The Dow Jones Industrial Average briefly fell more than 150 points on Monday, kicking off a heavy week of economic data with losses. Names in the energy sector were responsible for much of the early losses, as oil prices crashed below recent lows. Minutes from the Fed’s latest central bank policy meeting and U.S. retail sales are due Wednesday.
rival of Tesla Li-Auto (LI) reported weak second-quarter results on Monday morning as a gloomy outlook sent stocks off more than 7% in early trading.
Discount retailer General dollar (DG) fell nearly 1% after BMO downgraded the stock from outperform to market performer. The stock ended Friday just outside the buy range past a buy point of 240.07.
Leader in electric vehicles You’re here (TSLA) was trading down 1% on Monday morning. Elsewhere, technology leaders from Dow Jones Apple (AAPL) and Microsoft (MSFT) both fell after the stock market opened today.
Chevron (CVX) dragged Dow Jones stocks down nearly 3% in early trading. Oil and mining-related names posted the top 20 heaviest losses among S&P 500 stocks.
In the current healthy market environment, Dow Jones stocks Coca Cola (KO) and UnitedHealth (UNH) — as well as American tower (ATM), Monolithic power systems (MPWR), Ollie’s Bargain Outlet (OLLI) and Vertex Pharmaceuticals (VRTX) – are among the best stocks to buy and watch.
UnitedHealth and Vertex are IBD stocks. Ollie’s and Vertex were featured in last week’s Stocks Near A Buy Zone column. American Tower was Wednesday’s IBD 50 Stocks To Watch pick.
Dow Jones Today: Treasury Yields, Oil Prices
Early Monday, the Dow Jones Industrial Average fell 0.1%, while the S&P 500 fell 0.1%. The tech-heavy Nasdaq composite traded down 0.15% in morning trading.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.3%. And the SPDR S&P 500 ETF (SPY) lost 0.1%.
The 10-year Treasury yield fell to 2.76% on Monday morning, continuing its decline after Friday’s drop to 2.84%. The 10-year Treasury yield is rebounding after hitting its lowest level since early April in recent weeks.
Meanwhile, U.S. oil prices rose above recent lows after July retail sales and industrial production data from China’s National Bureau of Statistics showed a weakening economy. Concerns about a drop in demand sent West Texas Intermediate futures falling more than 5%, trading below $87 a barrel.
Stock market rally
On Friday, the Nasdaq composite was the strongest of the major indexes, jumping 2.1%. It is up 5.3% for the month and trimmed its losses for the year to less than 18%.
Friday’s The Big Picture column commented: “The performance of the S&P sectors was also encouraging, with all closing in the green. Consumer discretionary and technology, crucial areas for growth stock investors, made the best earnings.”
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Five Dow Jones stocks to watch now
Dow Jones stocks to watch: Coca Cola, UnitedHealth
Soda giant Dow Jones, Coca-Cola, builds the right side of a flat base that has a buy point of 67.30. Meanwhile, the stock is about 3% off an early entry at 65.14. Knockout action increased slightly on Monday morning.
Health insurance giant and IBD Leaderboard stock UnitedHealth is barely in the buy range above the 518.80 buy point of its double-bottom base with a handle in the middle of the 2 rally % from Friday, according to IBD MarketSmith’s chart analysis. The 5% pursuit zone rises to 544.74. Shares fell 0.7% on Monday.
The UNH stock is posting a solid 93 out of a perfect IBD composite rating of 99, according to the IBD Stocks Balance Sheet. Investors can use the IBD Composite Rating to easily assess the quality of a stock’s fundamental and technical metrics.
4 growth stocks to watch in the currentrStock market rally
Top stocks to watch: American Tower, Monolithic, Ollie’s, Vertex
Wednesday’s IBD 50 Stocks To Watch pick, American Tower, is in the buy range beyond a mug with handle with a buy point of 271.19, according to IBD MarketSmith’s chart analysis. Shares rose 1.4% on Friday, beating the recent entry. AMT stock traded 0.4%.
Recent IBD stock of the day Monolithic Power Systems added a handful to a cup base last week, moving the correct buy point from 580.10 to 541.49. Meanwhile, stocks remain above an entry of 514.80. The stock was up 0.65% on Monday.
Ollie’s Bargain Outlet rebounds from its 10-week line – a critical support level – putting the top discount retailer in a new buying zone. Stocks also carve out a handful after a large cup base, placing the latest buy point at 72.37. The current price action is around 10% of this entry. The shares gained 0.1% on Monday morning.
IBD SwingTrader Vertex Pharmaceuticals stock gained 0.8% on Friday, breaking out of the buy range after a cup entry with a handle at 279.23. The 5% pursuit zone moved up to 293.19. The June 23 breakout is back on track after last week’s Q2 results. Vertex stock rose a fraction on Monday morning.
Join IBD experts as they analyze the top stocks of the current stock market rally on IBD Live
Tesla stock rose 4.7% on Friday, rebounding from Thursday’s losses. Shares rose another 1% on Monday morning.
In early August, Tesla shares hit their highest level since early May, but are now finding stiff resistance around their 200-day line, which is a key level to watch. The stock is nearly 30% off its 52-week high. A 3-for-1 stock split will take place on August 24.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares rose 2.1% on Friday as the stock continues to build the right side of a cut base that has a buy point of 179.71. Another interpretation could be a large double bottom that dates back to January. Either way, the point of purchase is the same. Keep an eye out for a potential grip forming and offer a lower entry.
On the upside, the stock’s relative strength line is already reaching new highs, indicating strong stock market outperformance. Shares fell 0.1% on Monday morning.
Microsoft jumped 1.7% on Friday, closing at its highest level since April 8. Stocks are approaching the long-term 200-day line, which is a key resistance area to watch. The stock fell 0.2% early Monday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen to learn more about growth stocks and the Dow Jones Industrial Average.
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