Dow Jones futures traded sharply lower Monday morning, threatening to extend losses from Friday’s stock market sell-off.
Discounters are among the potential earners this week dollars in general (DG) and money tree (DLTR), with messis (M), Nvidia (NVDA), Foreclosure (CRM) and great brothers (TOL). Palo Alto Network (PANW) and zoom video (ZM) Monday closed after notification.
Cruise operators have had a difficult time with premarket measures Norwegian cruise lines (NCLH) discount of 3.7%. Boeing (BA) The Dow led the decline among industrials with a 2% loss. Netflix (NFLX) slipped 2.8% lower after a downgrade to sell and a 2.8% cut from CFRA’s marginal price target.
Chinese stocks showed little reaction early Monday after the People’s Bank of China cut interest rates again in a bid to restart economic growth. Alibaba (BABA) shares, meanwhile, remained flat JD.com (JD) rose 1%. Tencent (TCEHY) traded largely unchanged.
Market leader in electric vehicles Tesla (TSLA) was down more than 2% on Monday morning. Elsewhere Dow Jones Tech Leaders Apple (AAPL) and Microsoft (MSFT) are both down sharply ahead of the open for today’s stock market.
In the currently healthy stock market environment Albemarle (ALB), Arista network (A trap), costs (cost) and Olis Sauda Outlet (OLLI) – as well as Dow Jones stocks coco-cola (KO), note (MRK) and MC Donalds (MCD) – are among the top stocks to buy and watch.
Albemarle and Costco were featured in last week’s “Stocks Near a Buy Zone” column. Costco stock was added to the IBD leaderboard and swing trader during last week’s breakout move. Albemarle was most recently IBD Stock of the Day.
Dow Jones Today: Treasury Yield, Oil Prices
Early Monday, Dow Jones futures were down 1% from fair value, while S&P 500 futures were down 1.25%. Nasdaq 100 futures lost 1.6% in morning trade. Keep in mind that overnight action in Dow Jones futures and elsewhere does not necessarily involve actual trading in the next regular trading session.
Among exchange-traded funds, Nasdaq 100-tracker Invesco QQQ Trust (QQQ) is down 1.6% and SPDR S&P 500 ETF (SPY) is down 1.2% in early trade.
After last week’s jump, the 10-year Treasury yield remained steady at 2.98% early Monday. The 10-year Treasury yield approaches 3% for the first time since July 21.
Meanwhile, US oil prices were flat on Monday, with West Texas Intermediate futures hitting their lowest level since January after last week’s losses. WTI futures fell below $90 a barrel.
stock market rally
On Friday, the Nasdaq and S&P 500 broke their four-week winning streak with the worst session of the week on Friday. The Dow Jones Industrial Average fell 0.9 percent.
The next few days will be crucial for stock market trends as Nasdaq and Dow Jones Industrials test support levels. Meanwhile, the S&P 500 is falling after finding resistance at its 200-day longer-term moving average, a key area to watch.
Friday’s The Big Picture column commented: “The rally could use some relief and losses in equity markets suggest at least some respite for the major indices. It’s not necessarily a total loss for investors. Have a reason to run for cash, but make sure your profits don’t go to waste.”
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Investors can also use IBD MarketSmith to create watch lists, find companies near a buy point, or develop custom screens.
Five Dow Jones stocks to watch right now
Eyeing Dow Jones stocks: Coca-Cola, McDonald’s, Merco
Dow Jones soda giant Coca-Cola is building a flat base with a buy point of 67.30. There is also a handle entry at 65.14. The stock is recovering from its 50-day moving average and is attempting to top handle entry. The stock fell 0.5% early Monday.
McDonald’s shares are trading just above the 265.56 entry point after last week’s breakout move. MCD shares fell 0.6% on Monday morning.
Merck is also forming a flat base, a pattern that shows a buy point at 95.82. According to chart analysis by IBD MarketSmith, the stock is trading above its 50-day moving average. Merck shares were unchanged on Monday.
According to the IBD Stock Checkup, MRK stock has a solid 94 out of 99 perfect overall IBD ratings. Investors can use the composite IBD rating to easily gauge the quality of a stock’s fundamental and technical metrics.
4 top growth stocks to buy and watchRstock market rally
Top stocks to watch: Albemarle, Arista, Costco, Ollie’s
Lithium producer Albemarle gave up its buy point of 273.78 in a large cup-and-handle basis amid a 3.4% decline on Friday. Stocks remain on top of the little cup with a handle, which has a buy point of 250.25. The stock was down more than 2% Monday morning.
Arista Networks, one of last week’s IBD 50 Stocks to Watch picks, continues to move to the right of the double bottom base, which offers 143.67 buy points. With the stock down about 9% from current entry, you’re looking for a grip to provide a more risk-optimal buying argument. Arista’s RS line moves higher and hits a new high. ANET shares fell 1.3% early Monday.
IBD leaderboard stock Costco remains in a buy range above a cup with 552.81 buy points despite falling 1.15% on Friday. The stock fell 0.6% early Monday.
Ollie’s Bargain Outlet is retesting its 10-week moving average – a key level of support. The shares already found support there at the end of July, which brought the top discounter into a new buying zone. Stocks are also forming a grip after a major cup base, setting the final buy point at 72.37. The current price action is about 11% away from this entry. The shares remained dormant as of Monday morning.
Join IBD experts as they analyze the top stocks in the current stock market rally on IBD Live
Tesla shares fell 2.05% on Friday, extending a four-session losing streak. Shares of the electric vehicle giant fell another 2.1% on Monday morning.
Tesla stock is struggling to clear the resistance around its 200-day moving average. Tesla is down about 28% from its 52-week high. The 3-for-1 stock split is scheduled for Wednesday.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares fell 1.5% on Friday as the stock continues to form the right side of a one-cup base at 179.71 buy points. Another explanation could be a large double bottom extending into January. In any case, the reason for the purchase is the same. Losses over the past two days could be the start of a potential snack that would offer a short entry.
On an optimistic note, the stock’s line of relative strength is already at new highs, suggesting the larger stock market is outperforming. The stock fell 1.6% Monday morning.
Microsoft fell 1.4% on Friday, extending a losing streak to four sessions and moving further away from its 200-day long-term moving average. The stock was down 1.8% early Monday.
Follow Scott Lehton on Twitter @IBD_SLehtonen Learn more about growth stocks and the Dow Jones Industrial Average.
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