The Dow Jones Industrial Average rose on Monday after the stock market sell-off worsened on Friday, with major stock indexes posting new correction lows. The 10-year Treasury yield advanced to 2.99% on Monday morning, hitting a new high.
employment Semiconductors (ON) rose 5% after reporting better-than-expected quarterly results. Twitter (TWTR) is up 1% after Friday’s 0.2% decline. electric car giant Tesla (TSLA) is up 1.5% Monday morning.
Among the leaders of Dow Jones, apple (AAPL) shares fell 0.2 percent and Microsoft (MSFT) is up 0.8% in the stock market today.
Amidst worsening new stock market corrections, Dow Jones leader American Express (AXP) – Along with IBD Leaderboard Inventory Cheniere Energy (liquefied natural gas) , Expedia (EXPE) and world wrestling entertainment (WWE) – Among the biggest stocks to watch on Monday.
Cheniere Energy, Microsoft, and Tesla are the IBD Leaderboard shares. Expedia and Palo Alto Networks both appeared in their Stocks Near A Buy Zone column last week.
Dow Jones today: Treasury yields and oil prices
After the opening on Monday, the Dow Jones Industrial Average rose 0.2%, while the S&P 500 gained 0.3%. The heavy Nasdaq Composite Index rose 0.8%.
Among the exchange-traded funds, the Nasdaq 100 index tracking the Invesco QQQ Trust (QQQ) is up 0.8%. The SPDR S&P 500 ETF (SPY) was up 0.3%.
The 10-year Treasury yield advanced to 2.99% on Monday, after closing at 2.88% on Friday. In recent weeks, the 10-year Treasury yield has reached its highest level since December 2018, reaching 2.95%. Meanwhile, US oil prices fell more than 3%, with Texas Intermediate crude trading below $102 a barrel.
stock market correction
On Friday, the major stock indices sold off sharply, posting new correction lows. With the start of the market in May, the bounce could trigger another new bullish attempt. But with the three major indicators identifying new correction lows, investors should be on the defensive.
This means taking profits and collecting liquidity. Also, keeping a watch list of stocks that are holding up well in a bear market is a good way to prepare for the stock market’s next uptrend.
Finding the next upside leaders while the market is still correcting is a challenge. One useful method is to use the stock’s relative strength line. The RS line measures the stock’s price performance against the S&P 500 Index. If the stock is outperforming the broader market, the RS line tends to the upside. If the stock is performing worse than the broad market, the line will indicate a decline.
Friday’s big picture column commented, “The Nasdaq Composite is down 4.2% and retreating from Wednesday’s low, resulting in its nascent bullish attempt. The index suffered its fourth consecutive weekly decline and fell 13.2% in the month, its worst monthly decline since October 2008.”
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Investors can also create watch lists, find companies close to a point of purchase, or develop custom displays at IBD MarketSmith.
Five Dow Jones stocks to watch right now
Dow Jones stocks to watch: American Express
American Express Financial stocks in Dow Jones ended Friday sharply below the 50-day line and about 10% from the 194.45-cup buying point with a handle after Friday’s tumble of 4%. AXP shares lost 0.2% on Monday morning.
Watch the stock’s relative strength line. Amid its recent rally, the RS line is starting to approach its old highs, which means it is once again outperforming the broad market.
Four growth stocks to watch at Cursstock market correction
Stocks to watch: Cheniere, Expedia, WWE
IBD Leaderboard Cheniere Energy stock is one of the biggest stocks to watch after finding support around the 50-day moving average this week. The stocks are digging a flat base showing 149.52 buying points, according to IBD MarketSmith chart analysis. LNG shares were trading down nearly 1% early Monday.
Expedia continues to build a mug with handle worth 204.08 points. Stocks are testing the long-term 200-day streak after Friday’s 4.7% drop. The EXPE 92 Stock 99 IBD Rating shows the ideal compound, for every IBD stock check. Shares were trading down 0.5% Monday morning.
World Wrestling Entertainment’s IBD Leaderboard watchlist has dumped its 50-day moving average, down 3.7% on Friday. Decisive retracement of the 50-day benchmark will be bullish for the stock’s expectations. Meanwhile, the stock is just below 60.94 buying points in a cup with a handle. WWE stock was unchanged Monday morning.
Join IBD experts as they analyze the leading stocks in the current stock market correction on IBD Live
Tesla stock is up about 1.5% Monday morning after the stock collapsed during its 50 and 200-day moving averages during last week’s 13% decline.
Shares of the EV giant closed Friday about 24% from the handle cup’s buying point of 1,152.97. The stock traded as high as 1,243.49 on November 4th and is 30% away from its all-time high.
Dow Jones Leaders: Apple and Microsoft
Among Dow Jones stocks, Apple shares fell back below the long-term 200-day line, and fell 3.7% on Friday. Shares were down 0.2% on Monday morning.
Software leader Microsoft fell 4.2% on Friday, cutting a two-day winning streak. The stocks were sharply below the 50 and 200-day lines. The stock has closed more than 20% from its 52-week high. MSFT shares rose 0.8% early Monday.
Make sure to follow Scott Lehtonen on Twitter at Tweet embed Learn more about developing stocks and the Dow Jones Industrial Average.
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