Dow Jones Today: Shares dip into China doubt; Chips, China Names Gain, Boeing Stock Jumps On 737 Deal

Stocks faded to early losses on Monday, as reports of trade pessimism in China pulled into the market. Chipmakers came under pressure, China's name achieved some early gains. UnitedHealth Group (UNH) rose to the top of Dow Jones today.


Nasdaq dived 0.3%, S&P 500 opened for 0.2% stock market loss today. Dow Jones Industries struggled to make a fraction.

UnitedHealth supported Dow, up 2.7% following a price increase from SunTrust.

Boeing (BA) turnover up 0.6% on After the Turkish airline SunExpress used the option of 10 new 737 Max jets, valued at $ 1.2 billion. The Boeing stock is approaching a point of purchase.

Caterpillar (CAT) and Johnson & Johnson (JNJ) were among the handful of Dow Jones shares that traded more than 1%. [19659004] Coty (COTY) jumped to the top of the S&P 500, more than 4%. The cosmetics manager agreed to buy 51% of Kylie Jenner's beauty products for $ 600 million.

China-based stocks flashed a little mild after strong trading on Monday in Hong Kong and Shanghai. Tencent Holding (TCEHY) jumped 2.7%. Streaming content platform Iqiyi (IQ) took a gain of 1.3%. (JD) jumped 0.6% higher.

Chipmakers came under pressure, as Cree (CREE) fell 3% and VanEck Vectors Semiconductor ETF SMH fell 0.4%. IBD Leaderboard stock Advanced Micro Devices (AMD) ran against that grain, up 1.2% after RBC Capital raised its price target on the stock to 50, from 44.

Growth stocks flexed slightly early muscle, which InMode (INMD) increased more than 3% to lead the IBD 50 list. Israel-based radio frequency surgical equipment manufacturer rose more than 22% last week, ending Friday's session 253% above the IPO price in August.

Gear for this week's market action by reading IBD's Investment Action Plan .

Chinese officials should wait

Reports of progress in trade negotiations over the weekend gave Modnay way to reports from CNBC that the mood in China had become questionable. China officials were reportedly troubled by President Donald Trump's comments about potential tariffs. The Chinese are watching closely for US inquiry negotiations and electoral development. "Officials are wondering if it's more rational to wait for things," according to CNBC.

The market is now less than a month from the December 15 deadline for President Donald Trump's promised escalation in China tariffs. A new round of 15% customs duties on China that allowed imports worth $ 156 billion is still technically set to take effect if some kind of trade is not achieved by December 15. This round will affect mobile phones, toys, clothing and other consumer goods that have hitherto been spared the price increase in the trade war.

A waiver of chip companies supplying Chinese telecom giant Huawei is set to expire on Monday. But the Trump administration is broadly expected to grant a two-week extension to suppliers led by Intel (INTC), Qualcomm (QCOM), Broadcom (AVGO) and Xilinx (XLNX).

Disney, Boeing Stock Near Buy Points

Boeing swung higher early Monday, looking as if it might not pause after last week's strong 5.9% progress. The Dubai Air Show was launched on Sunday, although first-time deals were reported as disappointing. Boeing placed an order on Sunday for two 787-9 Dreamliners to Biman Bangladesh Airlines. It announced the SunExpress order for 10,737 Max jetliners on Monday.

The Boeing stock, which was hit hard by the global founding of its flagship 737 Max jetliner fleet in March, clearly has a 16% gain for the year through Friday. It is still trading almost 17% below the March high. Within this consolidation, the stock has formed a cup base with a buying point of 391.10. Shares are less than 5% below the point of purchase.

Walt Disney (DIS) will also be on guard this week, after gaining a 4.9% gain last week, on the heels of the launch of the Disney + streaming entertainment service. The Disney stock charted a $ 147.25 buy point Wednesday and Thursday before easing back during Friday's listing. Shares rose 0.8% early Monday.

Dow Jones Today: A New Gear

The Dow Jones premarket session today signaled a positive start, after the index ran higher in nine of 11 sessions to close on another new highlight Friday. Friday's win snapped the 28,000 barrier. It also showed that Dow had found a new piece of equipment – one capable of carrying it decisively beyond the height of January 2018, which marked the start of the US trade war, and served as a cap on the market's progress for 22 months.

The Dow ended Friday at 5.2% above the high. A little more than halfway through November, Dow Jones industries are now up 3.5% for the month. That puts the index at a striking distance from the five-year average gain of November at 8.3%.

Nasdaq has a gain of 3% so far in November. The S&P 500 has climbed 2.7%.

The stock market is in a confirmed trend, although it is still subject to Chinese trade news and with sector rotation continuing to muddy the water. Department stores achieved the biggest gains among industries over the past week. The Roku (ROKU) -driven Leisure Movies group was next in line.

Automakers surpassed all industries over the past eight weeks, with Tesla (TSLA) scoring a breakout and Toyota (TM) willing to take new heights first walking since 2015.

China, Japan Jump; Europe Slumps

Markets across Asia moved higher on Monday, fueled by comments from China's Commerce Department that US and China dealers were holding "constructive discussions" on Saturday.

Hong Kong's Hang Seng index led by a 1.4% turnout, rebounding after a 4.8% fall last week as the city plunges toward increasingly violent exchanges between police and democracy protesters. Shanghai Composite jumped 0.6%. In Japan, Tokyo's Nikkei dropped 225 to 0.5%.

Europe's markets lost ground in the afternoon trade, and London's FTSE 100 turned its early gains into a fraction decline. Frankfurt's DAX fell 0.7%, while CAC-40 in Paris fell 0.6%.

Find Alan R. Elliott on Twitter @IBD_Aelliott [194559004] YOU MUST ALSO LIKE:

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