The Dow Jones Industrial Average rallied off lows on Monday as the stock market struggled to turn positive. Tesla (TSLA) CEO Elon Musk subpoenaed a key former Twitter employee as his takeover fight took another twist. Coinbase (COIN) and Riot Blockchain (RIOT) popped as Bitcoin rallied. Apple (AAPL) dipped despite a bullish analyst call.
Volume fell on both the Nasdaq and the New York Stock Exchange vs. the same time Friday.
The yield on the benchmark 10-year Treasury note jumped eight basis points to 3.11%. West Texas Intermediate crude oil spiked more than 4% to nearly $97 per barrel.
Stocks were trying to make a stand after Friday’s shellacking, triggered by a hawkish Jackson Hole speech by Federal Reserve Chairman Jerome Powell.
Nasdaq Off Lows; FFTY Shines
The Nasdaq composite was having the toughest time out of the major indexes, down about 0.6%. Okta (OKTA) was among the worst performers, falling than 3%.
The S&P 500 has battled off session lows but remains down 0.3% in the final hour of trading. Catalent (CTLT) is struggling here, dipping around 7%.
Blue-chip sectors are mostly red. Energy and utilities are among the best performers while health and technology lagging.
Small caps have also fought back against growling bears, with the Russell 2000 down just 0.3% after bottoming out at the opening bell.
The Innovator IBD 50 ETF (FFTY), a bellwether for growth stocks, is faring best, up about 0.8%.
Dow Jones Today: Apple Stock Dips Despite Bullish Call
The Dow Jones Industrial Average was near highs for the day but remained down slightly.
Apple stock disappointed, slipping almost 1% despite JPMorgan reiterating its overweight rating. The analyst noted that the iPhone “continues to have favorable lead times across geographies.”
Elon Musk Makes Twitter Legal Move
The ongoing takeover feud between Tesla CEO Elon Musk and Twitter took another twist Monday.
The eccentric executive’s lawyer has issued a subpoena to Twitter whistleblower Peiter Zatko, according to court filings.
This development comes after Twitter’s former security chief alleged the tech giant intentionally undercounted and misrepresented the number of bots on the platform.
This is a key plank to Musk’s argument that he should be able to walk away from his deal to buy the firm. A trial on the matter is slated for October.
Twitter stock has also slipped, giving up about 0.5%. It is holding above the 50-day moving average but lost ground on its 200-day line.
Coinbase Stock, RIOT Gain As Bitcoin Rallies
Coinbase was given a boost as Bitcoin rallied. COIN stock has impressed by battling its way out of negative territory to gain nearly 3% as the trading day draws to a close. Volume has been lighter, though this was a crumb of comfort.
The stock looks to be finding support at its 50-day line. This is important, as the cryptocurrency exchange was battered after it slashed its full-year forecast earlier this month.
COIN shares remain down almost 73% since the start of 2022, so it has much work to do.
Bitcoin was making its own comeback after getting knocked lower following Fed chief Powell’s Jackson Hole speech. It is trading back above the $20,000 mark after gaining about 1% in the past 24 hours, according to CoinDesk.
Outside Dow Jones: 3 Strong Stocks Near Buy Points
Investors should be keeping an eye out for strong stocks despite the choppy recent action.
Exxon Mobil stock is worth watching as it homes in on a consolidation pattern entry of 105.67, according to MarketSmith analysis.
In addition, the relative strength line sits near new highs, an encouraging sign.
XOM stock has a near-perfect IBD Composite Rating of 97. Stock market performance is bullish, with the stock rising 59% since the start of the year.
Improving earnings performance gives added credibility to a bullish outlook on Exxon Mobil stock.
UPS stock is another strong performer as it eyes a new entry. It has formed a cup-with-handle pattern with a 209.49 buy point. It made an encouraging move by retaking its 200-day moving average Aug. 10. This is now acting as an area of support.
The stock holds a strong Composite Rating of 88 out of 99. Earnings are a key strength, with EPS growing by an average of 18% over the past three quarters.
Finally, NRG Energy is trying to reach a cup-with-handle base entry of 44. The stock’s RS line has been rising this month, though it remains off highs.
The electric utility’s Composite Rating is 91. It is an institutional favorite, with 65% of its stock currently being held by funds.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more analysis of growth stocks.
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