Dow Jones Drops While Nvidia Stock Reaches Record High and Boeing Dives On Groundings

 

Dow Jones Falls As Boeing Dives On Groundings; Nvidia Stock Hits Record High:

Monday saw a 150-point decline in the Dow Jones Industrial Average as shares of Boeing (BA), a Dow component, fell sharply following the grounded 737 Max 9 aircraft. In the meantime, Nvidia's stock is rising today, surpassing a new purchase threshold and setting a new high.

The S&P 500 gained 0.35% and the Dow Jones Industrial Average lost 0.4% following the opening bell. During morning trading, the tech-heavy Nasdaq composite increased by 1%.

The Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 1% among U.S. exchange traded funds, while the SPDR S&P 500 ETF (SPY) had a 0.3% increase.

After peaking at 4.04% on Friday, the yield on the 10-year Treasury note reached 4.05% on Monday, its highest level since December 12. In addition, despite last week's gains, oil prices declined, with West Texas Intermediate futures down more than 3% on Monday morning. Futures for WTI fell below $72 per barrel.

Following the Federal Aviation Administration's decision to temporarily stop the 737 Max 9 aircraft over the weekend, Boeing saw a sharp 8% decline on Monday morning. An Alaska Airlines 737's door was ripped off in midair on Friday.

Coinbase (COIN), a cryptocurrency, saw a 2.5% decline on Monday despite Needham maintaining a buy rating and increasing the price target from 160 to 180.

Inflation Data, Earnings Season:

The two major inflation statistics of the week are the producer price index (coming on Friday) and the December consumer price index (due on Thursday).

The fourth-quarter reporting season for banks begins on Friday. JPMorgan Chase (JPM), Bank of America (BAC), Citigroup (C), and Wells Fargo (WFC) are among the companies scheduled to release their results.

Additionally, results are expected to be filed on Friday by UnitedHealth (UNH) and Delta Air Lines (DAL).

Dow Jones Snaps Weekly Win Streak:

A nine-week winning streak for major indexes ended on Friday. Although it closed Friday's trading at a 0.1% gain, the Nasdaq composite is still marginally below the 21-day exponential moving average. During the abbreviated trading week, the tech-heavy index ended 3.3% lower.

The week saw weekly declines of 1.5% for the S&P 500 and 0.6% for the Dow Jones Industrial Average.

The Big Picture column on Friday said, "The stock market is still in a verified upswing despite what appears to be a slight decline thus far. However, remain vigilant about any sale indications in your portfolio, such as the 20%–25% profit-taking rule triggers."

Reading IBD's The Big Picture column in the midst of the ongoing stock market rise is crucial right now. Make sure you read up on how to use IBD's new exposure limits to adapt to shifting market conditions.