Magnificent Seven Stocks Slide; AI Giant Oracle Dives On Earnings; CPI Next

Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, were little changed ahead of Tuesday’s open in overnight trade, with the Labor Department’s CPI inflation report due on Tuesday. Meanwhile, the Magnificent Seven stocks slid Monday, with sharp losses among Meta Platforms (META), Nvidia (NVDA) and Tesla (TSLA).


The Labor Department’s CPI is out at 8:30 a.m. ET Tuesday. The CPI is expected to come in unchanged for the month of November, with an annual increase of 3.1%. Core prices in November are anticipated to rise 0.3% on the month, with an annual rise of 4%.

Wednesday’s Federal Reserve policy update takes center stage amid this week’s economic news. The biggest question for investors isn’t what the Fed will say but what markets believe it will do. As of Friday, markets are pricing in four quarter-point rate cuts for 2024, with about 50-50 odds of a fifth cut, but Fed projections aren’t likely to go that far.

Meanwhile, key earnings reports this week include Adobe (ADBE), Darden Restaurants (DRI) and Lennar (LEN).

Late Monday, Oracle (ORCL) dived 8% in extended trade after the company’s sales missed Wall Street’s estimates. Earnings topped analyst targets.

Stock Market Today: Magnificent Seven Stocks Slide

On Monday, the Dow Jones Industrial Average and S&P 500 both moved up 0.4%. The tech-heavy Nasdaq composite rose 0.2%.

The Magnificent Seven stocks fell sharply Monday, with Meta the biggest loser, down 2.2%. Shares are again testing their 50-day line, below a 330.54 buy point.

Meanwhile, Tesla (TSLA) skidded 1.7%, while Alphabet (GOOGL) and Nvidia were down 1.3% and 1.85%, respectively. Amazon (AMZN) declined 1%.

Finally, Dow Jones tech icons Apple (AAPL) and Microsoft (MSFT) traded lower in today’s stock market, with AAPL stock down 1.3% and Microsoft shares off 0.8%.

IBD Leaderboard stock Amazon (AMZN), IBD SwingTrader issue Booking (BKNG), Eli Lilly (LLY) and Snowflake (SNOW) — along with Dow Jones components Boeing (BA), UnitedHealth (UNH) and Visa (V) — are among the best stocks to buy in the current market rally.

Booking and Snowflake were featured in this Stocks Near A Buy Zone column.

IBD’s latest newsletter MarketDiem gives you actionable ideas for stocks, options and crypto right in your inbox

Dow Jones Today: Oil Prices, Treasury Yields

Ahead of Tuesday’s opening bell, Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, were little changed vs. fair value. Remember that overnight action in Dow Jones futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

On Monday, the 10-year U.S. Treasury yield ticked lower to 4.23%. Meanwhile, oil prices extended their recent rebound, as West Texas Intermediate futures settled above $71 a barrel.

Get Real-Time Buy And Sell Alerts On Stock Market Leaders With IBD Leaderboard

Stock Market Rally: What To Do Now

Now is an important time to read IBD’s The Big Picture column, with the stock market outlook in a confirmed uptrend.

Amid continued bullish action in recent weeks, investors can raise their market exposure. IBD recommends a level of 80% to 100%, as the trend continues to strengthen.

A great resource for daily breakouts is IBD MarketSmith’s “Breaking Out Today” list. It shows MarketSmith Growth 250 stocks that are breaking out past new buy points. Meanwhile, the MarketSmith “Near Pivot” list shows stocks nearing buy points in bases.

To find more stock ideas, check IBD Stock Lists, like IBD 50, Big Cap 20 and Stocks Near A Buy Zone. These features identify bullish patterns and buy points and should be checked every day.

Dow Jones Stocks To Watch

Aerospace stock Boeing broke out past a cup base’s 243.10 buy point Friday, with a 3.1% rally. The 5% buy zone tops out at 255.26. BA stock was up another 1.4% Monday.

Health care giant UnitedHealth remains above a handle entry at 546.78 despite Monday’s 1.1% loss.

Payments leader Visa continues to trade in buy range above a 250.06 buy point in a cup base, according to IBD MarketSmith pattern recognition. V stock added 0.3% Monday.

4 Top Growth Stocks To Watch In The Stock Market Rally

Stocks To Buy And Watch: SNOW Breaks Out

IBD Leaderboard stock Amazon continues to trade just at a cup base’s 145.86 entry, with shares closing right at the entry Monday amid a 1% drop.

IBD SwingTrader stock Booking broke out past a 3,207.32 handle entry, with a 2.8% rally Friday. BKNG stock tacked on 2.2% Monday, higher in the buy zone.

Drug giant Eli Lilly continues to trace a flat base with an official buy point at 629.97. An early entry would be in play if the stock is able to bounce strongly from its 50-day line. LLY stock moved down 2.3% Monday.

Artificial intelligence leader Snowflake is breaking out past a cup-with-handle’s 192.66 buy point, according to IBD MarketSmith pattern recognition. SNOW stock climbed 1.2% Monday, closing just above the buy trigger.

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

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
Amazon (AMZN) 145.86 Cup base
UnitedHealth (UNH) 546.78 Handle entry
Booking (BKNG) 3,207.32 Handle entry
Snowflake (SNOW) 192.66 Cup with handle
Source: IBD Data As Of Dec. 11, 2023

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

Tesla Stock

Tesla stock moved down 1.7% Monday, snapping a four-day win streak. TSLA is holding just above its 50-day line, which is a key support level to watch. The stock’s big double-bottom pattern has a 278.98 buy point, while an early entry is in play at 252.75.

TSLA remains about 20% off its 52-week high.

Dow Jones Leaders: Apple, Microsoft

Apple stock sold off 1.3% Monday, erasing its gains past a cup-with-handle entry at 192.93.

Microsoft stock moved down 0.8% Monday, ending a two-day rebound. MSFT is just above a cup base’s 366.78 buy point and in buy range.

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


Top Growth Stocks To Buy And Watch

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

Find The Best Long-Term Investments With IBD Long-Term Leaders

MarketSmith: Research, Charts, Data And Coaching All In One Place

How To Research Growth Stocks: Why This IBD Tool Simplifies The Search For Top Stocks


Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *