The Dow Jones industrial average rose more than 200 points Monday morning as investors digested an initial round of economic data. tesla (TSLA) shares rose nearly 4% after said the leader of electric vehicles its German production facility is now turning out 4,000 cars a week ahead of schedule. Meanwhile, Tesla’s China-based rival li car (LI) rose more than 4% on the back of better-than-expected fourth-quarter sales and earnings results.
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Commerce Department durable goods orders fell 4.5% in January, more than the expected 4.0% drop, after December’s 5.6% jump linked to aircraft orders. Meanwhile, Wall Street expects the National Association of Realtors’ Pending Home Sales Index to rise 1%. The Pending Home Sales Index will be released at 10 a.m.
Later this week, the Institute for Supply Management’s manufacturing survey index is scheduled for Wednesday at 10 a.m. ET, followed by the ISM services sector indicator on Friday at 10 a.m.
Other companies reporting earnings this week include C3.ai (AI), costco wholesale (COST), dollar tree (DLTR), Kohl’s (KSS), Lowe’s (LOW), macy’s (METER), Ross Stores (REST), Sales force (CRM) and Workday (WDAY).
stock market today
Dow Jones technology giants Apple (AAPL) and Microsoft (MSFT) traded sharply higher after the stock market opened.
IBD Classification Table Watch List Palo Alto Networks (BREAD), deere (DELAWARE), toll brothers (To land wing stop (WING), as well as Dow Jones stocks cisco systems (CSCO) and JPMorgan Chase (JPM) – are among the top stocks to watch, due to recent stock market weakness.
Palo Alto is an IBD Leaderboard Watch List stock. Deere was one of IBD’s recent Stock Of The Day selections. Cisco Systems and Wingstop appeared in the Stocks column near a buy zone last week.
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Dow Jones Today: Oil Prices, Treasury Yields
After the market opened on Monday, the Dow Jones Industrial Average rose 0.65% and the S&P 500 rose 0.8%. The Nasdaq technology composite gained 1.1% in morning action.
Among US exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) was up 1.1% and the SPDR S&P 500 ETF (SPY) was up 0.8% early Monday.
On Friday, the 10-year US Treasury yield was at 3.94%, rising for the fifth week in a row after the hot inflation report. Then on Monday the 10-year yield rose to 3.97%.
Oil prices ground to a halt after a two-day rally, with West Texas Intermediate futures trading just above $76 a barrel.
Stock Market Recovery Struggles
On Friday, the Dow Jones industrial average sold off 1% and the S&P 500 lost 1.05%. The Nasdaq Composite fell 1.7%.
Friday’s Big Picture column commented: “The current uptrend is under increasing pressure, which justifies holding a lower 40% to 60% exposure level. Pay particular attention to sell signals within your portfolio.” Cut stocks that fall 7% to 8% of their entry and holdings that break above the 50-day or 10-week moving averages.”
Five Dow Jones Stocks to Buy and Watch Now
Dow Jones Stocks to Buy and Watch: Cisco, JPMorgan
Banking giant JPMorgan is in the buy range above its flat-based buy point of 138.76 after Friday’s 0.9% gain, according to IBD MarketSmith chart analysis. Stocks are also recovering from their key 50-day moving average. JPM shares rose 0.7% early Monday.
JPM shares show a solid 94 out of a perfect 99 IBD composite rating, according to IBD stock verification. The composite rating is designed to help investors easily find the fastest growing stocks.
Cisco Systems, which appeared in the Stocks column near a buy zone last week, fell further below the 50.81 buy point from a flat base during Friday’s 1.5% decline. Stocks are trying to stop their slide around their 50-day line and are about 4% below the entry. Cisco shares gained 1.5% early Monday.
Top 4 Growth Stocks to Buy and Watch in the stock rally
Top Stocks to Buy and Watch: Palo Alto, Wingstop
IBD Leaderboard Palo Alto Networks watch list stocks are building on the right side of a base that has a buy point of 193.01 on the back of last week’s more than 10% jump. PANW shares were up 1.8% on Monday morning.
Background: Last week, the cybersecurity giant announced very strong results for the quarter ending in January, with earnings reaching $1.05 per share, up 81% from the previous year, with a 26% increase in revenue to $1.7 billion.
Wingstop is back in the 5% chase zone past a handle-cup entry of 169.04 which peaks at 177.49 after a two-day slide. Investors should wait for signs of support before considering buying shares, especially amid deteriorating general market conditions. WING shares were down 1.2% early Monday.
Background: The Dallas-based restaurant chain has more than 1,900 locations in the US and international markets, according to Dow Jones Newswires. Its international locations include Mexico, Colombia, Panama, Singapore and the United Kingdom. Wingstop added 61 new locations in the fourth quarter, bringing Wingstop’s total footprint to 1,959 restaurants worldwide.
Deere, Toll Eye Last Purchase Points
Deere shares fell 1.8% on Friday, easing support around its 50-day line. The shares are down 6% from a buy point of 448.50 on a flat basis. DE shares were up 0.5% on Monday morning.
Background: An industry benchmark, Deere has shrugged off recession and inflation fears to turn in solid profits. In the last year, higher prices for raw materials have allowed farmers to buy new and improved machines. In the fiscal first quarter ending January 29, the tractor maker posted a 124% increase in earnings per share with a 32.2% increase in total revenue, both beating estimates. Earnings growth accelerated for the second consecutive quarter.
Homebuilder Toll Brothers is building a handle mug base that shows a purchase point of 63.29. Bullishly, the stock is counting on a line of relative strength just off fresh highs after last week’s 50-day support. TOL shares show a strong 95 IBD composite rating. Toll Brothers shares were up 2% early Monday.
Background: Last week, luxury homebuilder Toll Brothers beat earnings and revenue projections while maintaining its full-year guidance. The homebuilder’s financial report comes as a 12-month drop in US existing home prices showed signs of slowing in January.
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Stocks to Buy and Watch on the Stock Market Rally
Here 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 |
|---|---|---|---|
| deere | (DELAWARE) | 448.50 | flat base |
| toll brothers | (TOL) | 63.29 | mug with handle |
| cisco systems | (CSCO) | 50.81 | flat base |
| Palo Alto Networks | (PANW) | 193.01 | Consolidation |
| JPMorgan | (JPM) | 138.76 | flat base |
| wing stop | (TO THE) | 169.04 | mug with handle |
Source: EII data as of February 27, 2023
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Tesla Stock
Tesla shares fell 2.6% on Friday, ending a two-day winning streak. Despite its strong rally since January 6, stocks are still below the 200-day line, and that key level is shaping up to be an area of potential resistance. Shares closed Friday about 49% below their 52-week high.
Shares on Monday appeared to rebound from Friday’s losses, rising 3.8% in early trading.
Tesla is scheduled to celebrate its investor day on Wednesday, and CEO Elon Musk teases plans to unveil his “Master Plan 3” at the event. Analysts say they know few details and many doubt there are any new product announcements. Musk says his “Master Plan 3” is about a “pathway to a fully sustainable energy future for Earth.”
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares sold off 1.8% on Friday, easing support around its 200-day line. Shares are about 18% below their 52-week high. Apple shares rose 1% on Monday.
Microsoft shares fell below their 200-day line again, falling 2.2% on Friday. The stock is more than 20% below its 52-week high after recent losses. MSFT shares were up 1.05% on Monday morning.
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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