Dow Jones futures, along with S&P 500 and Nasdaq 100 futures, rose slightly on Monday night, with Treasury yields falling from recent highs. Shares of Tesla, Applied Materials and Nvidia led the stock market rally on Monday.
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On Monday, the Dow Jones Industrial Average advanced 0.3%. The S&P 500 rose 0.7%, while the Nasdaq’s high-tech compound outperformed, rising 1.2%, even after reducing gains.
Among Dow Jones leaders, Apple (AAPL) rose 2.8% on Monday, while Microsoft (MSFT) rose 2.45% in today’s stock market. Boeing (BA) is back in the buying range after a recent disruption, while Nike (NKE) recovered part of Friday’s fall.
Tesla (TSLA) rose up to 6.8% on Monday, after a big increase in the target price of ARK Invest before cutting gains.
Among the main actions to be observed, chip leaders Applied Materials (AMAT), ASML (ASML), MKS Instruments (MKSI), Nvidia (NVDA) and Qorvo (QRVO) are in or near buying zones at the current high in the stock market.
About that, Alphabet (Google Wayfair (W) are also approaching new points of purchase. Alphabet was featured in this week’s Stocks Near A Buy Zone column, while Wayfair was Monday’s IBD 50 Stocks To Watch choice.
Alphabet, Microsoft and Nvidia are shares of the IBD Leaderboard. MKS Instruments was the stock of IBD’s day on Tuesday.
Dow Jones Today: Treasury Yields
After the stock market closed on Monday, Dow Jones futures, along with S&P 500 and Nasdaq 100 futures, rose about 0.1% each against fair value. Remember that trading in Dow Jones futures and elsewhere does not necessarily translate into real trading in the next regular stock market session.
Overview of the US stock market today |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain / Loss | % Change |
| Dow Jones | (0DJIA) | 32730.35 | +102.38 | +0.31 |
| S&P 500 | (0S and P5) | 3940.56 | +27.46 | +0.70 |
| Nasdaq | (0NDQC) | 13377.54 | +162.31 | +1.23 |
| Russell 2000 | (IWM) | 225.23 | -1.71 | -0.75 |
| IBD 50 | (FFTY) | 46.85 | +0.08 | +0.17 |
Last updated: 4:38 PM ET 3/22/2021 |
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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, closing at 1.684%.
Among the exchange-traded funds, the Innovator IBD 50 (FFTY) was up 0.2% on Monday. The Invesco QQQ Trust (QQQ) ETF, Nasdaq 100 tracker, gained 1.75% on Monday. Meanwhile, the SPDR S&P 500 ETF (SPY) was up 0.8%.
Stock market rally: Nasdaq tests key level again
Amid the current stock market recovery, the Dow Jones Industrial Average and S&P 500 indices broke two-day losing streak on Monday, with modest gains.
Meanwhile, the high-tech Nasdaq is again trying to resume its 50-day moving average line, but fell short on Monday. Last Thursday, the Nasdaq compound gave up on that key level. 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. “
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Dow Jones shares: Boeing, Nike
Within the Dow Jones Industrial Average, Boeing is back to the buying range above 244.18 points of purchase on a canopy basis amid a three-day losing streak. The shares fell nearly 2% on Monday.
Meanwhile, Nike’s 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 6% away from their point of purchase.
On Friday, Nike plunged 4% after the company’s mixed fiscal results in the third quarter. Nike rose 0.6% on Monday, but remains below its 50-day line.
Chip stock to watch: applied materials, Nvidia
Chip stocks remain some of the best names in technology at the current high in the stock market. VanEck Vectors Semiconductor ETF (SMH) is a new addition to the IBD SwingTrader on Monday amid a 2.3% increase.
Applied Materials continues to recover from its 50-day support level. The shares rose 3.9% on Monday and are only 4% compared to the new highs.
ASML jumped above its 50-day line, up 5.2% on Monday. The shares are in the sixth week of a potential basis. The minimum length of a cup base is six weeks, so a new point of purchase may appear at the end of the week.
Qorvo found support on its 50-day line on Friday and continued its recovery on Monday with a 1.9% increase. The stock is closing at a buying point of 191.93, while an early entry exists at 185.96.
Last Tuesday’s IBD day’s stock, MKS Instruments, ended just below its 177.46 point of purchase on a double bottom amid Monday’s 2.4% gain. The 5% buying zone rises to 186.33.
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.
Giant chip Nvidia (NVDA) increased 3.4%. The manufacturer of the graphics chip may be forming the right side of a new base, but it is a little early for a conventional point of purchase. A strong day to recover the 50 day line would be optimistic for the prospects for the action.
Stocks near shopping areas: alphabet, 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 0.2% 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.”
Monday’s IBD 50 Stocks to Watch choice, Wayfair, is trying to exceed a 343.09 point of purchase in a cup with a handle. The shares rose 3.1% on Monday and are in the buying range.
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Tesla Stock
Tesla’s shares rose more than 6% before slashing earnings to 2.3% on Monday after Cathie Wood’s Ark Invest announced its new 3,000 price target by 2025. The price target uses expectations that the giant of electric vehicles will launch an autonomous robotaxi service built on its entire 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 Monday with about 26% 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 advanced nearly 3% on Monday, breaking a three-day losing streak that saw resistance around the 10-week moving average line. Apple’s shares are recovering from their 40-week long-term line and may soon try to recover their 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, software giant Microsoft rose 2.45% on Monday, rebounding its 50-day mainline. The stock is again above its 232.96 point of purchase and approaching a 246.23 point of purchase on a new flat basis.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more information on growth stocks and the Dow Jones Industrial Average.
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