Dow Jones futures fall; Twitter drops as Elon Musk reverses decision to join board

Dow Jones futures traded lower, while technology futures sold off sharply on Monday morning. The 10-year Treasury yield continued to rise, on pace to extend a winning streak to seven sessions. US oil prices fell nearly 4% to trade below $95 a barrel. Twitter stock plummeted after Tesla CEO Elon Musk decided not to be a director of the company. And chip leader Nvidia slipped on a downgrade.




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From Dow Jones Leaders, Apple (AAPL) fell 1.1%, and Microsoft (MSFT) traded down 1% in stock market today. Sensitive to interest rates JP Morgan (JPM) and Goldman Sachs (GS) were the only pre-market Dow Jones precursors making narrow gains. The two companies publish their first quarter results on Wednesday and Thursday respectively.

Twitter (TWTR) fell more than 3% on Monday morning. On Sunday, Twitter CEO Parag Agrawal said that Elon Musk refused join the Twitter board. Electric vehicle giant You’re here (TSLA) slipped nearly 5% early Monday, threatening to add to Friday’s steep losses.

Graphics chip manufacturer Nvidia (NVDA) fell more than 4% after Baird downgraded the stock from outperform to neutral and cut its price target from 360 to 225.

As stock market uptrend struggles, Dow Jones financial leader American Express (AXP) – in the same way Alphabet (GOOGL), Broadcom (AVGO), IBD classification watch list stock SolarEdge Technologies (SEDG) and Shell (SHEL) – are some of the best Monday stocks to buy and watch.

Arista, Microsoft and Tesla are IBD classification shares. Alphabet and Tesla stocks were presented last week Stocks near a buy zone column.

Dow Jones Today: Treasury Yields, Oil Prices

Heading into Monday’s open, Dow Jones futures were down 0.4% relative to fair value, and S&P 500 futures were down 0.7%. Nasdaq 100 futures sold for 1.15% to fair value in early morning trading.

Among exchange traded fundsthe Nasdaq 100 Invesco QQQ Trust tracker (QQQ) fell 1.1% and the SPDR S&P 500 ETF (TO SPY) was down 0.6% ahead of Monday’s open.

On Friday, the 10-year US Treasury yield extended this week’s gains, closing at 2.71% and hitting a new 52-week high. The 10-year rate continued to rise on Monday morning, reaching 2.76%, its highest level since March 2019.

Meanwhile, U.S. oil prices fell nearly 4% on Monday morning, with West Texas Intermediate crude trading below $95 a barrel. Worsening virus outbreak in China raises concerns about demand.

Stock market rally

The stock market posted mixed action on Friday, in a week that saw the market uptrend is under pressure. The tech-heavy Nasdaq finished below its 50-day line, while the Dow Jones Industrialists finished with modest gains.

The Overview column commented: “The Nasdaq, down 1.3% on Friday, ended with a 3.9% loss for the week. This significantly dented the composite index’s 11% three-week rebound. Another sharp drop could lead to a new break below the 50-day moving average. In a good bull market, that’s a technical no-no.”

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Investors can also create watchlists, find companies close to a point of purchaseor develop custom screens on IBD MarketSmith.


Four Dow Jones stocks to watch now


Dow Jones Stocks to Buy and Watch: American Express

Dow Jones financial stock American Express charts a cup base with handle, showing a buy point of 194.45. Shares advanced 0.9% on Friday, still below the 50-day moving average. AXP shares fell 0.7% on Monday morning after JPMorgan downgraded the stock from overweight to neutral.

Keep an eye on inventory relative line of force. Amid its recent ascent, the RS line is closing in on its former highs, but has its work cut out for an eventual breakout. The RS line measures a stock’s price performance against the S&P 500. The RS line should reach a new high on the day of the breakout or shortly thereafter to confirm the strength of the stock’s breakout.


Four growth stocks to buy and watch in the currentrStock market rally


Stocks to buy and watch: Alphabet, Broadcom, SolarEdge, Shell

Tuesday’s IBD 50 stocks to watch pick, Alphabet, shows a buy point of 2,875.97 in a cup with handle, according to IBD MarketSmith graphical analysis. GOOGL shares are around 7% from entry after Friday’s 1.9% decline. FANG stock fell 0.9% on Monday morning.

Broadcom fell 2.7% on Friday as the chip stock moved further below an early entry at 614.74. The stock is looking for support on its 50-day line. Meanwhile, stocks have set up another buy point, a handle entry at 645.41. AVGO shares traded down 1.1% on Monday morning.

IBD classification Watchlist stock SolarEdge Technologies ended Friday about 10% below a buy point of 340.10 cup with handle. Shares fell 1.9% on Monday morning.

Oil and gas producer Shell on April 1 IBD stock of the day, is just below the buy point of 56.23 on a flat basis after Friday’s 1.2% rise. Shares fell 0.2% on Monday morning.


Join IBD experts as they analyze the top stocks of the current stock market rally on IBD Live


Tesla Stock

Tesla Stock slipped nearly 5% early Monday, threatening to add to Friday’s 3% decline. Shares of the electric vehicle giant ended Friday about 11% off the 1,152.97 buying point of a mug with handle.

The stock traded as high as 1,243.49 on Nov. 4 and ended Friday about 18% off that all-time high.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones Stocks, Apple shares fell 1.2% on Friday, still below a buy point of 176.75 in a double-bottom basis. Alongside this entry, a handle buy point is also in play at 179.71. Look for a decisive move above these levels as a buy signal. AAPL stock was down more than 1% on Monday morning.

Software leader Microsoft fell 1.5% on Friday as stocks continue to build the right side of a new fundamental formation. Microsoft shares traded down 1% on Monday morning.

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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