Investors.com:
The Dow Jones Industrial Average rallied 25 points early Monday, as oil prices briefly spiked above $82. Apple stock and Tesla traded mixed in morning trade.
Among the Dow Jones leaders, Apple (AAPL) fell 0.7% 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 higher Monday, and 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 was featured in last week’s Stocks Near A Buy Zone column.
Dow Jones Today: Oil Prices Spike
After the stock market open Monday, the Dow Jones Industrial Average rose 0.1%, while the S&P 500 moved down 0.1%. The tech-heavy Nasdaq composite dropped 0.3% in morning trade.
U.S. crude jumped more than 3% Monday morning, hitting a seven-year high before paring some gains. 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 0.4% and 0.5%, respectively, in morning 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) moved down 0.1% Monday. Nasdaq 100 tracker Invesco QQQ Trust (QQQ) lost 0.3%. And the SPDR S&P 500 ETF (SPY) descended 0.2%.
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 slightly higher Monday and are about 2% away from the new buy point.
Merck rose nearly 1% Monday, on pace to recover from Friday’s 1.6% drop. 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% Monday. Shares are trying to regain that key benchmark, but are finding resistance. 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 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 1% 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.
Tesla Stock
Tesla stock edged higher Monday, looking to rebound from 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% 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 early trade, as the stock battles to retake the 50-day line. A new flat base is forming with a 305.94 buy point.
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