Dow Jones futures fell 100 points ahead of the stock market open Monday, as Tesla stock jumped after reporting strong deliveries over the weekend.
Among the Dow Jones leaders, Apple (AAPL) lost 0.8% premarket Monday, while Microsoft (MSFT) moved down 0.6% in today’s stock market. Merck (MRK) and Salesforce (CRM) closed near new buy points on Friday.
Tesla (TSLA) jumped 3.5% premarket Monday, on pace to snap a two-day skid. The stock is just above its latest buy point.
Dow Jones Today
Ahead of the stock market open Monday, Dow Jones futures dropped 0.3% vs. fair value, while S&P 500 futures lost 0.35%. Nasdaq 100 futures declined 0.5% vs. fair value.
Stock Market Weakness
The Nasdaq and S&P 500 reversed higher Friday, ending an ugly week on a positive note. Both indexes remain below their key 50-day moving averages and near recent lows. Meanwhile, the Dow Jones Industrial Average looked to give back a part of Friday’s 1.4% advance in early Monday trade.
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.”
Dow Jones Stocks To Watch: Merck, Salesforce
Dow Jones leaders Merck and Salesforce were in or near buy zones in today’s stock market action.
Merck surged over 8% Friday after its Covid pill reduced the risk of hospitalization by half in a final-phase study. Merck stock broke out past a 79.33 buy point in a flat base, according to IBD MarketSmith chart analysis. The stock jumped 3.5% ahead of Monday’s open.
Salesforce.com closed just below a cup with handle’s 275.32 buy point following Friday’s 1.5% rally. The buy area goes up to 289.09. Shares were unchanged premarket Monday.
Stocks To Buy And Watch: AutoZone, Netflix, ServiceNow
Wednesday’s IBD Stock Of The Day, AutoZone, is trading just above its 1,666.73 buy point in a flat base following a Sept. 22 breakout move. The 5% buy zone goes up to 1,750.07. The stock was flat premarket Monday.
FANG stock leader Netflix continues to shrug off the recent market weakness. Shares are in the 5% buy zone past a 593.39 buy point in a consolidation amid the recent global success of its series “Squid Game.” The stock fell 0.3% premarket Monday.
IBD Leaderboard stock ServiceNow continues to hold above its key 50-day support level despite a weak overall market. Shares rose 0.7% premarket Monday.
Bullishly, the stock’s relative strength line hit a new high, indicating the stock is holding up well amid the current stock market volatility, while the IBD Stock Checkup shows NOW stock with a 97 out of a perfect 99 IBD Composite Rating.
Tesla stock rallied 3.5% premarket Monday after the company reported record Q3 deliveries on Saturday. The EV giant reported deliveries that totaled 241,300 electric vehicles for the third quarter, up from 201,250 in Q2 and 184,800 in Q1. FactSet analyst estimates ranged from 218,000 to 246,000, with the consensus at 232,000.
Shares are on pace to snap a two-day losing streak. The stock ended Friday just above a 764.55 buy point in a cup with handle.
TSLA shares closed about 14% away from record highs. On Jan. 25, Tesla stock hit a record high of 900.40, after climbing as much as 93% from a 466 buy point in a cup-with-handle pattern.
Dow Jones Leaders: Apple, Microsoft
Among the top Dow Jones stocks, Apple moved down 0.8% premarket Monday, on pace to basically give back Friday’s 0.8% gain. The stock is still below the 50-day line.
Software giant Microsoft fell 0.6% premarket Monday, as the stock continues its trade beneath the 50-day line. A new flat base is forming with a 305.94 buy point.
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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