The Dow Jones Industrial Average and other major indexes traded lower Monday, continuing their slide in the wake of last week's heavy losses. An early loser on the stock market today was Nvidia (NVDA), which triggered a sell signal Friday, while Lululemon Athletica (LULU) rallied.
Ahead of the opening bell, Dow Jones futures fell 0.1% vs. fair value, as S&P 500 futures declined 0.6%. Tech-heavy Nasdaq 100 futures moved down 0.9% vs. fair value in morning trades.
↑ X NOW PLAYING Is This A Shakeout Or Bearish Signal?; Vistra, Meta And United Airlines In FocusThe 10-year Treasury yield was virtually flat at 4.77% early Monday, holding at its highest level since November 2023. And oil prices are at their highest levels since early October, with West Texas Intermediate futures trading around $78.30 per barrel.
Among exchange traded funds, the Invesco QQQ Trust (QQQ) fell 1%, as the SPDR S&P 500 ETF (SPY) lost 0.6% ahead of the open.
Nvidia Investors Should Closely Watch These 3 Telltale Clues
Nvidia sold off 3% Monday morning, threatening to extend a losing streak to four sessions.
Shares decisively gave up their 50-day line Friday, with a 3% tumble. They also fell more than 7% below a double-bottom entry at 146.54, which is a sell signal. That means the latest breakout attempt in Nvidia stock has failed and investors will need to be patient and wait for another entry.
Lululemon rallied 2.5% after the company raised its fourth quarter earnings and revenue outlook due to unexpected strength in the holiday season.
Key earnings reports this week include Dow Jones banking giants JPMorgan Chase (JPM) and Goldman Sachs (GS) Wednesday. Taiwan Semiconductor (TSM) and UnitedHealth (UNH) report on Thursday.
On the economic front, key inflation reports, the consumer price index and producer price index, are due out this week, along with monthly retail sales data.
Game On Again As Nvidia Takes Aim At Apple
On Friday, the Dow Jones Industrial Average skidded 1.6%, while the S&P 500 closed near session lows, losing 1.5%. The Nasdaq composite closed off lows for the day, but still tumbled 1.6% and stretched its losing streak to three days. Notably, it dropped below the important 50-day moving average and failed to rally back above it.
Following last week's bearish action, now is a good time to check IBD's The Big Picture for an update on exposure level.
Among the best companies to watch in the current stock market are Burlington Stores (BURL), Fortinet (FTNT), Interactive Brokers (IBKR), Intuitive Surgical (ISRG) and Meta Platforms (META).
Dow Jones components making notable moves were Amazon.com (AMZN), Apple (AAPL), American Express (AXP) and Microsoft (MSFT).
American Express is featured in this Stocks Near A Buy Zone column.
Check out IBD MarketSurge's "Breaking Out Today" list for top growth stocks that are moving above correct buy points. Check for potential breakouts on the "Near Pivot" list. To find additional stock ideas, check IBD Stock Lists like IBD 50, Big Cap 20 and Stocks Near A Buy Zone.
Despite Struggles, Palantir Secures Spot Among 25 'Perfect' Stocks
Dow Jones component American Express is building a flat base that offers a 307.82 buy point, according to MarketSurge pattern recognition. But it must first find support at the 50-day line. Shares fell 0.7% Monday.
Outside the Dow Jones index, Burlington Stores is close to a 298.88 buy point in a flat base. The retail stock lost 0.7% in premarket action Monday.
Cybersecurity leader Fortinet is trying to find support at its 50-day line as it holds under a flat base's 100.59 buy point. Shares were down 0.6% Monday morning.
Interactive Brokers is just below a cup base's 193.42 entry. The stock fell 1.2% Monday.
Intuitive Surgical gained 0.6% Friday, and moved close to a 556.23 flat-base entry. Intuitive stock dropped 0.5% Monday.
Social media platform Meta is in the 5% buy zone above a 602.95 buy point as it bounced from its 50-day line Friday. Meta stock lost 0.6% in Monday's premarket trading.
Nvidia, Apple And Tesla Highlight How To Handle The Stock Market Today
These are four stocks in or near buy zones in today's stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Interactive Brokers | (IBKR) | 193.42 | Cup base |
| American Express | (AXP) | 307.82 | Flat base |
| Intuitive Surgical | (ISRG) | 556.23 | Flat base |
| Meta Platforms | (META) | 602.95 | Flat base |
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Tesla (TSLA) stock edged lower Friday, still holding above its Jan. 2 low. Shares are more than 19% off their all-time high, which was set on Dec. 18.
The electric-vehicle giant threatened to extend those gains Monday, as it plunged 3% in premarket deals.
Besides Nvidia, another Dow Jones component in the Magnificent Seven is Amazon stock, which dropped 1.4% Friday. Amid its recent move into new highs in mid-December, the e-commerce giant is sharply extended above a 201.20 buy point, but is now pulling back to its 50-day line. It fell another 0.9% premarket Monday.
Shares of Apple closed below a flat base's 237.49 entry, giving up the entirety of their gains from a Nov. 15 breakout. They reversed up 0.5% Friday but fell 1% early Monday.
Microsoft shares dropped 0.5% Monday morning, as they continue to consolidate below their 50-day line.
Be sure to follow Scott Lehtonen on X at @IBD_SLehtonen for more on growth stocks, the Dow Jones Industrial Average and the stock market today.
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