Dow Jones Futures Dive, Treasury Yields Surge To New Highs; Bitcoin Crashes Below $24,000

Dow Jones futures dived more than 600 points Monday morning, chasing unraveling tech issues, as the market moved to extend losses from Friday’s stock market sell-off. Bitcoin crashed below $24,000, while the 10-year Treasury yield surged to more new highs. And the S&P 500 was set to open in bear market territory.

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Electric-vehicle giant Tesla (TSLA) skidded 4% lower Monday. Elsewhere, Dow Jones tech leaders Apple (AAPL) and Microsoft (MSFT) were down 3% and 2.5%, respectively, ahead of today’s stock market open.

Amid a new stock market correction, Dow Jones leaders Chevron (CVX), Merck (MRK) and Travelers (TRV) — along with Enphase Energy (ENPH), Murphy Oil (MUR), Northrop Grumman (NOC) and Ulta Beauty (ULTA)  — are among IBD’s top stocks to watch for Monday.

Enphase is an IBD Leaderboard stock. Ulta was featured in last week’s IBD Stock Analysis column.

Dow Jones Today: Treasury Yields, Oil Prices, Bitcoin

Ahead of Monday’s open, Dow Jones futures dived 2% vs. fair value, and S&P 500 futures lost 2.3%. Nasdaq 100 futures plunged 2.8%. 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) dropped 3.1%. The SPDR S&P 500 ETF (SPY) lost 2.4% in early trade.

Exchanges across Asia closed with heavy losses as global markets reacted to Friday’s U.S. inflation data. Europe’s leading benchmarks traded with losses in the 2% range just after midday Monday.

The 10-year Treasury yield surged higher to 3.25% Monday morning, hitting another new high following Friday’s close at 3.15%. Meanwhile, U.S. oil prices lost nearly 2%, with West Texas Intermediate trading around $118 a barrel. In early March, WTI briefly topped out above $130 a barrel.

The price of Bitcoin crashed 18% over the weekend. After ending Friday around $29,000, Bitcoin traded around $23,500 in early morning trade, according to CoinDesk, its lowest level since December 2020. ProShares Bitcoin Strategy ETF (BITO) plunged 18% Monday morning.

Stock Market Sell-Off

The stock market sold off Friday, as the major stock indexes finished with heavy losses, ending the week on a down note.

Friday’s The Big Picture column commented, “Moves were heavily skewed to the downside. The Nasdaq was the index that suffered the most, dropping 3.5%. Its weekly loss came in at 5.6%, sending it back near lows for the year.”

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.

Five Dow Jones Stocks To Watch Now

Dow Jones Stocks To Watch: Chevron, Merck, Travelers

Dow Jones leader and energy giant Chevron remains above a flat base‘s 174.86 buy point, according to IBD MarketSmith chart analysis, even after Friday’s 1.2% decline. The 5% buy zone tops out at 183.60. CVX shares dropped 2.5% Monday.

CVX stock boasts a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. Investors can use the IBD Composite Rating to easily gauge the quality of a stock’s fundamental and technical metrics.

Merck, a Dow Jones and IBD Big Cap 20 stock, fell further below its cup-with-handle’s 89.58 buy point Friday, as shares dropped another 0.9%. The stock also gave up support around its key 50-day line, which is a key sell signal. MRK shares inched nearly 1% Monday morning.

Insurance giant Travelers continues to build a flat base with a 188.08 buy point. Shares are further below their 50-day line after Friday’s 2.5% fall. Travelers stock traded flat early Monday.

Five Top Growth Stocks To Watch In The Current Stock Market Correction

Stocks To Watch: Enphase, Murphy, Northrop, Ulta

IBD Leaderboard stock Enphase Energy is still above its double bottom’s 193 buy point, even after a third straight decline Friday, according to IBD MarketSmith chart analysis. Enphase shares declined 4.4% Monday morning.

Murphy Oil is trading just below a cup base’s 44.73 buy point following Friday’s 1.95% loss. Shares moved down 3% Monday morning.

Northrop Grumman found much-needed support at its 50-day moving average Friday, but remains about 3% below its cup-with-handle’s 477.36 buy point. NOC shares dipped 1.3% lower Monday morning.

Ulta Beauty’s recent breakout continues to struggle after Friday’s 3.5% loss. Still, shares are trying to hold up during the new stock market correction. Ulta stock is about 4% away from a cup with handle’s 426.93 buy point. ULTA shares traded down almost 2% Monday.

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

Tesla Stock

Tesla stock skidded 3.1% Friday, adding to Thursday’s 0.9% decline. Shares threatened to add to those losses, trading more than 4% lower Monday morning. Early Monday, RBC Capital upgraded the EV giant from sector perform to outperform with a price target of 1,100.

The stock is still sharply below its 50- and 200-day moving averages. Tesla stock traded as high as 1,243.49 on Nov. 4. Shares are about 44% off that record high.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares sold off 3.9% Friday and are near their recent lows. The stock remains far below its long-term 200-day line and is about 25% off its 52-week high. AAPL stock traded down 3.3% Monday.

Software leader Microsoft lost 4.5% Friday, and remains sharply below its 50- and 200-day lines. The stock closed around 28% off its 52-week high. MSFT shares lost 2.7% 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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