The Dow Jones Industrial Average dived more than 650 points Monday morning, as the market moved to extend losses from Friday’s stock market sell-off. Bitcoin crashed below $ 24,000, while the 10-year Treasury yield surged to more new highs. And the S & P 500 opened in bear market territory.
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Electric-vehicle giant Tesla (TSLA) skidded 5% lower Monday. Elsewhere, Dow Jones tech leaders Apple (AAPL) and Microsoft (MSFT) were down about 3% each in today’s stock market open.
Amid a new stock market correction, Dow Jones leaders Chevron (CVX), Merck (MRK) and Travelers (TRV) — along with Enphase Energy (ENPH), Murphy Oil (MUR), Northrop Grumman (NOC) and Ulta Beauty (ULTA) — are among IBD’s top stocks to watch for Monday.
Enphase is an IBD Leaderboard stock. Ulta was featured in last week’s IBD Stock Analysis column.
Dow Jones Today: Treasury Yields, Oil Prices, Bitcoin
After Monday’s open, the Dow Jones Industrial Average dived 2%, while the S & P 500 lost 2.5%. The tech-heavy Nasdaq composite plunged 3.2%.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) dropped 3%. The SPDR S & P 500 ETF (SPY) lost 2.5% in early trade.
Exchanges across Asia closed with heavy losses as global markets react to Friday’s US inflation data. Europe’s leading benchmarks traded with losses in the 2% range just after midday Monday.
The 10-year Treasury yield surged higher to 3.28% Monday morning, hitting another new high following Friday’s close at 3.15%. Meanwhile, US oil prices lost nearly 1%, with West Texas Intermediate trading around $ 119 a barrel. In early March, WTI briefly topped out above $ 130 a barrel.
The price of Bitcoin crashed 18% over the weekend. After ending Friday around $ 29,000, Bitcoin traded around $ 23,500 in early morning trade, according to CoinDesk, its lowest level since December 2020. ProShares Bitcoin Strategy ETF (BITO) plunged 18% Monday morning.
Stock Market Sell-Off
The stock market sold off Friday, as the major stock indexes finished with heavy losses, ending the week on a down note.
Friday’s The Big Picture column commented, “Moves were heavily skewed to the downside. The Nasdaq was the index that suffered the most, dropping 3.5%. Its weekly loss came in at 5.6%, sending it back near lows for the year.”
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Five Dow Jones Stocks To Watch Now
Dow Jones Stocks To Watch: Chevron, Merck, Travelers
Dow Jones leader and energy giant Chevron remains above a flat base’s 174.86 buy point, according to IBD MarketSmith chart analysis, even after Friday’s 1.2% decline. The 5% buy zone tops out at 183.60. CVX shares dropped 2.2% Monday.
CVX stock 00s 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.
Merck, a Dow Jones and IBD Big Cap 20 stock, fell further below its cup-with-handle’s 89.58 buy point Friday, as shares dropped another 0.9%. The stock also gave up support around its key 50-day line, which is a key sell signal. MRK shares fell more than 1% Monday morning.
Insurance giant Travelers continues to build a flat base with a 188.08 buy point. Shares are further below their 50-day line after Friday’s 2.5% fall. Travelers stock traded down 1.1% early Monday.
Five Top Growth Stocks To Watch In The Current Stock Market Correction
Stocks To Watch: Enphase, Murphy, Northrop, Ulta
IBD Leaderboard stock Enphase Energy is still above its double bottom’s 193 buy point, even after a third straight decline Friday, according to IBD MarketSmith chart analysis. Enphase shares declined 5.8% Monday morning.
Murphy Oil is trading just below a cup base’s 44.73 buy point following Friday’s 1.95% loss. Shares moved down 4.3% Monday morning.
Northrop Grumman found much-needed support at its 50-day moving average Friday, but remains about 3% below its cup-with-handle’s 477.36 buy point. NOC shares dipped 1.1% Monday morning.
Ulta Beauty’s recent breakout continues to struggle after Friday’s 3.5% loss. Still, shares are trying to hold up during the new stock market correction. Ulta stock is about 4% away from a cup with handle’s 426.93 buy point. ULTA shares traded down over 2 % Monday.
Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live
Tesla Stock
Tesla stock skidded 3.1% Friday, adding to Thursday’s 0.9% decline. Shares threatened to add to those losses, trading more than 5% lower Monday morning. Early Monday, RBC Capital upgraded the EV giant from sector perform to outperform with a price target of 1,100.
The stock is still sharply below its 50- and 200-day moving averages. Tesla stock traded as high as 1,243.49 on Nov. 4. Shares are about 44% off that record high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares sold off 3.9% Friday and are near their recent lows. The stock remains far below its long-term 200-day line and is about 25% off its 52-week high. AAPL stock traded down 2.7% Monday.
Software leader Microsoft lost 4.5% Friday, and remains sharply below its 50- and 200-day lines. The stock closed around 28% off its 52-week high. MSFT shares lost 3% 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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