The Dow Jones Industrial Average dropped 150 points Monday, as the U.S. government averted a shutdown. Meanwhile, Tesla stock skidded after the company's weaker-than-expected third-quarter deliveries.
Over the weekend, U.S. lawmakers passed legislation with bipartisan backing to extend funding through mid-November. The measure includes $16 billion in disaster relief while removing Ukraine aid. It excluded border-security measures sought by Republicans.
The bill also renews the expiring flood-insurance program through Nov. 17 and reauthorizes the Federal Aviation Administration through the end of December.
Friday's September jobs report is the highlight of this week's economic reports. Wall Street expects moderate strength, with 150,000 new jobs. The jobless rate is expected to tick down to 3.7% from 3.8%. Average hourly wages are seen growing 0.3%.
Stock Market Today
Electric-vehicle giant Tesla was down around 2% Monday morning, while Nvidia gained 2%. Dow Jones tech icons Apple and Microsoft nudged higher after today's stock market open.
DraftKings, social media giant Meta Platforms, IBD Leaderboard stock NOV and Uber Technologies — as well as Dow Jones stocks Amgen and Caterpillar — are among the stocks to watch in the ongoing stock market correction.
NOV is an IBD Leaderboard stock, while Meta featured in this Stocks Near A Buy Zone column.
Dow Jones Today: Oil Prices, Treasury Yields
After Monday's opening bell, the Dow Jones Industrial Average fell 0.5%, while the S&P 500 declined 0.25%. Tech-heavy Nasdaq composite rose 0.3% in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust rose 0.25%, while the SPDR S&P 500 ETF fell 0.1% early Monday.
Early action also showed the 10-year U.S. Treasury yield rising to 4.63%, rebounding from Friday's losses. The 10-year Treasury is holding just off its long-term highs.
Oil prices bounced Monday morning after Friday's retreat. West Texas Intermediate futures up 0.5% to above $91 a barrel.
Stock Market Correction
On Friday, the Dow Jones Industrial Average reversed 0.5% lower, while the S&P 500 lost 0.3%. The tech-heavy Nasdaq composite cut gains to just 0.1%.
Friday's Big Picture column commented, "With the stock market now well in the grip of a correction, IBD is recommending investors hold market exposure in the 0%-20% range. Now is the time to assemble a robust watchlist of strong stocks so you are prepared for the start of the next uptrend."
Monday is Day 4 of a rally attempt, so a follow-through could happen any day. A follow-through day signals the start of a new uptrend.
Now is an important time to read IBD's The Big Picture column, with the stock market outlook in a correction. Be sure to read how to handle the ongoing stock market weakness and prepare for a new uptrend.
Dow Jones Stocks: Amgen, Caterpillar
Drug giant Amgen finished Friday just above a 268.24 buy point in a cup with handle, per IBD MarketSmith pattern recognition. Shares dipped 0.6% Monday morning.
Dow Jones leader Caterpillar continues to form a flat base with a 293.88 buy point from strong gains dating back to early June. CAT stock slid 1.2% Friday, again giving up its 50-day line. Shares rose 0.8% Monday morning.
4 Top Growth Stocks To Buy And Watch In The Stock Market Correction
Stocks To Watch: DraftKings, Meta, NOV, Uber
DraftKings is building a cup-with-handle base that has a 32.65 buy point, per IBD MarketSmith pattern recognition. Shares are consolidating below their 50-day moving average, a key level to watch, after a solid rebound in recent days. DKNG stock rose 0.3% early Monday.
Social media giant Meta Platforms is tracing a base with 326.20 buy point. A handle appears to show a 312.87 buy point, but it is slightly in the lower half of the pattern. That would work as an early entry. Meta stock gave up its 50-day line during Friday's 1.2% decline. Shares gained 1.5% in morning trading.
IBD Leaderboard stock NOV is back below a 20.98 buy point in a cup with handle after two straight days of losses. Shares lost almost 1% Monday morning.
Uber Technologies is facing resistance at its 50-day line, with a 0.3% fall Friday. Uber is forming a flat base with a 49.49 buy point, and an early entry at 49.19. Shares ticked down a fraction Monday.
Learn How To Time The Market With IBD's ETF Market Strategy
Best Stocks In Today's Stock Market Action
These are four best stocks to buy and watch in today's stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Uber Technologies | 143.63 | Flat base | |
| Caterpillar | 293.88 | Flat base | |
| Airbnb | 154.95 | Cup base | |
| DraftKings | 32.65 | Cup with handle |
Source: IBD Data As Of Oct. 2, 2023
Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live
Tesla Stock
Tesla stock rebounded another 1.6% Friday, extending Thursday's gains. Shares closed just below their 50-day line. TSLA stock has an official cup-with-handle base with a buy point at 278.98, but shares are about 10% away from that entry.
Tesla deliveries fell to 435,059 in Q3, declining from Q2's record 466,140 and missing the analyst consensus around 455,000. Model 3 and Y deliveries slowed to 419,074, with most of that the higher-priced Model Y. Model S and X deliveries dropped to 15,985.
Production tumbled to 430,4888 in Q3 from Q2's 479,700, amid factory upgrades and an effort to slash inventory.
On Monday morning, TSLA stock was down around 2%.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple moved up for a second straight session, rising 0.3% Friday, still near its recent lows. Shares are sharply below their 50-day line after sharp losses in recent weeks. If AAPL stock can rebound, it would likely have a double-bottom base with a 189.98 buy point. Shares rose 1.1% Monday morning.
Microsoft shares rebounded another 0.7% Friday, up modestly for a third consecutive session after hitting a recent low during Thursday's session. And on Monday morning, the stock moved up 0.5% in early trades.
Be sure to follow Scott Lehtonen on X/Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
