Significantly lower futures contracts; Twitter and Musk in talks to strike a deal
The Dow Jones Industrial Average sold 360 points on Monday morning, extending Friday’s steep stock market losses. Twitter shares soared after reports emerged that the company and Tesla Chief Executive Elon Musk were close to reaching a deal. And Dow Jones Coca-Cola stock was a big driver of earnings on Monday morning.
Twitter (TWTR) jumped 4% after Friday’s 3.9% gain. Bloomberg said a deal could be finalized as early as Monday. Electric vehicle giant You’re here (TSLA) slipped 3% on Monday morning.
Among the leaders of the Dow Jones, Apple (AAPL) and Microsoft (MSFT) were both down about 1% in the current stock market.
In the midst of another stock market correction, the leader of the Dow Jones American Express (AXP) – with the stock IBD Leaderboard LPL Financial (LPLA), Expedia (EXPE), Raytheon Technologies (RTX) and Shell (SHEL) – are among the top Monday stocks to watch.
Microsoft and Tesla are IBD stocks. Caterpillar and Edwards Lifesciences were in the Stocks Near A Buy Zone column this week. And Expedia was Thursday’s IBD action of the day.
Dow Jones Today: Treasury Yields, Oil Prices
After Monday’s open, the Dow Jones Industrial Average fell 1%, while the S&P 500 fell 1.1%. The Nasdaq cut its losses to 0.5% in morning trading.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) lost 0.7%. The SPDR S&P 500 ETF (SPY) fell 0.75%.
The 10-year Treasury yield fell to 2.81% on Monday after closing Friday at 2.91%. Last week, the 10-year Treasury yield hit its highest level since December 2018. Meanwhile, US oil prices fell nearly 5%, with Texas Intermediate crude trading just above $97 a barrel.
New stock market correction
On Friday, the stock market ended sharply lower as major equity indices sold off with heavy losses.
Friday’s The Big Picture column commented: “After being thrown off at its 200-day moving average on Thursday, the S&P 500 plunged 2.8%, clearing Monday’s low. The index still holds high. above the March 16 trailing day low, but the weak action was enough to change IBD’s market outlook into a market correction.”
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Investors can also create watchlists, find companies near buy points, or develop custom screens at IBD MarketSmith.
Five Dow Jones stocks to watch now
Dow Jones Earnings: Coca-Cola
Dow Jones Stock Coca Cola (KO) reported better-than-expected first-quarter results on Monday morning, shares soared 2.6% in early morning trading.
KO shares ended Friday around 13% above a buy point of 57.66 in a flat basis.
Dow Jones Stocks to Buy and Watch: American Express
Dow Jones financial stock American Express ended Friday about 7% off the buying point of 194.45 a cup with handle after the company’s first quarter results. AXP shares were down 0.8% on Monday morning.
Four growth stocks to watch in the currentrent Stock market correction
Stocks to watch: LPL, Expedia, Raytheon, Shell
IBD Leaderboard LPL Financial stock remains above a buy point of 191.08 in a cup with a handle, but double-digit gains have faded on a three-day losing streak. On April 21, shares climbed as much as 15.5% above the entry, meaning the stock is about to trigger the round-trip sell rule, according to chart analysis. ‘IBD MarketSmith. Shares of LPLA were down 1% on Monday morning.
Thursday’s IBD stock Expedia builds a mug with handle with a buy point of 204.08. Stocks are trying to regain their 50-day line, but are struggling at this key resistance level. The EXPE stock is posting a 90 out of a perfect IBD composite rating of 99, according to the IBD stock balance sheet. Expedia shares were down 0.4% on Monday morning.
Defense contractor Raytheon Technologies dropped the buy point of 104.44 on a flat basis after heavy losses last week. RTX shares fell more than 1% on Monday morning. Raytheon publishes its results on April 26.
Oil and gas producer Shell fell below the 56.23 buy point on a flat basis after Friday’s 2.15% decline. SHEL shares slid more than 3% on Monday morning.
Join IBD experts as they analyze the top stocks of the current market correction on IBD Live
Tesla stock slipped 3% on Monday morning, threatening to add to Friday’s 0.4% decline.
Shares of the electric vehicle giant ended Friday about 13% off the 1,152.97 buy point of a cup with handle. The stock traded as high as 1,243.49 on Nov. 4 and is about 19% off that all-time high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares triggered the 7% to 8% loss cut rule from a buy point of 176.75 in a double bottom basis in recent weeks. Apple stock fell further below its 50-day line on Friday and could be preparing for a test of the long-term 200-day line. The stock fell 1% on Monday morning.
Software leader Microsoft sold 2.4% on Friday, well below its 50- and 200-day lines. The stock is more than 20% off its 52-week high. MSFT shares were down 0.8% on Monday morning.
Apple and Microsoft release their results this week.
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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