The Dow Jones Industrial Average dived 800 points Monday on rising Covid-19 fears. Apple and Tesla stock sold off in morning trade.
Among the Dow Jones leaders, Apple (AAPL) moved down nearly 3% Monday, while Microsoft (MSFT) dropped 0.7% in today’s stock market. McDonald’s (MCD) broke out past a new buy point last week, but is back below the entry.
Tesla (TSLA) was on track to extend a four-day losing streak, sliding about 2.5% Monday morning.
Dow Jones Today: Covid-19 Fears
The Dow Jones Industrial Average tumbled 2.3% Monday, while the S&P 500 sold off 1.7%. The tech-heavy Nasdaq slashed losses to about 0.9% in midday trade.
The recent resurgence in Covid-19 cases in many parts of the world — including highly-vaccinated countries like the U.K. — could hamper economic growth. In the U.S., coronavirus cases jumped 37% over the last seven days to 203,082, according to Worldometer.
Stock Market Rally Weakens
The S&P 500 continued to pull back from record highs Monday, while the Nasdaq looked to extend a losing streak to five sessions. The Dow Jones industrials are again trying to find support around their 50-day moving average.
Friday’s Big Picture column noted, “An early rebound attempt quickly deflated into another day of losses for stocks today. The weakening action, not just among key indexes but also vital sectors this year, prompts a more cautious stance.”
For more stock market commentary, check out IBD’s The Big Picture.
Dow Jones Stocks: McDonald’s
Dow Jones restaurant giant McDonald’s is trading below a 238.28 buy point in a flat base, according to IBD MarketSmith chart analysis, after last week’s brief breakout attempt.
Shares were down nearly 1% Monday.
Stocks To Buy And Watch: AMD, BioNTech
Chip giant Advanced Micro Devices is tracing a cup with handle that shows a 95.54 buy point, according to IBD MarketSmith chart analysis. Shares dropped 0.5% Monday morning and are about 10% away from the new buy point.
According to IBD Stock Checkup, AMD stock shows a solid 95 out of 99 IBD Composite Rating. The IBD Composite Rating identifies stocks with a blend of strong fundamental and technical characteristics. AMD was one of last week’s IBD Stocks Of The Day.
IBD Leaderboard stock and Covid-19 vaccine leader BioNTech is rebounding from its key 50-day moving average, placing the stock in a new buy area. The stock cut losses to 0.5% Monday morning.
Per Leaderboard analysis, “BioNTech is clearing a trend line following a recent pullback near 222, offering a new entry. The stock also is rebounding off its 10-week moving average. It joins Leaders as a new half size position.”
BioNTech is also an IBD SwingTrader stock.
Tesla stock skidded 2.5% Monday morning, on pace to extend a four-day losing streak. The electric-vehicle giant is again testing support around its long-term 200-day moving average. Another strong show of support at these levels would be bullish for the stock’s prospects.
On Jan. 25, Tesla stock hit a record high at 900.40, after climbing as much as 93% from a 466 buy point in a cup with handle.
Dow Jones Leaders: Apple, Microsoft
Among the top Dow Jones stocks, Apple sold off almost 3% Monday, on pace to extend a losing streak to three sessions. The stock hit an all-time high last week at 150.00.
Apple stock is extended past the 5% buy zone from a 137.17 entry in a cup base, according to IBD MarketSmith chart analysis.
Microsoft continues to trade solidly above a cup base’s 263.29 buy point. Shares lost 0.7% Monday. The stock is extended above the 5% buy zone, which goes up to 276.45.
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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