Dow Jones futures pared sharp overnight losses Monday morning, as Russia’s assault on Ukraine continued. Treasury yields jumped, while U.S. oil prices briefly surged above $130 a barrel to hit their highest level since 2008.
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Before Monday’s open, Ciena (CIEN) reported mixed quarterly results, topping earnings estimates, but missing revenue targets. CIEN shares declined more than 1% early Monday. Shares of Occidental Petroleum (OXY) vaulted higher after Warren Buffett’s Berkshire Hathaway (BRKB) disclosed a hastily compiled 9.8% stake in the company.
Among the Dow Jones leaders, Apple (AAPL) dropped 0.6% and Microsoft (MSFT) traded down 0.7% in today’s stock market. UnitedHealth (UNH), a Dow Jones stock to watch, finished Friday just below a new buy point.
Electric-vehicle leader Tesla (TSLA) rallied around 1% premarket Monday.
Amid the volatile, headline-driven market, Anthem (ANTM), Boyd Gaming (BYD), Commercial Metals (CMC) and Palo Alto Networks (PANW) are among Friday’s top stocks to watch. Keep in mind that current stock market conditions should keep investors in cash and on the sidelines.
Microsoft and Tesla are IBD Leaderboard stocks. Anthem is an IBD SwingTrader stock.
Dow Jones Today: Russian Invasion, Oil Prices Surge
Ahead of Monday’s market open, the Dow Jones Industrial Average declined 0.5%, while the S&P 500 dropped 0.45%. The Nasdaq descended 0.5% in morning trade.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) dropped 0.85%, and the SPDR S&P 500 ETF (SPY) lost 0.8% before Monday’s open. Markets in Asia booked steep losses on Monday. European markets traded lower, with Frankfurt’s DAX and the CAC-40 in Paris down more than 1% near mid-session.
The 10-year Treasury yield jumped to 1.78% Monday morning, after closing at 1.72%. on Friday Meanwhile, U.S. oil prices pared gains to just over 5% Monday, as West Texas Intermediate crude traded around $121 a barrel. WTI briefly surged above $130 a barrel in early trade. On Sunday, Secretary of State Antony Blinken said that the U.S. and its allies are considering a ban on Russian oil and natural gas imports after the country’s attack on Ukraine.
Russia continued to bombard Ukrainian cities, with low-level Ukrainian and Russian negotiators expected to meet for their third round of talks on Monday. Russia’s top diplomat is scheduled to meet with his Ukrainian counterpart in Turkey on Thursday.
Stock Market Rally Attempt
The stock market posted disappointing action Friday, as the major stock indexes ended with more losses. Monday is Day 8 of the ongoing rally attempt, which means a follow-through day — signaling the start of a new uptrend — is possible anytime now. Amid the current volatility, it’s an important time to read and follow IBD’s The Big Picture column.
Friday’s The Big Picture commented, “Yet strength in the precious metals, industrial metals and agricultural chemicals areas of the market has offered the intrepid investor some solid short-term trading opportunities. But at this point, even in these current leaders, it does not pay to chase.”
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.
Four Dow Jones Stocks To Watch Now
Dow Jones Stocks To Watch: UnitedHealth
Managed care giant UnitedHealth is just below a 501.03 buy point in a double-bottom base. Shares ended Friday less than 1% away from their latest entry. UNH stock traded flat early Monday.
Bullishly, the stock’s relative strength line is at new highs, indicating significant stock market outperformance.
Four Top Growth Stocks To Watch In The Current Stock Market Correction
Stocks To Watch: Anthem, Boyd Gaming, Commercial Metals, Palo Alto
IBD SwingTrader stock Anthem is in buy range above a flat base’s 470.12 entry after Friday’s 1.7% advance. Anthem was IBD’s Stock Of The Day on Wednesday. Shares were unchanged Monday morning.
IBD Leaderboard stock Boyd Gaming barely gave up its 67.09 double-bottom entry Friday following the session’s 3% decline, according to IBD MarketSmith chart analysis. BYD shares dropped around 1% early Monday.
Texas-based Commercial Metals — a manufacturer of metal products for the construction industry — remains in buy range past a 38.82 buy point in a consolidation following Friday’s 0.7% decline. The 5% buy area goes up to 40.76. CMC stock shows a perfect 99 IBD Composite Rating, per IBD Stock Checkup. CMC shares were up 0.5% Monday morning.
Cybersecurity leader Palo Alto Networks gave up its consolidation’s 572.77 buy point after Friday’s 2.8% fall. The 5% buy area goes up to 601.41. The RS line hit a new high on the breakout day, but the market weakness has prevented the stock from adding to its breakout’s gains. Palo Alto shares were slightly lower early Monday.
Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live
Tesla Stock
Tesla stock rose 1% Monday morning, looking to snap a two-day losing streak. Shares are just below their long-term 200-day moving average. Look for the stock to again find support around this level. Another decisive break lower could signal further weakness is likely.
The stock traded as high as 1,243.49 on Nov. 4, but ended Friday about 33% off that all-time high.
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Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple is building a double-bottom base with a 176.75 buy point, according to IBD MarketSmith chart analysis. Shares are about 8% away from the new buy point after Friday’s 1.8% loss. AAPL stock found support at its long-term 200-day line on Feb. 24, but remains below its 50-day moving average. Apple shares lost 0.6% Monday.
The stock’s relative strength line remains near recent highs in the face of the stock market weakness, signifying that institutions are hesitant to sell their Apple shares.
Software leader Microsoft fell 2.05% Friday, closing further below the 200-day line. Shares continue to build a new base. MSFT stock fell 0.7% early Monday.
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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The post Dow Jones Futures Drop As Russia-Ukraine War Continues; Oil Prices Briefly Surge Above $130 A Barrel appeared first on Investor’s Business Daily.
