Dow Jones futures dropped 170 points Monday morning, as shares of Dow component Boeing (BA) plunged with the grounding of its 737 Max 9 jets. Meanwhile, cryptocurrency exchange Coinbase (COIN) rallied after a price-target hike.
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Ahead of the opening bell, Dow Jones futures lost 0.5% vs. fair value, while S&P 500 futures were down 0.1%. Tech-heavy Nasdaq 100 futures were flat to down in premarket action.
Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) was up less than 0.1%, while the SPDR S&P 500 ETF (SPY) fell 0.1%.
The 10-year Treasury yield rose to 4.06% Monday after closing Friday at 4.04%, its highest close since Dec. 12. Also, oil prices fell after last week’s gains, as West Texas Intermediate futures dropped nearly 3% Monday morning. WTI futures moved below $72 a barrel.
Boeing tumbled more than 7% Monday morning after the Federal Aviation Administration ordered the temporary grounding of the 737 Max 9 jet over the weekend. On Friday, a door was torn off the side of an Alaska Airlines 737 mid-flight.
Crypto stock Coinbase rallied 2.6% premarket Monday after Needham maintained its buy rating on COIN stock and raised the price target from 160 to 180.
Inflation Data, Earnings Season
Headlining this week’s economic data are two big inflation reports, The December consumer price index, due Thursday, is forecast to rise 0.2% after a 0.1% gain in November. Meanwhile, the release of the producer price index is expected on Friday.
Banks launch their fourth-quarter reporting season on Friday, with JPMorgan Chase (JPM), Bank of America (BAC), Citigroup (C) and Wells Fargo (WFC) lined up to report.
Further, Delta Air Lines (DAL) and UnitedHealth (UNH) are due to file results on Friday.
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Dow Jones Snaps Weekly Win Streak
Major indexes saw a nine-week win streak come to an end on Friday. The Nasdaq composite ended Friday trading up 0.1% but remains slightly below the 21-day exponential moving average. The tech-heavy index closed the shortened trading week down 3.3%.
The Dow Jones Industrial Average and the S&P 500 fell 0.6% and 1.5% on the week, respectively.
Friday’s Big Picture column commented, “Despite what is so far a modest pullback, the stock market remains in a confirmed uptrend. But keep on top of any sell signals within your portfolio, including triggers of the 20%-25% profit-taking rule.”
Now is an important time to read IBD’s The Big Picture column amid the continuing stock market rally. Be sure to read how to adjust to changing market conditions, with IBD’s new exposure levels.
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Best Stocks To Buy And Watch
Magnificent Seven player Alphabet (GOOGL), Netflix (NFLX), Novo Nordisk (NVO) and Snowflake (SNOW) — along with Dow Jones components Amgen (AMGN), Caterpillar (CAT) and Visa (V) — are among the best stocks to buy and watch in the current market rally.
Caterpillar and Nvidia are featured in this Stocks Near A Buy Zone column.
Get Real-time Buy And Sell Alerts On Stock Market Leaders With IBD Leaderboard
Dow Jones: Amgen Out Of Buy Range
Drug leader Amgen slashed losses to just 0.1% Friday, just out of the 5% buy range past a 288.46 official buy point in a flat base. The 5% buy area went up to 302.88. AMGN stock was unchanged early Monday.
Heavy machinery giant Caterpillar ended Friday about 2% below its 293.88 buy trigger, amid a 1% gain. CAT stock was down 0.2% Monday morning.
Payments leader Visa remains in buy range above a 250.06 entry in a cup base, according to IBD MarketSmith pattern recognition. V stock was off 0.1% Monday.
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Google Stock Tests Key Level
Alphabet moved further below its 139.42 buy point in a cup with handle following a 0.4% drop Friday, according to IBD MarketSmith. Shares closed Friday further below their 50-day line, a key level to watch. GOOGL stock added 0.1% early Monday.
Netflix moved down 0.1% Friday, still squarely below a 482.70 buy point out of a cup with handle. NFLX stock lost 0.4% Monday morning.
Novo Nordisk ended Friday down 1.5%, but still above a 105.69 flat-base buy point following a strong breakout on Jan. 4. NVO stock moved down 0.2% early Monday.
Artificial intelligence leader Snowflake snapped a four-day losing streak Friday, rebounding 2.9%. Shares remain below a cup-with-handle’s 192.66 buy point. SNOW stock rose 0.5% early Monday.
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Best Bets In Today’s 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 |
|---|---|---|---|
| Novo Nordisk | (NVO) | 105.69 | Flat base |
| Caterpillar | (CAT) | 293.88 | Cup base |
| Netflix | (NFLX) | 482.70 | Cup with handle |
| Snowflake | (SNOW) | 192.66 | Cup with handle |
Source: IBD Data As Of Jan. 8, 2024
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Magnificent Seven Stocks: Nvidia, Tesla
Magnificent Seven stocks Nvidia (NVDA) and Tesla (TSLA) traded mixed Monday morning. NVDA stock climbed 0.7%, while Tesla shares were down 0.1%.
Nvidia ended Friday’s session up 2.3%, still above a double-bottom base’s 476.09 entry. Nvidia, an IBD Leaderboard stock, is also now forming a flat base that has a 505.48 buy point.
Electric-vehicle giant Tesla dipped 0.2% Friday, extending a losing streak to six sessions. TSLA is holding just above the 50-day line. Tesla stock has a big double-bottom pattern with conventional buy point of 278.98.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones components in the Magnificent Seven, Apple (AAPL) and Microsoft (MSFT) traded higher ahead of Monday’s stock market open.
Apple traded further below its 50-day line Friday, with a 0.4% decline. Shares are also below a 192.93 buy point and now are testing their long-term 200-day line. AAPL gained 0.4% Monday morning.
Microsoft stock edged lower Friday, still holding above a 366.78 cup-base buy point. Meanwhile, the 50-day line will be an important level to watch in the coming sessions. And the software giant was up 0.4% Monday morning.
Be sure to follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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Source: investors.com
