Dow Jones futures shifted modestly higher Monday, as the stock market paused after a two-day bounce off correction lows. Tesla rival Nio (NIO) will report earnings after the close.
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Premarket trade was generally quiet. Agriculture issues were in motion, led by gains from Archer Daniels Midland (ADM), Mosaic (MOS) and CF Industries (CF), after India announced late Friday a ban on grain exports.
Twitter (TWTR) stock dropped more than 2% after Elon Musk said the company’s legal team accused him of violating a nondisclosure agreement. On Friday, Musk said his $44 billion deal to acquire Twitter was on hold due to questions regarding the number of fake accounts.
Electric-vehicle giant Tesla (TSLA) traded up a fraction Monday morning. Chinese rival Nio is set to report after the close. Analysts expect the Chinese EV maker to lose 14 cents per share on sales of $1.48 billion. Nio shares are about 74% off their 52-week high.
Elsewhere, Dow Jones tech leaders Apple (AAPL) and Microsoft (MSFT) traded down 0.6% and 0.3%, respectively, in today’s stock market. Meanwhile, McDonald’s (MCD) shares slipped a fraction after the company said it would quit Russia and sell its business there over its invasion of Ukraine.
As the stock market correction attempts to find a bottom, Dow Jones leaders Chevron (CVX) and Merck (MRK) — along with Cheniere Energy (LNG), Eli Lilly (LLY), Exxon Mobil (XOM) and Northrop Grumman (NOC)— are among IBD’s top stocks to watch for Monday.
Eli Lilly and Microsoft are IBD Leaderboard stocks. Exxon and Merck were featured in last week’s Stocks Near A Buy Zone column. Eli Lilly was Wednesday’s Stock of the Day.
Dow Jones Today: Treasury Yields, Oil Prices
Before Monday’s open, Dow Jones futures moved up 0.1% vs. fair value, and S&P 500 futures fell 0.1%. Nasdaq 100 futures also lost 0.1% in morning trade. Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 0.1%. The SPDR S&P 500 ETF (SPY) inched lower as well.
The 10-year Treasury yield ticked lower to 2.92% Monday morning. The 10-year Treasury yield snapped a four-day losing streak Friday, jumping to 2.93%. Meanwhile, U.S. oil prices shed less than 1%, with West Texas Intermediate crude holding above $109 a barrel after a three-day advance.
Stock Market Rally Attempt
The major stock indexes finished with strong gains Friday. The Dow Jones Industrial Average rallied 1.5%, snapping a six-day decline, while the Nasdaq catapulted 3.8%.
Friday’s The Big Picture column commented, “So while many investors have likely raised quite a lot of cash and are afraid to touch equities, the market still needs a new host of excellent companies that show the key elements of CAN SLIM investing: rising fundamentals, outperformance vs. most stocks today, and evidence of rising fund ownership.”
If you’re new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one key to the investment guidelines. IBD offers a broad range of growth stock lists, such as Leaderboard and SwingTrader.
Investors also can create watchlists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.
Five Dow Jones Stocks To Watch Now
Dow Jones Stocks To Watch: Chevron, Merck
Dow Jones leader and energy giant Chevron is in a flat base that has a 174.86 buy point, according to IBD MarketSmith chart analysis. CVX shares traded up 1.9% Friday, extending a win streak to four sessions. Shares bullishly regained their 50-day line and are about 4% away from the latest entry. Chevron shares edged higher Monday morning.
Drug leader Merck remains above a cup-with-handle’s 89.58 buy point after shares fell 0.5% Friday. The 5% buy area goes up to 94.06. Shares lost a fraction early Monday. One positive signal, the stock’s relative strength line hit another high last week, indicating big stock market outperformance during the current stock market correction.
MRK stock boasts a 98 out of a perfect 99 IBD Composite Rating, per IBD Stock Checkup. Investors can use the IBD Composite Rating to easily gauge the quality of a stock’s fundamental and technical metrics.
Three Top Growth Stocks To Watch In The Current Stock Market Correction
Stocks To Watch: Cheniere, Eli Lilly, Exxon, Northrop
Cheniere Energy is one of the market’s top stocks to watch, even as it continues to trade below its 50-day line. Shares moved up 2.7% Friday, but remain below their 50-day line, as they continue to etch a flat base that shows a 149.52 buy point, according to IBD MarketSmith chart analysis. LNG shares moved up 1.1% Monday.
IBD Leaderboard stock Eli Lilly is holding just above a prior cup base’s 284 buy point and are trying to maintain their 50-day line. The stock’s RS line hit a new high last week. Eli Lilly stock was flat Monday morning.
Energy giant Exxon Mobil remains below a cup with handle’s 89.90 buy point despite a 3% gain on Friday. The stock found much-needed support at its key 50-day line. XOM shares inched lower Monday.
Defense contractor Northrop Grumman continues to etch a cup with handle with a 477.36 buy point. Shares are just below their 50-day line after Friday’s 0.5% rise. Northrop shares were unchanged early Monday.
Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live
Tesla Stock
Tesla stock rose a fraction Monday morning following Friday’s near-6% advance. Shares remain sharply below their 50- and 200-day lines amid their recent weakness.
The stock traded as high as 1,243.49 on Nov. 4 and is about 38% away from that all-time high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares rallied more than 3% Friday after falling to their lowest level since October 2021 on Thursday. The stock is sharply below its 200-day line and about 20% off its 52-week high. Apple stock fell 0.6% Monday.
Software leader Microsoft ended a two-day slide Friday, rising 2.3%. The stock closed about 25% off its 52-week high. MSFT shares moved down 0.4% Monday morning.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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