Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, were slightly lower ahead of Tuesday's stock market open.
Nvidia sold off 1.7%, hitting its lowest level since Oct. 15 and triggering the 7% loss rule below a 140.76 buy point. That's a sell signal and a warning that the stock isn't acting right following a mid-October breakout move. Shares also closed further below their 50-day line, a key level to watch. Nvidia stock moved 0.6% lower in extended trading Monday.
Meanwhile, Nvidia chipmaker Taiwan Semiconductor Manufacturing closed within striking distance of a 205.63 cup-with-handle buy point. Shares inched higher late Monday.
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Stock Market Today: Dow Jones Extends Losing Streak
On Monday, the Dow Jones Industrial Average declined 0.3%, while the S&P 500 climbed 0.4% and the Nasdaq advanced 1.2% to hit another record high.
Any suspense over whether the Fed would cut its key interest rate went by the wayside with last week's consumer price index and producer price index reports for November. A quarter-point rate cut is virtually certain. But suspense remains over what the Fed might signal for 2025. The Fed's new set of quarterly projections, to be released with the policy statement on Wednesday, might only signal a half-point in cuts, to a range of 3.75% to 4%.
Ahead of that meeting, November's retail sales are expected out Tuesday, with an estimated rise of a solid 0.4% overall, and 0.5% excluding autos, FactSet says. Personal income and outlays, out Friday, will include November's update of the core personal consumption expenditures price index, the Fed's key inflation rate.
Elsewhere, notable earnings reports this week include Darden Restaurants, Nike, FedEx, Micron Technology and Carnival.
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Dow Jones Futures Today: Oil Prices, Treasury Yields
Ahead of Tuesday's opening bell, Dow Jones futures fell 0.1% vs. fair value, while S&P 500 futures inched lower. Tech-heavy Nasdaq 100 futures were up a fraction vs. fair value. Remember that overnight action in Dow Jones futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
On Monday, the 10-year U.S. Treasury yield ticked lower to 4.39%. And oil prices dropped, as West Texas Intermediate futures settled around $70.60 a barrel.
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Alphabet, Amazon, Apple, Tesla Rally To New Highs
The Magnificent Seven stocks, except for Nvidia, all ended squarely higher Monday. The Roundhill Magnificent Seven ETF advanced 2.4%.
Alphabet jumped 3.6%, hitting new highs and moving out of buy range beyond a 182.49 buy point in a cup with handle.
Amazon.com shares rallied 2.4%, setting an all-time high. They are nearing the 20%-25% profit zone from a 195.37 cup-with-handle entry.
Dow Jones tech titan Apple extended a win streak to three sessions Monday, moving up 1.2% and hitting a new high. The stock is now extended past a 237.49 flat-base entry.
Tesla raced more than 6% higher Monday. The Elon Musk-led company topped out at 463.19, about 75% above a 264.86 buy point in a cup with handle. The EV giant tacked on 2.4% in extended trading.
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What To Do Now
Now is an important time to read IBD's The Big Picture column amid the ongoing stock market action. Following Monday's session, be sure to check out today's The Big Picture and today's updated exposure level.
On Monday's "IBD Live" show, the team discussed the current trading conditions of the stock market rally.
With the Nasdaq setting another record high Monday, and the S&P 500 holding just off its own highs, IBD maintains its recommended exposure level at 80%-100%.
Still, investors should be utilizing diligent risk management, one of the four pillars of The IBD Methodology. It's important to monitor positions that are acting out of character and sell any stocks that trigger sell rules.
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 buy points. Meanwhile, the MarketSurge "Near Pivot" list shows more stocks nearing buy points in bases.
To find more stock ideas, check IBD Stock Lists like IBD 50, Big Cap 20 and Stocks Near A Buy Zone. These features identify bullish patterns and buy points and are available to check every day.
Be sure to follow Scott Lehtonen on X/Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
