Dow Jones Futures Drops as Bitcoin Plunges; Tesla Stock Skates

[ad_1]

Dow Jones futures drove Nasdaq futures out Monday morning as the price of Bitcoin plunged over the weekend. Tesla stock slipped more than 3% in morning trading. And a busy week of earnings news begins, with IBM due to report after the close.

X

Among the Dow Jones leaders, Apple (AAPL) was down 0.5% premarket on Monday, while Microsoft (MSFT) was down 0.6% in today’s stock market. Also among the Dow 30, Cisco Systems (CSCO) is battling for support on the 50-day line.

Electric vehicle leader Tesla (TSLA) fell more than 3% ahead of market on Monday. Lucid Group (LCID) fell about 4%. And Chinese electric vehicle leaders Li Auto (LI) and Xpeng Motors (XPEV) were downright lower.

Among the top stocks to watch on Monday, American International Group (AIG), Baker Hughes (BKR) and Global Ship Lease (GSL) are close to new buy zones. Keep in mind that the current stock market situation is keeping investors on the sidelines.

Microsoft and Tesla are IBD stocks.

Dow Jones Today: Treasury Yields

Before the opening of trading on Monday, Dow Jones futures were down 0.6% from fair value. S&P 500 futures fell 1%. Meanwhile, Nasdaq 100 futures lost 1.4%. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) sold 1% in premarket trading, and the SPDR S&P 500 ETF (SPY) fell 0.6%.

The 10-year Treasury yield fell to 1.74% on Monday morning. On Friday, the 10-year Treasury yield slipped below 1.75%.

Bitcoin

Bitcoin price plunged around 12% over the weekend, trading as low as $33,046 on Monday morning before paring some losses, according to CoinDesk. The cryptocurrency hit an all-time high on November 10 at $68,990.

The ProShares Bitcoin Strategy ETF (BITO) plunged 12% in premarket trading on Monday. And cryptocurrency exchange Coindesk (COIN) has fallen more than 9% in premarket trading and is expected to hit all-time lows.

The stock market sell-off worsens

The stock market posted another disappointing performance on Friday, as the Nasdaq fell 7.5% last week, its worst weekly decline since the coronavirus pandemic began in March 2020. The Dow Jones Industrial Average lost 1 .3%, falling further below its 200-day moving average. And the S&P 500 fell 1.9%, closing below its 200-day line for the first time since June 2020.

Friday’s The Big Picture commented: “Several indicators point to an oversold market, but that doesn’t mean a bottom is near. Further signs of accumulation would certainly help the indices cause, but there are no signs yet. a sign of this as institutional investors continue to unwind positions in growth stocks.”

Amid this recent weakness, it’s now important to check out IBD’s The Big Picture. Instead of buying stocks, investors should build watchlists with top stocks showing clear relative strength. These could potentially become market leaders in the next decisive uptrend.

Five best Dow Jones stocks to watch now

Dow Jones Earnings: IBM

Dow Jones IBM (IBM) stock is expected to report after the market closes on Monday. Analysts expect the company to earn $3.30 per share on sales of $16 billion. IBM shares are building a double bottom basis with a buy point of 146.10.

Dow Jones Stocks to Watch: Cisco Systems

Cisco Systems, a Dow Jones stock, fell even lower than its entry at 58.73 double bottom, according to IBD MarketSmith’s chart analysis, during Friday’s 2.4% drop. Stocks are now below their 50-day line. Shares were flat heading into Monday’s market.

Positively, the stock’s relative strength line has hit a new high in recent weeks, confirming Dow Jones stock as the market leader, but continued stock market weakness is dragging the stock lower.

Three Growth Stocks to Watch in Current Stock Market Weakness

Stocks to watch: AIG, Baker, Global Ship Lease

AIG fell 2.6% on Friday, closing just at the 50-day moving average, with the stock forming a cup-with-handle base with a buy point of 62.35, according to IBD MarketSmith’s chart analysis. AIG shares were flat heading into Monday’s market.

Energy leader Baker Hughes continues to trade just below a buy point of 27.76 cups after Friday’s 1.95% advance. BKR shares were flat heading into Monday’s trade.

Global Ship Lease, Thursday’s IBD 50 Stocks To Watch pick, added a handful to its base cup, lowering the buy point from 26.61 to 25.59. The stock boasts a perfect IBD composite rating of 99, according to the IBD Stocks Review. GSL shares were slightly higher in morning trading on Monday.

Join IBD experts as they analyze the top stocks of the current market correction on IBD Live

Electric vehicle stocks: Li Auto, Xpeng, Lucid Motors

Li Auto stock extended its losing streak to four sessions on Friday, falling 4.35%. Shares closed below their long-term 200-day line. The stock continues to build the right side of a consolidation with an entry at 37.55 while an early entry at 33.86 is also in play. Shares fell 1.5% before trade on Monday.

Xpeng Motors, Tuesday’s IBD 50 Stocks To Watch pick, slid 6.3% on Friday, falling further below its 50-day line. The stock continues to build a consolidation with an entry at 56.55. Aggressive investors could use 51.60 as a prior entry. Shares were down 2% pre-market on Monday.

Among U.S.-based electric vehicle stocks, shares of Lucid Motors slipped about 4% ahead of trade on Monday. LCID stock remains extended beyond a buy point of 28.49 in a cup base with handle. Meanwhile, the title’s core process ran into more trouble during last week’s losses and the title is back below the key 50-day line.

Tesla Stock

Tesla stock traded down 3% pre-market on Monday, nearing its lowest level since Dec. 21. The shares are now significantly below their 50-day line.

The stock traded as high as 1,243.49 on November 4, but ended Thursday about 20% off that 52-week high.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple stock fell another 1.3% on Friday, again falling below the key 50-day line. Shares remain around 6% lower after a buy point of 153.27 on a cup-with-handle basis, according to chart analysis from IBD MarketSmith. Shares fell 0.5% before trade on Monday.

Software leader Microsoft fell 1.85% on Friday as the Dow Jones’ most important stock nears its 200-day long-term moving average. Shares rose 0.2% pre-market on Monday.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.

YOU MIGHT ALSO LIKE:

Top growth stocks to buy and watch

Learn to Time the Market with IBD’s ETF Market Strategy

Find the best long-term investments with IBD’s long-term leaders

MarketSmith: research, charts, data and coaching in one place

How to Research Growth Stocks: Why This IBD Tool Simplifies Finding the Best Stocks

[ad_2]