Dow Jones Futures Fall, But Tesla Stock Rallies On Upgrade

Dow Jones futures were squarely lower Monday morning, and tech futures ceded early gains, following Friday’s strong stock market rally. Among the early market leaders, Tesla stock climbed after an analyst upgrade, while Netflix and Spotify also gained on upgrades ahead of the final trading day of January.

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Among the Dow Jones leaders, Apple (AAPL) dropped 0.2% premarket Monday, while Microsoft (MSFT) fell 0.25% in today’s stock market. American Express (AXP) is one of the top Dow Jones stocks to watch, as it forms the right side of a new base. Chevron (CVX) traded down hardest on the Dow, off 0.7% after a downgrade from Truist.

Tesla (TSLA) rallied more than 1% premarket Monday after Credit Suisse upgraded the stock ahead of the market open.

Among Monday’s top stocks to watch, American International Group (AIG), Baker Hughes (BKR), CF Industries (CF) and Matson (MATX) are near new buy zones. Keep in mind the current stock market status cautions investors to remain on the sidelines.

Microsoft and Tesla are IBD Leaderboard stocks. CF Industries was Friday’s New America stock.

Dow Jones Today

Ahead of the stock market open Monday, Dow Jones futures slid 0.4% vs. fair value. S&P 500 futures moved down 0.2%. Nasdaq 100 futures rose 0.3% above fair value. Among exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) defended a narrow gain, and the SPDR S&P 500 ETF (SPY) moved down 0.4%.

The 10-year Treasury yield ticked up to 1.8% Monday morning. On Friday, the 10-year Treasury yield fell for a second straight day, closing just above 1.78%. Oil prices climbed again, sending West Texas Intermediate 0.6% higher, to just below $88 a barrel — and right at a seven-year high.

Stock Market Eyes Rebound

Despite Friday’s strong gains, the market has yet to confirm a new uptrend, so investors should still continue to wait for a follow-through day. Follow-through days occur when a major index posts strong gains in volume heavier than the prior day. A follow-through day could occur any day, so make sure your watchlists are primed with top stocks, though strong merchandise is lacking.

Friday’s The Big Picture commented: “The Nasdaq composite surged 3.1% and closed just above Thursday’s high. But the powerful gain fell short of a follow-through day because Nasdaq volume came in lower than Thursday. Breadth wasn’t great on the Nasdaq, with winners beating losers by less than 2-to-1.”

Amid the current stock market volatility, now is an important time to keep close tabs on IBD’s The Big Picture.

If you’re new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one key to the investment guidelines. IBD offers a broad range of growth stock lists, such as Leaderboard.

Investors also can create watch lists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.

Five Dow Jones Stocks To Watch Now

Stocks On The Move: Netflix, Spotify

Netflix (NFLX) and Spotify (SPOT) were up 2.5% and 2%, respectively, early Monday after Citi upgraded both stocks from neutral to buy. Meanwhile, Edward Jones upgraded Netflix from hold to buy.

NFLX stock finished Friday about 45% off its 52-week high, while SPOT shares are 55% from their old highs.

Dow Jones Stocks To Watch: American Express

American Express decisively regained its 10-week moving average last week with an 11.5% advance. AXP shares are moving up the right side of a new base that currently has a 189.13 buy point, according to IBD MarketSmith chart analysis. Be on the lookout for a potential handle to offer a more risk-optimal entry.

Bullishly, the stock’s relative strength line is just shy of new highs following last week’s sharp ascent. A strong RS line, particularly during a weak overall market, indicates American Express is a stock to watch.

Three Top Growth Stocks To Watch In The Current Stock Market Weakness

Stocks To Watch: AIG, Baker, CF Industries, Matson

Insurer AIG rose 1% Friday, closing just above its 50-day moving average. AIG shares are forming a cup-with-handle base with a 62.35 buy point, according to IBD MarketSmith chart analysis. AIG was IBD’s Stock Of The Day on Jan. 19. The stock fell nearly 1%, then pared losses to a fraction premarket Monday.

Oilfield equipment leader Baker Hughes is further below a 27.76 cup-base buy point after Friday’s 0.5% fall. Shares of the Houston-based outfit dipped 0.6% premarket Monday.

Fertilizer producer CF Industries continues to trace an ascending base with a 74.87 buy point. Bullishly, the stock’s RS line hit a new high last week, indicating strong stock market outperformance. CF stock boasts a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. The stock is about 5% away from the latest buy point. CF shares were flat premarket Monday. Learn more about what’s driving investor interest in CF Industries in IBD’s New America.

IBD Leaderboard stock Matson is making progress above a cup-with-handle buy point of 93.27 following Friday’s 4.9% advance. Shares are now slightly extended beyond the 5% buy range that tops out at 97.84. Its RS line hit a new high on the breakout, a bullish sign. Shares were flat Monday morning. Learn about Matson’s markets and competition in IBD’s Industry Snapshot.

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

Tesla Stock

Tesla stock rallied over 1% premarket Monday, looking to add to Friday’s 2.1% climb. Early Monday, Credit Suisse upgraded the stock from neutral to outperform with an unchanged price target of 1,025. Last week, the stock is at its lowest level since Oct. 11 and is trying to find support at its long-term 200-day moving average line.

The stock traded as high as 1,243.49 on Nov. 4, but ended Friday about 32% off that 52-week high.

Dow Jones Leaders: Apple Earnings, Microsoft

Among Dow Jones stocks, Apple stock surged 7% Friday, it’s strongest single-day advance since July 2020. The gain snapped an eight-day losing streak, regaining the stock’s key 50-day moving average. Shares fell 0.2% premarket Monday.

Software leader Microsoft gained 2.8% Friday, closing further above its long-term 200-day moving average line. MSFT shares were down 0.25% in morning trade.

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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