The Dow Jones Industrial Average and other major stock indexes tumbled Monday as Wall Street reacted to a trade warning from China. Nvidia and Tesla sold off on the stock market today, while Netflix jumped on strong earnings results.
After the opening bell, the Dow Jones Industrial Average dropped 1.4%, or around 550 points. The S&P 500 moved down 1.5%, while the tech-heavy Nasdaq composite lost 2%.
The 10-year Treasury yield ticked up to 4.41% early Monday. And oil prices dropped, as West Texas Intermediate futures traded near $63.15 per barrel.
Among exchange traded funds, the Invesco QQQ Trust fell 2%, while the SPDR S&P 500 ETF dropped 1.5% after the open.
Tesla stock skidded 6% Monday ahead of the company's earnings, due out late Tuesday. Shares of the Elon Musk-led company slipped slightly on Thursday. They remain more than 50% off their record high of 488.54, reached on Dec. 18.
Nvidia stock sold off 4.2% Monday. Shares of the artificial intelligence giant plunged 8.5% last week, pushing them sharply below their 50-day and 200-day moving averages.
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Stock Market Today: China Warning, Netflix Jumps On Earnings
Overnight, China warned other countries not to strike trade deals with the U.S. at Beijing's expense. The Trump administration has been seeking to isolate China even as it imposes huge duties on goods from other countries.
Meanwhile, Japanese Prime Minister Shigeru Ishiba said his country won't keep making concessions to reach a deal with the U.S., signaling some frustration following a first round of talks last week. A second round is expected to take place before the end of April, with the negotiations closely watched by other countries.
Elsewhere, Netflix stock jumped 2.7% Monday after the streaming giant earned $6.61 a share in the first quarter, up 25% year over year, on sales of $10.54 billion, up 12.5%. Both metrics topped analyst estimates. Shares are breaking out past a double-bottom base's 998.70 buy point.
Later in the week, notable results include those from Alphabet and Tesla, along with Dow Jones names Verizon Communications and Boeing.
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Dow Jones Tumbles
On Thursday, blue chips on the Dow Jones Industrial Average sold off 1.3%, or 527 points. The S&P 500 rose 0.1%, while the Nasdaq composite slipped 0.1%. Also, the small-cap Russell 2000 gained 0.9%. The stock market was closed for the Good Friday holiday.
Due to current market volatility, now is an important time to read IBD's The Big Picture column for how to handle the current market and to track the updated exposure level.
Among the best companies to watch in the current stock market are MercadoLibre, Spotify and TJX.
Along with Apple and Nvidia, Dow Jones components making notable moves this week were Amazon.com, Microsoft and McDonald's.
Check out IBD MarketSurge's "Breaking Out Today" list for top growth stocks that are moving above correct buy points. Check for potential breakouts on the "Near Pivot" list. To find additional stock ideas, check IBD Stock Lists like IBD 50, Big Cap 20 and Stocks Near A Buy Zone.
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Dow Jones Stocks: McDonald's Nears Buy Point
Shares of Dow Jones component McDonald's lost 0.5% Monday. The stock is forming a flat base with a 326.32 buy point, according to MarketSurge chart analysis.
Outside the Dow, e-commerce giant MercadoLibre offers a 2,202 buy point in a double bottom, according to IBD MarketSurge. And shares bullishly regained their 50-day line last week. MercadoLibre stock was down 0.5% Monday.
Music streaming leader Spotify has formed a double-bottom base with a 621.20 buy point. Spotify stock rose 1.1% Monday, as it looks to move above its 50-day line.
Finally, off-price retailer TJX is just above its 127.58 buy point in a double bottom. TJX stock slipped 0.9% in early morning trades.
Keep in mind that now is not a good time to buy stocks amid heavy selling in recent weeks. IBD currently recommends 0% to 20% stock exposure under current conditions.
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Stock Market: Companies To Watch
These are four stocks in or near buy zones in Monday's stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| McDonald's | 326.32 | Flat base | |
| Spotify | 621.20 | Cup with handle | |
| TJX | 127.58 | Double bottom | |
| Netflix | 998.70 | Double bottom |
Source: IBD Data as of April 21
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Dow Jones Leaders: Amazon, Apple, Microsoft
Magnificent Seven stocks are trying to rebound from lows after Trump's 90-day pause on tariffs. But Dow Jones component Amazon dropped 3.2% early Monday, leaving the stock sharply below its 200-day line.
IPhone maker Apple sold off 2.1% Monday morning. Its shares recently spiked at their highest level since April 3, but have eased since then.
Finally, software giant Microsoft declined 1.6% Monday. Shares found resistance at their 50-day line last week amid a four-day losing streak.
Be sure to follow Scott Lehtonen on X at @IBD_SLehtonen for more on growth stocks, the Dow Jones Industrial Average and the stock market today.
