Dow Jones Futures: What To Do As Market Rally Pulls Back; Warren Buffett Blasts

Dow Jones futures will open Sunday evening, along with S&P 500 futures and Nasdaq futures, with Fed chief Jerome Powell looming large late next week. The stock market rally pulled back last week from key resistance while Treasury yields moved back toward 3%.

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Highly valued growth names, which had made big moves in the past two months, were among the biggest losers. Bitcoin and other cryptocurrencies sold off hard Friday.

Investors should wait to see how the market pullback plays out before adding new exposure.

Warren Buffett stocks Apple (AAPL) and Occidental Petroleum (OXY) are worth watching. Occidental Petroleum broke out Friday as Warren Buffett’s Berkshire Hathaway won regulatory OK to lift its OXY stake to 50%. AAPL stock is trading right around a trendline entry. Tesla (TSLA), Celsius Holdings (CELH), AstraZeneca (AZN), Monolithic Power Systems (MPWR) and Insulet (PODD) are also near various buy points.

CELH stock and Monolithic Power are on the IBD Leaderboard watchlist. AZN stock is on SwingTrader. MPWR stock is on IBD Long-Term Leaders. Celsius, Monolithic and Tesla stock are on the IBD 50. Monolithic and OXY stock are on the IBD Big Cap 20.

Insulet and AstraZeneca were IBD Stock Of The Day picks last week.

Fed Chief Powell

Fed chief Powell will give a policy speech Friday at the annual Jackson Hole meeting. Powell has used this speech in prior years to mark notable policy shifts. It’s unclear what he might say that would surprise markets. The Federal Reserve is in the middle of a rate hike cycle to combat high inflation. Policymakers may soon shift to smaller Fed rate hikes, but Powell may not be ready to tip his hand.

Markets are divided over whether the Fed will hike interest rates by 75 basis points for a third straight time at the Sept. 20-21 meeting, or opt for a half-point move.

Even after his speech, there will still be several key economic reports before the September Fed meeting, including the August jobs report and consumer price index.

Bitcoin Tumbles

Bitcoin tumbled Friday after retreating modestly earlier in the week. It traded near $21,000 Fridaynight. Following a plunge below $18,000 in June, the Bitcoin price had rallied back to nearly $25,000 on Aug. 14. Much like speculative growth stocks, Bitcoin and cryptocurrencies struggle with rising Treasury yields. Higher yields also bolster the dollar.

Bitcoin-related stocks such as Coinbase (COIN) also fell sharply this past week.

Dow Jones Futures Today

Dow Jones futures open at 6 p.m. ET on Sunday, along with S&P 500 futures and Nasdaq 100 futures.

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 Rally

The stock market rally started off the week moving toward or above key resistance, but ultimately retreated, mostly or entirely on Friday.

The Dow Jones Industrial Average dipped 0.2% in last week’s stock market trading. The S&P 500 index fell 1.2%. The Nasdaq composite slumped 2.6%. The small-cap Russell 2000 skidded 2.9%.

The 10-year Treasury yield…