The Dow Jones witnessed a decline as Boeing faced a substantial drop following aircraft groundings. Meanwhile, Nvidia’s stock achieved a record high.
Monday saw a 150-point drop in the Dow Jones Industrial Average due to Boeing grounding its 737 Max 9 jets, leading to a significant decline in Boeing’s stock. In contrast, Nvidia’s stock experienced a breakout, reaching a new high.
Following the market opening, the Dow Jones slipped by 0.4%, while the S&P 500 edged up by 0.35%. Simultaneously, the Nasdaq, which focuses on tech stocks, rose by 1% in the morning.
In the realm of U.S. exchange-traded funds (ETFs), the Invesco QQQ Trust (QQQ), which follows the Nasdaq 100, saw a 1% increase. Simultaneously, the SPDR S&P 500 ETF (SPY) rose by 0.3%.
On Monday, the 10-year Treasury yield increased to 4.05%, slightly up from Friday’s 4.04%, marking its highest level since December 12. Additionally, oil prices declined following last week’s gains, with West Texas Intermediate (WTI) futures dropping more than 3% on Monday morning, falling below $72 a barrel.
Boeing’s shares took an 8% dive on Monday morning as the Federal Aviation Administration ordered the temporary grounding of the 737 Max 9 jet over the weekend. This decision followed an incident on Friday when a door was torn off the side of an Alaska Airlines 737 during a mid-flight.
On Monday, the value of cryptocurrency stock Coinbase (COIN) went down by 2.5%, even though Needham, a financial firm, maintained its positive outlook by keeping a buy rating and raising the price target from 160 to 180.
This week, attention is on two key inflation reports: the consumer price index (CPI) for December on Thursday and the producer price index (PPI) on Friday.
In the financial sector, Friday marks the beginning of the fourth-quarter earnings season with reports from major banks like JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo.
Additionally, on Friday, we anticipate earnings reports from Delta Air Lines and UnitedHealth, shedding light on their performance in the last quarter.
the Dow Jones Industrial Average concluded a nine-week winning streak. The Nasdaq, a tech-heavy index, showed a slight increase but remained below its 21-day moving average, closing the week with a 3.3% decline. The Dow Jones and the S&P 500 also experienced losses of 0.6% and 1.5%, respectively.
Despite a minor setback, the stock market is still in a positive trend. It’s crucial to monitor your investments for any signs of selling, following the 20%-25% profit-taking rule.
For a comprehensive understanding of how to navigate the current market rally, it is recommended to read IBD’s The Big Picture column. It provides insights on adapting to changes in market conditions, including IBD’s new exposure levels.
Best Stocks To Buy And Watch
Some standout stocks to look at during the current market rally include Alphabet (GOOGL), Netflix (NFLX), Novo Nordisk (NVO), and Snowflake (SNOW). Additionally, Dow Jones components Amgen (AMGN), Caterpillar (CAT), and Visa (V) are considered top choices.
Caterpillar and Nvidia are specifically featured in a column titled “Stocks Near A Buy Zone,” indicating they might present good opportunities for potential investment.
Dow Jones analysis, Amgen’s stock is currently out of the buy range
Amgen, a major player in the pharmaceutical industry, minimized its losses to just 0.1% on Friday, nearly staying within the 5% buy range from a buy point of 288.46. The extended buy area extended up to 302.88. As of Monday morning, AMGN stock was down by 0.5%.
Caterpillar, a heavyweight in heavy machinery, was close to its buy point of 293.88 on Friday, approximately 2% below it despite a 1% gain. On Monday morning, CAT stock experienced a 0.3% decline.
Visa, a leading figure in payment services, remains within the buy range above a buy point of 250.06. On Monday, V stock showed a 0.4% increase.