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Stock Market Lower On Saudi Attack; Chevron Nears Breakout, As Oil Prices Surge

The stock market was modestly lower early Monday after this weekend's attack on Saudi Arabia's oil industry. The Dow Jones industrials looked to snap an eight-day win streak, falling about 50 points in morning trade.

Among the Dow Jones stocks Chevron (CVX) and Exxon Mobil (XOM) were the early winners, as crude oil prices surged more than 9%. Apple (AAPL) shares, meanwhile, remained below a recent buy point. Check out this week's IBD Investing Action Plan for important stock market events, like Wednesday's Fed meeting decision.

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Current Stock Market Rally Nears Record Highs

Despite early losses, the major stock indexes are still hovering near record highs. The tech-heavy Nasdaq composite trimmed their early losses to 0.2%. The S&P 500 also fell 0.2%, while the Dow Jones Industrial Average lost 0.4%. Year to date, the Nasdaq has climbed about 23%. The S&P 500 has gained about 20%, while the Dow Jones has moved up about 16%. (For more market updates today, visit the current stock market.)

On July 16, the Dow Jones Industrial Average reached a record high 27,398 price level. After a mild correction, the index is once again approaching fresh highs. Elsewhere, the Nasdaq and S&P 500 are also nearing record levels.

Among exchange traded funds, Innovator IBD 50 ETF (FFTY) gained 0.5%. Shares are trying to regain their long-term 200-day line.

Dow Jones Stocks: Chevron, Exxon Jump

Dow Jones energy stocks Chevron and Exxon were early winners, rising about 2% apiece. Chevron is nearing a breakout above a 127.44 buy point in a flat base. A potential downside is the stock's weak relative strength line, showing significant underperformance relative to the general market. Exxon shares, meanwhile, are attempting to regain their long-term 200-day moving average.

Elsewhere, Apple stock recovered from early losses to rise about 0.3%. On Friday, Apple stock fell nearly 2% after Goldman Sachs cut its price target from 187 to 165.

The stock is about 2% below the a recent 221.47 buy point in a flat base after last week's breakout, according to MarketSmith chart analysis. Apple stock was added to the IBD Leaderboard service amid the solid breakout and was featured in last week's Stocks Near A Buy Zone column.

Stock Market News: Oil Prices Surge

Oil prices shot up more than 9% Monday to their highest level in over two months with light sweet crude oil trading at about 60 a barrel. The attack on Saudi Arabia's energy industry knocked out about 50% of the country's oil production. President Trump, meanwhile, authorized the release of oil from the Strategic Petroleum Reserve.

Energy stocks were also on the move higher. Concho Resources (CXO) and Halliburton (HAL) advanced 4% and 9%, respectively, but both remain well off their 52-week highs amid significant downtrends. IPO Leader Rattler Midstream (RTLR) is nearing a breakout above a 20.34 buy point in a cup base with a more-than-2% rise.

In stock market earnings, Adobe (ADBE) is scheduled to report its fiscal Q3 results after the stock market close Tuesday. The software leader is shaping a flat base with a 313.21 buy point, but is below its 50-day line. Bearishly, the stock's RS line is near multimonth lows, indicating substantial stock market underperformance.

Top Growth Stocks To Watch: Boot Barn Has New Entry

Among the IBD 50 top growth stocks, Boot Barn (BOOT) is rapidly moving up the right side of a new base with a 2% gain Monday. According to MarketSmith Pattern Recognition, Boot Barn stock has a new buy point at 39.69, as the result of a cup base. The stock's RS line is right at new highs.

According to IBD Stock Checkup, Boot Barn stock has a 98 out of a highest-possible 99 IBD Composite Rating. Investors can use the Composite Rating to easily measure a stock's fundamental and technical metrics.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the stock market.

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