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Dow Jones futures, as well as S&P 500 and Nasdaq 100 futures, did not change much on Monday night after today’s market close. Shares of tech giants Advanced Micro Devices, Apple, Nvidia and Tesla fell on Monday, as fears of property failure in China spread.
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On Monday, the Dow Jones Industrial Average plunged 1.8%. The S&P 500 fell 1.7%, while the Nasdaq plunged 2.2% even after cutting a few losses. The high-tech Nasdaq composite collapsed to its key 50-day support level.
Among the leaders of the Dow Jones, Apple (AAPL) slipped 2.1%, while Microsoft (MSFT) was down 1.9% in today’s stock market. Nike (NKE) offers a new point of purchase, but still fell below a key technical level. Nike’s results are due Thursday evening.
You’re here (TSLA) slipped nearly 4%, closing just at the stock’s last buy point. Flea Giants Advanced micro-systems (AMD) and Nvidia (NVDA) fell by 2.2% and 3.6% respectively.
Among the best stocks to buy and watch, Mexican Grill Chipotle (CMG) and Outdoor Deckers (DECK) held up relatively well during Monday’s stock market weakness.
Deckers, Microsoft and Tesla are stocks in the IBD rankings. Chipotle was featured in this week’s Stocks Near A Buy Zone column.
Dow Jones Futures Today: Fears of Property Default in China
After the market closed on Monday, the Dow Jones, S&P 500 and Nasdaq 100 futures contracts were little changed from fair value. Keep in mind that trading futures contracts on Dow Jones and elsewhere does not necessarily translate into actual trading in the next regular trading session.
Snapshot of the US Stock Market Today |
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|---|---|---|---|---|
| Index | symbol | Price | Loss of profit | % Switch |
| Dow jones | (0DJIA) | 33970.80 | -614.08 | -1.78 |
| S&P 500 | (0S & P5) | 4357.64 | -75.35 | -1.70 |
| Nasdaq | (0NDQC) | 14713.90 | -330.07 | -2.19 |
| Russel 2000 | (IWM) | 217.24 | -5.13 | -2.31 |
| MICI 50 | (FFTY) | 49.22 | -1.36 | -2.69 |
Last updated: 4:28 PM ET 9/20/2021 |
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Monday’s stock market weakness came amid fears over real estate developer China Evergrande Group. Investors increasingly believe Beijing will let Evergrande fail and inflict losses on its shareholders and bondholders, according to the Wall Street Journal.
Among exchange-traded funds, Innovator IBD 50 (FFTY) fell 2.6% on Monday. The Nasdaq 100 tracker Invesco QQQ Trust (QQQ) lost 2.2%. And the SPDR S&P 500 ETF (SPY) fell 1.7%.
Stock market breaks key support
The Nasdaq fell sharply below its 50-day line on Monday, adding further selling pressure to major stock indexes. The S&P 500 broke support at that level on Friday, while the Dow Jones Industrial Average hit its lowest level since June 21. After Monday’s weakness, now would be a good time to read Monday’s The Big Picture.
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Dow Jones Stocks to Buy and Watch: Nike
Dow Jones leader Nike is charting a flat base with a buy point of 174.48, according to IBD MarketSmith’s chart analysis. But stocks are below their 50-day moving average line. Resuming support at this critical level would be bullish for the stock’s immediate outlook. Shares were down 1.4% on Monday.
Nike’s results are due on Thursday.
Until September 10, Nike was number 8 on the Dow Jones Industrial Average, rising more than 15%. Goldman Sachs (GS) was the first stock in the Dow Jones, gaining 52% since the start of the year through September 15.
Stocks in motion: AMD, Nvidia
Chip giants Advanced Micro Devices and Nvidia sold heavily on Monday.
AMD stock fell 2.2% on Monday. The stocks are forming a consolidation with a buy point of 122.59, according to IBD MarketSmith chart analysis. AMD stock is now below its 50 day line, a sign of weakness in the stock base building process.
Nvidia slipped 3.6% on Monday. The action triggered the round trip sell signal from a buy point of 207.43 in a handle cup. Investors should sell when a stock gives up all of a double-digit gain to avoid incurring a loss.
Stocks to buy and watch: Chipotle, Deckers
Friday’s IBD stock Chipotle Mexican Grill rebounded from its key 50-day moving average, although it fell 1.3% on Monday. The burrito chain traded closely after surging after profits. Look for continued support around its 10 week line which would be bullish for the stock’s outlook during the current market weakness. Positively, the RS line of action is reaching new heights.
According to IBD Stock Checkup, CMG stock enjoys a Perfect IBD Composite Rating of 99. The IBD Composite Rating identifies stocks with a mix of strong fundamental and technical characteristics.
IBD Leaderboard stock Deckers Outdoor is trying to break above an entry of 444.58 on a flat basis, according to IBD MarketSmith, but fell even further below the buy point amid the 2.1% loss of Monday. According to the rankings commentary, the major retail stock broke through a mini-trendline entry near 433, offering an early buy point. Its relative strength line is also near new highs.
IBD Live: a new tool for daily stock market analysis
Tesla shares
Tesla stock sold 3.9% on Monday, ending a five-day winning streak and closing just above the stock’s last buy point at 730. Shares also remain low. Above their aggressive buy point of 700.10 deep within a correction. Meanwhile, a wide and deep base continues to take shape.
On January 25, Tesla stock hit a record 900.40, after climbing 93% from a buy point of 466 in a handle mug.
Dow Jones Executives: Apple, Microsoft
Among the major stocks in the Dow Jones, Apple fell 2.1% on Monday, falling again below key support at the 50-day line. Apple shares hit their lowest level since early July.
Software giant Microsoft fell 1.9% on Monday, adding to Friday’s 1.75% drop. The shares briefly traded below their 50 day line for the first time since a June 21 break above a buy point of 263.29 before closing just above.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen to learn more about growth stocks and the Dow Jones Industrial Average.
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