Dow Jones futures lost 125 points early Monday on weak economic growth in China, as Apple stock dropped ahead of its product launch event Monday. Tesla stock looked to extend a five-day win streak, while Advanced Micro Devices, Alphabet, CrowdStrike, Microsoft and Nvidia are stocks to buy and watch.
Among the Dow Jones leaders, Apple (AAPL) dropped 0.4% premarket Monday, while Microsoft (MSFT) moved down 0.5% in today’s stock market. Merck (MRK) and Salesforce.com (CRM) eyed new buy points in the current stock market rally.
Tesla (TSLA) gained 0.4% premarket Monday, on pace to extend a win streak to five sessions.
Advanced Micro Devices, Microsoft and Tesla are IBD Leaderboard stocks. AMD was Wednesday’s IBD Stock Of The Day. CrowdStrike featured in last week’s IPO Leaders column. Nvidia is an IBD SwingTrader stock.
Dow Jones Today: Weak China Data
Ahead of Monday’s stock market open, Dow Jones futures lost 0.4% vs. fair value, while S&P 500 futures moved down 0.4%. Nasdaq 100 futures dropped 0.3% vs. fair value.
Late Sunday, China reported its economy grew 4.9% in the third quarter from a year earlier, much slower than Q2’s 7.9% growth rate. Power shortages and supply-chain issues contributed to the economic slowdown. The Shanghai composite fell 0.1% and the Hong Kong Hang Seng climbed 0.3%. The Tokyo Nikkei fell less than 0.2%.
Stock Market Rally
The stock market rally added to Thursday’s gains with solid action Friday. All three major stock indexes — the Nasdaq, the Dow Jones Industrial Average and S&P 500 — are back above their key 50-day benchmarks.
This is an important time to read The Big Picture.
On Friday, The Big Picture advised, “After Thursday’s follow-through, investors should add stocks in measured steps, at least while the market builds on the initial push. Remember, the growth-heavy Nasdaq 100 is still below the 50-day line. Now the question is, where to start investing? The market leadership has been shifting all year. It currently favors commodities, trucking, energy, financials and a few other sectors.”
Dow Jones Stocks To Buy And Watch: Merck, Salesforce
Merck and Salesforce are top Dow Jones stocks to watch in today’s stock market action.
Merck rallied 0.5% premarket Monday, after closing unchanged Friday. Shares gave up their buy point last week and remain about 1% below a 79.33 buy point in a flat base. Shares surged above the entry on Oct. 1 after the company said its new Covid drug reduced the risk of hospitalization by half in a final-phase study.
Dow Jones software leader Salesforce is out of buy range past a 275.32 buy point in a cup with handle following a Sept. 23 breakout. The 5% buy area goes up to 289.09, so the stock is slightly extended. Shares edged lower premarket.
Stocks To Watch: AMD, Alphabet, CrowdStrike, Nvidia
IBD Leaderboard stock Advanced Micro Devices is rapidly approaching a double bottom’s 114.59 buy point after decisively regaining its 50-day line last week. AMD stock fell 0.4% premarket Monday morning.
FANG stock leader Alphabet looked to extend a win streak to four sessions Monday, but fell 0.2% premarket. The stock is back above its 50-day line and above a short trend line. Meanwhile, shares are approaching a 2,925.17 buy point in a flat base, according to IBD MarketSmith chart analysis.
Cybersecurity leader CrowdStrike is nearing a 289.34 buy point in a cup base after last week’s bullish retake of the 50-day line. Shares were essentially unchanged premarket Monday. The stock is an IPO Leader.
IBD SwingTrader stock Nvidia handily reclaimed its 50-day line during Thursday’s nearly 4% advance, placing the chip giant in a new buy area. NVDA stock is tracing a consolidation with an official buy point at 230.53. The stock dropped 0.4% premarket. Bullishly, the stock’s relative strength line is nearing a new high, reaffirming the stock’s leadership status.
Tesla stock rose 0.4% premarket Monday, looking to extend a five-day win streak. TSLA shares are now comfortably above a 764.55 buy point in a cup with handle, as well as earlier entries at 700.10 and 730.
The stock closed Friday about 6% below 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 lost 0.4% premarket Monday ahead of the company’s “Unleashed” product launch. The event starts at 1 p.m. ET and is available on YouTube and Apple’s website. The company is expected to unveil a new line of Macs, including a redesigned MacBook Pro.
Apple shares closed Friday below their 50-day line, about 8% off their 52-week high. A new flat base is forming that has a 157.36 buy point, according to IBD MarketSmith chart analysis.
Software giant Microsoft lost 0.5% premarket Monday, as the stock moves closer to its new buy point. A new flat base shows 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.
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