Dow Jones futures fell Monday, set to kick off a busy week of economic data with losses. Energy sector names drove a large share of the early losses, as oil prices unraveled below recent lows. Fed minutes from the central bank’s latest policy meeting and U.S. retail sales are both due out Wednesday.
Tesla rival Li Auto (LI) reported weak second-quarter results early Monday, and a downbeat outlook sent shares skidding more than 6% in premarket trade.
Discount retailer Dollar General (DG) declined 1% after BMO downgraded the stock from outperform to market perform. The stock finished Friday just out of buy range beyond a 240.07 buy point.
Electric-vehicle leader Tesla (TSLA) traded a fraction higher Monday morning. Elsewhere, Dow Jones tech leaders Apple (AAPL) and Microsoft (MSFT) both dropped ahead of today’s stock market open.
Chevron (CVX) led declines among Dow Jones stocks, down nearly 3% in early trade. Oil and mining-related names posted the 20 heaviest early losses among S&P 500 stocks.
In the current healthy stock market environment, Dow Jones stocks Coca-Cola (KO) and UnitedHealth (UNH) — as well as American Tower (AMT), Monolithic Power Systems (MPWR), Ollie’s Bargain Outlet (OLLI) and Vertex Pharmaceuticals (VRTX) — are among the top stocks to buy and watch.
UnitedHealth and Vertex are IBD Leaderboard stocks. Ollie’s and Vertex were featured in last week’s Stocks Near A Buy Zone column. American Tower was Wednesday’s IBD 50 Stocks To Watch pick.
Dow Jones Today: Treasury Yields, Oil Prices
Early Monday, Dow Jones futures lost 0.6% vs. fair value. S&P 500 futures moved down 0.7%. Nasdaq 100 futures traded down 0.5% in morning trade. Remember that overnight action in Dow Jones 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 0.5%. And the SPDR S&P 500 ETF (SPY) lost 0.7%.
The 10-year Treasury yield dropped to 2.79% Monday morning, continuing lower after Friday’s fall to 2.84%. The 10-year Treasury yield is rebounding after hitting its lowest level since early April in recent weeks.
Meanwhile, U.S. oil prices undercut recent lows after July retail sales and industrial output data from China’s National Bureau of Statistics showed a weakening economy. Concerns for decreased demand sent West Texas Intermediate futures more than 5% lower, trading below $87 a barrel.
Stock Market Rally
On Friday, the Nasdaq composite was the strongest of the major indexes, jumping 2.1%. It is up 5.3% for the month and has narrowed its losses for the year to under 18%.
Friday’s The Big Picture column commented, “The performance of the S&P sectors was also encouraging, with all closing in the green. Consumer discretionary and technology, crucial areas for growth stock investors, made the best gains.”
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: Coca Cola, UnitedHealth
Dow Jones soda giant Coca Cola is building the right side of a flat base that has a 67.30 buy point. Meanwhile, the stock is about 3% away from an early handle entry at 65.14. KO stock inched lower early Monday.
Health insurance giant and IBD Leaderboard stock UnitedHealth is barely in buy range above its double-bottom-with-handle base’s 518.80 buy point amid Friday’s 2% rally, according to IBD MarketSmith chart analysis. The 5% chase zone goes up to 544.74. Shares were flat Monday.
UNH stock shows a solid 93 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. Investors can use the IBD Composite Rating to easily gauge the quality of a stock’s fundamental and technical metrics.
4 Top Growth Stocks To Watch In The Current Stock Market Rally
Top Stocks To Watch: American Tower, Monolithic, Ollie’s, Vertex
Wednesday’s IBD 50 Stocks To Watch pick, American Tower, is in buy range past a cup with handle’s 271.19 buy point, according to IBD MarketSmith chart analysis. Shares rose 1.4% Friday, moving higher above the recent entry. AMT stock traded flat Monday morning.
Recent IBD Stock Of The Day Monolithic Power Systems added a handle to a cup base last week, moving the correct buy point from 580.10 to 541.49. Meanwhile, shares remain above a 514.80 entry. The stock was unchanged Monday.
Ollie’s Bargain Outlet is rebounding from its 10-week line — a critical support level — placing the top discount retailer in a new buy zone. Shares are also carving a handle after a large cup base, putting the latest buy point at 72.37. Current price action is about 10% away from that entry. Shares dipped 1% early Monday.
IBD SwingTrader stock Vertex Pharmaceuticals gained 0.8% Friday, moving back out of buy range past a cup with handle entry at 279.23. The 5% chase zone went up to 293.19. The stock’s June 23 breakout is back on track following last week’s second-quarter earnings results. Vertex stock was down a fraction Monday morning.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla stock raced 4.7% higher Friday, recovering from Thursday’s losses. Shares inched a fraction higher Monday morning.
In early August, Tesla shares reached their highest level since early May, but are now finding staunch resistance around their 200-day line, which is a key level to watch. The stock is almost 30% off its 52-week high. A 3-for-1 stock split will occur on Aug. 24.
Tesla Announces 3-For-1 Stock Split Date: Is Now The Time To Buy?
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares advanced 2.1% Friday, as the stock is continues to build the right side of a cup base that has a 179.71 buy point. Another interpretation could be a large double bottom that spans back to January. Either way, the buy point is identical. Keep an eye out for a potential handle to form and offer a lower entry.
Bullishly, the stock’s relative strength line is already at new highs, indicating big stock market outperformance. Shares fell 0.5% Monday morning.
Microsoft jumped 1.7% Friday, closing at its highest level since April 8. Shares are moving closer to the long-term 200-day line, which is a key resistance area to watch. The stock moved down 0.5% 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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