Dow Jones futures dived Monday morning, as the stock market correction worsens. Bitcoin tumbled to its lowest level since July 2021. The 10-year Treasury yield rose to 3.14% following Friday’s new highs.
Tyson Foods (TSN) was a key earnings mover early Monday after reporting quarterly results ahead of the open. TSN shares rallied 1% in morning trade. The stock is forming a cup with handle with a 99.64 buy point.
Amid a worsening stock market correction, Dow Jones leader Merck (MRK) — along with Cheniere Energy (LNG), Exxon Mobil (XOM), Nutrien (NTR) and World Wrestling Entertainment (WWE) — are among IBD’s top stocks to watch for Monday.
Dow Jones Today: Treasury Yields, Oil Prices, Bitcoin
Ahead of Monday’s open, Dow Jones futures sold off 1.3% vs. fair value. S&P 500 futures declined 1.7%. And Nasdaq 100 futures dived 2.2%.
The 10-year Treasury yield ticked higher to 3.14% Monday morning. On Friday, the 10-year Treasury yield closed at 3.12% — its highest level since November 2018. Meanwhile, U.S. oil prices lost nearly 3%. West Texas Intermediate crude traded just below $107 a barrel.
Bitcoin tumbled below $33,000 Monday morning, trading as low as $32,650 before paring some losses. The price of Bitcoin is at its lowest level since July 2021 when it traded as low as $28,825, according to CoinDesk. Cryptocurrency exchange Coinbase (COIN) stumbled around 6% and the ProShares Bitcoin Strategy ETF (BITO) was down nearly 9% Monday morning.
Stock Market Correction Deepens
On Friday, the stock market posted another disappointing performance, as the major stock indexes fell for a second straight session. The Nasdaq bore the brunt of the selling, declining 1.4% to hit a new correction low.
Friday’s The Big Picture column commented, “The Dow Jones’ 0.2% drop for the week wasn’t exactly a gut punch to the 30-stock index. Yet the Dow industrials suffered its sixth straight down week and is not far from tripping below its year-to-date low of 32,272.”
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Dow Jones Stocks To Watch: Merck
Dow Jones drug stock Merck is below a cup-with-handle base’s 89.58 buy point following a brief breakout attempt in recent weeks. Shares rose 0.4% Friday, ending about 1% below the latest entry. Merck stock traded 1% lower Monday morning.
On a positive note, the stock’s relative strength line recently hit new highs, indicating big stock market outperformance during the current stock market correction.
Stocks To Watch: Cheniere, Exxon, Nutrien, WWE
Cheniere Energy is just below a flat base’s 149.52 buy point following Friday’s 3.1% advance. LNG shares dropped around 1% Monday morning.
Energy giant Exxon Mobil broke out past a cup with handle’s 89.90 buy point Wednesday. The stock is in the 5% buy area goes up to 94.40, according to IBD MarketSmith chart analysis. Exxon shares moved down about 2% early Monday.
IBD Leaderboard stock Nutrien is still trying to rebound from its 50-day line, a key support level, amid Friday’s 0.3% gain. Nutrien stock declined more than 2% Monday morning.
World Wrestling Entertainment continues to trace a flat base that has a 63.81 buy point. Shares are below their 50-day line after two straight days of sharp losses. WWE shares were flat early Monday.
Tesla stock skidded more than 4% Monday morning, threatening to add to Friday’s 0.9% loss and extend a losing streak to three sessions. Shares are again below their 50- and 200-day lines.
Shares of the EV giant finished Friday about 25% away from a cup-with-handle base’s 1,152.97 buy point. The stock traded as high as 1,243.49 on Nov. 4 and is about 30% away from that all-time high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares rose 0.3% Friday, but are still below their 200-day line. Apple stock fell 2.2% Monday.
Software leader Microsoft dropped 0.9% Friday, declining for a second session in a row. The stock closed more than 20% off its 52-week high. MSFT shares moved down 2.3% 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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