Dow Jones futures climbed Monday, as Tesla stock edged higher after the company reported record vehicle deliveries for the first quarter. Twitter stock soared after Tesla Chief Executive Elon Musk took a large stake in the company. U.S. oil prices looked to rebound Monday following sharp losses in recent days, now trading near $100 a barrel. And the 10-year Treasury yield extended gains Monday morning.
Among other Dow Jones stocks, Apple (AAPL) rose 0.3% Monday morning, but is below a recent buy point after three straight down days. Microsoft (MSFT) moved up 0.5% in today’s stock market. UnitedHealth (UNH), a Dow Jones stock to watch, continues to make progress in the wake of a recent breakout.
Coffee giant Starbucks (SBUX) declined more than 2% after the company suspended billions of dollars in share buybacks. Electric vehicle giant Tesla (TSLA) climbed nearly 1% early Monday, looking to add to Friday’s gains. Twitter (TWTR) soared more than 22% after Tesla Chief Executive Elon Musk reported owning a 9.2% passive stake in the social media company. He is now the largest shareholder of the company.
Amid the stock market’s uptrend, IBD Leaderboard stock Arista Networks (ANET), Broadcom (AVGO), Regeneron Pharmaceuticals (REGN), Shell (SHEL), and Vertex Pharmaceuticals (VRTX) are among Monday’s top stocks to buy and watch.
Arista, Microsoft and Tesla are IBD Leaderboard stocks. Apple and Regeneron were featured in last week’s Stocks Near A Buy Zone column. Shell was Friday’s IBD Stock Of The Day.
Dow Jones Today: Treasury Yields, Oil Prices
Before Monday’s open, Dow Jones futures traded up 0.1% vs. fair value, while S&P 500 futures rose 0.2%. Nasdaq 100 futures moved 0.3% higher in early morning trade. Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.5%, and the SPDR S&P 500 ETF (SPY) was up 0.2% before Monday’s open.
The 10-year U.S. Treasury yield flattened at 2.38% Monday after trimming an early advance. U.S. oil prices rebounded Monday morning after ending last week with sharp losses following initiation of President Joe Biden’s planned release of up to 180 million barrels from the Strategic Petroleum Reserve over the next six months. West Texas Intermediate crude rose 1%, moving back above $100 a barrel early Monday.
Stock Market Rally
On Friday, the stock market reversed from early losses, as the major stock indexes finished with modest gains. For more daily stock market commentary, check out IBD’s The Big Picture column.
Friday’s The Big Picture column commented, “Oil and gas stocks dominated the upside again in the MarketSmith Growth 250, but it’s hard to find actionable stocks because they’ve been running higher for a while. The sector is filled with extended stocks. The same holds true for mining, steel, fertilizer and shipping stocks, which continue to show relative strength. The main challenge for investors at this point is finding good setups. Don’t force the issue by buying laggard stocks in an industry group.”
If you’re new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one key to the investment guidelines. IBD offers a broad range of growth stock lists, such as Leaderboard and SwingTrader.
Investors also can create watchlists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.
Four Dow Jones Stocks To Watch Now
Dow Jones Stocks To Buy And Watch: UnitedHealth
Managed care giant UnitedHealth shows a 500.10 buy point with a handle entry on a double-bottom base. Shares remain in the buy range above that entry after Friday’s 0.5% gain. UNH shares added 0.5% early Monday.
Bullishly, the stock’s relative strength line is perking up again after pulling back from new highs in recent sessions, indicating significant stock market outperformance.
Four Top Growth Stocks To Buy And Watch In The Current Stock Market Rally
Stocks To Buy And Watch: Arista, Broadcom, Regeneron, Shell, Vertex
Arista Networks is at the top of the buy range above a double bottom’s 133.97 buy point after rising 0.4% Friday, according to IBD MarketSmith charts. The stock gained 0.4% early Monday.
Chip giant Broadcom fell 0.4% Friday to extend a losing streak to three sessions, but is still holding above an early entry at 614.74. Shares continue to rally up the right side of a 13-week cup base. The cup base’s proper buy point is 677.86. AVGO shares were flat Monday morning.
Biotech leader Regeneron Pharmaceuticals remains in buy range above a 673.96 flat-base entry in the wake of a March 16 breakout move. REGN shares tested the buy point on March 23 before regaining the buy point on March 24. The 5% buy zone tops out at 707.66. The stock was flat early Monday.
Oil-and-gas producer and Friday’s IBD Stock Of The Day, Shell, is within striking distance of a flat base’s 56.23 buy point. Shares fell 1% Monday morning.
Vertex Pharmaceuticals moved higher in its buy range Friday after a 2% advance. The 5% buy area above a 255.03 cup-base entry tops out at 267.78. VRTX shares added 0.5% Monday.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla stock climbed around 1% early Monday, on pace to add to Friday’s 0.65% gain. Shares are approaching a cup base’s 1,208.10 buy point. Be on the lookout for a potential handle to offer a more risk-optimal entry.
On Saturday, Tesla said that it delivered a record 310,000 vehicles globally in the first three months of the year. That was up about 68% from the same period a year ago. Wall Street expected deliveries of around 309,000, but some estimates predicted 317,000 in the first quarter. CEO Elon Musk tweeted, “This was an *exceptionally* difficult quarter due to supply chain interruptions & China zero Covid policy. Outstanding work by Tesla team & key suppliers saved the day.”
The stock traded as high as 1,243.49 on Nov. 4. and ended Friday just 13% off that all-time high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares dropped 0.2% Friday, falling further below a double bottom’s 176.75 buy point. The 5% buy area goes up to 185.59. Look for a decisive move back above the entry as a buy signal. AAPL stock rose 0.2% early Monday.
Software leader Microsoft rose 0.4% Friday, as shares continue to build the right side of a new base formation. Microsoft shares gained 0.5% Monday morning.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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