The Dow Jones Industrial Average fell 150 points on Monday, as investors prepared to kick off the second-quarter earnings season. Twitter shares slumped while Tesla’s stock fell after Elon Musk took steps to finalize a $44 billion acquisition of the social media giant.
Looking at this week’s earnings, the soft drink giant PepsiCo (PEP) will report second-quarter results early Tuesday. Delta Airlines (DAL) will report Wednesday. Banking giants c. B. Morgan Chase (JPM) and Morgan Stanley (MS), along with Taiwan’s semiconductor industry (TSM) A report will be released Thursday morning. City Group (c), United Health (United Nations) and Wells Fargo (WFC) The trading week concludes with earnings reports on Friday morning.
Twitter (TWTR) fell more than 6% after Musk said he is seeking to terminate his $44 billion deal for the social media giant due to the number of spam and fake accounts on the platform. Twitter said it plans to take legal action and is committed to closing the deal at the agreed price of $54.20.
Tesla (TSLA) is down 1.7% early Monday. Lululemon Athletica (LULU) is down more than 3% in early trading after Jefferies downgraded the stock from suspension to underperform. Elsewhere, technology leaders at Dow Jones apple (AAPL) and Microsoft (MSFT) Both were trading lower right after the stock market opened today.
In a volatile stock market environment, Dow Jones leaders Johnson & Johnson (JNJ), merck (MRK) and United Health (United Nations) – well bj wholesale club (BJ), Health Evolution (EVH), Funko (FNKO) and Quanta Services (PWR) – Among the stocks to watch. Keep in mind that the constant volatility in the stock market is a reason to stay on the defensive.
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Evolent Health and UnitedHealth are IBD Leaderboard shares. BJ’s is a 50 IBD share. Evolent was the stock of the day for IBD on Wednesday.
Dow Jones today: Treasury yields and oil prices
After opening on Monday, the Dow Jones Industrial Average fell 0.5%, and the S&P 500 lost 1.1%. The Nasdaq Composite is down 2% in morning trading.
Among the exchange-traded funds, the Nasdaq 100 Invesco QQQ Trust (QQQ) Index is down 2%. The SPDR S&P 500 Index (SPY) was down 1.1%.
The 10-year Treasury yield jumped to 3.1% on Friday after a stronger-than-expected jobs report. The 10-year yield fell to 3.03% on Monday morning.
Meanwhile, US oil prices are down more than 1%, with West Texas Intermediate trading above $103 a barrel. West Texas Intermediate crude fell to $95 a barrel last week.
stock market rise
On Friday, the Nasdaq rose 0.1%, giving it a winning streak over five sessions. It finished the week up 4.6% and managed to surpass the 10-week moving average as well. However, it’s still down about 26% for the year.
The Big Picture column commented on Friday, “One comfort for investors is the fact that low volume and slow moves have kept the number of distribution days flat. Optimists will point out that indices are maintaining weekly gains, but continued volatility seems likely.”
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Four Dow Jones stocks to watch right now
Dow Jones stocks to watch: Johnson & Johnson, Merck, UnitedHealth
The Dow Jones Johnson & Johnson index is down about 2% from its double base buy point of 181.84 following Friday’s 0.1% decline, according to IBD MarketSmith chart analysis. JNJ shares were unchanged Monday morning. The company announces its earnings on July 19.
Pharmaceutical giant Merck’s stock fell on Friday, nearly 2% below its flat base at 95.02 buying points. Medical stocks in general, and biotech in particular, have shown increasing strength in the recent stock market move. Merck shares rose early Monday.
Health insurance giant and IBD Leaderboard UnitedHealth stock remains above the 507.36 double-bottom buying point after Friday’s 0.8% rally. Stocks in the buying range. The stock was down nearly 1% on Monday morning. The United Nations announces second-quarter results on July 15.
UN stock shows a strong 96 out of 99 perfect composite ratings for IBD, for every IBD stock check. Investors can use the IBD composite rating to easily gauge the quality of a stock’s fundamental and technical metrics.
4 growth stocks to watch on Cursstock market rally
Top stocks to watch: BJs, Evolent Health, Funko, and Quanta
IBD 50 stock BJ’s Wholesale is in a buying range above 67 handled cup base buying range following last week’s breakout move. Shares rose early Monday.
IBD Leaderboard Evolent Health stock is still in a buying range above 32.55 pips in a handle-cup buy after Friday’s slight gains. The 5% chase zone extends up to 34.18. Shares of Evolent rose 0.6% on Monday.
Funko closed in a buying range above the 25.18 cup handled buying range after Friday’s 0.3% gain. Funko prides itself on rating the best possible 99 compounds, according to an IBD inventory check. Shares were trading 0.1% higher early Monday.
Quanta Services is tracking a cup with a handle that has a buy range of 138.56, according to IBD MarketSmith chart analysis. Shares are just 4% off the latest pivotal buying after Friday’s 0.2% drop. PWR shares are down about 1% on Monday morning.
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Tesla stock rose 2.5% on Friday, rising for the second straight session and reclaiming its 50-day main streak. Shares gave up much of those gains on Monday morning, dropping nearly 2% after CEO Elon Musk backtracked on his Twitter offer.
Shares remained sharply below the 200-day streak before the company’s July 20 earnings date. Tesla stock traded as high as 1,243.49 in November. 4. The stock is about 40% of this index.
Dow Jones Leaders: Apple and Microsoft
Among Dow Jones stocks, Apple shares rose 0.5% on Friday, climbing for the fifth consecutive session. Apple regained the 50-day streak last week, but it’s still well below the long-term 200-day streak. The stock is about 20% off its 52-week high. Apple shares fell 1.1% on Monday morning.
Shares of leading software company Microsoft fell 0.3% on Friday, but it is still holding above the 50-day line. The stock closed about 23% from its 52-week high. Microsoft shares lost 0.9 percent early on Monday.
Microsoft and Apple are scheduled to announce their quarterly results on July 26 and 28, respectively.
Make sure to follow Scott Lehtonen on Twitter at Tweet embed Learn more about developing stocks and the Dow Jones Industrial Average.
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