The Dow Jones Industrial Average saw a failed rally attempt as the stock market continued to struggle. Tesla (TSLA) CEO Elon Musk called on a key former Twitter employee as his takeover battle took a new turn. Coinbase (COIN) and Riot Blockchain (REBELLION) had mixed fortunes as Bitcoin soared. An apple (AAPL) fell despite the analyst’s bullish call.
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Meanwhile, a trio of notable stocks looked bullish despite mixed action. Exxon Mobil (XOM), United Parcel Service (UPS) and NRG Energy (NRG) all showed strength near buy points.
Volume fell on both the Nasdaq and the New York Stock Exchange, according to early data.
The yield on the benchmark 10-year Treasury note jumped eight basis points to 3.11%. West Texas Intermediate crude jumped more than 4% to near $97 a barrel.
Stocks tried to rally after Friday’s shellacking sparked by Federal Reserve Chairman Jerome Powell’s hawkish Jackson Hole speech.
Nasdaq Falls; Struggle with small capitals
The Nasdaq Composite had the hardest time of the major indexes. An attempt to fight off the lows failed as it closed down 1%. Octa (OKTA) was among the worst performers, falling 3.9%.
The S&P 500 was also lower at the close, down 0.7%. Catalent (CTLT) struggles here, sinking 7.4%.
S&P 500 sectors ended the day almost all negative. Energy and utilities were the only positive areas, while real estate and technology fell the most.
Bears pounced on small caps late, with the Russell 2000 closing the session down 0.8%.
The Innovator IBD 50 ETF (FFTY), the stock’s gainer, had spent much of the session in positive territory, but reversed late to give up 0.3%.
Dow Jones today: Apple shares lower despite bullish call
The Dow Jones Industrial Average ended the day down nearly 200 points after falling 0.6%.
Apple shares disappointed, falling 1.4%, although JPMorgan reiterated its overweight rating. The analyst noted that the iPhone “continues to have favorable delivery times in various geographies.”
AAPL’s stock is currently on hold point of purchase from 176.25, according to MarketSmith analysis.
But Salesforce (CRM) was the worst performing component as it fell 3%.
Walmart (WMT) and Chevron (CVX) were the Dow Jones’ best performers today, rising 1% and 0.7%, respectively.
Elon Musk makes Twitter a legal move
The ongoing takeover feud between Tesla CEO Elon Musk and Twitter took a new twist on Monday.
The eccentric executive’s attorney has issued a subpoena to Twitter whistleblower Peter Zatko, according to court documents.
The development comes after Twitter’s former security chief claimed the tech giant deliberately understated and misrepresented the number of bots on the platform.
This is a key basis in Musk’s argument that he should be able to back out of his deal to buy the company. The trial in the case is scheduled for October.
Tesla shares ended the session down 1.1% vs the stock market today. It lost some ground on the key 200-day moving average, according to MarketSmith analysis.
Shares of Twitter also fell, falling 1%. It sought support at the 50-day moving average and lost ground at its 200-day line.
Coinbase shares fall, RIOT gains as Bitcoin rallies
Coinbase was boosted by the rise in the price of Bitcoin before handing over profits late. COIN shares spent most of the session up before closing down 0.6%.
The stock appears to be finding support at its 50-day line. This is significant as the cryptocurrency exchange was hit after it cut its forecast for the full year earlier this month.
COIN shares remain down almost 74% since the start of 2022, so there is a lot of work to be done.
Bitcoin was trying to fight back after falling after Fed chief Powell’s Jackson Hole speech. It is trading back above the $20,000 mark after gaining 0.8% in the last 24 hours, according to CoinDesk.
Other cryptocurrency stocks have had mixed fortunes. Bitcoin mining game Riot Blockchain (REBELLION) rose 2.7%, but Grayscale Bitcoin Trust (GBTC) fell by 0.6%%
Outside the Dow Jones: 3 strong stocks near buy points
Investors should keep an eye out for strong stocks despite volatile recent action.
Exxon Mobil shares are worth watching as they are sticking to a consolidation pattern at 105.67, according to MarketSmith analysis.
In addition, the relative strength line is near new highs, an encouraging sign.
XOM stock has a near perfect IBD Composite Rating of 97. The stock market performance is bullish as the stock up 59% year-to-date.
Improving earnings performance lends further credence to the bullish outlook Exxon Mobile warehouse.
UPS shares are another strong performer as they await another entry. He has formed a cup with handle pattern with a buy point of 209.49. It made an encouraging move by retaking its 200-day moving average on August 10. This now acts as an area of support.
The stock has a strong composite score of 88 out of 99. Earnings are a key strength, with EPS growing an average of 18% over the past three quarters.
Finally, NRG Energy is trying to reach a cup-handled base at 44. The stock’s RS line is rising this month, although it remains off the highs.
The power company has a composite score of 91. It is an institutional favorite, with 65% of its shares currently held by funds.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more growth stock analysis.
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