The Dow Jones Industrial Average rose Monday morning as the stock market threatened to amplify Thursday’s sharp losses. The 10-year Treasury yield hit another 52-week high on Monday. And Twitter stock rose 3% as the company tries to fend off the takeover of Tesla CEO Elon Musk.
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Bank of America (BAC) reported its quarterly results ahead of the market open on Monday. BAC shares rose nearly 1% after beating earnings and revenue estimates. Karl Schwab (SCHW) also reported early. Schwab shares plunged more than 5%.
Among Dow Jones executives Apple (AAPL) fell 0.6%. during Microsoft (MSFT) rose a fraction in today’s stock market.
Twitter (TWTR) was up 3% on Monday. On Friday, the company announced that its board of directors had approved a limited-term shareholder rights plan, often referred to as a “poison pill,” to prevent its takeover of Tesla CEO Elon Musk.
Under the new plan, if an individual or group acquires beneficial ownership of at least 15% of Twitter’s outstanding common stock without board approval, other stockholders may acquire additional shares at a discount. That would quickly dilute Musk’s stake and make buying more shares expensive.
Meanwhile electric vehicle giant Tesla (TSLA) was up about 1% on Monday morning. In a new research note, Cathie Woods Ark Invest expects Tesla stock to hit 4,600 in 2026.
As the stock market uptrend struggles, Dow Jones is the financial leader American Express (AXP) – along with IBD Leaderboard watchlist holdings Edward’s Biological Sciences (EW), Murphy Oil (MUR), Raytheon technologies (RTX), sleeve (SHEL) and Ultimate beauty (ULTA) – are among the top stocks to buy and watch on Monday.
Microsoft and Tesla are IBD Leaderboard stocks. Edwards Lifesciences and Raytheon Technologies were featured in last week’s ‘Stocks Near a Buy Zone’ column.
Dow Jones Today: Treasury Yields, Oil Prices
After Monday’s open, the Dow Jones Industrial Average was up 0.4%, while the S&P 500 was up 0.2%. The tech-heavy Nasdaq Composite fell 0.1% in morning trade.
Among exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust (QQQ) was down 0.4%. And the SPDR S&P 500 ETF (SPY) lost 0.2% after Monday’s open.
The 10-year US Treasury yield rose to 2.82% on Thursday, the highest since December 2018. The 10-year Treasury yield rose to 2.86% on Monday morning. Meanwhile, US oil prices were little changed after Texas Intermediate crude rose 9% to above $106 a barrel last week.
Stock market rally continues struggle
On Thursday, the stock market posted a disappointing performance as the Nasdaq and S&P 500 indices sold off sharply.
Thursday’s The Big Picture column warned, “The Nasdaq has erased all gains from its March 18th follow-through and is below its 50-day moving average. For now, the S&P 500 is still above its March 16 follow-through.”
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Investors can also create watch lists, find companies approaching a buy point, or develop custom screens at IBD MarketSmith.
Four Dow Jones stocks you should be watching right now
Dow Jones stocks to buy and look at: American Express
Dow Jones financials American Express is following a cup and handle basis and shows a buy point of 194.45. AXP shares were up 0.2% on Monday morning.
Keep an eye on the stock’s relative strength line. Amid its recent surge, the RS line is nearing its old highs, but still has some way to go before a potential breakout. The RS line measures a stock’s price action against the S&P 500. The RS line should make a new high on or shortly after the breakout day to confirm the strength of the stock’s breakout.
Four top growth stocks to buy and watchrightde Stock market rally
Stocks to buy and watch: Edwards, Murphy, Raytheon, Shell, Ulta
Edwards Lifesciences IBD leaderboard watch list now shows a mug with a handle with a buy point of 125.21 as a result of last week’s weakness. EW shares fell 0.3% on Monday morning.
Murphy Oil is tracking an ascending basis with a buy point of 43.30. After gaining 1.6% on Thursday, shares are about 2% off their last entry. MUR stock has a perfect IBD Composite Rating of 99 according to the IBD Stock Checkup. Shares were up 2% early Monday.
Defense contractor Raytheon Technologies is attempting to break out of the buy point from a flat base of 104.44 after shares rose 0.9% on Thursday, briefly topping the entry before closing below. RTX shares are higher Monday morning.
Oil & gas producer Shell, IBD stock of the day April 1 is range bound above the buy point of a flat base of 56.23 after rising 0.1% on Thursday. The 5% buy range goes until 04/59. SHEL shares are higher on Monday morning.
Ulta Beauty shares are in the 5% buy range behind a cup with Handle’s buy point of 408.83, according to chart analysis by IBD MarketSmith. Buy area rises to 429.27. The stock’s relative strength line is at a new high, which is an important sign of market leadership. ULTA shares were slightly higher early Monday.
Join IBD experts as they analyze leading stocks from the current stock market rally on IBD Live
Tesla stock
Tesla shares rose about 1% on Monday and are expected to recover from Thursday’s 3.7% drop. Late Thursday, Cathie Wood’s Ark Invest announced that Tesla will hit 4,600 in its new target price model in 2026. Shares of the EV giant closed about 15% below the cup handle buy point of 1,152.97 on Thursday.
The stock traded as low as 1,243.49 on Nov. 4 and ended about 21% off that all-time high on Thursday.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones shares, Apple shares fell 3% on Thursday, breaking the 7%-8% loss cap rule from a buy point of 176.75 on a double bottom basis and falling below the 50-day moving average. The stock is close to triggering the 7% to 8% loss-limiting sell rule. Meanwhile, a grip buy point at 179.71 is the last entry to watch. The stock was down 0.6% Monday morning.
Software leader Microsoft fell 2.7% on Thursday, hitting its lowest level since March 15. Stocks continue to fall below their 50- and 200-day moving averages. The stock is down about 20% from its 52-week high. MSFT shares are higher early Monday.
Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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