The Dow Jones Industrial Average and other major stock indices saw a rebound on Monday, with investors anticipating critical inflation data scheduled for release this week. Notable stock movements included Apple (AAPL), Nvidia (NVDA), and Tesla (TSLA).
After the market opened, the Dow increased by 0.9%, the S&P 500 rose by 1%, and the tech-heavy Nasdaq composite climbed by 1.2%.
The yield on the 10-year Treasury rose to 3.73%, and oil prices also increased, with West Texas Intermediate futures trading near $68.25 per barrel.
Among exchange-traded funds, the Invesco QQQ Trust (QQQ) was up 1.1%, and the SPDR S&P 500 ETF (SPY) gained 1% shortly after the market opened.
Performance of the Magnificent Seven
In early trading, Nvidia and Tesla, part of the Magnificent Seven group of tech stocks, showed gains of 2.7% and 3.4%, respectively. In contrast, Apple saw a decline of 0.5%.
Apple is on the brink of reaching a new buy point at 237.23 due to a cup with handle pattern, despite losing support at its 50-day moving average. The company is set to unveil its iPhone 16 series during a product event on Monday, which will feature artificial intelligence technology branded as Apple Intelligence. In addition to the new iPhones, Apple is expected to introduce the latest versions of its Apple Watch and AirPods.
Following a decline towards early August lows, Nvidia’s premarket gain came after it fell below its 50-day moving average last week. Tesla’s gains on Monday followed an 8.5% drop on Friday when it also fell below its 50-day line.
Inflation Data in Focus
The consumer price index for August will take center stage on Wednesday, closely followed by the producer price index on Thursday.
Earnings reports will continue, with notable releases expected from big tech companies like Oracle (ORCL) and Adobe (ADBE), and retail giants GameStop (GME) and Kroger (KR).
Stock Market Performance
On Friday, the Dow fell by 1%, the S&P 500 dropped by 1.7%, and the Nasdaq composite experienced a decline of 2.6%.
During Friday’s IBD Live show, analysts discussed the current trading conditions and provided insights for investors regarding the stock market.
Top Stocks to Watch
Prominent companies to monitor today include Costco Wholesale (COST), Meta Platforms (META), Netflix (NFLX), and Taiwan Semiconductor Manufacturing (TSM). Other Dow components worth noting are Amazon (AMZN), Apple, Home Depot (HD), IBM (IBM), and Microsoft (MSFT).
Only one new stock appeared on IBD MarketSurge’s “Breaking Out Today” list on Friday amid prevailing market weakness. Guidewire Software (GWRE) surged over 12% past a 153.85 flat-base entry and gained another 0.6% in morning trading on Monday.
In the Dow component landscape, Home Depot established a new handle buy point at 378.58 and rose 0.5% on Monday. IBM is performing within a buy range, with a recent entry point at 196.26, and it climbed 1% early Monday. Meanwhile, Costco stock remains below its 896.67 entry point but increased by 0.8%, and Netflix, after last week’s losses, saw a 1.3% rise despite being under its late-stage entry of 697.49. Taiwan Semiconductor Manufacturing gained 2.8%, building a cup with a handle that has a 175.45 entry point.
Stock Market Trends
Among the Magnificent Seven, Meta Platforms and Alphabet (GOOGL) experienced gains on Monday morning. Meta attempted to break out above a 542.81 buy point recently but is currently below that entry, rising 1.3% early on Monday. Alphabet has struggled around its 200-day line but gained 1.2% after significant declines on Friday.
In the Dow, Amazon shares were up 2.2%, nearing their 200-day moving average, while Microsoft climbed 1.3% although settling below the same moving average.
Follow Scott Lehtonen on X for updates on stock trends, the Dow, and the broader stock market.