Dow Jones Sells Off; Twitter, Elon Musk Set To Strike Deal

The Dow Jones Industrial Average sold off 360 points Monday morning, extending Friday’s sharp stock market losses. Twitter stock climbed after news reports said the company and Tesla Chief Executive Elon Musk are close to striking a deal. And Dow Jones stock Coca-Cola was a key earnings mover Monday morning.

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Twitter (TWTR) jumped 4% after Friday’s 3.9% gain. Bloomberg reported that an agreement could be finalized as early as Monday. Electric-vehicle giant Tesla (TSLA) skidded 3% Monday morning.

Among the Dow Jones leaders, Apple (AAPL) and Microsoft (MSFT) were both down around 1% in today’s stock market.

Amid a new stock market correction, Dow Jones leader American Express (AXP) — along with IBD Leaderboard stock LPL Financial (LPLA), Expedia (EXPE), Raytheon Technologies (RTX) and Shell (SHEL) — are among Monday’s top stocks to watch.

Microsoft and Tesla are IBD Leaderboard stocks. Caterpillar and Edwards Lifesciences were featured in this week’s Stocks Near A Buy Zone column. And Expedia was Thursday’s IBD Stock Of The Day.

Dow Jones Today: Treasury Yields, Oil Prices

After Monday’s open, the Dow Jones Industrial Average declined 1%, while the S&P 500 dropped 1.1%. The Nasdaq pared losses to 0.5% in morning trade.

Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) lost 0.7%. The SPDR S&P 500 ETF (SPY) moved down 0.75%.

The 10-year Treasury yield tumbled to 2.81% Monday after closing Friday at 2.91%. Last week, the 10-year Treasury yield hit its highest level since December 2018. Meanwhile, U.S. oil prices were down nearly 5%, as Texas Intermediate crude traded just above $97 a barrel.

New Stock Market Correction

On Friday, the stock market finished sharply lower, as the major stock indexes sold off with heavy losses.

Friday’s The Big Picture column commented, “After getting turned away at its 200-day moving average Thursday, the S&P 500 plunged 2.8%, taking out Monday’s low. The index is still holding above the March 16 follow-through day’s low, but the weak action was enough to change IBD’s market outlook to a market correction.”

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 buy points, or develop custom screens at IBD MarketSmith.

Five Dow Jones Stocks To Watch Now

Dow Jones Earnings: Coca-Cola

Dow Jones stock Coca-Cola (KO) reported better-than-expected first-quarter earnings results Monday morning, Shares climbed 2.6% in early morning trade.

KO shares ended Friday about 13% above a 57.66 buy point in a flat base.

Dow Jones Stocks To Buy And Watch: American Express

Dow Jones financial stock American Express finished Friday about 7% away from a cup with handle’s 194.45 buy point after the company’s first-quarter earnings results. AXP shares were down 0.8% Monday morning.

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

Stocks To Watch: LPL, Expedia, Raytheon, Shell

IBD Leaderboard stock LPL Financial remains above a 191.08 buy point in a cup with handle, but double-digit gains faded during a three-day losing streak. On April 21, shares climbed as much as 15.5% above the entry, which means that the stock is close to triggering the round-trip sell rule, according to IBD MarketSmith chart analysis. LPLA shares were down 1% Monday morning.

Thursday’s IBD Stock Of The Day, Expedia, is building a cup with handle with a 204.08 buy point. Shares are trying to regain their 50-day line, but are having some trouble at that key resistance level. EXPE stock shows a 90 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. Expedia shares were down 0.4% early Monday.

Defense contractor Raytheon Technologies gave up a flat base’s 104.44 buy point after sharp losses last week. RTX shares dropped more than 1% Monday morning. Raytheon reports earnings on April 26.

Oil-and-gas producer Shell dropped below a flat base’s 56.23 buy point after Friday’s 2.15% drop. SHEL shares slid more than 3% Monday morning.

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

Tesla Stock

Tesla stock skidded 3% Monday morning, threatening to add to Friday’s 0.4% decline.

Shares of the EV giant finished Friday about 13% away from a cup-with-handle’s 1,152.97 buy point. The stock traded as high as 1,243.49 on Nov. 4 and is about 19% away from that all-time high.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares triggered the 7%-8% loss-cutting rule from a 176.75 buy point in a double-bottom base in recent weeks. Apple stock fell further below its 50-day line Friday and may be setting up for a test of the long-term 200-day line. The stock dropped 1% Monday morning.

Software leader Microsoft sold off 2.4% Friday, further below its 50- and 200-day lines. The stock is more than 20% off its 52-week high. MSFT shares were down 0.8% early Monday.

Apple and Microsoft report earnings this week.

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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