The Dow Jones Industrial Average briefly fell over 100 points before reversing higher early Monday, while tech stocks jumped as Treasury yields fell from Friday’s highs. Tesla stock climbed more than 5% in morning trade on a 3,000 per-share price target.
Tesla (TSLA) jumped more than 5% Monday after a big price-target hike at ARK Invest.
Dow Jones Today: Treasury Yields
After the stock market open Monday, the Dow Jones Industrial Average turned 0.1% higher, while the S&P 500 moved up 0.4%. The tech-heavy Nasdaq composite rallied 0.9% in morning trade after paring some gains.
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 trade around 1.693% in morning trade.
Among exchange-traded funds, the Innovator IBD 50 (FFTY) traded up 0.7% on Monday. The Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) gained 0.9% Monday. Meanwhile, the SPDR S&P 500 ETF (SPY) moved up 0.3%.
Stock Market Rally: Nasdaq Gives Up Key Level
Amid the current stock market rally, the Dow Jones Industrial Average and S&P 500 indexes slid further from all-time highs Friday.
Meanwhile, the tech-heavy Nasdaq gave up its key 50-day moving average line Thursday and is about 7% off its all-time highs. 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.
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.”
Dow Jones Stocks: Nike
Inside the Dow Jones Industrial Average, Nike stock continues to form a flat base with a 148.05 buy point, according to IBD MarketSmith chart analysis. Shares are now about 7% away from their buy point.
On Friday, Nike tumbled 4% following the company’s mixed fiscal third-quarter results. Nike moved up 0.1% Monday morning.
Stocks To Watch: Alphabet, MKS Instruments, 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 0.1% 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.”
Tuesday’s IBD Stock Of The Day, MKS Instruments, gave up its 177.46 buy point in a double bottom Thursday and remains about 3% below the new entry. The 5% buy zone goes up to 186.33. MKSI stock gained 3% Monday morning.
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.
Friday’s IBD Stock Of The Day, Wayfair, is trying to break out past a 343.09 buy point in a cup with handle. Shares rallied 0.7% Monday.
Tesla stock rallied more than 5% 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 Friday about 27% 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 rallied about 1% Monday, looking to snap 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 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, IBD Leaderboard stock Microsoft moved up 0.8% Monday, eyeing its recently-lost 50-day line. Shares are just below their 232.96 buy point.
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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