The Dow Jones Industrial Average dropped Monday, as the major stock indexes continued to fall after last week's heavy losses. Tesla stock bounced Monday but quickly reversed, after Chief Executive Elon Musk's Twitter poll showed that most users wanted him to "step down as head of Twitter."
Earnings reports this week include General Mills, Heico, Micron Technology and Dow Jones stock Nike.
Stock Market Today
Electric-vehicle giant Tesla traded up as much as 4% Monday morning, but reversed to about a 1% loss in late morning trading. Dow Jones tech leaders Apple and Microsoft were lower after today's stock market open.
IBD Leaderboard stock Neurocrine Biosciences, KLA, O'Reilly Automotive and United Rentals — as well as Dow Jones names Caterpillar, Home Depot and UnitedHealth Group — are among the top stocks to consider for investor watchlists.
Neurocrine and United Rentals are IBD Leaderboard stocks. UnitedHealth was featured in last week's Stocks Near A Buy Zone column. Caterpillar and United Rentals were recent IBD Stock Of The Day companies.
Dow Jones Today: Oil Prices, Treasury Yields
After Monday's opening bell, the Dow Jones Industrial Average moved down 0.1%, while the S&P 500 lost 0.4%. The tech-heavy Nasdaq composite fell 0.8% in morning action, with Tesla and Moderna posting the index's top premarket gains. Moderna shares rallied 3% after Jefferies upgraded the stock from hold to buy, citing optimism around the company's personalized cancer vaccine.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust fell 0.8% and the SPDR S&P 500 ETF moved down 0.4% early Monday.
The 10-year U.S. Treasury yield ticked higher to 3.54% Monday morning, still trading near its recent lows following last week's decline.
Meanwhile, U.S. oil prices traded up less than 1% Monday, but still on pace to end a two-day slide that saw West Texas Intermediate futures fall below $74 a barrel. WTI futures traded near $75 in morning trade.
Stock Market Rally Under Pressure
On Friday, the Nasdaq composite ended the day down 1%. The tech-heavy index fared even worse than the S&P 500 as it skidded nearly 3% for the week. After the week's battering it has now lost more than 32% so far in 2022. The Nasdaq ended its past two sessions below the 50-day moving average.
Meanwhile, the Dow Jones Industrial Average lost 0.85% Friday, with a weekly loss of 1.7%.
Friday's The Big Picture column commented, "With overall sentiment worsening amid rising recession fears, stock market bulls will be hoping that a last-minute Christmas rally can help narrow painful losses. But they could be disappointed because there is not much evidence that the market is oversold."
Now is an important time to read IBD's The Big Picture column amid the ongoing stock market volatility.
Five Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks Worth Watching: Caterpillar, Home Depot, UnitedHealth
Dow Jones member Caterpillar continues to trade near a 239.95 buy point in a flat base, according to IBD MarketSmith pattern recognition, in the wake of Friday's 0.9% rally. Shares found support at the stock's 21-day exponential moving average and the stock's relative strength line is edging to new highs. CAT stock was up 1% Monday.
CAT stock shows a strong 97 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup.
Home improvement retailer Home Depot is about 2% below a cup-with-handle base's 329.77 buy point after reversing last week's breakout move. HD stock traded down 1% Monday morning.
Health care giant UnitedHealth is tracing a flat base that features a 558.20 buy point. Shares are about 6% away from the latest entry after giving up support near their 50-day line last week. UNH stock is now trying to stem its recent slide around the 200-day line. Shares inched lower early Monday.
4 Top Growth Stocks To Watch In The Current Stock Market Rally
Top Stocks To Buy And Watch: KLA, Neurocrine, O'Reilly, United Rentals
Chip equipment leader KLA has been mostly holding up amid the market weakness, and is about 2% under a cup-with-handle's 392.60 entry after Friday's 0.2% gain. KLA shares lost 0.5% Monday.
IBD Leaderboard stock Neurocrine is attempting to find support at its 50-day level amid a two-week losing streak. A strong rebound would be bullish for the stock's immediate prospects and would likely lead to the formation of a new base. Meanwhile, a sharp breach could mean the stock needs more time to consolidation. NBIX stock was up 1.1% Monday.
O'Reilly Automotive also pulled back to its 50-day line last week. Shares remain squarely above a 750.98 flat-base entry. A big rebound off the 50-day line could bring a follow-on entry point, but the market uptrend is under pressure right now, which increases the risk of buying stocks. ORLY shares were up 0.1% Monday.
United Rentals is holding just below a 368.04 buy point in a cup-with-handle pattern. Shares are about 5% below the buy point, and further weakness would trigger the 7%-8% loss rule. URI stock was slightly higher Monday.
Stocks To Watch
These are five top stocks to watch in today's stock market, including three Dow Jones leaders.
| Company Name | Symbol | Correct Buy Point | Type Of Base |
|---|---|---|---|
| KLA | 392.60 | Cup with handle | |
| United Rentals | 368.04 | Cup with handle | |
| Caterpillar | 239.95 | Flat base | |
| Home Depot | 329.77 | Cup with handle | |
| UnitedHealth | 558.20 | Flat base |
Source: IBD Data As Of Dec. 16, 2022
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock skidded 4.7% Friday, taking its weekly loss to 16.1%. Shares traded up as much as 4% Monday, but quickly reversed to a near 2% loss near midday. Over the weekend, CEO Elon Musk created a Twitter poll, tweeting "Should I step down as head of Twitter? I will abide by the results of this poll." The poll closed with 57.5% saying he should leave as head of the company.
Meanwhile, Oppenheimer downgraded the stock from outperform to perform.
On Friday, TSLA stock hit its lowest level since November 2020, reaching a new 52-week low price at 150.04. Shares closed about 63% off their 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares sold off 1.5% Friday and 5.4% for the week, falling to its lowest level since June. The stock is around 26% off its 52-week high. Apple stock traded down 0.2% Monday.
Microsoft fell for a second straight day Friday, dropping 1.7%. Bullishly, the stock only fell 0.2% last week, but it did find strong resistance at its long-term, 200-day line. The software giant remains nearly 30% off its 52-week high. Microsoft shares fell 0.2% early Monday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
