new high last week, a strong indicator of stock market outperformance during the current stock market rally.

Four Top Growth Stocks To Watch In The Current Stock Market Rally

Stocks To Buy And Watch: Livent, Eli Lilly, Northrop, WWE, ZIM

Lithium producer and Tesla supplier Livent broke out past a cup base‘s 33.14 buy point in a 14.2% surge on Friday. LTHM shares backed off 4% Tuesday morning.

Pharmaceutical giant Eli Lilly rose 3.2% Friday, breaking out above a flat base’s 314.10 buy point. It also topped an early buy trigger at 309.54 last week. Eli Lilly shares slipped 0.5% Tuesday.

IBD SwingTrader stock Northrop Grumman is just shy of a cup with handle’s 477.36 buy point. The defense contractor also is rising above a trend line within its handle. This early entry sits around 464. NOC shares were flat Tuesday morning.

IBD Leaderboard stock World Wrestling Entertainment is one of the top stocks to watch after it closed Friday just out of buy range above a flat base’s 63.81 buy point. The 5% buy area went up to 67. WWE shares were unchanged Tuesday.

IPO Leader ZIM Integrated is tracing a cup base that has a 79.05 buy point. Shares are about 10% away from the correct buy point. Keep an eye out for a handle to offer a more risk-optimal entry. ZIM shares traded a fraction higher Tuesday.

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

Tesla Stock

Tesla stock raced 7.3% higher Friday, adding to Thursday’s 7.4% advance. Shares rose just over 1% Tuesday morning. Despite the recent gains, the stock remains sharply below its 50- and 200-day moving averages.

Tesla stock traded as high as 1,243.49 on Nov. 4. Shares are about 40% off that record high.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares gained 4.1% Friday. The stock remains far below its long-term 200-day line. AAPL stock traded 0.4% lower Tuesday.

Software leader Microsoft rose 2.8% Friday, but remains sharply below its 50- and 200-day lines. The stock closed about 22% off its 52-week high. MSFT shares were down 0.6% Tuesday.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.

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