The Dow Jones Industrial Average dropped Monday, as the stock market paused after a two-day bounce off correction lows.
Twitter (TWTR) stock dropped more than 4% after Elon Musk said the company’s legal team accused him of violating a nondisclosure agreement. On Friday, Musk said his $44 billion deal to acquire Twitter was on hold due to questions regarding the number of fake accounts.
Electric-vehicle giant Tesla (TSLA) traded down around 1% Monday morning.
Elsewhere, Dow Jones tech leaders Apple (AAPL) and Microsoft (MSFT) traded down 0.9% and 0.85%, respectively, in today’s stock market. Meanwhile, McDonald’s (MCD) shares slipped a fraction after the company said it would quit Russia and sell its business there over its invasion of Ukraine.
As the stock market correction attempts to find a bottom, Dow Jones leaders Chevron (CVX) and Merck (MRK) — along with Cheniere Energy (LNG), Eli Lilly (LLY), Exxon Mobil (XOM) and Northrop Grumman (NOC) — are among IBD’s top stocks to watch for Monday.
Eli Lilly and Microsoft are IBD Leaderboard stocks. Exxon and Merck were featured in last week’s Stocks Near A Buy Zone column. Eli Lilly was Wednesday’s Stock of the Day.
Dow Jones Today: Treasury Yields, Oil Prices
After Monday’s open, the Dow Jones Industrial Average moved down 0.6%, while the S&P 500 fell 0.7%.The Nasdaq sold off 1% in morning trade.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 0.9%. The SPDR S&P 500 ETF (SPY) fell 0.7%.
The 10-year Treasury yield ticked lower to 2.9% Monday morning. The 10-year Treasury yield snapped a four-day losing streak Friday, jumping to 2.93%. Meanwhile, U.S. oil prices shed less than 1%, with West Texas Intermediate crude holding above $109 a barrel after a three-day advance.
Stock Market Rally Attempt
The major stock indexes finished with strong gains Friday. The Dow Jones Industrial Average rallied 1.5%, snapping a six-day decline, while the Nasdaq catapulted 3.8%.
Friday’s The Big Picture column commented, “So while many investors have likely raised quite a lot of cash and are afraid to touch equities, the market still needs a new host of excellent companies that show the key elements of CAN SLIM investing: rising fundamentals, outperformance vs. most stocks today, and evidence of rising fund ownership.”
If you’re new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one key to the investment guidelines. IBD offers a broad range of growth stock lists, such as Leaderboard and SwingTrader.
Investors also can create watchlists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.
Five Dow Jones Stocks To Watch Now
Dow Jones Stocks To Watch: Chevron, Merck
Dow Jones leader and energy giant Chevron is in a flat base that has a 174.86 buy point, according to IBD MarketSmith chart analysis. CVX shares traded up 1.9% Friday, extending a win streak to four sessions. Shares bullishly regained their 50-day line and are about 4% away from the latest entry. Chevron shares rose 1% Monday morning.
Drug leader Merck remains above a cup-with-handle’s 89.58 buy point after shares fell 0.5% Friday. The 5% buy area goes up to 94.06. Shares gained nearly 1% early Monday. One positive signal, the stock’s relative strength line hit another high last week, indicating big stock market outperformance during the current stock market correction.
MRK stock boasts a 98 out of a perfect 99 IBD Composite Rating, per IBD Stock Checkup. Investors can use the IBD Composite Rating to easily gauge the quality of a stock’s fundamental and technical metrics.
Three Top Growth Stocks To Watch In The Current Stock Market Correction
Stocks To Watch: Cheniere, Eli Lilly, Exxon, Northrop
Cheniere Energy is one of the market’s top stocks to watch, even as it continues to trade below its 50-day line. Shares moved up 2.7% Friday, but remain below their 50-day line, as they continue to etch a flat base that shows a 149.52 buy point, according to IBD MarketSmith chart analysis. LNG shares moved up 1.1% Monday.
IBD Leaderboard stock Eli Lilly is holding just above a prior cup base’s 284 buy point and is trying to maintain its 50-day line. The stock’s RS line hit a new high last week. Eli Lilly stock was up 1% Monday morning.
Energy giant Exxon Mobil remains below a cup with handle’s 89.90 buy point despite a 3% gain on Friday. The stock found much-needed support at its key 50-day line. XOM shares inched higher Monday.
Defense contractor Northrop Grumman continues to etch a cup with handle with a 477.36 buy point. Shares are just below their 50-day line after Friday’s 0.5% rise. Northrop shares were up 0.4% early Monday.
Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live
Tesla stock lost around 1% Monday morning following Friday’s near-6% advance. Shares remain sharply below their 50- and 200-day lines amid their recent weakness.
The stock traded as high as 1,243.49 on Nov. 4 and is about 38% away from that all-time high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares rallied more than 3% Friday after falling to their lowest level since October 2021 on Thursday. The stock is sharply below its 200-day line and about 20% off its 52-week high. Apple stock fell 0.9% Monday.
Software leader Microsoft ended a two-day slide Friday, rising 2.3%. The stock closed about 25% off its 52-week high. MSFT shares moved down 0.85% Monday morning.
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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