On Monday, the Dow Jones Industrial Average slipped 0.9%. The S&P 500 fell 1.3%, while the Nasdaq plunged 2.1% even after cutting some losses.
Among the leaders of the Dow Jones, Apple (AAPL) slipped 2.5%, while Microsoft (MSFT) fell 2.1% in today’s stock market. American Express (AXP) and Merck (MRK) are holding up well to the current market correction.
Tesla (TSLA) rose nearly 1% on strong deliveries, still moving above the share’s last buy point. Tech giants Nvidia (NVDA), Pay Pal (PYPL) and Square (SQ) all sold off.
Among the best stocks to watch out for, Netflix (NFLX) and Service now (NOW) held up relatively well during Monday’s stock market weakness.
Microsoft, ServiceNow and Tesla are stocks in the IBD rankings. American Express is an IBD SwingTrader share. Netflix was featured in this week’s Stocks Near A Buy Zone column.
Dow Jones Futures Today
After the stock market closed on Monday, Dow Jones futures fell 0.2% from fair value, while S&P 500 futures fell 0.15%. Futures contracts on the Nasdaq 100 fell less than 0.1% from fair value. Keep in mind that trading futures contracts on Dow Jones and elsewhere does not necessarily translate into actual trading in the next regular trading session.
Snapshot of the US Stock Market Today
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Last Modified: 4:34 PM EST 10/04/2021
Among exchange-traded funds, 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) fell 1.3%.
The Nasdaq and S&P 500 fell to new recent lows on Monday, as the current market correction worsened. The Nasdaq closed at its lowest level since June 22 and may point to a test of its 200-day long-term moving average. Meanwhile, the Dow Jones Industrial Average gave up almost all of Friday’s 1.4% gain, but held above its recent lows.
Friday’s Big Picture commented: “With the stock market in a period of correction, avoid the temptation to buy stocks in a downtrend market. There will always be stocks that show strength, but a weak market can eventually bring everything down. If market conditions continue to improve amid renewed signs of institutional buying, new patterns should emerge. A confirmation of the force could arrive as early as next week. “
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Dow Jones Stocks to Watch: American Express, Merck
Dow Jones Leaders American Express and Merck are blue chip stocks to watch in today’s stock market.
IBD SwingTrader American Express stock is approaching a buy point of 179.77 in a handle cup, according to IBD MarketSmith chart analysis. But stocks reversed from early gains to drop 0.7% on Monday, and are around 4% of the new entry.
Merck contributed to Friday’s rise, rallying 2.1% on Monday. On Friday, Merck said its Covid pill halved the risk of hospitalization in an end-stage study. Merck stock broke a buy point of 79.33 in a flat basis.
Actions in motion: Nvidia, PayPal, Square
Tech giants Nvidia, PayPal and Square sold heavily on Monday.
Nvidia stock fell 4.85% on Monday. On September 20, the action triggered the round trip sell signal from a buy point of 207.43 in a handle cup. Investors should sell when a stock gives up all of a double-digit gain to avoid incurring a loss. Now the action is around 5% below the old buy point.
PayPal slipped 3.6%, falling even further below its long-term 200-day line. Stocks are close to 20% of their 52 week high.
Square fell 5.45%, falling decisively below the 200-day moving average. The highest payout stock is about 22% below its all-time high on August 5.
Stocks to watch: Netflix, ServiceNow
FANG stock leader Netflix continues to hold its own in a new buy zone despite Monday’s 1.6% bearish reversal. The shares are in the 5% buy zone after an entry point of 593.39 in a consolidation amid the recent worldwide success of its “Squid Game” series.
According to IBD Stock Checkup, NFLX stock has a strong rating of 97 out of a perfect IBD composite rating of 99. The IBD composite rating identifies stocks with a mix of strong fundamental and technical characteristics.
The IBD Leaderboard ServiceNow stock is trying to find support around its key 50-day moving average despite a weak overall market. But stocks fell more than 2% on Monday, closing below that key benchmark.
On the upside, the stock’s relative strength line peaked recently in late September, indicating that stocks are holding up well amid the current volatility in the stock market. But now the stock is under pressure again. During weak markets, look for stocks that hold up the best. When the market rebounds, these names may be some of the next headlines to watch.
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Tesla stock rose 0.8% on Monday after the company announced record third quarter deliveries on Saturday. The electric vehicle giant announced deliveries totaling 241,300 cars for the third quarter, compared to 201,250 in the second quarter and 184,800 in the first quarter. FactSet analysts’ estimates ranged from 218,000 to 246,000, with a consensus of 232,000.
The shares ended a two-day losing streak on Monday and closed further above a buy point of 764.55 in a grip cup.
TSLA shares closed at around 13% of the record highs. On January 25, Tesla stock hit a record high of 900.40, after climbing 93% from a buy point of 466 in a mug with handle model.
Dow Jones Executives: Apple, Microsoft
Among the major stocks in the Dow Jones, Apple fell 2.5% on Monday, returning the full 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 continues to trade below the 50-day line. A new flat base is forming with a buy point of 305.94.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen to learn more about growth stocks and the Dow Jones Industrial Average.
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