The Dow Jones Industrial Average fell 150 points Monday as shares of Dow component Boeing (BA) fell following the grounding of its 737 Max 9 planes. Meanwhile, Nvidia stock is breaking out today, breaking through a fresh purchase target and setting a new high.
The Dow Jones Industrial Average fell 0.4% after the opening bell, while the S&P 500 gained 0.35%. In early trading, the Nasdaq composite jumped 1%.
The Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 1% among US exchange-traded funds, while the SPDR S&P 500 ETF (SPY) rose 0.3%.
The 10-year Treasury yield increased to 4.05% on Monday after closing at 4.04% on Friday, its highest finish since December 12. Also, following last week’s gains, oil prices tumbled, with West Texas Intermediate futures down more than 3% Monday morning. WTI futures fell below $72 per barrel.
Boeing fell 8% on Monday morning after the Federal Aviation Administration ordered the 737 Max 9 plane to be temporarily grounded over the weekend. A door was ripped off the side of an Alaska Airlines 737 in mid-flight on Friday.
Coinbase (COIN) fell 2.5% on Monday, despite Needham maintaining a buy recommendation on the company and raising the price target from 160 to 180.
Data on Inflation and Earnings Season
The December consumer price index, expected Thursday, and the producer price index, due Friday, will be the highlights of this week’s economic statistics.
On Friday, JPMorgan Chase (JPM), Bank of America (BAC), Citigroup (C), and Wells Fargo (WFC) will begin their fourth-quarter reporting season.
Delta Air Lines (DAL) and UnitedHealth (UNH) are also expected to report earnings on Friday.
Stock Market Forecast 2024: A Soft Landing May Not Produce The Expected Gains
Dow Jones Breaks Weekly Winning Streak
On Friday, major indexes ended a nine-week winning streak. The Nasdaq composite closed Friday with a 0.1% gain, but it is still trading slightly below its 21-day exponential moving average. The tech-heavy index fell 3.3% in the truncated business week.
The Dow Jones Industrial Average and the S&P 500 lost 0.6% and 1.5%, respectively, during the week.
“Despite what has so far been a modest pullback, the stock market remains in a confirmed uptrend,” said Friday’s Big Picture editorial. However, keep an eye out for any sell indications in your portfolio, such as triggers for the 20%-25% profit-taking rule.”
Because of the ongoing stock market boom, now is a critical moment to read IBD’s The Big Picture column. Make sure to read about how IBD’s new exposure limits can help you react to shifting market situations.
With IBD’s ETF Market Strategy, you may learn how to time the stock market.
Best Stocks to Buy and Keep an Eye On
Magnificent Seven participant Alphabet (GOOGL), Netflix (NFLX), Novo Nordisk (NVO), and Snowflake (SNOW) are among the finest companies to purchase and monitor in the current market rise, along with Dow Jones components Amgen (AMGN), Caterpillar (CAT), and Visa (V).
This Stocks Near A Buy Zone column includes Caterpillar and Nvidia.
IBD Leaderboard provides real-time buy and sell alerts on stock market leaders.
Dow Jones: Amgen is no longer in the buy range
Amgen cut losses to 0.1% on Friday, just out of the 5% purchase range past a 288.46 official buy mark in a flat foundation. The 5% purchase zone increased to 302.88. AMGN shares were down 0.5% on Monday morning.
Caterpillar closed Friday around 2% below its 293.88 buy trigger, despite a 1% increase. Monday morning, CAT stock was down 0.3%.
According to IBD MarketSmith pattern identification, Visa stays in a buy range above a 250.06 entry in a cup base. V stock gained 0.4% on Monday.
4 Top Growth Stocks to Keep an Eye On During the Stock Market Rally
Google Stock Is Subjected to Key Level Testing
According to IBD MarketSmith, Alphabet fell further below its 139.42 purchase target in a cup with a handle after falling 0.4% on Friday. Shares fell further below their 50-day moving average on Friday, a significant mark to monitor. GOOGL shares increased 0.9% in early trading on Monday.
Netflix fell 0.1% on Friday, remaining much below a purchase mark of 482.70 out of a cup with a handle. Monday morning, NFLX stock rose 0.4%.
Novo Nordisk finished the day down 1.5%, but still above a 105.69 flat-base purchase mark after a powerful breakout on January 4. The NVO shares rose 0.1% in early trading on Monday.
Snowflake, the leader in artificial intelligence, recovered 2.9% on Friday after a four-day losing run. Shares are still trading below the 192.66 buy price of a cup-with-handle. Early Monday, SNOW stock climbed 1.8%.
