Sun. Jun 16th, 2024

Dow Jones futures briefly declined 200 points Monday morning, as the 10-year Treasury yield topped 5%. Meanwhile, Tesla stock extended last week’s losses, threatening to break further below a key level.




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This week’s economic calendar includes Thursday’s first official estimate of third-quarter GDP growth, expected to top 4%, fueled by an acceleration in consumer spending.

Further, Friday’s personal income and outlays data for September will show how the Fed’s primary inflation rate, the core PCE price index, finished the quarter. After three tame months through August, economists are expecting an accelerated 0.3% rise.

On the earnings front, tech titans Amazon (AMZN), Alphabet (GOOGL), Meta Platforms (META) and Microsoft (MSFT) are key earnings reports to watch this week.

Dow Jones Today: Oil Prices, Treasury Yields

Ahead of Monday’s opening bell, Dow Jones futures and S&P 500 futures  both dropped 0.5% vs. fair value. Tech-heavy Nasdaq 100 futures moved down 0.6% vs. fair value in morning action.

Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 0.6%, while the SPDR S&P 500 ETF (SPY) sank 0.5% early Monday.

The yield on the 10-year U.S. Treasury bond again topped 5% Monday morning before paring back to 4.99% in early morning trade. On Friday, the benchmark eased from fresh long-term highs, and settled at 4.92% by session’s end.

Oil prices were down around 1% Monday morning, pausing after last week’s modest gains. West Texas Intermediate futures traded around $87.50 a barrel.

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Stock Market Correction

On Friday, the Dow Jones Industrial Average dropped nearly 0.9%, while the S&P 500 lost close to 1.3%. The tech-heavy Nasdaq composite declined 1.5%. The small-cap Russell 2000 fell 1.3%, making its lowest close in more than a year.

Friday’s Big Picture column commented, “With the Nasdaq now below its Oct. 6 follow-through day low, the market outlook has switched to ‘market in correction.’ The recommended exposure level remains at the 0% to 20% level. Current oversold conditions mean a technical rebound could come next week, but risks remain high regardless.”

Now is an important time to read IBD’s The Big Picture column, with the stock market outlook back in market correction status. Be sure to read how to handle the changing stock market outlook.

Learn How To Time The Market With IBD’s ETF Market Strategy

Stock Market Today

Chevron (CVX) said it would buy Hess (HES) in an all-stock deal worth $53 billion. CVX stock dropped 2.9%, while Hess shares rose 0.6% in early trade.

Electric-vehicle giant Tesla (TSLA) declined 1.5% early Monday, while Nvidia (NVDA) lost 1%. Meanwhile, Dow Jones tech icons Apple (AAPL) and Microsoft (IBD) traded lower ahead of today’s stock market open.

IBD Leaderboard member Arista Networks (ANET), Lululemon Athletica (LULU), Meta Platforms (META) and Zscaler (ZS) — as well as Dow Jones stocks JPMorgan Chase (JPM) and Salesforce (CRM) — are among the best stocks to buy watch in the new stock market correction.

JPMorgan is featured in this Stocks Near A Buy Zone column.

Dow Jones Stocks: JPMorgan, Salesforce

Dow Jones banking giant JPMorgan moved down another 1.6% Friday, taking the losing streak to five sessions. After struggling at their 50-day line, shares are testing support around the 200-day line. They continue to build a flat base with a 159.38 buy point, according to IBD MarketSmith chart analysis. An early entry looms at 153.11, using the Oct. 13 high as the buy trigger. JPM stock dropped 0.2% Monday.

Software leader Salesforce is battling resistance around its key 50-day line. If the stock retakes that key level, then it would move closer to a 228.79 buy point in a double-bottom base. CRM stock fell 2% Friday morning.

4 Top Growth Stocks To Watch In The Stock Market Correction

Stocks To Buy And Watch: Zscaler Tests Key Level

Arista dropped 2.8% Friday, about 5% away from a 198.70 buy point in a flat base. A recent bullish rebound from the 50-day line in recent sessions placed the stock in a new buy area, but now the stock is back at that key level. The company reports third-quarter results Oct. 30. ANET stock dipped 0.5% early Monday.

Lululemon closed further below a flat base’s 406.94 buy point Friday, according to IBD MarketSmith pattern recognition. Wait for another sustained move past that entry as a buy signal. LULU stock was off 0.5% Monday morning.

Facebook-parent Meta Platforms gave up a 312.87 buy point during the stock’s 1.3% decline on Friday. Meanwhile, Meta stock is still below a cup base’s official buy point at 326.20. The social media giant reports third-quarter results late Wednesday. Meta shares fell 0.5% Monday.

Cybersecurity leader Zscaler is pulling back to its 50-day line amid a three-day losing streak. Shares decisively rebounded from that level in early October, but another test seems imminent. ZS stock dropped 1.4% early Monday.

Best Stocks In Today’s Stock Market Action

These are four best stocks to watch in today’s stock market, including a Dow Jones leader.

Company Name
Symbol
Correct Buy Point
Type Of Buy Point

Meta Platforms
(META)
312.87
Handle entry

Salesforce
(CRM)
228.79
Double bottom

Lululemon
(LULU)
406.94
Flat base

Arista Networks
(ANET)
198.70
Flat base

Source: IBD Data As Of Oct. 23, 2023

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

Tesla Stock

Tesla stock skidded another 3.7% Friday, closing below the 200-day line for the first time since May 26. Shares are trying to find support around that long-term level, and are nearly 30% off their 52-week high.

Shares moved down 1.5% early Monday, threatening to add to Friday’s losses.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple extended a losing streak to six sessions Friday, declining 1.5%. Shares are falling after they found resistance around their 50-day line. If AAPL stock is able to rebound, then it’s likely to form a double-bottom base with a 189.98 buy point. Apple delivers its fiscal fourth-quarter report on Nov. 2. Shares lost 1.1% early Monday.

Microsoft stock dropped 1.4% Friday, as shares continue to hold just above their 50-day line. A new base is forming ahead of the company’s first-quarter earnings report on Tuesday. The base shows an early entry at 340.86. Another early entry, at Monday’s high of 336.14, is also in play. And on Monday morning, MSFT stock was down 0.3%.

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

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