Dow Jones futures were lower ahead of Tuesday’s open, along with S&P 500 futures and Nasdaq 100 futures, in overnight trade. The 10-year Treasury yield surged to new highs Monday, while Bitcoin, Nvidia (NVDA) and Tesla stock were in focus after big moves.
Friday’s September jobs report is the highlight of this week’s economic reports. Wall Street expects moderate strength, with 150,000 new jobs. The jobless rate is expected to tick down to 3.7% from 3.8%. Average hourly wages are seen growing 0.3%.
Stock Market Today: Dow Jones Falls
On Monday, the Dow Jones Industrial Average dropped 0.2%, while the S&P 500 inched higher. The tech-heavy Nasdaq composite gained 0.7%.
The price of bitcoin jumped nearly 4% Monday, trading above $28,000. Bitcoin closed at its highest level in more than a month.
Electric-vehicle giant Tesla (TSLA) traded up 0.55% Monday, while Nvidia jumped 2.95%. NVDA stock is making a move to recapture its 50-day line, which could lead to an early buy trigger.
Dow Jones tech icons Apple (AAPL) and Microsoft (MSFT) ended higher in today’s stock market, with AAPL stock up 1.5% and Microsoft up 1.9%.
IBD Leaderboard stock Arista Networks (ANET), Duolingo (DUOL), DraftKings (DKNG), and IBD SwingTrader stock Zscaler (ZS) — as well as Dow Jones stocks Caterpillar (CAT) and Chevron (CVX) — are among the stocks to watch in the ongoing stock market correction.
Arista is an IBD Leaderboard stock, and featured in this Stocks Near A Buy Zone column. Cybersecurity leader Zscaler is an IBD SwingTrader stock.
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Dow Jones Today: Oil Prices, Treasury Yields
Ahead of Tuesday’s opening bell, Dow Jones futures dropped 0.3% vs. fair value, while S&P 500 futures lost 0.4%. Nasdaq 100 futures declined 0.5% vs. fair value. Remember that overnight action in Dow Jones futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
On Monday, the 10-year U.S. Treasury yield hit new highs, trading as high as 4.7% before closing at 4.68%. West Texas intermediate futures declined more than 2%, below $89 a barrel.
Stock Market Correction: What To Do Now
Now is an important time to read IBD’s The Big Picture column, with the major stock indexes continuing their rally attempt.
Investors need to build a robust watchlist of strong stocks that could emerge as leaders when the next uptrend kicks off. Monday was Day 4 of the rally attempt, so a follow-through day is possible anytime.
One way to do this is by using the relative strength line. The RS line measures a stock’s price performance vs. the S&P 500. Keep an eye on stock charts in which the line is trending upward, which means the stock is outperforming the S&P.
The RS line is in all IBD charts and IBD MarketSmith. In addition, the IBD Stock Screener includes a list of top-rated stocks with lines at new highs. MarketSmith also has the “RS Blue Line Dot” list, which screens for RS lines at new highs.
Two useful MarketSmith lists to check right now are “Breaking Out Today” and “Near Pivot.” The latter shows stocks nearing buy points in bases, and the other flags stocks rising past buy points during the session.
Dow Jones Stocks: Caterpillar, Chevron
Dow Jones leader Caterpillar continues to form a flat base with a 293.88 buy point after strong gains since early June. CAT stock dropped 0.5% Monday, closing further below the 50-day line.
Dow Jones oil and gas giant Chevron dropped 1.2% Monday, extending a losing streak to three sessions. Last week, CVX stock broke out past a short handle-entry at 168.96. Meanwhile, a cup base within a larger consolidation continues to show a 172.88 buy point, according to IBD MarketSmith chart analysis.
4 Top Growth Stocks To Watch In The Stock Market Correction
Stocks To Watch: Arista, DraftKings, Duolingo, Zscaler
IBD Leaderboard stock Arista rallied 2.1% Monday, continuing to rebound from the key 50-day line. A bullish rebound from that level places the stock in a new buy area, but the market outlook still shows a correction. So, investors should stay in cash.
DraftKings is building a cup with handle that has a 32.65 buy point, per IBD MarketSmith pattern recognition. Shares are consolidating below their 50-day moving average, a key level to watch.
IPO Leader Duolingo is trying to break out past its latest buy point, an entry at 167.35, with strong recent gains. The new entry is the result of a handle on a double bottom base.
Recent IBD Stock Of The Day Zscaler continues to rebound from its key 50-day line, as shares added 3.4% Monday.
Learn How To Time The Market With IBD’s ETF Market Strategy
Best Stocks In Today’s Stock Market Action
These are four best stocks to watch in today’s stock market, including a Dow Jones leader.
|Correct Buy Point
|Type Of Buy Point
|Double bottom with handle
|Cup with handle
Source: IBD Data As Of Oct. 2, 2023
Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live
Tesla stock rebounded another 0.55% Monday, extending a win streak to three sessions. Shares closed right at their 50-day line. TSLA stock has an official cup-with-handle base with a buy point at 278.98, but shares are about 10% away from that entry.
Early Monday, Tesla deliveries fell to 435,059 in Q3, declining from Q2’s record 466,140 and missing the analyst consensus around 455,000. Model 3 and Y deliveries slowed to 419,074, with most of that the higher-priced Model Y. Model S and X deliveries dropped to 15,985.
Production tumbled to 430,4888 in Q3 from Q2’s 479,700, amid factory upgrades and an effort to slash inventory.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple moved up for a third straight session, rising 1.5% Monday, moving off its recent lows. Shares are sharply below their 50-day line after sharp losses in September. If AAPL stock can rebound, it would likely have a double-bottom base with a 189.98 buy point.
Microsoft shares rebounded another 1.9% Monday, up for a fourth consecutive session after hitting a recent low during Thursday’s session.
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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