The Dow Jones Industrial Average suffered a massive 150-point decline on Monday following a sharp decline in Boeing’s stock following the grounding of its 737 Max 9 jets. In sharp contrast, Nvidia reached an all-time high and established a new buy point. Let’s delve into the intricate details of this market scenario.
The Dow Jones Industrial Average fell 0.4% at the opening bell, versus a 0.35% gain for the S&P 500. The Nasdaq Composite rose 1% in morning trading, driven by tech shares. Exchange-traded funds such as the Invesco QQQ Trust (QQQ) and the SPDR S&P 500 ETF (SPY) demonstrated a variety of activity.
Market Overview
Market economic indicators displayed a mixed picture, with the 10-year Treasury yield rising to 4.05%, the highest since December 12. Additionally, oil prices fell more than 3%, sending West Texas Intermediate futures below $72 a barrel. Boeing, which suffered an 8% decline, faced a temporary grounding of 737 Max 9 jets by the Federal Aviation Administration following the incident with an Alaska Airlines flight.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Novo Nordisk | NVO | 105.69 | Flat base |
| Caterpillar | CAT | 293.88 | Cup base |
| Netflix | NFLX | 482.70 | Cup with handle |
| Snowflake | SNOW | 192.66 | Cup with handle |
Stock-Specific Activities
Despite the market turmoil, Coinbase stock displayed resilience, falling only 2.5% while maintaining a buy rating. The coming week promises important economic data, including a key inflation report and the launch of banks’ fourth quarter reporting season.
Market Forecast Till 2024
Despite minor fluctuations, the bullish trend in the stock market continues. However, caution is urged as investors need to remain alert to any potential sell signals. Key economic indicators, such as the December Consumer Price Index and Producer Price Index, will play a key role in shaping the market story.
Performance of Major Indices
The major indexes ended a nine-week winning streak, with the Dow Jones Industrial Average and S&P 500 falling 0.6% and 1.5%, respectively. The Nasdaq Composite closed the week down 3.3%, slightly below the 21-day exponential moving average.
Stocks to Watch
Highlighted as the best stocks to buy and watch are Alphabet, Netflix, Novo Nordisk, Snowflake, as well as Dow Jones components Amgen, Caterpillar, and Visa.
Individual Stock Analysis
Amgen, Caterpillar, and Visa demonstrated diverse activity, with Amgen staying out of the 5% buy range, Caterpillar staying below its buy trigger, and Visa staying in the buy range. On the other hand, Alphabet, Netflix, Novo Nordisk and Snowflake had a mixed performance.
Best Bets in Today Action
Novo Nordisk, Caterpillar, Netflix and Snowflake have been viewed as the four best stocks to watch, each with their own perfect buy points.
Magnificent Seven Stocks: Nvidia, Tesla
In contrast to Tesla’s six consecutive losing sessions, Nvidia reached a new high. Nvidia maintains its position above the entry of the double-bottom base, establishing a new flat base. Conversely, Tesla remains just above the 50-day line, demonstrating an essential double-bottom pattern.
Dow Jones Leaders: Apple, Microsoft
Apple experienced a drop below its 50-day line while testing the longer-term 200-day line. On the contrary, Microsoft maintained a positive trajectory while remaining above the cup-base buy point.
Conclusion
In short, the market saw a complex interplay of factors, with Boeing’s setback a stark contrast to Nvidia’s record-breaking performance. Investors are advised to closely monitor economic indicators, individual stock movements and possible changes in market trends. The coming weeks, marked by earnings season and important economic reports, are set to define the trajectory of the stock market.