After a strong rally from June's lows ending last Tuesday, the Dow Jones Industrial Average is trading 1.6% lower Monday afternoon, adding to a 9% loss for the year.
Major indexes opened more than 1% lower and are trading near the morning's lows. The Nasdaq slid 2%. The S&P 500 and Russell 2000 are both down 1.7%.
The yield on the benchmark 10-year Treasury rose to 3.02%. U.S. crude oil reclaimed the $90 level but reversed lower 1% to $89.75 a barrel.
The IBD Innovator 50 ETF is lower fractionally, outperforming the broad market.
Volume on the Nasdaq was down 13% compared with the same time on Friday. NYSE also saw 6% lower volume.
All eyes are set on Friday's event at Jackson Hole, Wyo., and Fed Chairman Jerome Powell's speech at 10 a.m. ET. Investors are looking for indications whether the next rate hike will be 75 basis points or an easier 50 basis points.
Also, key numbers that will likely move markets this week are the closely watched personal expenditure PCE numbers due Friday at 8:30 a.m. ET, and revised second-quarter GDP on Thursday. Durable goods and home sales data Wednesday are also on watch.
Signify Health gapped up more than 30% in strong volume after news that Amazon.com is entering a bidding war to acquire the company. If the deal goes through, the health care data and analytics firm will be the latest purchase by the e-commerce giant since telemedicine became valuable during the pandemic.
Other contestants for the deal are Dow Jones stock UnitedHealth and CVS Health. UnitedHealth fell 0.7%, CVS was off 1.7%, and Amazon shed 3.2%. All bidders will expand their portfolio to at-home health evaluations that is Signify Health's forte.
Outside Dow Jones, Select Energy Stocks Continue In Bases
Some energy stocks continue to be growth spots as volatility returns. These stocks are trading above their 50- and 200-day moving averages, and some are near buy points.
Watch for a handle to form in Golar LNG as the stock continues slightly lower today but remains in a buy zone above a cup base with a buy point of 27.62. GLNG has a strong Composite Rating of 96 and a perfect Relative Strength Rating of 99, according to the proprietary IBD Stock Checkup.
Matador Resources has a perfect Composite and EPS Rating of 99 and a near-perfect RS rating of 98. The stock is near a 58.68 buy point.
Other energy stocks are adding to this promising story today. Equinor,ticker symb=EQNR], New Fortress Energy and Cheniere Energy are rising as Europe's oil woes continue. New Fortress is extended above a cup base with a buy point of 52.47. Cheniere is also extended after a breakout past a 150.10 buy point. The stock broke out in July and has trended higher.
Equinor broke out past a buy point of 39.25. LNG, EQNR and NFE are IBD Leaderboard stocks. MTDR and NFE are in the elite IBD 50. Also on the list is Devon Energy, whose shares have been building the right side of a base with a buy point of 79.50.
The SPDR Oil and Gas ETF pared earlier losses and is in a cup base with a buy point of 170.72.
3 IBD 50 Stocks Lead S&P 500 In Grim Market Day
Earnings On Deck Today
Enterprise software maker and Ark Innovation ETF component Zoom Video is on deck with earnings today after the market closes. The company is expected to have a loss for the quarter.
EV startup Nio also announces today. Competitor and EV giant Tesla is trading lower ahead of its stock split this week and after CEO Elon Musk's tweet that the price of its full self-driving software (FSD) will soon be $15,000, a whopping 25% increase. Increasing FSD pricing has been one of the reasons fewer buyers opt for it in lower-end Tesla models. Tesla shares are headed for a fifth straight loss, their longest losing streak since March 2021.
Dow Jones stock and enterprise software giant Salesforce and chipmaker Nvidia are on tap Wednesday.
Nvidia will likely reveal a 51% loss in earnings while Salesforce will likely show a 30% loss.
Discount retailer Dollar Tree on Thursday is expected to show a 29% quarterly earnings increase. The stock is in a buy zone from a buy point of 166.45, with a support along its 50-day moving average.
