The Dow Jones Industrial Average sold off Monday, as Russian and Ukraine leaders reportedly met to talk at the Belarusian border. Treasury yields tumbled, oil prices surged and defense stocks rallied as European countries continued to respond to Russia’s attack, while banks and financials led a sell-off sparked by expanding Western sanctions on the Russian financial system.
Among the Dow Jones leaders, Apple (AAPL) dropped 1.1% and Microsoft (MSFT) traded down 0.6% in today’s stock market. American Express (AXP), a Dow Jones stock to watch, was down 2% and set to pullback to a buy point after a strong bounce Friday.
Javelin missile-makers Raytheon (RTX) and Lockheed Martin (LMT) jumped 1% and 1.6%, respectively, leading the defense stocks to the top of the S&P 500. Electric-vehicle leader Tesla (TSLA) rose more than 1% Monday, as the stock looked to add to a two-day win streak.
Amid a volatile, headline-driven market, Northern Oil & Gas (NOG), Nutrien (NTR), Palo Alto Networks (PANW) and Ryan Specialty (RYAN) are among Monday’s top stocks to watch. Keep in mind that current stock market conditions should keep investors in cash and on the sidelines.
Dow Jones Today: Russia-Ukraine Talks
After the stock market open Monday, the Dow Jones Industrial Average traded down 1.4%, while the S&P 500 dropped 1.05%. The Nasdaq descended 0.7% in morning trade. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) lost 0.7%, and the SPDR S&P 500 ETF (SPY) declined 1% after Monday’s open.
European markets were also down sharply Monday. The German DAX sold off 1.8%, the London FTSE was down 0.85% and the French CAC was off 2.5%.
The 10-year Treasury yield ticked down to 1.89% Monday morning. On Friday, the 10-year Treasury yield closed above 1.98%. Meanwhile, U.S. oil prices surged 4% Monday, with West Texas Intermediate crude eased back below $96 a barrel. Europe’s Brent crude benchmark traded up almost 3%, holding above the $100 mark.
Ukraine’s defense minister reportedly arrived Monday for talks with Russian officials at the Ukrainian border with Belarus, but prospects for a cease-fire were uncertain. Meanwhile, the United States announced further sanctions Monday morning, banning Americans from doing any business with Russia’s central bank.
Over the weekend, the U.S., European Union, U.K. and Canada agreed to suspend some Russian banks from the payments system known as the Society for Worldwide Interbank Financial Telecommunication, or Swift, and to target Russia’s central bank. On Sunday, Russian President Vladimir Putin placed the country’s nuclear deterrence forces on alert, upgrading the potential scale of the conflict.
Stock Market Correction
The stock market posted more positive action Friday, as the major stock indexes ended with strong gains. Amid the current volatility, it’s an important time to read IBD’s The Big Picture column.
Friday’s The Big Picture commented, “With Thursday’s impressive rebound and Friday’s additional gains, the stock market looks to have shaken out a great many sellers. Indexes undercut the January lows, another sign that selling may be exhausting itself.”
If you’re new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one key to the investment guidelines. IBD offers a broad range of growth stock lists, such as Leaderboard and SwingTrader.
Dow Jones Stocks To Watch: American Express
American Express broke out on Feb. 8 past what IBD MarketSmith chart analysis plotted as a cup base buy point at 189.13. Shares regained the buy point Friday with a strong rebound. AXP stock traded down 2% in morning trade Monday, pulling back to the buy point.
Bullishly, the stock’s relative strength line is right at new highs, indicating significant stock market outperformance.
Stocks To Watch: Nutrien, Northern Oil, Palo Alto, Ryan Specialty
Fertilizer maker Nutrien is nearly out of buy range above a flat base’s 77.45 buy point after Friday’s 4.8% advance. The 5% buy area goes up to 81.32. The relative strength line hit another new high Friday, which is a sign of strong stock market outperformance. NTR stock shows a perfect 99 IBD Composite Rating, per IBD Stock Checkup. NTR shares gained 0.5% Monday.
Cybersecurity leader Palo Alto Networks is breaking out past a consolidation’s 572.77 buy point amid Monday’s 1.8% gain, according to IBD MarketSmith chart analysis. The RS line is at new highs. Last week, the company reported strong earnings and sales.
IPO Leader Ryan Specialty is approaching a 40.65 buy point in a double bottom with handle following Friday’s 1.7% advance. Shares of the insurance fintech provider were up 0.1% Monday.
Tesla stock rose more than 1% Monday morning, looking to add to Friday’s 1.1% gain. The stock remains below its long-term 200-day line after sharp losses last week. There is no proper entry in sight, as the stock continues to consolidate.
The stock traded as high as 1,243.49 on Nov. 4, but ended Friday about 35% off that all-time high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock moved up 1.3% Friday, but remains below the key 50-day line. Shares are forming a double bottom with a 176.75 buy point. Apple shares dropped 1.1% Monday.
Software leader Microsoft climbed nearly 1% Friday, rising for a second straight day. The Dow Jones stock is just under the long-term 200-day line. MSFT stock moved down 0.6% Monday morning.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
YOU MAY ALSO LIKE: