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Dow Jones Futures Fall 225 Points As Apple Slides On Downgrade; Tesla Deliveries Imminent

Dow Jones futures greeted the new year by tumbling more than 225 points Tuesday morning as investors awaited reports on manufacturing and construction spending, as well as fourth-quarter delivery figures from Tesla (TSLA). Meanwhile, Apple (AAPL) stock slid on an analyst’s downgrade.




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Ahead of the opening bell, Dow Jones futures dropped 0.6% vs. fair value, while S&P 500 futures fell 0.8%. Tech-heavy Nasdaq 100 futures tumbled 1.15% in morning action.

Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) was down more than 1.1%, while the SPDR S&P 500 ETF (SPY) fell 0.8%.

Oil prices looked to rebound after a three-day losing streak, as West Texas Intermediate futures climbed nearly 2% Tuesday morning, going past $73 a barrel.

Early Tuesday, the S&P Global Purchasing Managers’ Manufacturing Index for December is due at 9:45 a.m. ET. The index is expected to have fallen to 48.2 vs. 49.4 in November.

Meanwhile, the Labor Department is scheduled to report construction spending at 10 a.m. After rising by 0.6% in October, November’s spending is expected to climb another 0.6%, per Econoday estimates.

On the earnings front this week, Cal-Maine Foods (CALM), Conagra (CAG) and Dow Jones member Walgreens Boots Alliance (WBA) will report their quarterly results.

Apple Downgrade, Tesla Deliveries

Apple declined 1.8% Tuesday morning after Barclays downgraded the stock from equal weight to underweight, with a new price target of 160, down from 161. Barclays analysts noted weakness in sales of iPhones and Mac computers.

Meanwhile, electric-vehicle giant Tesla plans to announce its fourth-quarter deliveries Tuesday morning. Wall Street expects Tesla to report deliveries between 475,000 and 480,000, according to Barron’s. TSLA stock was down 1% in premarket trading.

The EV leader skidded another 1.9% Friday, falling back below its latest entry at 252.75. Tesla stock has a big double-bottom pattern with conventional buy point of 278.98.


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Dow Jones At New Highs

The Nasdaq composite ended Friday down 0.6%, booking a yearly gain of 43.4%. This was its best annual lift since 2003.

The S&P 500 also gave up ground, falling 0.3% in the year’s final session. The benchmark index turned in an impressive gain of 24.2% for 2023.

Finally, the Dow Jones Industrial Average held up the best out of the major indexes on Friday despite a 0.1% dip. The Dow 30 rallied 13.7% for the year.

Friday’s Big Picture column commented, “A notable feature of 2023’s outperformance was the tremendous returns of stocks in the so-called Magnificent Seven group. Investors undoubtedly would like to see the stock market rally broaden out in the coming year. Key to this will be the Fed cutting interest rates. Investors undoubtedly will scour Fed minutes due in the coming week as they look for clues to future policy direction. The data is set to be released on Wednesday.”

Now is an important time to read IBD’s The Big Picture column amid the continuing stock market gains. Be sure to read how to invest during the ongoing uptrend.


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Best Stocks To Buy And Watch

Magnificent Seven player Alphabet (GOOGL), Celsius (CELH), Monday.com (MNDY), Netflix (NFLX) and Snowflake (SNOW) — along with Dow Jones components Amgen (AMGN), Caterpillar (CAT) and Visa (V) — are among the best stocks to buy and watch in the current market rally.

Microsoft and Netflix are featured in this Stocks Near A Buy Zone column.


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Dow Jones: Amgen Attempts Breakout

Drug leader Amgen is trying to break out past a 288.46 official buy point in a flat base amid a 0.15% fall Friday. AMGN stock inched higher early Tuesday.

Heavy machinery giant Caterpillar remains above a 293.88 buy trigger, despite a 0.4% drop Friday. CAT stock was off 0.6% Tuesday morning.

Payments leader Visa remains in buy range above a 250.06 entry in a cup base, according to IBD MarketSmith pattern recognition. V stock was down 0.4% Tuesday.


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Alphabet, Netflix In Buy Range

Alphabet is testing a 139.42 buy point in a cup with handle following a Dec. 20 breakout move. GOOGL stock dropped 0.7% early Tuesday.

Netflix ranks among the best stocks to buy and watch, even as it fell 0.7% Friday. The streaming giant broke past a 482.70 buy point out of a cup with handle in recent weeks. NFLX stock lost 0.9% Tuesday morning.

Fitness drink leader Celsius raced higher last week, bullishly retaking the 50-day line for the first time since early November. Investors could view the recent strength as an aggressive entry. The official buy point is 68.95. Investors could use 62.99 or a downward-sloping trendline as other early entries. CELH stock fell 0.8% Tuesday morning.

Monday.com continues to hold just above a 185.81 buy point in a cup with handle after a 1.6% loss Friday, according to IBD MarketSmith. MNDY stock was down 1.3% Tuesday.

Artificial intelligence leader Snowflake remains squarely in its buy range past a cup-with-handle’s 192.66 buy point, with a 1.1% fall Friday. SNOW stock declined 1.5% early Tuesday.


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Best Bets In Today’s Action

These are four best stocks to watch in today’s stock market, including a Dow Jones leader.

Company Name Symbol Correct Buy Point Type Of Buy Point
Celsius (CELH) 68.95 Consolidation
Caterpillar (CAT) 293.88 Cup base
Netflix (NFLX) 482.70 Cup with handle
Snowflake (SNOW) 192.66 Cup with handle
Source: IBD Data As Of Jan. 2, 2024

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Magnificent Seven Stocks: Nvidia

Magnificent Seven stock Nvidia (NVDA) lost 1.2% Tuesday morning.

Nvidia ended Friday’s session unchanged, holding just shy of a flat base’s 505.48 buy point. An IBD Leaderboard stock, Nvidia still is considered to be in a buy zone off a double-bottom base with a 476.09 entry that formed prior to the flat base.

Dow Jones Leaders: Microsoft

Among the Dow Jones stocks in the Magnificent Seven, Microsoft (MSFT), traded lower ahead of Tuesday’s stock market open.

Microsoft stock gained 0.2% Friday, still modestly above a 366.78 cup-base buy point. And the software giant was down 0.8% Tuesday morning.

Be sure to follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.

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