The Dow Jones Industrial Average fell 800 points Monday amid mounting fears of Covid-19. Shares of Apple and Tesla were sold in afternoon trading.
Among the Dow Jones leaders, Apple (AAPL) fell nearly 3% on Monday, while Microsoft (MSFT) fell 0.7% in today’s stock market. McDonald’s (MCD) broke past a new buying point last week but is back below imports.
Tesla (TSLA) was on track to extend a four-day losing streak, falling about 2.5% on Monday morning.
Microsoft and Tesla are IBD Leaderboard stocks. BioNTech is an IBD SwingTrader stock.
Dow Jones Today: Covid-19 fears
The Dow Jones Industrial Average fell 2.2% on Monday, while the S&P 500 sold 1.5%. The tech-heavy Nasdaq cut losses to about 0.85% in afternoon trading.
The recent resurgence of Covid-19 cases in many parts of the world – including highly vaccinated countries like the UK – could hamper economic growth. In the US, the number of coronavirus cases has risen 37% in the past seven days to 203,082, according to World Meter.
Stock market rally weakens
The S&P 500 continued to pull back from record highs on Monday, while the Nasdaq looked to extend a losing streak to five sessions. The Dow Jones indices are again trying to find support around their 50-day moving average.
Friday’s Big Picture column noted: “An early attempt at recovery quickly spiraled out of control in another day of losses for stocks today. The weakening action not only across major indices but vital sectors this year , calls for a more cautious attitude.”
For more stock commentary, check out IBD’s The Big Picture.
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Dow Jones Stocks: McDonald’s
Dow Jones restaurant giant McDonald’s is trading below a 238.28 buy point in a flat base, according to IBD MarketSmith chart analysis, after last week’s brief breakout attempt.
The stock lost nearly 1% on Monday.
Stocks to Buy and Watch: AMD, BioNTech
Chip giant Advanced Micro Devices is tracking a handle cup showing a buy point of 95.54, according to IBD MarketSmith chart analysis. Shares fell 0.5% Monday morning and are about 10% away from the new buying point.
according to IBD stock control, AMD Shares shows a solid 95 out of 99 IBD Composite Rating. The IBD Composite Rating identifies stocks with a mix of strong fundamental and technical characteristics. AMD was one of the IBD stocks of the day last week.
IBD Leaderboard stock and Covid-19 vaccine leader BioNTech recovers from its key 50-day moving average, placing the stock in new buying territory. The stock lost up to 0.5% on Monday morning.
According to Leaderboard analysis, “BioNTech is clearing a trendline after a recent pullback near 222, offering a new entry. The stock is also bouncing back from its 10-week moving average. It joins Leaders as a new position of half size.”
BioNTech is also an IBD SwingTrader stock.
Tesla shares slipped 2.5% Monday morning, picking up pace to extend a four-day loss streak. The electric vehicle giant is once again testing support around its long-term 200-day moving average. Another strong sign of support at these levels would be bullish for the stock’s outlook.
On January 25, Tesla hit a record high of 900.40, after rising a whopping 93% from a 466 buy point in a handle cup.
Dow Jones Leaders: Apple, Microsoft
Of the top Dow Jones shares, Apple sold nearly 3% Monday, paced to extend a losing streak to three sessions. The stock hit an all-time high of 150.00 last week.
According to the IBD MarketSmith chart analysis, Apple stock has expanded beyond the 5% buying zone from an entry of 137.17 in a cup basis.
Microsoft continues to trade briskly above the 263.29 buy point of a cup base. The stock lost 0.7% on Monday. The share expands above the 5% buy zone, which rises to 276.45.
Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more information on growth stocks and the Dow Jones Industrial Average.
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