The Dow Jones Industrial Average closed slightly higher on Monday, after erasing earlier losses. The major indexes all rallied into the close while the Nasdaq led.
The bullish late-day move on Monday came after all three benchmark indexes closed higher for their second-straight week on Friday. The major indexes are making headway in regaining key moving averages, which serve as bullish markers. The S&P 500 is now trading above the 21-day, 50-day and 200-day lines, while the Nasdaq and Dow Jones industrials are still below their 200-day lines but have reclaimed the 50-day and 21-day lines.
The new market uptrend remains intact, and it’s still a good time to buy stocks and increase exposure. The majority of S&P 500 sectors traded higher, although energy and materials lagged and led the downside.
Meanwhile, consumer discretionary stocks rose over 2% and led S&P sectors, thanks largely to Tesla‘s (TSLA) rally. Real estate and technology stocks also led in the S&P 500.
Tesla rose sharply, gapping up to an 8% gain on news it’s planning a stock split in the form of a dividend. But first, the electric-vehicle maker needs to get shareholder approval to increase total shares outstanding at its shareholder meeting, possibly in October.
The stock is currently forming a cup with 1,208.10 buy point. Several up days in heavy volume and a relative strength line that’s moved sharply higher over the past week are also bullish signs for the stock. Tesla is a member of IBD’s Leaderboard.
Dow Jones stock Apple (AAPL) closed 0.5% higher while shares remained just 1% away from a double-bottom buy point at 176.75. Dow tech leaders Salesforce.com (CRM) and Microsoft (MSFT) led the upside among blue chips, trading 2% or higher each.
Dow Jones In The Stock Market Today
At the close, the Dow Jones industrials traded up 0.3% as the Nasdaq rose 1.3%. The S&P 500 advanced 0.7% as the Russell 2000 closed flat after paring earlier losses. Early data showed volume was lower on the Nasdaq and on the NYSE vs. the close on Friday.
The 10-year U.S. Treasury note’s yield rose last week to a high of 2.5% early Friday, from a yield of 1.68% in early March. The move came after the Federal Reserve announced the first in an expected series of interest-rate hikes last week. On Monday, the 10-year U.S. Treasury note’s yield fell to 2.47% in afternoon trading.
U.S. Stock Market Today Overview
|Last Update: 4:04 PM ET 3/28/2022|
Meanwhile, energy stocks continued to trade lower. U.S. crude futures fell more than 6% to around $106 per barrel, hurting several top performing oil and gas stocks. Among IBD’s 197 industry groups, oil and gas-related groups held the lowest spots, with each group falling over 4% each.
On the upside among industry groups, several software-related industry groups outperformed.
Breakouts And Stocks Nearing Buy Points
In the MarketSmith Growth 250, several insurance-related names have been scoring breakouts as Big Money snaps up these stocks. On Monday, Bermuda-based property and casualty stock Axis Capital Holdings (AXS) broke out from a 58.23 flat-base entry. Shares closed slightly below the buy point.
Fellow insurance stock Brown & Brown (BRO) also scored a breakout from a 70.85 flat-base entry. The stock closed above the buy point while the RS line notched a new high.
Elsewhere, Vertex Pharmaceuticals (VRTX) closed above a buy point of 255.03 from a cup base, according to MarketSmith chart analysis. The stock has seen its relative strength move higher since late November, a positive sign for the breakout attempt. Vertex is best known as the worldwide leader in cystic fibrosis treatments.
Follow Rachel Fox on Twitter at @IBD_RFox for more Dow Jones and stock market commentary.
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