Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, were slightly lower ahead of Tuesday's stock market open.
Artificial intelligence giant Oracle tumbled more than 6% in premarket trading after the company missed earnings and sales estimates late Monday. Oracle shares are set to open at their 50-day line if this weakness persists into market open.
Other key earnings movers include AutoZone, C3.ai, MongoDB and Ollie's Bargain Outlet. Shares of C3.ai surged nearly 14%, while MongoDB stock jumped 9.5% in extended trading.
Later in the week, Adobe, along with Costco Wholesale are scheduled to release earnings results.
Also this week, inflation reports in focus will be Wednesday's expected consumer price index and the producer price index, due Thursday. These offer a preview of the core personal consumption expenditures — or PCE — price index, due on Dec. 20. The index is seen as the Fed's primary inflation gauge.
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On Monday, the Dow Jones Industrial Average declined 0.5%, while the S&P 500 and Nasdaq both dropped 0.6%.
Nvidia sold off 2.6% Monday, closing right at the 10-week moving average line. That's a critical level to watch. A sharp rebound would place Nvidia stock in a new buy zone, while a decisive close below that level would be a key sell signal.
Tesla ended a volatile session with a slight gain. The electric vehicle giant topped out Monday at 404.80, its highest price since November 2021 when Tesla stock traded as high as 414.50.
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Dow Jones Futures Today: Oil Prices, Treasury Yields
Ahead of Tuesday's opening bell, Dow Jones futures edged lower vs. fair value, while S&P 500 futures and tech-heavy Nasdaq 100 futures were both down 0.1% vs. fair value. Remember that overnight action in Dow Jones futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
On Monday, the 10-year U.S. Treasury yield rose to 4.19%. And oil prices climbed, as West Texas Intermediate futures settled around $68.20 a barrel.
Remember that overnight action in Dow Jones futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
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AppLovin, Cava, MicroStrategy, Palantir Dive
AppLovin plunged nearly 15%, snapping a six-day win streak Monday after the app-monetization company failed to be added to the S&P 500. Apollo Global and Workday were added in AppLovin's place. On Friday, the stock topped out at 417.64, more than 350% above a cup base's 91.91 buy point.
Cava broke dived 12.1%, closing below the 50-day line for the first time since August. Volume was nearly 200% above average.
Bitcoin stock MicroStrategy tumbled 7.5%, as the price of bitcoin traded below $96,600. MicroStrategy shares closed at their lowest level since Nov. 26.
Palantir reversed from new highs to fall more than 5% Monday even after the company announced an expansion of its contract with the U.S. Special Operations Command.
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What To Do Now
Now is an important time to read IBD's The Big Picture column amid the ongoing stock market action. Following Monday's session, be sure to check out today's The Big Picture and today's updated exposure level.
On Monday's "IBD Live" show, the team discussed the current trading conditions of the stock market rally.
The market, or at least the Nasdaq, is to look stretched even after Monday's fall. It's not too concerning at this point, though it's a factor when considering to take some profits in extended stocks.
An extended Nasdaq does increase the risks of new purchases. If the composite continues to pull back, new breakouts would likely fall into negative territory. Meanwhile, many extremely extended hot stocks could suffer sharp losses.
An essential resource for daily breakouts is IBD MarketSurge's "Breaking Out Today" list. It shows MarketSurge Growth 250 stocks that are breaking out past buy points. Meanwhile, the MarketSurge "Near Pivot" list shows more stocks nearing buy points in bases.
To find more stock ideas, check IBD Stock Lists like IBD 50, Big Cap 20 and Stocks Near A Buy Zone. These features identify bullish patterns and buy points and are available to check every day.
Be sure to follow Scott Lehtonen on X/Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
