Dow Jones futures tumbled more than 200 points Monday morning after Israel declared war in response to an unprovoked attack by Islamist militant group Hamas, roiling global markets.
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Middle East tensions erupted Saturday when Hamas militants launched the largest assault on Israel in 50 years, sending forces across the Gaza border and into southern Israel. Caught entirely off guard, Israel responded by declaring war on Hamas and launching retaliatory strikes throughout Palestinian communities.
In economic data news, Wall Street will pay close attention to the CPI and PPI inflation reports, along with Fed minutes from the September policy meeting.
Further, third-quarter earnings season kicks off this week, with earnings results from Delta Air Lines (DAL), as well as UnitedHealth (UNH) and banking giants JPMorgan Chase (JPM), Citigroup (C) and Wells Fargo (WFC).
Dow Jones Today: Oil Prices, Treasury Yields
Ahead of Monday’s opening bell, Dow Jones futures dropped 0.7% vs. fair value, with Intel (INTC) and Goldman Sachs (GS) leading the early declines. Chevron (CVX) swung 2.8% higher as oil stocks rallied.
S&P 500 futures declined 0.7%. Tech-heavy Nasdaq 100 futures dropped 0.8% vs. fair value in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) tumbled 0.8%, while the SPDR S&P 500 ETF (SPY) lost 0.6% early Monday.
The bond market is closed Monday for Columbus Day. On Friday, the 10-year U.S. Treasury hit a long-term high before settling at 4.78%.
Oil prices jumped in early trade after last week’s heavy losses. West Texas Intermediate futures traded up more than 3%, but held below $86 a barrel.
Stock Market Rally
On Friday, the Dow Jones Industrial Average rallied 0.9%, while the S&P 500 moved up 1.2%. The tech-heavy Nasdaq composite advanced 1.6%.
Friday’s Big Picture column commented, “The day’s substantial gains triggered a follow-through day on the Nasdaq composite as it rallied in volume. While this means the market is back in a confirmed uptrend, IBD is recommending investors hold market exposure in the 20%-40% range at this early stage. Increased exposure at a measured pace is recommended along with taking full advantage of the watchlist built up during the correction period.”
Now is an important time to read IBD’s The Big Picture column, with the stock market outlook showing a new uptrend. Be sure to read how to handle the newfound stock market strength and raise your exposure methodically.
Learn How To Time The Market With IBD’s ETF Market Strategy
Stock Market Today
Tesla (TSLA) skidded 1.6% early Monday, while Nvidia (NVDA) dropped 2%. Dow Jones tech icons Apple (AAPL) and Microsoft (IBD) traded squarely lower ahead of today’s stock market open.
IBD Leaderboard member Arista Networks (ANET), Duolingo (DUOL), DraftKings (DKNG) and Meta Platforms (META) — as well as Dow Jones stocks Caterpillar (CAT) and Chevron — are among the best stocks to buy and watch in the new stock market uptrend.
Meta is a new IBD SwingTrader stock, while Arista is featured in this Stocks Near A Buy Zone column.
Dow Jones Stocks: Caterpillar, Chevron
Dow Jones leader Caterpillar continues to form a flat base with a 293.88 buy point after strong gains since early June, per IBD MarketSmith chart analysis. CAT stock rebounded 2% Friday, still below the 50-day line. Shares dropped 0.5% early Monday.
Dow Jones oil giant Chevron slipped 1% Friday. Last week, CVX stock broke out past a short handle entry at 168.96. Meanwhile, a cup base within a larger consolidation continues to show a 172.88 buy point. Shares are battling for support around their 50-day line. Chevron shares jumped 2.8% Monday morning, as oil prices rallied.
4 Top Growth Stocks To Buy And Watch In The Stock Market Rally
Meta Breaks Out
Arista climbed 3.2% Friday, further rebounding from the 50-day line. A bullish rebound from that level places the stock in a new buy area. Meanwhile, shares are approaching a 198.70 buy point out of a flat base. ANET stock lost 1% early Monday.
DraftKings is building a consolidation that has a 34.49 buy point, per IBD MarketSmith pattern recognition. An early entry looms at 32.65. Shares are trying to decisively retake their 50-day moving average, which would be a bullish signal. DKNG was down 1.15% in premarket trades.
IPO Leader Duolingo climbed another 0.2% Friday, yet remains below its latest buy point at 167.35. The new entry is the result of a handle forming on a double-bottom base. Still, shares are above a 162.20 buy point. DUOL stock was down 1.4% early Monday.
Social media giant Meta Platforms is in buy range after a strong move past a 312.87 buy point. Its cup base has an official buy point at 326.20. META stock fell 0.7% Monday morning.
Best Stocks In Today’s Stock Market Action
These are four best stocks to buy and watch in today’s stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Meta Platforms | (META) | 312.87 | Handle entry |
| Caterpillar | (CAT) | 293.88 | Flat base |
| Duolingo | (DUOL) | 167.53 | Double bottom with handle |
| DraftKings | (DKNG) | 32.65 | Cup with handle |
Source: IBD Data As Of Oct. 9, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock Hits Buy Point
Tesla stock reversed from sharp losses, moving up 0.2% Friday. Shares remain above their 50-day line and near an alternative buy area. The buy zone starts at 254.77 and goes up to 258.40 for aggressive investors. TSLA stock has an official cup-with-handle base with a buy point at 278.98, and shares are about 7% away from that entry.
Shares lost 1.5% early Monday in premarket trades.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple moved up 1.5% Friday, rallying for a third session. Shares are bouncing back from their recent lows. Amid the continued weakness, the stock is sharply below its 50-day line after September’s losses. If AAPL stock can rebound, it would likely have a double-bottom base with a 189.98 buy point. Shares lost 0.85% early Monday.
Microsoft shares climbed 2.5% Friday, recovering their 50-day line for the first time since Sept. 15. And on Monday morning, MSFT stock declined 0.6%.
Be sure to follow Scott Lehtonen on X/Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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Barbara Terrio is a seasoned business journalist, delving into the world of finance, startups, and entrepreneurship. With a knack for demystifying complex economic trends, she helps readers navigate the business landscape. Outside of her reporting, Barbara is an advocate for financial literacy and enjoys mentoring aspiring entrepreneurs.
