Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, were higher late Monday, as Treasury yields slid from recent highs. Tesla stock, Applied Materials and Nvidia led the stock market rally Monday.
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On Monday, the Dow Jones Industrial Average advanced 0.3%. The S&P 500 rose 0.7%, while the tech-heavy Nasdaq composite outperformed, rising 1.2% even after slashing gains.
Among the Dow Jones leaders, Apple (AAPL) rose 2.8% Monday, while Microsoft (MSFT) moved up 2.45% in today’s stock market. Boeing (BA) is back in buy range following a recent breakout, while Nike (NKE) gained back a portion of Friday’s tumble.
Tesla (TSLA) surged as much as 6.8% Monday after a big price-target hike at ARK Invest before cutting gains.
Among the top stocks to watch, chip leaders Applied Materials (AMAT), ASML (ASML), MKS Instruments (MKSI), Nvidia (NVDA) and Qorvo (QRVO) are in or near buy zones in the current stock market rally.
Meanwhile, Alphabet (GOOGL), and Wayfair (W) are also approaching new buy points. Alphabet was featured in this week’s Stocks Near A Buy Zone column, while Wayfair was Monday’s IBD 50 Stocks To Watch pick.
Alphabet, Microsoft and Nvidia are IBD Leaderboard stocks. MKS Instruments was Tuesday’s IBD Stock Of The Day.
Dow Jones Today: Treasury Yields
After the stock market close Monday, Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, were up about 0.1% each vs. fair value. Remember that trading in Dow Jones futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
U.S. Stock Market Today Overview | ||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 32730.35 | +102.38 | +0.31 |
| S&P 500 | (0S&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 Update: 4:38 PM ET 3/22/2021 | ||||
On Friday, the 10-year Treasury yield spiked as high as 1.754% before closing at 1.732%. The 10-year Treasury yield dropped under 1.7% Monday to close at 1.684%.
Among exchange traded funds, the Innovator IBD 50 (FFTY) traded up 0.2% on Monday. The Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) gained 1.75% Monday. Meanwhile, the SPDR S&P 500 ETF (SPY) moved up 0.8%.
Stock Market Rally: Nasdaq Tests Key Level Again
Amid the current stock market rally, the Dow Jones Industrial Average and S&P 500 indexes snapped two-day losing streaks Monday with modest gains.
Meanwhile, the tech-heavy Nasdaq is again trying to retake its key 50-day moving average line, but fell short Monday. Last Thursday, the Nasdaq composite gave up that key level. The Nasdaq will need to overcome this key hurdle in order to maintain its upward trajectory. The 50-day line is a critical potential resistance level. If the Nasdaq decisively clears it, then new highs could be on the horizon.
IBD’s market outlook was upgraded to “confirmed uptrend” on March 10, as the Dow Jones Industrial Average set new highs.
Friday’s Big Picture commented, “The weekly losses hint at growing angst on Wall Street over the cost of money. Long-term interest rates have soared, on percentage terms, since early August. The yield on the benchmark U.S. Treasury 10-year bond has more than tripled from 0.50% to as high as 1.75%, according to Cboe market data.”
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Dow Jones Stocks: Boeing, Nike
Inside the Dow Jones Industrial Average, Boeing is back in buy range above a 244.18 buy point in a cup base amid a three-day losing streak. Shares fell nearly 2% Monday.
Meanwhile, Nike stock continues to form a flat base with a 148.05 buy point, according to IBD MarketSmith chart analysis. Shares are now about 6% away from their buy point.
On Friday, Nike tumbled 4% following the company’s mixed fiscal third-quarter results. Nike moved up 0.6% Monday, but remains below its 50-day line.
Chip Stocks To Watch: Applied Materials, Nvidia
Chip stocks continue to be some of the best technology names in the current stock market rally. The VanEck Vectors Semiconductor ETF (SMH) is a new IBD SwingTrader addition Monday amid a 2.3% rise.
Applied Materials continues to rebound from its 50-day support level. Shares rallied 3.9% Monday and are just 4% from new highs.
ASML jumped back above its 50-day line, climbing 5.2% Monday. Shares are in week six of a potential base. The minimum length of a cup base is six weeks, so a new buy point could emerge at the end of the week.
Qorvo found support at its 50-day line Friday and continued its rebound Monday with a 1.9% rise. Shares are closing in on a 191.93 buy point, while an early entry exists at 185.96.
Last Tuesday’s IBD Stock Of The Day, MKS Instruments, ended just below its 177.46 buy point in a double bottom amid Monday’s 2.4% gain. The 5% buy zone goes up to 186.33.
According to IBD Stock Checkup, MKSI stock boasts a perfect 99 IBD Composite Rating. The IBD Composite Rating helps investors easily measure the quality of a stock’s fundamental and technical metrics.
Chip giant Nvidia (NVDA) advanced 3.4%. The graphics-chip maker could be forming the right side of a new base, but it’s a bit too early for a conventional buy point. A strong day to reclaim the 50-day line would be bullish for the stock’s prospects.
Stocks Near Buy Zones: Alphabet, Wayfair
IBD Leaderboard stock Alphabet completed a five-week flat base Friday, creating a new buy point at 2,145.24, according to IBD MarketSmith chart analysis. Shares are about 6% away from the new entry. GOOGL stock moved up 0.2% Monday.
According to Leaderboard commentary, “Alphabet has made better progress than other big-cap techs lately. Support at the 21-day line is defining the current chart action. The last base was second stage.”
Monday’s IBD 50 Stocks To Watch pick, Wayfair, is trying to break out past a 343.09 buy point in a cup with handle. Shares rallied 3.1% Monday and are in buy range.
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Tesla Stock
Tesla stock surged more than 6% before cutting gains to 2.3% Monday after Cathie Wood’s Ark Invest announced its new price target at 3,000 by 2025. The price target uses expectations that the electric-vehicle giant will launch an autonomous robotaxi service built upon its full self-driving tech platform. It could bring in as much as $327 billion in revenue, according to Ark research. The bull-case price target is 4,000, while the bear-case 2025 price target is 1,500.
Shares of Tesla ended Monday about 26% off their 52-week high. Tesla stock could be forming a new base, but it is too early for a new risk-optimal buy point.
On Feb. 22, Tesla broke down through its key 10-week moving average line, a critical support level. On Jan. 25, Tesla stock hit a record high at 900.40, after climbing as much as 93% from a 466 buy point in a cup with handle.
Dow Jones Leaders: Apple, Microsoft
Among the top Dow Jones stocks, Apple advanced nearly 3% Monday, snapping a three-day losing streak that saw resistance around the 10-week moving average line. Apple stock is rebounding from its long-term 40-week line and could soon again try to reclaim its 10-week line.
On Feb. 18, Apple stock triggered the 7%-8% loss-cutting sell rule when it fell more than 7% below its 138.89 buy point in a cup with handle.
Meanwhile, software giant Microsoft moved up 2.45% Monday, regaining its key 50-day line. Shares are back above their 232.96 buy point and are approaching a 246.23 buy point in a new flat base.
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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