Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, were lower late Monday following the session’s sell-off. Tech giants Apple, Microsoft, Nvidia, PayPal and Square slumped while Tesla stock rose on Monday on strong shipments.
On Monday, the Dow Jones Industrial Average lost 0.9%. The S&P 500 lost 1.3% while the Nasdaq plummeted 2.1% even after offsetting some losses.
Among the Dow Jones leaders Apple (AAPL) slipped 2.5% while Microsoft (MSFT) is down 2.1% on today’s stock market. American Express (AXP) and Merck (MRK) are holding up well in the current stock market correction.
Tesla (TSLA) rose nearly 1% on strong shipments and continued to hover above the stock’s recent buy point. Tech giants Nvidia (NVDA), PayPal (PYPL) and square (SQ) all heavily sold out.
Among the top stocks to watch for Netflix (NFLX) and service now (NOW) held up relatively well during Monday’s stock market weakness.
Microsoft, ServiceNow and Tesla are IBD Leaderboard stocks. American Express is an IBD SwingTrader share. Netflix was featured in the “Stocks Near a Buy Zone” column this week.
Dow Jones Futures today
After the market closed on Monday, Dow Jones futures lost 0.2% from fair value, while S&P 500 futures lost 0.15%. Nasdaq 100 futures fell less than 0.1% from fair value. Keep in mind that trading in Dow Jones futures and elsewhere does not necessarily result in an actual trade in the next regular trading session.
Overview of the US stock market today
|index||symbol||price||Gain loss||% Change|
|S&P 500||(0S & P5)||4300.48||-56.56||-1.30|
Last update: 4:34 p.m. ET 04.10.2021
Among the exchange-traded funds, the innovator IBD 50 (FFTY) fell 2.8% on Monday. The Nasdaq 100 tracker Invesco QQQ Trust (QQQ) lost 2.1%. And the SPDR S&P 500 ETF (SPY) lost 1.3%.
Stock market correction
The Nasdaq and S&P 500 fell to new recent lows on Monday as the current stock market correction worsened. The Nasdaq closed at its lowest point since June 22nd and could be poised to test its 200-day long-term moving average. Meanwhile, the Dow Jones Industrial Average gave up almost all of its 1.4% rise from Friday, but held out above its recent lows.
Friday’s Big Picture commented, “When the stock market is in a correction, avoid the temptation to buy stocks in a downtrend. There will always be stocks showing strength, but eventually a weak market can bring anything. Conditions continue to improve amid new signs of institutional buying, new setups should emerge. A confirmation of the strength could come next week. “
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Dow Jones stocks at a glance: American Express, Merck
Dow Jones leaders American Express and Merck are blue-chip stocks to watch out for in today’s stock market.
According to the chart analysis by IBD MarketSmith, the IBD SwingTrader share American Express is approaching a buy point of 179.77 in a mug with a handle. But stocks reversed from early gains to a 0.7% decline on Monday and are about 4% away from the new addition.
Merck added to Friday’s gain, rising 2.1% on Monday. On Friday, Merck said its Covid pill cut the risk of hospitalization by half in a final study. Merck stock broke out on a flat basis above a buy point of 79.33.
Stocks in motion: Nvidia, PayPal, Square
Tech giants Nvidia, PayPal and Square sold out heavily on Monday.
Nvidia shares fell 4.85% on Monday. On September 20, the stock triggered the round-trip sell-signal from a buy point of 207.43 in a mug with a handle. Investors should sell when a stock gives up all of its double-digit earnings to avoid losing. Now the stock is about 5% below its old buy point.
PayPal slid 3.6% and continued to fall below its 200-day long-term line. The stocks are nearly 20% from their 52-week high.
Square fell 5.45%, breaking significantly below the 200-day moving average. The top payment portfolio is about 22% below its all-time high of August 5th.
Stocks to watch: Netflix, ServiceNow
FANG stock leader Netflix is still in a new buy zone despite the declining reversal of 1.6% on Monday. The shares are in the 5% buy zone after an entry point of 593.39 in a consolidation amid the recent worldwide success of the “Squid Game” series.
According to IBD Stock Checkup, NFLX stock shows a strong 97 out of a perfect 99 IBD composite rating. The IBD Composite Rating identifies stocks with a mix of strong fundamental and technical characteristics.
IBD leaderboard stock ServiceNow is trying to find support around its key 50-day moving average despite a weak overall market. But stocks fell over 2% on Monday, closing below this important benchmark.
Bullishly, the stock’s relative strength hit new highs in late September, suggesting the stock is holding up well amid the current stock market volatility. But now the share is under pressure again. In weak markets, look for stocks that hold up best. When the market bounces back, these names may be some of the next top stocks to watch for.
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Tesla stock rose 0.8% on Monday after the company reported record shipments for the third quarter on Saturday. The electric vehicle giant reported deliveries of a total of 241,300 cars for the third quarter, up from 201,250 in the second and 184,800 in the first quarter. FactSet’s analyst estimates ranged from 218,000 to 246,000, with the consensus being at 232,000.
The shares plunged into a two-day losing streak on Monday and continued to close above a buy point of 764.55 in a mug with a handle.
TSLA stock closed about 13% off record highs. On Jan. 25, Tesla stock hit a record high of 900.40 after rising as much as 93% from a buy point of 466 in a cup-and-handle pattern.
Dow Jones executives: Apple, Microsoft
Among the top Dow Jones stocks, Apple lost 2.5% on Monday and returned all of its 0.8% gain from Friday. The stock is still below the 50-day line.
Software giant Microsoft fell 2.1% on Monday as the stock continued trading below the 50-day line. A new flat base forms with a buy point of 305.94.
Follow Scott Lehtonen on Twitter at @IBD_SLehtonen Learn more about growth stocks and the Dow Jones Industrial Average.
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