Dow Jones futures dropped 100 points early Monday, as oil prices spiked above $82. Apple stock and Tesla traded lower in premarket trade.
Tesla (TSLA) inched lower premarket Monday, but is still holding above the stock’s latest buy point.
Dow Jones Futures Today: Oil Prices Spike
Ahead of the stock market open Monday, Dow Jones futures lost 0.2% vs. fair value, while S&P 500 futures moved down 0.4%. Nasdaq 100 futures declined 0.7% vs. fair value. Remember that trading in Dow Jones futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
U.S. crude jumped over 3% Monday morning, hitting a seven-year high before paring some gains. The price of oil traded as high as $82.18 a barrel, fueled by expectations of continued weak supply. Dow Jones energy giants Chevron (CVX) and ExxonMobil (XOM) rallied 1.6% and 1.5%, respectively, in premarket trade.
Chevron is approaching a 113.21 buy point, while Exxon stock is rapidly nearing a 65.03 buy point in a cup base, according to IBD MarketSmith chart analysis.
Stock Market Rally Attempt
The Nasdaq and S&P 500 continue to hold above last week’s correction lows, but both threatened to add to Friday’s weakness. Meanwhile, the Dow Jones Industrial Average remains just below its 50-day moving average after hitting resistance there on Thursday.
On Friday, The Big Picture commented, “With major stock indexes still below their 50-day lines, the stock market is still vulnerable to more downside, but a follow-through day could happen at any time. And stock market bulls are encouraged by the number of growth stocks that continue to show strength and support after earlier breakouts.”
Dow Jones Stocks To Watch: American Express, Merck
Dow Jones leaders American Express and Merck are blue chip stocks to watch in today’s stock market action.
IBD SwingTrader stock American Express is approaching a 179.77 buy point in a cup with handle, according to IBD MarketSmith chart analysis. Shares were flat premarket Monday and are about 2% away from the new buy point.
Merck dropped 0.4% premarket Monday, on pace to add to Friday’s 1.6% drop. to Friday’s surge, rallying 2.1% Monday. Today, the company and partner Ridgeback Biotherapeutics asked the FDA to approve their experimental Covid pill. On Oct. 1, Merck stock broke out past a 79.33 buy point in a flat base after the company said the drug reduced the risk of hospitalization by half in a final-phase study. Shares remain in buy range.
Stocks To Watch: AMD, Netflix, Palo Alto
IBD Leaderboard stock Advanced Micro Devices threatened to fall further below its 50-day line, dropping about 1% premarket Monday. Shares are trying to regain that key benchmark, but are finding resistance. On Leaderboard, AMD exposure was raised after the stock moved above a trend line entry. AMD is also forming a cup-type base.
FANG stock leader Netflix traded just off new highs premarket Monday in the wake of Friday’s slight gain. NFLX stock is outside the 5% buy zone past a 593.39 entry point in a consolidation amid the recent global success of its series “Squid Game.”
IBD SwingTrader stock Palo Alto Networks is trying to clear a 496.02 entry in a short consolidation. Shares lost 0.3% premarket Monday, and are just below the new buy trigger. Bullishly, the stock’s relative strength line hit a new high last week, reaffirming the stock’s leadership status.
Tesla stock edged lower premarket Monday, threatening to add to Friday’s 1% decline. TSLA shares are still above a 764.55 buy point in a cup with handle.
TSLA shares closed Friday about 13% away from record highs. On Jan. 25, Tesla stock hit a record high of 900.40, after climbing as much as 93% from a 466 buy point in a cup-with-handle pattern.
Dow Jones Leaders: Apple, Microsoft
Among the top Dow Jones stocks, Apple moved down 0.7% premarket Monday, set to add to Friday’s 0.3% loss. The stock is still below the 50-day line, but above its recent lows.
Software giant Microsoft fell 0.8% in premarket trade, as the stock battles to retake the 50-day line. A new flat base is forming with a 305.94 buy point.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
YOU MAY ALSO LIKE: