Dow Jones Futures Sell Off As Russia-Ukraine Talks Begin; Apple’s New Buy Point

Dow Jones futures fell hard overnight, but eased from lows early Monday as Russian and Ukraine leaders reportedly met to talk at the Belarusian border. Treasury yields tumbled, oil prices surged and defense stocks rallied as European countries continued to respond to Russia’s attack, while banks and financials led a sell-off sparked by expanding Western sanctions on the Russian financial system.

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Among the Dow Jones leaders, Apple (AAPL) dropped 1% and Microsoft (MSFT) traded down around 1.5% in today’s stock market. American Express (AXP), a Dow Jones stock to watch, was down 2% and set to pullback to a buy point after a strong bounce Friday.

Javelin missile-makers Raytheon (RTX) and Lockheed-Martin (LMT) jumped 4.8% and 4%, respectively, leading the defense stocks holding the top premarket positions on the S&P 500. Electric-vehicle leader Tesla (TSLA) declined 0.5% premarket Monday, as the stock looked to add to a two-day win streak.

Amid a volatile, headline-driven market, Northern Oil & Gas (NOG), Nutrien (NTR), Palo Alto Networks (PANW) and Ryan Specialty (RYAN) are among Monday’s top stocks to watch. Keep in mind that current stock market conditions should keep investors in cash and on the sidelines.

Microsoft and Tesla are IBD Leaderboard stocks. Ryan Specialty is an IPO Leader.

Dow Jones Today: Russia-Ukraine Talks

Ahead of the stock market open Monday, Dow Jones futures traded down 1.35%, while the S&P 500 futures dropped 1.4%. Nasdaq 100 futures descended 1.3% in morning trade. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) lost 1.25%, and the SPDR S&P 500 ETF (SPY) declined 1.2% before Monday’s open.

European markets were also down sharply Monday. The German DAX sold off 1.8%, the London FTSE was down 0.85% and the French CAC was off 2.5%.

The 10-year Treasury yield ticked down to 1.89% Monday morning. On Friday, the 10-year Treasury yield closed above 1.98%. Meanwhile, U.S. oil prices surged 4% Monday, with West Texas Intermediate crude eased back below $96 a barrel. Europe’s Brent crude benchmark traded up almost 3%, holding above the $100 mark.

Ukraine’s defense minister reportedly arrived Monday for talks with Russian officials at the Ukrainian border with Belarus, but prospects for a cease-fire were uncertain. Meanwhile, the United States announced further sanctions Monday morning, banning Americans from doing any business with Russia’s central bank.

Over the weekend, the U.S., European Union, U.K. and Canada agreed to suspend some Russian banks from the Society for Worldwide Interbank Financial Telecommunication, or Swift, payments system, and to target Russia’s central bank. On Sunday, Russian President Vladimir Putin placed the country’s nuclear-deterrence forces on alert, upgrading the potential scale of the conflict.

Stock Market Correction

The stock market posted more positive action Friday, as the major stock indexes ended with strong gains. Amid the current volatility, it’s an important time to read IBD’s The Big Picture column.

Friday’s The Big Picture commented, “With Thursday’s impressive rebound and Friday’s additional gains, the stock market looks to have shaken out a great many sellers. Indexes undercut the January lows, another sign that selling may be exhausting itself.”

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 and SwingTrader.

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

Four Dow Jones Stocks To Watch Now

Dow Jones Stocks To Watch: American Express

American Express broke out on Feb. 8 past what IBD MarketSmith chart analysis plotted as a cup base buy point at 189.13. Shares regained the buy point Friday with a strong rebound. AXP stock traded down 2.2% in premarket trade Monday, suggesting a pullback to the buy point.

Bullishly, the stock’s relative strength line is right at new highs, indicating significant stock market outperformance.

Four Top Growth Stocks To Watch In The Current Stock Market Rally

Stocks To Watch: Nutrien, Northern Oil, Palo Alto, Ryan Specialty

Fertilizer maker Nutrien is nearly out of buy range above a flat base’s 77.45 buy point after Friday’s 4.8% advance. The 5% buy area goes up to 81.32. The relative strength line hit another new high Friday, which is a sign of strong stock market outperformance. NTR stock shows a perfect 99 IBD Composite Rating, per IBD Stock Checkup. NTR shares gained 1.3% premarket Monday.

Northern Oil & Gas is about 7% away from a cup with handle’s 25.57 buy point, according to IBD MarketSmith chart analysis. NOG shares climbed 1.2% premarket Monday.

Cybersecurity leader Palo Alto Networks is rapidly nearing a consolidation’s 572.77 buy point following Friday’s 5.5% rise, according to IBD MarketSmith chart analysis. The RS line is at new highs. Last week, the company reported strong earnings and sales. Palo Alto stock moved 0.5% higher early Monday.

IPO Leader Ryan Specialty is approaching a 40.65 buy point in a double bottom with handle following Friday’s 1.7% advance. Shares of the insurance fintech provider were unchanged premarket Monday.

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

Tesla Stock

Tesla stock dropped 0.5% Monday morning, looking to add to Friday’s 1.1% gain. The stock remains below its long-term 200-day line after sharp losses last week. There is no proper entry in sight, as the stock continues to consolidate.

The stock traded as high as 1,243.49 on Nov. 4, but ended Friday about 35% off that all-time high.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple stock moved up 1.3% Friday, but remains below the key 50-day line. Shares are forming a double bottom with a 176.75 buy point. Apple shares dropped 1% premarket Monday.

Software leader Microsoft climbed nearly 1% Friday, rising for a second straight day. The Dow Jones stock is just under the long-term 200-day line. MSFT stock moved down 1.5% Monday morning.

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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