Dow Jones Futures Rise: Stock Market Sells Off On China Property Default Fears
Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, were higher late Monday following today’s stock market sell-off. Tech giants Advanced Micro Devices, Apple, Nvidia and Tesla stock tumbled Monday, as the China property default fears spread.
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On Monday, the Dow Jones Industrial Average dived 1.8%. The S&P 500 tumbled 1.7%, while the Nasdaq plunged 2.2% even after paring some losses. The tech-heavy Nasdaq composite broke down through its key 50-day support level.
Among the Dow Jones leaders, Apple (AAPL) slid 2.1%, while Microsoft (MSFT) moved down 1.9% in today’s stock market. Nike (NKE) offers a new buy point, but fell further below a key technical level. Nike earnings are due out late Thursday.
Tesla (TSLA) skidded nearly 4%, closing right at the stock’s latest buy point. Chip giants Advanced Micro Devices (AMD) and Nvidia (NVDA) descended 2.2% and 3.6%, respectively.
Among the top stocks to buy and watch, Chipotle Mexican Grill (CMG) and Deckers Outdoor (DECK) were holding up relatively well during Monday’s stock market weakness.
Deckers, Microsoft and Tesla are IBD Leaderboard stocks. Chipotle was featured in this week’s Stocks Near A Buy Zone column.
Dow Jones Futures Today: China Property Default Fears
After the stock market close Monday, Dow Jones futures rose 0.4% vs. fair value, while S&P 500 futures gained 0.3%. Nasdaq 100 futures rose 0.3% vs. fair value. Remember that trading in Dow Jones futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 33970.80 | -614.08 | -1.78 |
| S&P 500 | (0S&P5) | 4357.64 | -75.35 | -1.70 |
| Nasdaq | (0NDQC ) | 14713.90 | -330.07 | -2.19 |
| Russell 2000 | (IWM) | 217.24 | -5.13 | -2.31 |
| IBD 50 | (FFTY) | 49.22 | -1.36 | -2.69 |
Last Update: 4:28 PM ET 9/20/2021 |
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Monday’s stock market weakness came amid fears over property developer China Evergrande Group. Investors increasingly believe that Beijing will let Evergrande fail and inflict losses on its shareholders and bondholders, according to the Wall Street Journal The company’s debt burden is the biggest for any publicly traded real estate management or development company in the world.
Among exchange traded funds, Innovator IBD 50 (FFTY) dropped 2.6% Monday. Nasdaq 100 tracker Invesco QQQ Trust (QQQ) lost 2.2%. And the SPDR S&P 500 ETF (SPY) descended 1.7%.
Stock Market Breaks Key Support
The Nasdaq broke down sharply below its 50-day line Monday, adding more selling pressure to the major stock indexes. The S&P 500 broke support at that level Friday, while the Dow Jones Industrial Average hit its lowest level since June 21. After Monday’s weakness, it would be a good time to read Monday’s The Big Picture.
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Dow Jones Stocks To Buy And Watch: Nike
Dow Jones leader Nike is tracing a flat base with a 174.48 buy point, according to IBD MarketSmith chart analysis. But shares are below their key 50-day moving average line. Retaking support at that critical level would be bullish for the stock’s immediate prospects. Shares were down 1.4% Monday.
Nike earnings are due Thursday.
Through Sept. 10, Nike was the No. 8 performer on the Dow Jones Industrial Average, advancing more than 15%. Goldman Sachs (GS) was the top Dow Jones stock, with a year-to-date gain of 52% through Sept. 15.
Stocks On The Move: AMD, Nvidia
Chip giants Advanced Micro Devices and Nvidia sold off sharply Monday.
AMD stock dropped 2.2% Monday. Shares are forming a consolidation with a 122.59 buy point, according to IBD MarketSmith chart analysis. AMD stock is now below its 50-day line, a sign of weakness for the stock’s base-building process.
Nvidia slid 3.6% Monday. The stock triggered the round-trip sell signal from a 207.43 buy point in a cup with handle. Investors should sell when a stock gives up the entirety of a double-digit gain to avoid taking a loss.
Stocks To Buy And Watch: Chipotle, Deckers
Friday’s IBD Stock Of The Day, Chipotle Mexican Grill, is rebounding from its key 50-day moving average, though it fell 1.3% Monday. The burrito chain has been trading tightly following a post-earnings jump. Look for continued support around its 10-week line, which would be bullish for the stock’s prospects during the current market weakness. Positively, the stock’s RS line is at new highs.
According to IBD Stock Checkup, CMG stock boasts a perfect 99 IBD Composite Rating. The IBD Composite Rating identifies stocks with a blend of strong fundamental and technical characteristics.
IBD Leaderboard stock Deckers Outdoor is trying to break out past a 444.58 entry in a flat base, according to IBD MarketSmith, but fell further below the buy point amid Monday’s 2.1% loss. Per Leaderboard commentary, the top retail stock has cleared a mini-trendline entry near 433, providing an early buy point. Its relative strength line is also near new highs.
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Tesla Stock
Tesla stock sold off 3.9% Monday, snapping a five-day win streak and closing just above the stock’s latest buy point at 730. Shares also remain above their 700.10 aggressive buy point deep inside a correction. Meanwhile, a deep, large base continues to take shape.
On Jan. 25, Tesla stock hit a record-high 900.40, after climbing as much as 93% from a 466 buy point in a cup-with-handle.
Dow Jones Leaders: Apple, Microsoft
Among the top Dow Jones stocks, Apple moved down 2.1% Monday, falling further below key support at the 50-day line. Apple stock hit its lowest level since early July.
Software giant Microsoft dropped 1.9% Monday, adding to Friday’s 1.75% decline. Shares briefly traded below their 50-day line for the first time since a June 21 breakout above a 263.29 buy point before closing just above it.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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