Dow Jones futures and the other major indexes dropped Tuesday, as Apple stock sold off on a report that showed sharply slowing iPhone sales in China. Meanwhile, famed investor Cathie Wood sold nearly $31 million worth of Coinbase (COIN) on the stock market today.
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Dow Jones futures fell 0.3% vs. fair value in morning action, as S&P 500 futures dropped 0.4%. Tech-heavy Nasdaq 100 futures slipped 0.6% before the opening bell.
Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) exchange traded fund was down 0.5%, as the SPDR S&P 500 ETF (SPY) dipped 0.3%.
The 10-year Treasury yield fell 5 basis points to 4.17%. Further, oil prices added to Monday’s losses, as West Texas Intermediate futures fell 1.1%, trading under $78 a barrel.
Cathie Wood Sells, Apple Stock Falls
Cathie Wood’s Ark Invest funds sold nearly 135,000 shares of Coinbase stock Monday, or about $30.9 million worth using the closing price, per daily trade disclosures. Coinbase stock surged more than 11% Monday, hitting a new high.
Coinbase shares rallied nearly 4% premarket Tuesday, as the price of bitcoin rose to trade around $66,900, per CoinDesk. Bitcoin is up 3% over the last 24 hours.
Apple (AAPL) stock lost 2.2% Tuesday on a report that showed slowing iPhone sales in China. The company sold 24% fewer iPhones in China in the first six weeks of 2024 than a year earlier, according to research firm Counterpoint Research.
Be sure to read how to adjust to changing market conditions, with IBD’s new exposure levels.
Stock Market Today
Due out at 9:45 a.m. ET, the S&P Global’s Purchasing Managers’ Index for February is expected to hold steady at 51.4. The services index is also expected to remain unchanged from the mid-month estimate, with a 51.3 reading.
Meanwhile, the Commerce Department’s factory orders are due out at 10 a.m. Orders are expected to fall 3% in January.
Finally, the Institute of Supply Management’s services index is anticipated to fall to 53.0 in February vs. January’s 53.4 reading.
Key earnings movers Tuesday included First Watch Restaurant (FWRG), GitLab (GTLB), Nio (NIO) and Target (TGT).
First Watch rallied 8% in premarket action, while GitLab dived nearly 23%. Nio shares were down a fraction. And Target jumped more than 8% in early trading.
Dow Jones Falls
On Monday, the Dow Jones Industrial Average moved down 0.3% and the S&P 500 slipped 0.1%. The tech-heavy Nasdaq composite dropped 0.4%.
Monday’s Big Picture column commented, “The Nasdaq closed Monday more than 5% above its 50-day moving average; the S&P is nearly 5% above its 50-day line. Those gaps must be tempting sellers, although the stock market has withstood even higher gaps this year.”
Now is an important time to read IBD’s The Big Picture column amid the continuing stock market rally. Be sure to read how to adjust to changing market conditions, with IBD’s new exposure levels.
Learn How To Time The Stock Market With IBD’s ETF Market Strategy
Best Stocks To Buy And Watch In Stock Market Today
Duolingo (DUOL), Fortinet (FTNT) and Weatherford (WFRD) — plus Dow Jones components Disney (DIS), IBM (IBM) and Procter & Gamble (PG) — are among the best stocks to buy and watch on the stock market today.
IBM and Duolingo were featured in this Stocks Near A Buy Zone column.
A great resource for daily breakouts is IBD MarketSurge’s “Breaking Out Today” list. It shows MarketSurge Growth 250 stocks that are breaking out past new buy points. There was one breakout Monday: Rollins (ROL) that broke out past a 44.43 cup-with-handle entry.
Meanwhile, the MarketSurge “Near Pivot” list shows stocks nearing buy points in bases, like Samsara. Shares are approaching a 36.78 cup-with-handle entry.
Get Real-Time Buy And Sell Alerts On Stock Market Leaders With IBD Leaderboard
Dow Jones Stocks: Disney Eyes Buy Point
Disney is breaking out past a big cup-with-handle base’s 112.92 buy point, according to IBD MarketSurge chart analysis. Shares rallied 1.6% Monday. Disney stock moved down 0.3% Tuesday.
IBM stock is rapidly nearing a flat base’s 196.90 buy point, with a 2.6% advance Monday. IBM shares inched down 0.1% Tuesday.
Consumer products giant Procter & Gamble rose 0.5% Monday, holding above a 158.38 buy point in a cup base. P&G stock edged down 0.3% Tuesday.
3 Top Growth Stocks To Watch In The Stock Market Rally
Duolingo Eyes Buy Point
IPO Leader Duolingo is building the right side of a cup base that has a 245.87 buy point. Shares skidded 5% Monday. Duolingo shares fell 1.1% Tuesday morning.
Cybersecurity leader Fortinet is adding a handle to a long cup base, taking the buy point to 73.91. Fortinet stock rose 2.35% Monday. The stock lost 0.7% early Tuesday.
Oil stock Weatherford is back in buy range above a 102.65 buy point in a cup base, with a 3.2% drop Monday. The 5% buy range tops out at 107.78. Weatherford shares moved up a fraction Tuesday.
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Best Bets On Stock Market Today
These are four best stocks to watch in today’s stock market, including a Dow Jones leader.
Company Name
Symbol
Correct Buy Point
Type Of Buy Point
Novo Nordisk
(NVO)
105.69
Flat base
Merck
(MRK)
119.65
Cup base
DraftKings
(DKNG)
39.35
Cup base
Spotify
(SPOT)
202.88
Flat base
Source: IBD Data As Of Feb. 28, 2024
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Magnificent Seven Stock: Nvidia, Tesla
Among Magnificent Seven stocks, Nvidia (NVDA) gained 1.3%, while Tesla (TSLA) declined another 2.3% Tuesday.
AI giant Nvidia looked to add to Monday’s gains that saw the stock hit record highs. Shares are nearly 70% above a flat base’s 505.48 entry. Nvidia is an IBD Leaderboard stock.
Tesla stock closed at its lowest level since Feb. 13, with a 7.2% dive. Shares remain sharply below their 50- and 200-day lines.
Dow Jones Leaders: Microsoft
Among Dow Jones stocks in the Magnificent Seven, Microsoft (MSFT) traded lower ahead of Tuesday’s stock market open.
Microsoft shares remain out of buy range past a 384.30 buy point in a flat base, amid a 0.5% rise Friday. The software giant fell 0.2% on the stock market today.
Be sure to follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on growth stocks, the Dow Jones Industrial Average and the stock market today.
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