Dow Jones Sells Off As Bitcoin Dives; Tesla Stock Plunges

The Dow Jones Industrial Average tumbled 500 points Monday, as the price of Bitcoin dived over the weekend. Tesla stock plunged 8% in morning trade. And a busy week of earnings news gets underway, with IBM due to report after the close.




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Among the Dow Jones leaders, apple (AAPL) loses 1.5% Monday, while Microsoft (MSFT) was down 2% in today’s stock market. Also among the Dow 30, Cisco Systems (CSCO) is battling for support at the 50-day line.

Electric vehicle leader Tesla (TSLA) traded down on 4% Monday. Lucid Group (LCID) fell around 2%. And Chinese EV leaders Li Auto (LI) and Xpeng Motors (XPEV) were squarely lower.

Among Monday’s top stocks to watch, American International Group (AIG), Baker Hughes (BKR) and Global Ship Lease (GSL) are near new buy zones. Keep in mind the current stock market status cautions investors to remain on the sidelines.

Microsoft and Tesla are IBD Leaderboard stocks.

Dow Jones Today: Treasury Yields

After the stock market open Monday, the Dow Jones Industrial Average tumbled 1.6%, while the S&P 500 dropped 1.9%. The tech-heavy Nasdaq composite sold off 2.2% in morning trade. Among exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) dropped 2% in morning trade, and the SPDR S&P 500 ETF (SPY) moved down 1.9%.

The 10-year Treasury yield ticked down to 1.74% Monday morning. On Friday, the 10-year Treasury yield slides below 1.75%.

Bitcoin

The price of Bitcoin dived about 12% over the weekend, trading as low as $33,046 Monday morning before mating some losses, according to CoinDesk. The cryptocurrency hit a record high on Nov. 10 at $68,990.

The ProShares Bitcoin Strategy ETF (BITO) plunged 12% Monday. And cryptocurrency exchange Coinbase (COIN) tumbled more than 11%, hitting more all-time lows.

Stock Market Sell-Off Worsens

The stock market posted another disappointing performance Friday, as the Nasdaq fell 7.5% last week, its worst weekly decline since the onset of the coronavirus pandemic in March 2020. The Dow Jones Industrial Average lost 1.3%, falling further below its 200-day moving average. And the S&P 500 fell 1.9%, closing below its 200-day line for the first time since June 2020.

Friday’s The Big Picture commented: “Several indicators point toward an oversold market, but that doesn’t mean a bottom is near. Renewed signs of accumulation would certainly help the indexes’ cause, but there are no signs of it yet as institutional investors continue to unwind positions in growth stocks.”

Amid this recent weakness, now is an important time to check out IBD’s The Big Picture. Instead of buying stocks, investors should be building watchlists with leading stocks showing clear relative strength. These could potentially become market leaders during the next decisive uptrend.


Five Best Dow Jones Stocks To Watch Now


Dow Jones Earnings: IBM

Dow Jones stock IBM (IBM) is set to report after the market close Monday. Analysts expect the company to earn $3.30 per share on sales of $16 billion. IBM shares are building a double-bottom base with a 146.10 buy point.

Dow Jones Stocks To Watch: Cisco Systems

Cisco Systems, a Dow Jones stock, fell further below its 58.73 double-bottom entry, according to IBD MarketSmith chart analysis, during Friday’s 2.4% fall. Shares are now below their 50-day line. Shares were down nearly 1% Monday.

Positively, the stock’s relative strength line made a new high in recent weeks, confirming the Dow Jones stock as a market leader, but the ongoing stock market weakness is dragging the stock down.


Three Top Growth Stocks To Watch In The Current Stock Market Weakness


Stocks To Watch: AIG, Baker, Global Ship Lease

AIG fell 2.6% Friday, closing right at the 50-day moving average as the stock forms a cup-with-handle base with a 62.35 buy point, according to IBD MarketSmith chart analysis. AIG shares were 2% lower Monday.

Energy leader Baker Hughes continues to trade just below a 27.76 cup-base buy point after Friday’s 1.95% advance. BKR shares were down 2% Monday.

Global Ship Lease, Thursday’s IBD 50 Stocks To Watch pick, added a handle to its cup base, lowering the buy point from 26.61 to 25.59. The stock boasts a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. GSL shares were down 3% on morning trade Monday.


Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live


EV Stocks: Li Auto, Xpeng, Lucid Motors

Li Auto stock extended a losing streak to four sessions Friday, falling 4.35%. Shares closed below their long-term 200-day line. The stock continues to build the right side of a consolidation with a 37.55 entry while an early entry at 33.86 is also in play. Shares fell 3.5% Monday.

Xpeng Motors, Tuesday’s IBD 50 Stocks To Watch pick, slid 6.3% Friday, dropping further below its 50-day line. The stock continues to build a consolidation with a 56.55 entry. Aggressive investors could use 51.60 as an earlier entry. Shares moved down 6.7% Monday.

Among US-based EV stocks, Lucid Motors shares skidded about 2% Monday. LCID stock remains extended past a 28.49 buy point in a cup-with-handle base. Meanwhile, the stock’s basing process ran into more trouble during last week’s losses and the stock is once again back below the key 50-day line.

Tesla Stock

Tesla stock traded down 8% Monday, hitting its lowest level since October. Shares are sharply below their 50-day line.

The stock traded as high as 1,243.49 on Nov. 4, but ended Thursday about 20% off that 52-week high.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple stock dropped another 1.3% Friday, falling further below the key 50-day line. Shares remain about 6% past a 153.27 buy point out of a cup-with-handle base, according to IBD MarketSmith chart analysis. Shares dropped 1.5% Monday.

Software leader Microsoft descended 1.85% Friday, as the top Dow Jones stock approaches its long-term 200-day moving average line. Shares were down 2% Monday.

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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