Dow Jones Reverses Amid China News; Blue Chips Apple And Walmart In Buy Range

The stock market reversed from early losses in mid-morning trade Monday. In focus was a Bloomberg story, reporting China is “increasingly reluctant” to agree to a broad trade deal ahead of this week’s trade talks. The Dow Jones industrials fell 149 points in today’s stock market before trimming losses to about 18 points with Dow Jones stock Apple still in buy range after last week’s advance. Among the other Dow Jones stocks, Disney  and Walmart  were two losers in morning trade.

In stock market news, IPO stock Uber Technologies  jumped after an analyst upgrade to buy. Check out this week’s IBD Investing Action Plan for important stock market events, like scheduled U.S.-China trade talks for Thursday and Friday and earnings results from Delta Air Lines  and Domino’s Pizza​.

Dow Jones Falls In Current Stock Market

The Nasdaq composite turned positive, up 0.2%. The S&P 500 and the Dow Jones Industrial Average trimmed losses to less than 0.1% after early falls.

All three major stock indexes found support near their long-term 200-day support levels Thursday. The S&P 500 and Dow Jones Industrial Average briefly fell below their 50-day lines before recovering.

Among exchange traded funds, Innovator IBD 50 ETF edged higher, as it trades below its long-term 200-day line. On Thursday, FFTY hit its lowest level since February before rebounding.

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Dow Jones Stocks: Apple, Walmart In Buy Range

Among the Dow Jones stocks, Apple stock gained nearly 1%, extending a win streak to three sessions and trading in the 5% buy zone of a recent 221.47 buy point in a flat base — according to MarketSmith chart analysis. On Friday, the stock advanced 2.8% to regain the entry after the company raised its iPhone 11 production by about 10%.

Despite the recent stock market sell-off, Apple stock is holding up well, as it trades back above its recent buy point. The stock’s relative strength line hit another recent high Friday. The RS line measures a stock’s price performance relative to the S&P 500 index. Dow Jones stocks Apple, JPMorgan  and Nike were featured in last week’s Stocks Near A Buy Zone column.

Disney dropped inched lower, as it shapes a flat base with a 147.25 buy point. Last week, the media giant found support around its long-term 200-day line. Shares are about 12% off their 52-week high.

Walmart is another top Dow Jones stock to watch. Walmart stock fell about 1% early Monday. The discount retailer is trading in the 5% buy zone from a shallow cup with handle with a 115.03 entry. The buy zone top out at 120.78.

Stock Market News: Uber Stock Upgraded

In stock market news, Uber stock was upgraded from neutral to buy at Citi with an unchanged price target of 45. On Oct. 2, the IPO stock fell as much as 39.9% off its all-time high. Shares have a great deal of work ahead of them before a test of their 50-day line. Uber shares gained 3%.

Elsewhere, Wendy’s  was downgraded from outperform to market perform at Cowen amid worries about Wendy’s nationwide breakfast menu debut in 2020. Wendy’s stock fell 2%, as it tries to maintain its 50-day line.

Lastly, graphics-chip maker Nvidia had its price target hiked from 190 to 217 at RBC Capital. Nvidia stock jumped 3%, as it continues to rally from its 50-day support level.

In stock market earnings, Delta Air Lines will report before the stock market open Thursday. Delta stock gave up its long-term 200-day support level last week and is about 15% off its 52-week high.

Domino’s Pizza, meanwhile, is scheduled to post results before the market open Tuesday. Shares are in a long-term consolidation, stretching back to August 2018.

Top Growth Stocks To Watch: Software Leader ServiceNow

Among the IBD 50 top growth stocks, ServiceNow is back above its 10-week line, as a new base looks to take shape. Shares rose almost 1% Monday. While there is clear resistance around the 274 price level, the current proper buy point is 303.27.

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Hope this helps, have a wonderful day.