Dow Jones Futures Rise After Stock Market Sell-Off Worsened; Treasury Yield Nears New High


Dow Jones futures were slightly higher Monday after the stock market sell-off worsened Friday, as the major stock indexes hit new correction lows. The 10-year Treasury yield rose to 2.93% Monday morning, nearing a new high.


ON Semiconductor (ON) rallied after reporting better-than-expected quarterly results. Twitter (TWTR) inched lower after Friday’s 0.2% dip. And electric-vehicle giant Tesla (TSLA) skidded 2% Monday morning, threatening to extend a losing streak to three sessions.

Among the Dow Jones leaders, Apple (AAPL) and Microsoft (MSFT) were slightly lower in today’s stock market.

Amid a worsening new stock market correction, Dow Jones leader American Express (AXP) — along with IBD Leaderboard stock Cheniere Energy (LNG), Expedia (EXPE) and World Wrestling Entertainment (WWE) — are among Monday’s top stocks to watch.

Cheniere Energy, Microsoft and Tesla are IBD Leaderboard stocks. Expedia and Palo Alto Networks were featured in last week’s Stocks Near A Buy Zone column.

Dow Jones Today: Treasury Yields, Oil Prices

Before Monday’s open, Dow Jones futures rose a fraction vs. fair value. S&P 500 futures moved down 0.2%. And Nasdaq 100 futures declined 0.4% vs. fair value.

Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 0.2%. The SPDR S&P 500 ETF (SPY) lost 0.4%.

The 10-year Treasury yield advanced to 2.92% Monday, after closing Friday at 2.88%. In recent weeks, the 10-year Treasury yield hit its highest level since December 2018, trading as high as 2.95%. Meanwhile, U.S. oil prices declined more than 3%, with Texas Intermediate crude trading below $102 a barrel.

Stock Market Correction

On Friday, the major stock indexes sold off sharply, hitting fresh correction lows. As the market kicks off May, a rebound could launch another new rally attempt. But with all three major indexes setting new correction lows, investors should be on the defensive.

That means take profits and raise cash. Also, keep a watchlist of stocks holding up well in a down market is a good way to prepare for the next stock market uptrend.

Searching for the next uptrend’s leaders while the market is still correcting is a challenge. One helpful method is to use a stock’s relative strength line. The RS line measures a stock’s price performance vs. the S&P 500. If the stock is outperforming the broader market, then the RS line angles upward. If a stock is performing worse than the broad market, then the line will point lower.

Friday’s The Big Picture column commented, “The Nasdaq composite slumped 4.2% and undercut Wednesday’s low, killing its nascent rally attempt. The index suffered its fourth straight weekly decline and slumped 13.2% for the month, the worst monthly decline since October 2008.”

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: American Express

Dow Jones financial stock American Express finished Friday sharply below its 50-day line and about 10% away from a cup with handle’s 194.45 buy point after Friday’s 4% tumble. AXP shares rose 0.2% Monday morning.

Keep an eye on the stock’s relative strength line. Amid its recent rise, the RS line is starting to move closer to its old highs, meaning it is again outperforming the broad market.

Four Top Growth Stocks To Watch In The Current Stock Market Correction

Stocks To Watch: Cheniere, Expedia, WWE

IBD Leaderboard stock Cheniere Energy is one of the top stocks to watch after finding support around its 50-day moving average this week. Shares etching a flat base that shows a 149.52 buy point, according to IBD MarketSmith chart analysis. LNG shares traded slightly lower early Monday.

Expedia continues to build a cup with handle with a 204.08 buy point. Shares are testing their long-term 200-day line after Friday’s 4.7% fall. EXPE stock shows a 92 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. Shares traded up 0.5% Monday morning.

IBD Leaderboard watchlist stock World Wrestling Entertainment gave up it 50-day moving average, falling 3.7% Friday. A decisive retake of the 50-day benchmark would be bullish for the stock’s prospects. Meanwhile, shares are just below a 60.94 buy point in a cup with handle. WWE stock was unchanged Monday morning.

Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live

Tesla Stock

Tesla stock dropped around 2% Monday morning after the stock broke down through its 50- and 200-day moving averages during last week’s 13% dive.

Shares of the EV giant finished Friday about 24% away from a cup-with-handle’s 1,152.97 buy point. The stock traded as high as 1,243.49 on Nov. 4 and is about 30% away from that all-time high.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares tumbled back below their long-term 200-day line, sliding 3.7% Friday. Shares fell 0.7% Monday morning.

Software leader Microsoft skidded 4.2% Friday, snapping a two-day win streak. Shares are sharply below their 50- and 200-day lines. The stock closed more than 20% off its 52-week high. MSFT shares inched lower early Monday.

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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