The Dow Jones Industrial Average and other key stock indices saw a bounce back on Monday in anticipation of important inflation reports scheduled for the week. Notable early performers in the stock market were Apple (AAPL), Nvidia (NVDA), and Tesla (TSLA).
After trading commenced, the Dow rose by 0.9%, while the S&P 500 increased by 1% and the tech-heavy Nasdaq composite gained 1.2%.
On Monday morning, the yield on the 10-year Treasury note edged up to 3.73%. Oil prices also saw an increase, with West Texas Intermediate futures hovering around $68.25 per barrel.
Among exchange-traded funds, the Invesco QQQ Trust (QQQ) climbed by 1.1%, and the SPDR S&P 500 ETF (SPY) rose by 1% shortly after opening.
In the morning session, two stocks from the Magnificent Seven—Nvidia and Tesla—experienced gains of 2.7% and 3.4%, respectively, while Apple saw a decline of 0.5%.
Apple’s stock is approaching a new buy point of 237.23, despite losing support at the 50-day moving average. The tech giant is set to launch its iPhone 16 series at an event on Monday, featuring new enhancements powered by artificial intelligence, branded as Apple Intelligence. Additionally, new versions of the Apple Watch and AirPods are also expected to be announced.
Last week, Nvidia’s stock slid back toward its early August lows, falling below its 50-day line before recovering in Monday’s premarket session. Tesla also saw a rebound on Monday after slipping below its 50-day line on Friday during an 8.5% drop.
The stock market is closely watching inflation data, with Wednesday’s consumer price index for August and Thursday’s producer price index being key reports.
Although earnings season is winding down, significant reports are still anticipated this week from major tech companies Oracle (ORCL) and Adobe (ADBE), along with GameStop (GME) and Kroger (KR).
On Friday, the Dow dropped by 1%, while the S&P 500 fell by 1.7%, and the Nasdaq composite experienced a decline of 2.6%.
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Among the notable stocks to keep an eye on include Costco Wholesale (COST), Meta Platforms (META), Netflix (NFLX), and Taiwan Semiconductor Manufacturing (TSM), along with Dow Jones constituents Amazon (AMZN), Apple, Home Depot (HD), IBM (IBM), and Microsoft (MSFT).
In Friday’s report, only one new stock was noted on IBD MarketSurge’s “Breaking Out Today,” as Guidewire Software (GWRE) surged more than 12% past a 153.85 flat-base entry. The stock was up 0.6% in early trading on Monday.
Additionally, stocks like Home Depot and IBM are showing potential for gains, with Home Depot registering a 0.5% rise and IBM gaining 1% on Monday.
Costco is trading below its cup-base entry point of 896.67, increasing by 0.8%, while Netflix, after last week’s setbacks, saw a 1.3% rise but remains under its late-stage cup base buy point of 697.49.
Taiwan Semiconductor Manufacturing is in the process of forming a cup with handle with a buy entry at 175.45, gaining 2.8% during Monday’s early trading.
Among the Magnificent Seven, Meta Platforms and Alphabet (GOOGL) also increased in morning trading, with Meta attempting to regain its 50-day line after a recent attempt to break out above a 542.81 buy point. Meanwhile, Alphabet’s shares rose 1.2% following a drop last Friday.
For Dow Jones leaders, Amazon and Microsoft both experienced gains, with Amazon up 2.2% and Microsoft increasing by 1.3% as they approach their respective support levels.