Dow Jones futures were little changed late Monday ahead of President Biden’s virtual meeting with Chinese President Xi Jinping. Tesla stock continued its recent fall, while Rivian extended its torrid run. And Lucid Motors jumped on earnings results late, while Home Depot and Walmart will report ahead of Tuesday’s open.
On Monday, the Dow Jones Industrial Average moved down less than 0.1%. The S&P 500 inched lower, while the Nasdaq also eased less than 0.1% lower.
Among the Dow Jones leaders, Apple (AAPL) rose a fraction Monday, while Microsoft (MSFT) lost 0.2% in today’s stock market. American Express (AXP), JPMorgan Chase (JPM) and Nike (NKE) continue to trade near new buy points in the current rally.
Dow Jones Today: Biden, Xi Meeting
After the stock market close Monday, Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, were little changed vs. fair value. Remember that premarket action in Dow Jones futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
U.S. Stock Market Today Overview
Last Update: 4:36 PM ET 11/15/2021
President Biden and President Xi plan to meet virtually Monday evening, but expectations are modest and neither expect concrete outcomes. Discussion topics include Taiwan, human rights and Chinese economic practices.
Stock Market Rally
The stock market rally took a breather Monday, as the major stock indexes logged minor losses.
On Friday, The Big Picture commented, “Yet, the stock market’s recovery healed much of the week’s earlier damage, and a prolonged slump now seems less likely. The past week’s moderate contraction served as a healthy shakeout, after the major indexes raced to record highs.”
For daily stock market commentary, be sure to check out IBD’s The Big Picture.
For now, the current pullback is completely normal, so investors should remain upbeat about the health of the uptrend. Continue to buy breakouts in top growth stocks. And watch for stocks that are holding up the best during this week’s weakness; they could continue to be some of the market’s leaders.
Dow Jones Stocks To Buy And Watch: Amex, JPMorgan, Nike
Meanwhile, JPMorgan remains in the 5% buy zone past a 163.93 entry in a cup with handle after a recent bounce off its 50-day moving average. The 5% buy area tops out at 172.13. JPM stock traded 0.2% lower Monday.
Dow Jones retail leader Nike remains squarely below its cup base’s 174.48 buy point amid Monday’s 0.1% loss.
Dow Jones Earnings: Home Depot, Walmart
Home Depot and Walmart will report earnings Tuesday morning.
Home Depot is expected to report EPS of $3.41, 7% above the year-ago quarter, per FactSet. Revenue is seen coming in at $34.88 billion, 4% higher than last year. Shares of the Dow Jones home improvement giant ended Monday just off new highs and about 10% from a 338.65 buy point in a flat base.
Walmart is expected to earn $1.40 per share on sales of $135 billion. Shares are forming a cup with handle with a 152.10 buy point. The discount retail giant featured in last week’s Earnings Preview story.
Stocks To Buy And Watch: Alphabet, On Holding, Shopify
IBD Sector Leader Alphabet remains just above a 2,925.18 buy point in a flat base, according to IBD MarketSmith chart analysis, following Monday’s slight fall. The 5% buy area runs up to 3,071.44, so the stock is in buy range.
IBD Stock Checkup shows GOOGL stock with a strong 97 out of a perfect 99 IBD Composite Rating. The IBD Composite Rating identifies stocks with a blend of strong fundamental and technical characteristics.
IBD Leaderboard stock On Holding is building a cup with handle with a 39.90 buy point amid Monday’s 2.1% fall. Per Leaderboard analysis, the stock recently crossed an aggressive trendline buy point near 36. The company will report earnings ahead of Tuesday’s market open. Analysts expect the company to lose 12 cents per share on sales of $197.1 million. Revenues are expected to grow 37% vs. the year-ago period.
On Friday, Shopify stock broke out past a 1,650.10 buy point in a consolidation with a more-than-12% surge. Shares gave back 0.8% Monday but are still in buy range. The 5% buy area goes up to 1,732.61.
EV Stocks To Buy And Watch: Xpeng, Lucid Motors, Rivian, Tesla
Xpeng Motors closed back below a 48.08 buy point in a choppy cup base following Monday’s 2.1% fall. On Friday, the stock broke out after the company teased a new electric vehicle. It will be unveiled at a Guangzhou auto show Nov. 19.
Late Monday, Lucid Motors said customer reservations grew from 10,000 to 13,000 in the third quarter, while the company ended the period with about $4.8 billion in cash. Shares surged as much as 11.5% to as high as 48.04 in the extended session before slashing gains to nearly unchanged.
“We see significant demand for the award-winning Lucid Air, with accelerating reservations as we ramp production at our factory in Arizona. We remain confident in our ability to achieve 20,000 units in 2022,” commented Chief Executive Peter Rawlinson.
Hot new issue Rivian surged nearly 15% Monday, extending a win streak to three sessions after the company’s strong Nov. 10 debut. Despite the stock’s initial surge, remember that investors should be disciplined about buying new issues. Wait for an IPO base to form and offer the stock’s first buy point before considering a purchase.
Tesla stock dropped nearly 2% Monday, extending a losing streak to three sessions.
Tesla traded as high as 1,243.49 on Nov. 4, but the stock ended Monday about 19% off its 52-week high. TSLA shares remain sharply above a 764.55 buy point in a cup with handle, as well as earlier entries at 700.10 and 730. The chart also showed an alternate entry at 900.50.
Dow Jones Leaders: Apple, Microsoft
Among the top Dow Jones stocks, Apple has formed a new cup-with-handle base with a 153.27 buy point, according to IBD MarketSmith chart analysis. Meanwhile, an early entry at 152.53 is also in play. Shares traded up less than 0.1% Monday after Friday’s 1.4% gain bounced off the key 50-day moving average.
A real flaw is the stock’s lagging relative strength line. That line is near recent lows, indicating sharp stock market underperformance vs. the S&P 500.
Software giant Microsoft moved down 0.2% Monday, giving back a part of Friday’s 1.3% gain. On Oct. 18, Microsoft broke out past a flat base‘s 305.94 buy point. The 5% buy zone tops out at 321.24, so the stock is now extended. Shares are just off new highs.
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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