The major stock market indexes opened the new trading week on a positive note but rolled over in the first hour of Monday’s session. The Dow Jones Industrial Average led the pack, up more than 0.6%, adding to the best three-week stretch since 2020. Chinese stocks took a nose dive after the party congress affirmed Xi Jinping’s absolute leadership.

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The S&P 500 reversed course after a strong open but still held a 0.3% gain. The Nasdaq composite was the leading  loser, down 1.1%, worse than the Russell-2000 small-cap index, which was trading 0.2% lower.

The tech-heavy Nasdaq 100-tracking Invesco QQQ Trust ETF (QQQ) shed 1%.

The NYSE traded on lower volume than the same time on Friday while Nasdaq volume was higher.

Crude oil traded flat near $85 per barrel while the SPDR Select Energy ETF (XLE) gained 0.4%.

Natural gas rebounded, adding 3.9%, and is back above $5 per million British thermal units.

The 10-year Treasury note yield rose to 4.27%. Bitcoin added 0.3% to $19,255.

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European markets were all positive, with the German DAX stock index up 2.2%, the Paris CAC 40 2.3% and the London FTSE 100 1% in afternoon trading.

The October PMI manufacturing index missed the 51.2 consensus with a 49.9 reading, while the service index came in at 46.6 vs. 49.3 forecast.

World Stock Markets: Chinese Stocks Tumble

Hong Kong’s Hang Seng index plunged overnight following a China government shakeup and the delayed release of Q3 economic data.

Tech-oriented Chinese stocks sold off the hardest.

Pinduoduo (PDD) sank almost 30%, Alibaba (BABA) 16.9%, Baidu (BIDU) 17.8% and Nio (NIO) 21.9%. Educator New Oriental Education & Technology (EDU) dropped 21.8%.

KraneShares China Internet EFT (KWEB) sold off 17.6%.

Auto Parts Retailer Breaks Out

McKesson (MCK) rose 1.4% and broke out of a flat base, hitting a 375.33 buy point on the MarketSmith chart.

Vertex Pharmaceuticals (VRTX) added 2.6%, breaking out of a flat base and passing a 306.05 buy point.

O’Reilly Automotive (ORLY) gained 2%, also breaking out of a flat base. It has reached the 750.98 buy point.

Stock Market: Big Movers On Upgrades

Semiconductor chip manufacturer Wolfspeed (WOLF) soared in early trading but has pulled back, down 0.9% after JP Morgan upgraded the stock to overweight with a 160 price target. The company is set to release fiscal Q1 2023 earnings on Wednesday. Keep in mind that stocks can be extra volatile around earnings releases.

Northern Oil & Gas (NOG) rose 0.6% after Raymond James raised its price target to 60 and maintained its strong buy rating.

ServiceNow (NOW) added 0.2% after Guggenheim upgraded the software stock to buy. BMO Capital raised its price target to 430 and maintained its outperform rating.

Vaxcyte (PCVX) skyrocketed over 70% on positive results from a Phase 1/2 study on its VAX-24 vaccine.

IBD 50 Movers

The Innovator IBD 50 ETF (FFTY) gained 0.6%, in line with the major stock market indexes.

Devon Energy (DVN) added 1.8% and broke out of a cup-with-handle base, hitting the 75.37 buy point.

Coal miner Alpha Metallurgical Resources (AMR) dropped 1.8% as an IBD 50 loser.

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