Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, were down Monday night following today’s stock market sell-off. Shares in tech giants Advanced Micro Devices, Apple, Nvidia and Tesla fell on Monday, as property default fears spread in China.
On Monday, the Dow Jones Industrial Average fell 1.8%. The S&P 500 fell 1.7%, while the Nasdaq sank 2.2% even after cutting some losses. The high-tech Nasdaq composite broke its key 50-day support level.
Among the leaders of 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 fell further below a key technical level. Nike’s earnings will be released Thursday night.
Deckers, Microsoft and Tesla are IBD rating stocks. Chipotle appeared in the Stocks column near a buy zone this week.
Dow Jones Futures Today: China Property Default Fears
After the close of the stock market on Monday, Dow Jones futures lost 0.15% against fair value, while S&P 500 futures fell 0.2%. Nasdaq 100 futures fell 0.2% against fair value. Remember that trading in Dow Jones futures and elsewhere does not necessarily translate into actual trading in the next regular session of the stock market.
Overview of the US Stock Market
|index||symbol||Price||gain loss||% Change|
|S&P 500||(0S and P5)||4357.64||-75.35||-1.70|
Last Updated: 4:28 PM ET 9/20/2021
Monday’s stock market weakness came amid fears over property developer China Evergrande Group. Investors increasingly believe that Beijing will allow Evergrande to fail and inflict losses on its shareholders and bondholders, according to the Wall street journal The company’s debt burden is the highest for any publicly traded real estate development or management company in the world.
Key support from stock market breakouts
The Nasdaq broke sharply below its 50-day line on Monday, adding more selling pressure to the major stock indices. 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, it 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 laying flat with a buy point of 174.48, according to IBD MarketSmith chart analysis. But the stock is below its key 50-day moving average line. Regaining support at that critical level would be bullish for the immediate outlook for the stock. The shares fell 1.4% on Monday.
Nike’s earnings are due Thursday.
As of September 10, Nike was No. 8 on the Dow Jones Industrial Average, advancing more than 15%. Goldman sachs (GS) was the top Dow Jones stock, with a year-to-date gain of 52% through September 15.
Stocks on the move: AMD, Nvidia
Chip giants Advanced Micro Devices and Nvidia were drastically sold on Monday.
Shares of AMD fell 2.2% on Monday. The shares are forming a consolidation with a buy point of 122.59, according to analysis of the IBD MarketSmith chart. AMD shares are now below their 50-day line, a sign of weakness for the stock’s base-building process.
Nvidia slides 3.6% on Monday. The action triggered the sell signal back and forth from a buy point of 207.43 on a handle mug. Investors must sell when a stock gives up all of a double-digit profit to avoid suffering losses.
Stocks to buy and watch: Chipotle, Deckers
Friday’s IBD stock of the day, Chipotle Mexican Grill, is recovering from its key 50-day moving average, although it fell 1.3% on Monday. The burrito chain has been trading strongly after a post-earnings jump. 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 stock’s RS line is at new highs.
According to IBD Stock Review, CMG action it has a perfect composite score of 99 IBD. The IBD composite rating identifies stocks with a combination of strong fundamentals and technical characteristics.
IBD Leaderboard Deckers Outdoor shares are trying to outperform a 444.58 entry on a flat basis, according to IBD MarketSmith, but fell further below buy point amid Monday’s 2.1% loss. Based on the leaderboard commentary, major retail stocks have broken past a mini trend line entry near 433, providing an early buying point. Its relative force line is also near new highs.
Tesla shares sold 3.9% on Monday, snapping a five-day winning streak and closing just above the stock’s last buy point at 730. The shares also remain above their aggressive buy point. of 700.10 in the depth of a correction. Meanwhile, a large and deep base continues to take shape.
On January 25, Tesla shares hit a record high of 900.40, after climbing as much as 93% from a buy point of 466 on a handle mug.
Dow Jones Leaders: Apple, Microsoft
Among the major Dow Jones stocks, Apple was down 2.1% on Monday, falling further 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% decline. The stock briefly traded below its 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 for more information on growth stocks and the Dow Jones Industrial Average.
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