Dow Jones futures rallied 120 factors early Tuesday following Monday’s inventory market sell-off. Tech giants Apple, Microsoft, Nvidia, PayPal and Square tumbled, whereas Tesla inventory rallied on robust deliveries Monday.
On Monday, the Dow Jones Industrial Average slid 0.9%. The S&P 500 tumbled 1.3%, whereas the Nasdaq plunged 2.1% even after paring some losses.
Among the Dow Jones leaders, Apple (AAPL) slid 2.5%, whereas Microsoft (MSFT) moved down 2.1% in at this time’s inventory market. American Express (AXP) and Merck (MRK) are holding up effectively within the present inventory market correction.
Tesla (TSLA) rallied almost 1% on the again of robust deliveries, transferring additional above the inventory’s newest purchase level. Tech giants Nvidia (NVDA), PayPal (PYPL) and Square (SQ) all offered off sharply.
Microsoft, ServiceNow and Tesla are IBD Leaderboard shares. American Express is an IBD SwingTrader inventory. Netflix featured on this week’s Stocks Near A Buy Zone column.
Dow Jones Futures Today
Ahead of the inventory market open Tuesday, Dow Jones futures rallied 0.3% vs. truthful worth, whereas S&P 500 futures additionally moved up 0.3%. Nasdaq 100 futures climbed 0.35% vs. truthful worth. Remember that buying and selling in Dow Jones futures and elsewhere would not essentially translate into precise buying and selling within the subsequent common inventory market session.
U.S. Stock Market Today Overview
Last Update: 4:34 PM ET 10/4/2021
Stock Market Correction
The Nasdaq and S&P 500 tumbled to new current lows Monday, as the present inventory market correction worsened. The Nasdaq closed at its lowest degree since June 22 and might be headed for a check of its long-term 200-day transferring common. Meanwhile, the Dow Jones Industrial Average virtually gave again the whole lot of Friday’s 1.4% advance, however held above its current lows.
Friday’s The Big Picture commented, “With the stock market in a correction, avoid the temptation of buying stocks in a down-trending market. There will always be stocks showing strength, but a weak market can eventually bring everything down with it. If market conditions continue to improve amid renewed signs of institutional buying, new setups should emerge. A confirmation of strength could come 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 shares to look at in at this time’s inventory market motion.
IBD SwingTrader inventory American Express is approaching a 179.77 purchase level in a cup with deal with, in accordance with IBD MarketSmith chart evaluation. But shares reversed from early positive factors to say no 0.7% Monday, and are about 4% away from the brand new entry.
Merck added to Friday’s surge, rallying 2.1% Monday. On Friday, Merck mentioned its Covid capsule diminished the chance of hospitalization by half in a final-phase research. Merck inventory broke out previous a 79.33 purchase level in a flat base.
Stocks On The Move: Nvidia, PayPal, Square
Tech giants Nvidia, PayPal and Square offered off sharply Monday.
Nvidia inventory dropped 4.85% Monday. On Sept. 20, the inventory triggered the round-trip promote sign from a 207.43 purchase level in a cup with deal with. Investors ought to promote when a inventory provides up the whole lot of a double-digit acquire to keep away from taking a loss. Now, the inventory is about 5% beneath the outdated purchase level.
PayPal slid 3.6%, falling additional beneath its long-term 200-day line. Shares are almost 20% from their 52-week excessive.
Square tumbled 5.45%, decisively breaking down beneath the 200-day transferring common. The prime fee inventory is about 22% beneath its Aug. 5 all-time excessive.
Stocks To Watch: Netflix, ServiceNow
FANG inventory chief Netflix continues to carry inside a brand new purchase zone regardless of Monday’s 1.6% bearish reversal. Shares are within the 5% purchase zone previous a 593.39 entry level in a consolidation amid the current international success of its sequence “Squid Game.”
According to IBD Stock Checkup, NFLX stock reveals a robust 97 out of an ideal 99 IBD Composite Rating. The IBD Composite Rating identifies shares with a mix of robust elementary and technical traits.
IBD Leaderboard inventory ServiceNow is looking for assist round its key 50-day transferring common regardless of a weak total market. But shares declined over 2% Monday, closing beneath that key benchmark.
Bullishly, the inventory’s relative power line hit a current excessive in late September, indicating shares are holding up effectively amid the present inventory market volatility. But now the inventory is below stress once more. During weak markets, search for shares which can be holding up the very best. When the market rebounds, these names could be a few of the subsequent prime shares to look at.
Tesla inventory rallied 0.8% Monday after the corporate reported report third-quarter deliveries on Saturday. The electric-vehicle large reported deliveries that totaled 241,300 vehicles for the third quarter, up from 201,250 within the second quarter and 184,800 within the first quarter. FactSet analyst estimates ranged from 218,000 to 246,000, with the consensus at 232,000.
Shares snapped a two-day dropping streak Monday and closed additional above a 764.55 purchase level in a cup with deal with.
TSLA shares closed about 13% away from report highs. On Jan. 25, Tesla inventory hit a report excessive of 900.40, after climbing as a lot as 93% from a 466 purchase level in a cup-with-handle sample.
Dow Jones Leaders: Apple, Microsoft
Among the highest Dow Jones shares, Apple moved down 2.5% Monday, giving again all of Friday’s 0.8% acquire. The inventory continues to be beneath the 50-day line.
Software large Microsoft fell 2.1% Monday, because the inventory continues its commerce beneath the 50-day line. A brand new flat base is forming with a 305.94 purchase level.
Be positive to observe Scott Lehtonen on Twitter at @IBD_SLehtonen for extra on progress shares and the Dow Jones Industrial Average.
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