The Dow Jones Industrial Average rose on Monday as Treasury yields continued to slide ahead of Federal Reserve Chairman Jerome Powell’s testimony on Tuesday. Global trade was mixed, although China set a lower-than-expected GDP growth target. Apple stock rallied after Goldman Sachs began hedging with a buy rating, saying it could rise more than 30%, while Tesla fell in another round of price cuts .
Economic data was sparse Monday, with none other than January factory orders. Factory orders fell 1.6% in January, better than estimates which called for a 1.8% drop from December’s 1.8% rise, according to Econoday estimates.
Looking ahead, a huge week for the economic outlook begins at 10 a.m. Tuesday, when Powell appears before the Senate banking panel to give his semiannual testimony. Next, Friday will feature the Labor Department’s February jobs report.
On the earnings front, the telecom equipment maker Respect (CIEN) jumped 6% after reporting better than expected fiscal first quarter results.
Other key revenue reports this week include Wholesale BJ’s (BJ), CrowdStrike (CRWD), Dick Sporting Goods (DKS), JD.com (JD), MongoDB (MDB), Thor Industries (THO) and Ultimate beauty (ULTA).
stock market today
Electric vehicle giant You’re here (TSLA) maintained narrow gains on Monday morning after announcing another round of price declines. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) rose after the stock market opened.
IBD Ranking Watchlist Stock Palo Alto Networks (PANW), Arista Networks (A NET), Toll Brothers (To land Selling power (CRM) — as well as Dow Jones stocks American Express (AXP), Cisco Systems (CSCO) and JPMorgan Chase (JPM) – are among the most important stocks to buy and watch, amid recent stock market strength.
Palo Alto is an IBD Leaderboard watchlist stock. And American Express was in the Stocks Near A Buy Zone column last week.
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Dow Jones Today: Oil Price, Treasury Yields
After the market opened on Monday, the Dow Jones Industrial Average gained 0.3% and the S&P 500 rose 0.4%. The tech-heavy Nasdaq composite added 0.5% to morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.4% and the SPDR S&P 500 ETF (SPY) rose 0.3% early Monday.
The 10-year Treasury yield fell back below 4% on Friday, closing at 3.96% but still rising for a sixth consecutive week. Early Monday, the 10-year yield extended its losses, falling to 3.92%.
US oil prices retreated after closing with their first gain in three weeks on Friday. West Texas Intermediate futures fell more than 1% on Monday morning: below $79 a barrel, but holding near their highest level since mid-February.
The stock market rally strengthens
On Friday, the Dow Jones Industrial Average climbed 1.2% and the S&P 500 1.6%. The Nasdaq rose 2%.
Friday’s Big Picture column commented: “Positive action this week has seen the market return to confirmed bullish status. This warrants an increase in exposure to the 60% to 80% level. But investors should do so in a measured way in case it turns out to be a bear trap.”
Now is an important time to read IBD’s The Big Picture column amid the struggling stock market rally.
Five Dow Jones Stocks to Buy and Watch Now
Dow Jones stocks to buy and watch: American Express, JPMorgan
Featured in this week’s Stocks Near A Buy Zone column, American Express is rapidly approaching a buy point of 182.25 in a giant mug with handle. Shares are only 2% below their buy point, after jumping 2.1% on Friday. On the upside, the stock’s relative strength line is reaching new highs, a particularly positive sign before a possible breakout. AXP stock fell slightly on Monday morning.
Banking giant JPMorgan is in the buy range above its fixed base buy point of 138.76 amid a 1.8% gain on Friday, according to IBD MarketSmith’s chart analysis. Stocks have found good support at their 50-day line over the past few sessions. JPM shares rose a fraction early Monday.
JPM stock is posting a solid 93 out of a perfect IBD composite rating of 99, according to the IBD stock balance sheet. The composite rating is designed to help investors easily find the highest growth stocks.
4 best growth stocks to buy and watch in the market Stock market rally
Top stocks to buy and watch: Palo Alto, Salesforce
IBD Leaderboard Palo Alto Networks watchlist stock is within striking distance of the 193.01 buy point from a base after rising 12.5% on Feb. 22. PANW stock traded down 1.6% on Monday morning.
Pass: On February 21, the cybersecurity giant announced strong results for the quarter ended January, which saw earnings hit $1.05 per share, up 81% from a year earlier, with an increase 26% of its revenue to $1.7 billion.
Last week, Dow Jones leader Salesforce staged a bullish spread beyond a buy point of 178.94 on strong fourth-quarter results. The shares jumped 11.5% on Thursday and are in the 5% buy zone which rises to 187.89. CRM stock rose 0.2% on Monday.
Pass: Salesforce sells software under a subscription model. Its software helps businesses organize and manage sales operations and customer relationships. The company has expanded into marketing, customer services and e-commerce. Salesforce said it dissolved its “M&A committee”, implying it will no longer make big acquisitions, amid growing pressure from activist investors.
Arista, Toll Eye Latest Purchase Points
Arista Networks is just below a buy point of 140.91 from a cut basis after Friday’s 3% advance. A decisive rally would put the stock in a buy range up to 147.96. ANET shares rose 0.4% on Monday morning.
Pass: Arista sells switches that speed up communications between clustered computer server racks in data centers. According to analysts, Arista is gaining traction in the so-called “enterprise” market – large enterprises, government agencies and educational institutions. Profits jumped 72% in the last quarter.
Homebuilder Toll Brothers builds a mug base with handle that boasts a buy point of 63.29. On the upside, the stock’s relative strength line has hit new highs in recent market action. The TOL stock has an IBD composite rating of 91. Toll Brothers shares were inactive early Monday.
Pass: On Feb. 21, luxury homemaker Toll Brothers beat profit and revenue forecasts while maintaining its full-year guidance. The homebuilder’s financial report comes as a 12-month decline in US existing home prices showed signs of slowing in January.
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Stocks to buy and watch in the stock market rally
These are the top six stocks to buy and watch in today’s stock market, including two leaders from the Dow Jones.
|Company Name||Symbol||Correct point of purchase||Point of purchase type|
|Arista Networks||(A NET)||140.91||cup bottom|
|Toll Brothers||(TOL)||63.29||Mug with handle|
|American Express||(AXP)||182.25||Mug with handle|
|Palo Alto Networks||(PANW)||193.01||Consolidation|
|JP Morgan||(JMP)||138.76||Flat bottom|
|Selling power||(RCMP)||178.94||Mug with handle|
Source: IBD data as of March 6, 2023
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Tesla stock rose 3.6% on Friday, rebounding from Thursday’s 5.85% slide and ending a three-day losing streak.
The shares appeared to add to Friday’s gains, but fell 1.3% in Monday morning trading. The electric vehicle giant has cut prices for its most expensive models, with the Model S and X now starting at $89,990 and $99,990 in the US, down 5.3% and 9.1% respectively, according to Bloomberg.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares jumped 3.5% on Friday, making a bullish move above their 200-day line. The shares are around 16% off their 52-week high. Apple shares climbed 2.3% on Monday past Goldman Sachs’ buy rating and price target of 199, a 31% premium to Friday’s closing price.
Microsoft shares retreated from their 200-day line after Friday’s 1.7% advance. The stock is around 20% off its 52-week high after recent declines. MSFT stock rose 0.8% on Monday morning.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen to learn more about growth stocks and the Dow Jones Industrial Average.
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