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Dow Jones Falls, Tech Stocks Sell Off As China’s Economy Slows; Tesla Dives On Autopilot Investigation

The Dow Jones Industrial Average briefly dropped 280 points Monday, as data showed a slowdown in China’s economy. Tesla stock skidded after the National Highway Safety Administration opened a formal investigation into Tesla’s Autopilot system.




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Among Dow Jones leaders, Apple (AAPL) dropped 1.5% Monday, while Microsoft (MSFT) moved down 0.9% in today’s stock market. Home Depot (HD) is just below a new buy point, while Disney (DIS) is trying to break out past an entry.

Tesla (TSLA) looked to compound Friday’s 0.7% loss, skidding over 5% Monday morning. The EV giant dropped below a recent buy point.

Among the top stocks to buy and watch, Nvidia (NVDA), RH (RH) and Shopify (SHOP) are in or near new buy zones.

Nvidia, Microsoft and Tesla are IBD Leaderboard stocks. Apple is an IBD SwingTrader stock.

Dow Jones Today: Chinese Economy Slows

The Dow Jones Industrial Average lost 0.4% Monday, while the S&P 500 declined 0.6%. The tech-heavy Nasdaq composite sold off 1.2% in morning trade.

U.S. Stock Market Today Overview

IndexSymbolPriceGain/Loss% Change
Dow Jones(0DJIA)35377.28-138.10-0.39
S&P 500(0S&P5)4443.01-24.99-0.56
Nasdaq(0NDQC )14652.82-170.08-1.15
Russell 2000 (IWM)219.53-1.60-0.72
IBD 50 (FFTY)44.86-0.94-2.05
Last Update: 10:50 AM ET 8/16/2021

Early Monday, China’s economy slowed more than expected in July, according to data released by China’s National Bureau of Statistics.

Among exchange traded funds, the Innovator IBD 50 (FFTY) traded down 2.3% Monday. Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) lost 0.8%. Meanwhile, the SPDR S&P 500 ETF (SPY) moved down 0.4%.

Stock Market Rally

The Dow Jones industrials and the S&P 500 pulled back Monday from Friday’s record highs, while the Nasdaq looked to snap a two-day win streak.

Friday’s Big Picture commented, “Earnings season continues next week with important results from chip leaders Applied Materials (AMAT) and Nvidia, IPO stock Robinhood Markets (HOOD), along with a slew of earnings from retailers.”

For more stock market commentary, check out IBD’s The Big Picture.


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Dow Jones Stocks To Buy And Watch: Disney, Home Depot

Disney stock is moving up the right side of a new base. Shares are approaching a 203.12 buy point in a consolidation, while an early entry at 186.39 is also in play. Shares briefly topped the entry on Friday following the company’s strong Q3 results.

Dow Jones leader Home Depot continues to trade above and below a cup with handle’s 333.55 buy point, according to IBD MarketSmith chart analysis. The 5% buy area goes up to 350.23.

Shares lost nearly 2% Monday morning and are about 3% below the buy point.

Stocks To Buy And Watch: Nvidia, RH, Shopify

IBD Leaderboard stock Nvidia is tracing a flat base with a 208.85 buy point, according to IBD MarketSmith chart analysis. Per Leaderboard analysis, “Unlike the previous base that failed, the prior base spent more time above the 50-day line. Because the previous base undercut a prior pattern, the base count has reset. So, the latest pattern was first stage. These are more likely to succeed.” Nvidia stock moved down 1.7% Monday. Nvidia reports second-quarter results late Tuesday.

RH is trying to break out past a 724.11 buy point in a cup with handle. The 5% buy area tops out at 760.32. Shares lost 3.2% Monday morning.

Shopify is back at a 1,499.85 buy point in a cup base, while trying to find support at its key 50-day moving average. Shares rallied nearly 1% early Monday. The IBD Stock Checkup shows SHOP stock with a strong 95 out of a perfect 99 IBD Composite Rating. The IBD Composite Rating identifies stocks with a blend of strong fundamental and technical characteristics.

Tesla Stock

Tesla stock dived over 3% Monday after the National Highway Safety Administration opened a formal investigation into Tesla’s Autopilot system. The government agency says it has identified 11 crashes since early 2018 in which a Tesla vehicle using the company’s Autopilot or Traffic Aware Cruise Control have hit vehicles with flashing lights, flares, an illuminated arrow board or cones warning of hazards.

Shares are again testing a 700.10 aggressive buy point deep inside a correction. Meanwhile, a deep, large base continues to take shape.

On Jan. 25, Tesla stock hit a record high at 900.40, after climbing as much as 93% from a 466 buy point in a cup with handle.

Dow Jones Leaders: Apple, Microsoft

Among the top Dow Jones stocks, IBD SwingTrader stock Apple moved down 1.5% Monday, looking to snap a three-day win streak. Apple stock is in a new buy area above a 148 trendline buy point. The stock hit an all-time high on July 15 at 150.

Software giant Microsoft lost 0.9% early Monday, but remains just off last week’s record highs. Microsoft continues to trade solidly above a cup base’s 263.29 buy point. The stock is extended above the 5% buy zone, which goes up to 276.45.

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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