Dow Jones Futures Rally As Inventory Market Promote-Off Worsens; These 5 Tech Giants Tumble

Dow Jones futures, together with S&P 500 futures and Nasdaq 100 futures, had been greater late Monday following the session’s inventory market sell-off. Tech giants Apple, Microsoft, Nvidia, PayPal and Sq. tumbled, whereas Tesla inventory rallied on sturdy deliveries Monday.


On Monday, the Dow Jones Industrial Common slid 0.9%. The S&P 500 tumbled 1.3%, whereas the Nasdaq plunged 2.1% even after paring some losses.

Among the many Dow Jones leaders, Apple (AAPL) slid 2.5%, whereas Microsoft (MSFT) moved down 2.1% in as we speak’s inventory market. American Categorical (AXP) and Merck (MRK) are holding up effectively within the present inventory market correction.

Tesla (TSLA) rallied practically 1% on the again of sturdy deliveries, shifting additional above the inventory’s newest purchase level. Tech giants Nvidia (NVDA), PayPal (PYPL) and Sq. (SQ) all bought off sharply.

Among the many high shares to look at, Netflix (NFLX) and ServiceNow (NOW) had been holding up comparatively effectively throughout Monday’s inventory market weak spot.

Microsoft, ServiceNow and Tesla are IBD Leaderboard shares. American Categorical is an IBD SwingTrader inventory. Netflix featured on this week’s Shares Close to A Purchase Zone column.

Dow Jones Futures Right now

After the inventory market shut Monday, Dow Jones futures rallied lower than 0.1% vs. honest worth, whereas S&P 500 futures gained 0.1%. Nasdaq 100 futures rose 0.15% vs. honest worth. Keep in mind that buying and selling in Dow Jones futures and elsewhere would not essentially translate into precise buying and selling within the subsequent common inventory market session.

U.S. Inventory Market Right now Overview

Index Image Value Acquire/Loss % Change
Dow Jones (0DJIA) 34003.58 -322.88 -0.94
S&P 500 (0S&P5) 4300.48 -56.56 -1.30
Nasdaq (0NDQC ) 14255.49 -311.21 -2.14
Russell 2000 (IWM) 220.27 -2.01 -0.90
IBD 50 (FFTY) 45.85 -1.27 -2.70
Final Replace: 4:34 PM ET 10/4/2021

Amongst alternate traded funds, Innovator IBD 50 (FFTY) dropped 2.8% Monday. Nasdaq 100 tracker Invesco QQQ Belief (QQQ) misplaced 2.1%. And the SPDR S&P 500 ETF (SPY) descended 1.3%.

Inventory Market Correction

The Nasdaq and S&P 500 tumbled to new latest lows Monday, as the present inventory market correction worsened. The Nasdaq closed at its lowest stage since June 22 and could possibly be headed for a take a look at of its long-term 200-day shifting common. In the meantime, the Dow Jones Industrial Common virtually gave again the whole thing of Friday’s 1.4% advance, however held above its latest lows.

Friday’s The Large Image commented, “With the inventory market in a correction, keep away from the temptation of shopping for shares in a down-trending market. There’ll all the time be shares exhibiting energy, however a weak market can finally carry all the things down with it. If market situations proceed to enhance amid renewed indicators of institutional shopping for, new setups ought to emerge. A affirmation of energy might come as early as subsequent week.”

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Dow Jones Shares To Watch: American Categorical, Merck

Dow Jones leaders American Categorical and Merck are blue chip shares to look at in as we speak’s inventory market motion.

IBD SwingTrader inventory American Categorical is approaching a 179.77 purchase level in a cup with deal with, in keeping with IBD MarketSmith chart evaluation. However shares reversed from early positive factors to say no 0.7% Monday, and are about 4% away from the brand new entry.

Merck added to Friday’s surge, rallying 2.1% Monday. On Friday, Merck stated its Covid capsule lowered the danger of hospitalization by half in a final-phase research. Merck inventory broke out previous a 79.33 purchase level in a flat base.

Shares On The Transfer: Nvidia, PayPal, Sq.

Tech giants Nvidia, PayPal and Sq. bought off sharply Monday.

Nvidia inventory dropped 4.85% Monday. On Sept. 20, the inventory triggered the round-trip promote sign from a 207.43 purchase level in a cup with deal with. Buyers ought to promote when a inventory provides up the whole thing of a double-digit achieve to keep away from taking a loss. Now, the inventory is about 5% under the outdated purchase level.

PayPal slid 3.6%, falling additional under its long-term 200-day line. Shares are practically 20% from their 52-week excessive.

Sq. tumbled 5.45%, decisively breaking down under the 200-day shifting common. The highest fee inventory is about 22% under its Aug. 5 all-time excessive.

Shares To Watch: Netflix, ServiceNow

FANG inventory chief Netflix continues to carry inside a brand new purchase zone regardless of Monday’s 1.6% bearish reversal. Shares are within the 5% purchase zone previous a 593.39 entry level in a consolidation amid the latest world success of its collection “Squid Sport.”

Based on IBD Inventory CheckupNFLX inventory reveals a powerful 97 out of an ideal 99 IBD Composite Score. The IBD Composite Score identifies shares with a mix of sturdy basic and technical traits.

IBD Leaderboard inventory ServiceNow is looking for help round its key 50-day shifting common regardless of a weak total market. However shares declined over 2% Monday, closing under that key benchmark.

Bullishly, the inventory’s relative energy line hit a latest excessive in late September, indicating shares are holding up effectively amid the present inventory market volatility. However now the inventory is beneath strain once more. Throughout weak markets, search for shares which might be holding up the most effective. When the market rebounds, these names could be a few of the subsequent high shares to look at.

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Tesla Inventory

Tesla inventory rallied 0.8% Monday after the firm reported report third-quarter deliveries on Saturday. The electrical-vehicle big reported deliveries that totaled 241,300 vehicles for the third quarter, up from 201,250 within the second quarter and 184,800 within the first quarter. FactSet analyst estimates ranged from 218,000 to 246,000, with the consensus at 232,000.

Shares snapped a two-day shedding streak Monday and closed additional above a 764.55 purchase level in a cup with deal with.

TSLA shares closed about 13% away from report highs. On Jan. 25, Tesla inventory hit a report excessive of 900.40, after climbing as a lot as 93% from a 466 purchase level in a cup-with-handle sample.

Dow Jones Leaders: Apple, Microsoft

Among the many high Dow Jones shares, Apple moved down 2.5% Monday, giving again all of Friday’s 0.8% achieve. The inventory continues to be under the 50-day line.

Software program big Microsoft fell 2.1% Monday, because the inventory continues its commerce beneath the 50-day line. A brand new flat base is forming with a 305.94 purchase level.

You should definitely observe Scott Lehtonen on Twitter at @IBD_SLehtonen for extra on progress shares and the Dow Jones Industrial Common.


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