The Dow Jones Industrial Average and other major indexes dropped Monday, as Intel and Advanced Micro Devices sold off after China blocked the use of their chips in the government's personal computers and servers. And Tesla stock reversed from early losses after an analyst downgrade on the stock market today.
The Dow Jones Industrial Average moved down 0.3% in morning action, while the S&P 500 lost 0.2%. The tech-heavy Nasdaq composite fell 0.4% after the opening bell.
Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust ETF was down 0.6%, while the SPDR S&P 500 ETF fell 0.2%.
The 10-year Treasury yield ticked higher 4.24%. Further, oil prices rallied, as West Texas Intermediate futures added 1.3% to trade near $81.70 a barrel.
Over the weekend, the Financial Times reported that China has begun implementing guidelines that will keep Intel and AMD chips out of government PCs and servers, part of a growing technological decoupling from the U.S.
Intel shares tumbled more than 3%, while AMD stock sold off 1% in morning trading.
Elsewhere, Tesla shares reversed from an early drop to rise 0.5% after Mizuho Securities downgraded the stock from buy to neutral. Mizuho also lowered its price target on Tesla stock to 195 from 310.
Be sure to read how to adjust to changing market conditions, with IBD's new exposure levels.
Stock Market Today
The coming week will be a light one for economic data, with the spotlighted release — the Labor Department's Personal Consumption Expenditures price index — expected out on Friday before the market opens. Federal Reserve Chairman Jerome Powell said the core PCE price index likely rose "well below 30 basis points" during February, putting the 12-month increase at 2.8%. Markets, once they're open, would likely react if the outcome is different.
The Commerce Department's February new home sales edged higher to 662,000 vs. 661,000 in January, per Econoday estimates. They were expected to rise to 675,000.
Earnings results slow down this week. But key earnings reports are expected from Jefferies Financial, Paychex, Carnival and RH.
Meanwhile, the stock market will be closed for Good Friday.
Dow Jones Falls
On Friday, the Dow Jones Industrial Average lost 0.8%, while the S&P 500 dipped 0.1%.
Friday's Big Picture column commented, "Of the major indexes, the Nasdaq composite fared best Friday as it managed to squeeze out a nominal gain of 0.2%, notching a record close in the process. It booked a weekly gain of 2.9%, which allowed it to spring away from its 10-week moving average."
Now is an important time to read IBD's The Big Picture column amid the continuing stock market rally. Be sure to read how to adjust to changing market conditions, with IBD's new exposure levels.
Learn How To Time The Stock Market With IBD's ETF Market Strategy
Best Stocks To Watch On Stock Market Today
Arista Networks, Duolingo, Dexcom and DraftKings — plus Dow Jones components Disney, IBM and Procter & Gamble — are among the best stocks to buy and watch on the stock market today.
Arista and Disney were featured in this Stocks Near A Buy Zone column.
An essential resource for daily breakouts is IBD MarketSurge's "Breaking Out Today" list. It shows MarketSurge Growth 250 stocks that are breaking out past new buy points. There were no new breakouts Friday.
Meanwhile, the MarketSurge "Near Pivot" list shows stocks nearing buy points in bases, like Alphabet that is approaching a 153.78 buy point. Shares dipped 1.4% Monday morning.
Get Real-Time Buy And Sell Alerts On Stock Market Leaders With IBD Leaderboard
Dow Jones Stocks: Disney in Buy Range
Disney remains buy range past a big cup-with-handle base's 112.92 buy point, according to IBD MarketSurge chart analysis. Disney stock moved up 1.5% Monday morning.
IBM stock continues to hold below a flat base's 196.90 buy point. Shares edged lower Monday.
Consumer products giant Procter & Gamble inched lower Friday, still above a 158.38 buy point in a cup base. P&G stock was mostly flat Monday.
4 Top Growth Stocks To Watch In The Stock Market Rally
Stock Market Today: DraftKings Breaks Out
Arista shares added 0.6% Friday, further above a 292.66 flat-base buy point, according to MarketSurge charts. And on Monday morning, Arista shares fell 1.2%.
IPO Leader Duolingo is trying to break out past a cup-with-handle's 241.86 entry, but is about 4% below the buy trigger after Friday's 1.5% drop. Duolingo shares were down 1% Monday.
Dexcom shares eased lower Friday, still above a 132.03 entry in a flat base. Dexcom shares gained 0.5% early Monday.
Finally, DraftKings moved back into buy range past a 46.52 buy point in a short consolidation, with a 1.6% drop Friday. Shares lost 0.8% Monday morning.
Stocks To Watch
These are four stocks in or near buy zones in today's stock market.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Disney | 112.92 | Cup with handle | |
| Arista Networks | 292.66 | Flat base | |
| DraftKings | 45.62 | Consolidation | |
| Duolingo | 241.86 | Cup with handle |
Source: IBD Data As Of March 25, 2024
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Magnificent Seven Stocks: Nvidia
Magnificent Seven stock Nvidia rose 1.5% in Monday's early action.
Nvidia shares rallied 3.1% Friday, extending a win streak to five sessions and ending just shy of a new high. Nvidia is an IBD Leaderboard stock.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks in the Magnificent Seven, Apple and Microsoft traded lower after Monday's stock market open.
Apple stock rebounded 0.5% Friday, bouncing back from Thursday's dive. Shares remain near their recent lows and sharply below their long-term 200-day line. Apple fell 1.4% Monday.
Microsoft shares found support at the 50-day line in recent weeks, hitting a new high Thursday. Microsoft shares lost 1.4% on the stock market today.
Be sure to follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on growth stocks, the Dow Jones Industrial Average and the stock market today.
