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Dow Jones Futures Fall 100 Points As Oil Spikes Above $82; Apple, Tesla Drop

Dow Jones futures dropped 100 points early Monday, as oil prices spiked above $82. Apple stock and Tesla traded lower in premarket trade.




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Among the Dow Jones leaders, Apple (AAPL) fell 0.7% premarket Monday, while Microsoft (MSFT) moved down 0.8% in today’s stock market. American Express (AXP) and Merck (MRK) are in or near buy zones.

Tesla (TSLA) inched lower premarket Monday, but is still holding above the stock’s latest buy point.

Among the top stocks to watch, Advanced Micro Devices (AMD), Netflix (NFLX) and Palo Alto Networks (PANW) are in or near new buy zones, although the market, for now, remains in a correction.

Advanced Micro Devices, Microsoft and Tesla are IBD Leaderboard stocks. Palo Alto Networks is an IBD SwingTrader stock. Netflix featured in last week’s Stocks Near A Buy Zone column.

Dow Jones Futures Today: Oil Prices Spike

Ahead of the stock market open Monday, Dow Jones futures lost 0.3% vs. fair value, while S&P 500 futures moved down 0.5%. Nasdaq 100 futures declined 0.8% vs. fair value. Remember that trading in Dow Jones futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

U.S. crude jumped over 3% Monday morning, hitting a seven-year high. The price of oil traded as high as $82.18 a barrel, fueled by expectations of continued weak supply. Dow Jones energy giants Chevron (CVX) and ExxonMobil (XOM) rallied 1.6% and 1.5%, respectively, in premarket trade.

Chevron is approaching a 113.21 buy point, while Exxon stock is rapidly nearing a 65.03 buy point in a cup base, according to IBD MarketSmith chart analysis.

Among exchange traded funds, Innovator IBD 50 (FFTY) had yet to start trading Monday. Nasdaq 100 tracker Invesco QQQ Trust (QQQ) lost 0.7%. And the SPDR S&P 500 ETF (SPY) descended 0.4%.


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Stock Market Rally Attempt

The Nasdaq and S&P 500 continue to hold above last week’s correction lows, but both threatened to add to Friday’s weakness. Meanwhile, the Dow Jones Industrial Average remains just below its 50-day moving average after hitting resistance there on Thursday.

On Friday, The Big Picture commented, “With major stock indexes still below their 50-day lines, the stock market is still vulnerable to more downside, but a follow-through day could happen at any time. And stock market bulls are encouraged by the number of growth stocks that continue to show strength and support after earlier breakouts.”


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Dow Jones Stocks To Watch: American Express, Merck

Dow Jones leaders American Express and Merck are blue chip stocks to watch in today’s stock market action.

IBD SwingTrader stock American Express is approaching a 179.77 buy point in a cup with handle, according to IBD MarketSmith chart analysis. Shares were flat premarket Monday and are about 2% away from the new buy point.

Merck dropped 0.4% premarket Monday, on pace to add to Friday’s 1.6% drop. to Friday’s surge, rallying 2.1% Monday. Today, the company and partner Ridgeback Biotherapeutics asked the FDA to approve their experimental Covid pill. On Oct. 1, Merck stock broke out past a 79.33 buy point in a flat base after the company said the drug reduced the risk of hospitalization by half in a final-phase study. Shares remain in buy range.

Stocks To Watch: AMD, Netflix, Palo Alto

IBD Leaderboard stock Advanced Micro Devices threatened to fall further below its 50-day line, dropping about 1% premarket Monday. Shares are trying to regain that key benchmark, but are finding resistance. On Leaderboard, AMD exposure was raised after the stock moved above a trend line entry. AMD is also forming a cup-type base.

According to IBD Stock Checkup, AMD stock boasts a perfect 99 IBD Composite Rating. The IBD Composite Rating identifies stocks with a blend of strong fundamental and technical characteristics.

FANG stock leader Netflix traded just off new highs premarket Monday in the wake of Friday’s slight gain. NFLX stock is outside the 5% buy zone past a 593.39 entry point in a consolidation amid the recent global success of its series “Squid Game.”

IBD SwingTrader stock Palo Alto Networks is trying to clear a 496.02 entry in a short consolidation. Shares lost 0.3% premarket Monday, and are just below the new buy trigger. Bullishly, the stock’s relative strength line hit a new high last week, reaffirming the stock’s leadership status.


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


Tesla Stock

Tesla stock edged lower premarket Monday, threatening to add to Friday’s 1% decline. TSLA shares are still above a 764.55 buy point in a cup with handle.

TSLA shares closed Friday about 13% away from record highs. On Jan. 25, Tesla stock hit a record high of 900.40, after climbing as much as 93% from a 466 buy point in a cup-with-handle pattern.

Dow Jones Leaders: Apple, Microsoft

Among the top Dow Jones stocks, Apple moved down 0.7% premarket Monday, set to add to Friday’s 0.3% loss. The stock is still below the 50-day line, but above its recent lows.

Software giant Microsoft fell 0.8% in premarket trade, as the stock battles to retake the 50-day line. A new flat base is forming with a 305.94 buy point.

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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