Dow Jones futures were slightly lower ahead of Tuesday’s open after the Dow Jones Industrial Average rallied 327 points on Monday. Meanwhile, Tesla stock dived below its most recent buy point after the electric-vehicle giant reported a record number of vehicle deliveries in the first quarter, but still missed estimates, while the analyst sees more price cuts ahead.
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Stock Market Today
On Monday, the Dow Jones Industrial Average rose 1%, with UnitedHealth Group (UNH) and Chevron (CVX) are the big winners. UNH stock rallied 4.6%, while Chevron shares climbed 4.2%. The S&P 500 gained 0.4%, while the tech-heavy Nasdaq composite fell 0.3%.
head of the EV Tesla (TSLA) traded down 6.1% on Monday. In Dow Jones stocks, Apple (AAPL) increased by 0.7% and Microsoft (MSFT) was down 0.4% in today’s stock market action.
IBD Stock Leaderboard Axon Enterprise (AXON), Service Today (NOW) and Skyline (HEAVEN) — as well as Dow Jones stocks Boeing (BA), Cisco Systems (CSCO) and Nike (NKE) — are among the top stocks to buy and watch in continued market strength.
Boeing is featured in this week’s Stocks Near A Buy Zone column. Axon, Skyline and Microsoft are all recent IBD Stock Of The Day subjects.
4 Top Growth Stocks To Buy And Watch In Current Stock Market Rally
Dow Jones Futures Today: Oil Prices, Treasury Yields
Before the opening bell on Tuesday, Dow Jones futures fell below fair value, while S&P 500 futures lost 0.1%. Nasdaq 100 futures were down 0.2% in overnight trading. Note that overnight action in Dow Jones futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.
The 10-year US Treasury yield fell to 3.43% on Monday, paring last week’s gains. US oil prices rose on Monday, as West Texas Intermediate futures traded above $80 a barrel, up more than 6%. at the weekend, OPEC+ said it will cut more than a million barrels of output a day starting next month in a surprise move.
What to Do With a Stock Market Rally
Now is a prime time to read IBD’s The Big Picture column with the stock market trending in a “confirmed uptrend” after last week’s strong gains.
Investors should be looking for opportunities to increase their market exposure. An exposure level between 20% and 40% makes sense in the immediate result of a follow-through day.
During confirmed uptrends, investors should focus on top growth stocks that are emerging from previous correct buy points.
Two useful IBD MarketSmith lists to look at today are “Breaking Out Today” and “Near Pivot.” The latter shows stocks that are close to buy points at the bases, and the other flags show stocks that are rising to buy points during the session.
To find more stock ideas, check out IBD Stock Lists, such as IBD 50, Big Cap 20 and Stocks Near a Buy Zone. These features identify bullish patterns and buy points and should be checked daily.
Learn How To Time The Market With IBD’s ETF Market Strategy
Dow Jones Stocks to Buy and Watch: Boeing, Cisco Systems, Nike
Dow Jones leader Boeing is nearing the 221.43 flat base buy point, according to IBD MarketSmith’s pattern recognition. Shares climbed 1.4% on Monday, just 3% away from the latest entry.
Cisco Systems exceeded 51.84 points of buying a flat base in a 1.6% climb on Friday. But the volume is slightly above average, a potential flaw. On the upside, the stock’s relative strength line hit a new high in recent weeks, a sign of stock market outperformance. Shares tacked on 0.1% Monday.
Nike shares fell back below their 50-day line on Monday, falling 0.8%, as they continued to trace a flat base with a 131.41 buy point. An early entry at 126.16 is also in play.
Top Stocks to Buy and Watch: Axon, ServiceNow, Skyline
IBD Leaderboard stock Axon closed above 226.10 buy points on Monday in a short rally with a 1.1% gain. Meanwhile, it also topped an early entry at 221.79, above last week’s March 21 high.
Backstory: Axon products are key for law enforcement, helping build public trust. Meanwhile, cloud-based software for managing police evidence, records and communications makes officers more productive. One key metric gives an idea of how the much-needed police department views its Axon contracts. In the fourth quarter, Axon saw 121% net profit retention. That means expanded contracts that more than offset minimal customer attrition.
Late last week, IBD SwingTrader ServiceNow definitely retook its 50-day line, quickly climbing to the right side of the cup base with a 494.72 buy point. Watch out for a potential handle to offer a lower entry.
Backstory: NOW software monitors and manages services provided by information technology departments. Also, its self-service tech portal allows workers to access administrative and workflow tools.
In the most recent quarter, the Santa Clara, Calif.-based enterprise software maker said earnings jumped 56% to $2.28 per adjusted share. Revenue climbed 20% to $1.94 billion.
Skyline snapped a five-day winning streak on Monday, falling 3.5%. Shares are below the 73.50 buy point.
Backstory: Troy, Mich.-based Skyline. manufactures and installs factory-built homes, park models and modular buildings for families and the hospitality sector. It employs more than 8,100 people with 42 manufacturing facilities across the US
Skyline has posted earnings and profits for the past nine quarters. The company’s revenues rose 183% in fiscal year 2022, while profits jumped 56%.
Join IBD experts as they analyze the top stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock dived 6.1% on Monday, giving up Friday’s gains and falling below a 200.76 buy point in a cup handle. The stock closed Monday down 50% from its 52-week high.
On Sunday, CEO Elon Musk’s company it said it delivered 422,875 vehicles in the first quarter, up about 36% from a year earlier. The results fell short of the expectations of analysts polled by FactSet. They expect the company to deliver around 431,000 vehicles in the first quarter. However, Tesla beat some analyst forecasts.
On Tuesday, weekly China EV insurance registration data could be a key gauge for Tesla’s demand in the world’s largest EV market, which is in the middle of a major price war initiated by Tesla.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares rallied 0.8% on Monday, extending a winning streak to four sessions and closing at their highest level since August 25.
Microsoft shares remain in buy range above the 276.86 buy point of a flat base despite Monday’s 0.4% drop. The stock is in a 5% buy area from the buy point to 290.70.
Microsoft shares rose earlier this month after the company announced it was adding artificial intelligence tools to its popular Office suite of productivity applications. This follows the company’s investments in artificial intelligence startup OpenAI, the company behind the buzzworthy ChatGPT application.
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