Dow Jones Futures Fall As Yields Rise; AMD, Tesla Fall; Apple Chipmaker Jumps

Dow Jones futures lost more than 100 points early Monday, while tech futures sold off and Treasury yields added to last week’s sharp gains. Advanced Micro Devices and Tesla stock were lower ahead of Monday’s open, while Apple chipmaker Taiwan Semiconductor Manufacturing gained ground on strong monthly sales.

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Among the Dow Jones leaders, Apple (AAPL) dropped 0.6% premarket Monday, while Microsoft (MSFT) moved down 0.7% in today’s stock market. Also among the Dow 30, financial leaders Goldman Sachs (GS) and JPMorgan Chase (JPM) are near new buy points.

Electric-vehicle leader Tesla (TSLA) traded down about 2% premarket Monday. Its rival, Rivian (RIVN), dropped nearly 3%. Lucid Group (LCID) dropped more than 2%. And Chinese EV leaders Li Auto (LI) and Xpeng Motors (XPEV) were mixed Monday morning.

Among Monday’s top stocks to buy and watch, Diamondback Energy (FANG), EOG Resources (EOG), Nucor (NUE) and Wells Fargo (WFC) are in or near new buy zones.

Microsoft and Tesla are IBD Leaderboard stocks.

Dow Jones Today: Treasury Yields

Ahead of the stock market open Monday, Dow Jones futures moved down 0.3% vs. fair value, while S&P 500 futures fell 0.7%. Nasdaq 100 futures sold off 1.3% vs. fair value. Remember that trading in Dow Jones futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

Among exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) lost 1.2% and the SPDR S&P 500 ETF (SPY) traded down 0.65% premarket Monday.

The 10-year Treasury yield ticked up around 1.79% Monday morning. On Friday, the 10-year yield climbed above 1.77%, closing at its highest level since Jan. 17, 2020.

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Stock Market Rally Weakens

The stock market posted another round of losses Friday, as the Nasdaq and S&P 500 extended losing streaks to five sessions. The Nasdaq is sliding toward its long-term 200-day line, while the S&P 500 closed right at its key 50-day moving average, a key benchmark.

Friday’s The Big Picture commented: “Growth investors should be defensive at this point. Some new buys in the energy and financial sectors are probably working well but aggressively increasing exposure doesn’t make sense, particularly in the technology sector. Keep stocks on your watchlist showing relative strength. Some may be finding support at a key level, while others may still be near buy points.”

Following last week’s stock market losses, it’s an important time to read IBD’s The Big Picture.

Five Best Dow Jones Stocks To Watch Now

Stocks On The Move: AMD, Nike, Lululemon, TSMC

Advanced Micro Devices (AMD) fell more than 1% Monday morning, on pace to add to Friday’s 3.1% skid. Last week, the chip leader triggered a key sell signal as it closed below its 10-week moving average line for the first time since an Oct. 18 breakout above a double bottom’s 114.59 buy point.

Lululemon Athletica (LULU) dived more than 6% Monday morning after the company guided expectations below analyst targets for its fiscal fourth quarter as the omicron variant of the coronavirus hurts staffing and operations.

Dow Jones stock Nike (NKE) slid more than 2% after HSBC downgraded the stock from buy to hold.

Taiwan Semiconductor Manufacturing (TSM) climbed more than 1% premarket Monday after reporting strong December sales, posting a 32% increase vs. the year-ago period. TSM stock is tracing a saucer base with a 142.29 buy point. The company makes chips for Apple and Qualcomm (QCOM), among others.

Dow Jones Stocks To Buy And Watch: Goldman Sachs, JPMorgan

Dow Jones stock Goldman Sachs moved up 0.15% Friday, ending just above the 50-day line and with a 3.9% advance for the week. Shares are tracing a flat base with a 426.26 buy point, according to IBD MarketSmith chart analysis. An early entry at 412.76 is also in play. Shares rose 0.4% in early morning trade Monday.

JP Morgan shows a 173.06 buy point in a flat base after retaking the 50-day line in a 5.6% rally last week. JPM shares gained 0.5% premarket Monday.

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Stocks To Buy And Watch: Diamondback, EOG, Nucor, Wells

Oil producer Diamondback Energy is squarely in buy range above a 117.81 buy point, following Friday’s 1.7% fall. The 5% buy area tops out at 123.70. FANG shares were unchanged premarket Monday.

Bullishly, the stock’s RS line hit a new high on the breakout day, confirming the energy stock as a market leader. FANG stock boasts a perfect 99 IBD Composite Rating, per the IBD Stock Checkup.

EOG Resources rallied 2.8% Friday, moving out of the 5% buy area past a 91.74 cup-with-handle entry, according to IBD MarketSmith chart analysis. The 5% buy area ran up to 96.33. EOG shares traded flat premarket Monday.

IBD Leaderboard stock Nucor fell further below its 122.16 buy point during Friday’s 1.85% decline, underscoring the difficulty of making progress in the current market. The steelmaker edged lower premarket Monday.

Banking giant Wells Fargo is at the top of its 5% buy range above a 52.67 buy point in a flat base after Friday’s 2.1% rise. The 5% buy area goes up to 55.30. WFC stock gained 0.6% premarket Monday.

Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live

EV Stocks: Li Auto, Xpeng, Lucid Motors, Rivian

Li Auto stock continues to work on a new base. It is trying to again find support around its long-term 200-day line following Friday’s 2.8% advance. There is no new buy point at this time. The stock was unchanged early Monday.

Xpeng Motors slid further below its 50-day line Friday, falling 3.45%. A new cup with handle shows a 51.60 buy entry, according to IBD MarketSmith chart analysis. The stock dropped 0.5% Monday.

Among U.S.-based EV stocks, Lucid Motors shares declined more than 2% Monday, threatening to give back a part of Friday’s 9.8% surge. LCID stock remains extended past a 28.49 buy point in a cup-with-handle base, but huge gains have dwindled. Shares are again attempting to regain their 50-day line this week, which would be bullish for the stock’s base-building prospects.

Recent initial public offering Rivian was down about 3% Monday, set to extend a five-day losing streak that saw the stock hit all-time lows. RIVN shares closed Friday about 52% off their post-IPO highs. Continue to wait for an IPO base to form before considering a purchase. Recent sharp losses are a significant setback in the stock’s basing process and there is no new buy point in sight with the stock at new lows.

Tesla Stock

Tesla stock traded down about 2% premarket Monday, poised to extend a four-day losing streak. Last week, the EV leader gave up its critical 50-day moving average line and triggered the 7%-8% loss-cutting sell rule from a 1,119.10 trend line buy point.

Shares traded as high as 1,243.49 on Nov. 4, but the stock ended Friday about 17% off that 52-week high.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple stock ended Friday up just 0.1%, but still snapped a three-day losing streak. Shares remain about 12% past a 153.27 buy point out of a cup-with-handle base, according to IBD MarketSmith chart analysis. Apple shares dropped 0.6% premarket Monday.

Software leader Microsoft reversed from early losses Friday to inch higher. The top Dow Jones stock continues to etch a flat base with a 349.77 buy point, but the stock clearly has more work to do before a potential breakout. Shares moved down 0.7% Monday.

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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