The Dow Jones Industrial Average briefly dropped more than 100 points on Monday morning, while technology stocks jumped as Treasury yields declined from Friday’s highs. Tesla’s shares were up more than 5% in morning trading, with a target price of 3,000 per share.
X
Among Dow Jones leaders, Apple (AAPL) rose 1% on Monday, while Microsoft (MSFT) rose 0.8% in today’s stock market. Nike (NKE) seemed to recover from Friday’s crash.
Tesla (TSLA) jumped more than 5% on Monday, after a big increase in the target price of ARK Invest.
Among the main actions to be observed, Alphabet (GOOGL), MKS Instruments (MKSI) and Wayfair (W) are in or near buying zones at the current high in the stock market.
Alphabet and Microsoft are shares of the IBD Leaderboard. MKS Instruments was the stock of IBD’s day on Tuesday. Wayfair was the stock of the IBD day on Friday.
Dow Jones Today: Treasury Yields
After the stock market opened on Monday, the Dow Jones Industrial Average fell 0.1%, while the S&P 500 rose 0.2%. Nasdaq’s high-tech compound rose 0.6% in morning trading, after slashing some gains.
On Friday, the 10-year Treasury yield reached a high of 1.754%, before closing at 1.732%. The 10-year Treasury yield fell below 1.7% on Monday, to trade at around 1.693% in morning trading.
Among the exchange-traded funds, the Innovator IBD 50 (FFTY) was up 0.7% on Monday. The Nasdaq 100’s Invesco QQQ Trust (QQQ) ETF gained 0.9% on Monday. Meanwhile, the SPDR S&P 500 ETF (SPY) was up 0.3%.
Stock market rally: Nasdaq gives up on an important level
Amid the current stock market recovery, the Dow Jones Industrial Average and S&P 500 indices fell further from Friday’s highs.
Meanwhile, the high-tech Nasdaq gave up its 50-day moving average line on Thursday and is about 7% below its historical records. Nasdaq will need to overcome this important obstacle to maintain its upward trajectory. The 50-day line is a critical level of potential resistance. If Nasdaq eliminates it decisively, then new highs may be on the horizon.
IBD’s market outlook was raised to “confirmed upward trend” on March 10, with the Dow Jones Industrial Average setting new highs.
Friday’s Big Picture commented: “Weekly losses suggest growing distress on Wall Street about the cost of money. Long-term interest rates have skyrocketed, in percentage terms, since the beginning of August. 10-year US Treasury benchmark rose more than tripled from 0.50% to 1.75%, according to Cboe market data. “
ETF strategy of the stock market and how to invest
Dow Jones shares: Nike
Within the Dow Jones Industrial Average, Nike shares continue to form a flat base with a buying point of 148.05, according to the analysis of the IBD MarketSmith chart. The shares are now about 7% away from their point of purchase.
On Friday, Nike plunged 4% after the company’s mixed fiscal results in the third quarter. Nike rose 0.1% on Monday morning.
Actions to watch: alphabet, MKS instruments, Wayfair
IBD Leaderboard stock Alphabet completed a five week fixed base on Friday, creating a new point of purchase at 2,145.24, according to the analysis of the IBD MarketSmith chart. The shares are about 6% away from the new entry. GOOGL’s shares rose 0.1% on Monday.
According to the Leaderboard comment, “Alphabet has made better progress than other large companies recently. Support on the 21-day line is defining the chart’s current action. The last base was the second stage.”
Tuesday’s IBD day stock, MKS Instruments, gave up its 177.46 buying points on a double bottom on Thursday and remains about 3% below the new entry. The 5% buying zone rises to 186.33. MKSI’s shares gained 3% on Monday morning.
According to the IBD Stock Checkup, MKSI shares have a perfect rating of 99 IBD Composite. IBD Composite Rating helps investors easily measure the quality of a stock’s technical and fundamental metrics.
Friday’s IBD day stock, Wayfair, is trying to exceed a 343.09 point of purchase in a cup with a handle. The shares were up 0.7% on Monday.
IBD Live: a new tool for daily stock market analysis
Tesla Stock
Tesla’s shares rose more than 5% on Monday after Cathie Wood’s Ark Invest announced its new price target at 3,000 by 2025. The price target uses expectations that the electric vehicle giant will launch an autonomous robotaxi service built on its fully autonomous technology platform. It can generate up to $ 327 billion in revenue, according to Ark research. The target price of the upper case is 4,000, while the target price of the upper case for 2025 is 1,500.
Tesla’s stock ended Friday with about 27% off its 52-week high. Tesla’s shares may be forming a new basis, but it is too early for a new ideal risk buying point.
On February 22, Tesla broke its 10-week moving average mainline, a critical support level.
On January 25, Tesla’s shares reached a record high of 900.40, after climbing up to 93% from a 466 point of purchase in a glass with handle.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones’ top stocks, Apple rose about 1% on Monday, looking to break a three-day losing streak that saw resistance around the 10-week moving average line. Apple’s stock is recovering from its 40-week long-term line and may soon try to recover its 10-week line.
On February 18, Apple’s stock triggered the 7% -8% loss-of-sale rule when it fell more than 7% below its 138.89 point of purchase in a glass with handle.
Meanwhile, Microsoft’s IBD Leaderboard shares rose 0.8% on Monday, eyeing its recently lost 50-day line. The shares are just below their 232.96 buying point.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more information on growth stocks and the Dow Jones Industrial Average.
YOU MIGHT LIKE:
Main growth actions to buy and observe
Learn how to time the market with IBD’s ETF market strategy
Find the best long-term investments with IBD’s long-term leaders
MarketSmith: research, graphs, data and training in one place
How to research growth stocks: why this IBD tool simplifies the search for the main stocks