The Dow Jones Industrial Average briefly rallied 300 points Monday morning, as First Citizens BancShares bought large pieces of FDIC-controlled Silicon Valley Bank. First Republic Bank soared as much as 31% on hopes of a resolution for the banking crisis.
First Citizens shares also catapulted, surging nearly 50% in morning action, with the SPDR S&P Regional Bank ETF climbing 4.1%. Among the big U.S. banks, JPMorgan Chase and Citigroup rose 2% apiece. (For the latest coverage of the market, visit our Stock Market Today page.)
On the economic front this week, the Conference Board's Consumer Confidence Index is out Tuesday. On Thursday, the Labor Department reports weekly jobless claims and the Commerce Department offers its third-quarter GDP reading.
The University of Michigan Consumer Sentiment gauge and the personal income and spending report for February are due Friday. The report will include outlays on services, giving a broader picture of consumer strength. The report also includes the Fed's favored inflation gauges, the personal consumption expenditures price index and the core PCE price index.
Jefferies, Lululemon Athletica, Micron Technology and Walgreens Boots Alliance are among the companies reporting earnings this week.
Stock Market Today
Electric-vehicle giant Tesla rose 2.6% early Monday. Dow Jones tech giants Apple and Microsoft were lower after today's stock market open.
Align Technology, IBD SwingTrader stock Meta Platforms and IBD Leaderboard Palo Alto Networks — as well as Dow Jones stocks Cisco Systems and Nike — are among the top stocks to watch in the ongoing stock market correction.
Palo Alto is an IBD Leaderboard stock. Microsoft was featured in last week's Stocks Near A Buy Zone column. And Meta is an IBD SwingTrader stock. Palo Alto, Align, Microsoft and Meta were all recent IBD Stock Of The Day subjects.
Dow Jones Today: Oil Prices, Treasury Yields
After Monday's opening bell, the Dow Jones Industrial Average rose 0.7%, and the S&P 500 moved up 0.6%. The tech-heavy Nasdaq composite rose 0.5% in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust gained 0.4% and the SPDR S&P 500 ETF moved up 0.7% early Monday.
The 10-year U.S. Treasury yield on Friday slipped to 3.38%, extending a losing streak to three sessions. The 10-year yield briefly touched its lowest level since mid-September. On Monday, the 10-year jumped to 3.49%.
U.S. oil prices finished last week with modest gains, as West Texas Intermediate futures ended just above $69 a barrel. WTI futures rose more than 1% Monday morning, above $70 a barrel.
Stock Market Correction
On Friday, the Nasdaq composite reversed higher, booking a 0.3% daily gain while adding to a solid 1.7% weekly lift. The blue chip S&P 500 squeezed out a 0.6% gain, rising about 1.5% for the week. And the Dow Jones Industrial Average posted a modest 0.4% gain.
Friday's Big Picture column commented, "The stock market ended the week positive but there are plenty of reasons to be cautious. First, the IBD outlook remains 'market in correction.' Investors should keep plenty of powder dry, with exposure limited to 0-20%."
Now is an important time to read IBD's The Big Picture column amid the ongoing stock market correction.
Five Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Watch: Cisco Systems, Nike
Cisco Systems is rapidly approaching a 51.84 buy point out of a flat base, according to IBD MarketSmith pattern recognition. Bullishly, the stock's relative strength line hit a new high last week, a sign of stock market outperformance. CSCO stock rose 0.7% Monday morning.
Nike shares continue to trace a flat base that has a 131.41 buy point amid the stock's recent rebound. The stock is trying to regain its 50-day line, which is a key level to watch. NKE stock moved down 0.3% early Monday.
3 Top Growth Stocks To Watch In The Stock Market Correction
Top Stocks To Watch: Align, Meta, Palo Alto
Align Technology continues to trace a consolidation that has multiple buy points: a 357.10 early entry and a conventional entry at 368.97. ALGN stock is looking for support around its 50-day moving average. If the stock breaches this level, then further weakness would be expected. Shares rose 0.9% Monday morning.
Backstory: The company makes clear teeth-straightening systems called Invisalign. UBS analyst Kevin Caliendo says investors recently regained confidence in Align stock, which has surged 50% this year. Various indicators support this view, including December-ended quarter results from Align and its competitors, management commentary, U.S. economic data and a recent uptick in demand for Invisalign cases, Caliendo said in a note to clients.
Backstory: Like social media rivals, Meta is struggling due to a sharp reduction in advertising revenue as clients squirm over macroeconomic concerns, recession fears and higher interest rates. This is happening as it spends billions of dollars on a risky bet to build the "metaverse," a virtual reality world that has yet to take hold.
IBD Leaderboard stock Palo Alto Networks continues to trade above and below its 192.94 buy point out of a cup with handle amid Friday's 1.2% move lower. The buy area will run up to 202.59 if the stock retakes the entry. PANW stock traded up 0.5% Monday.
Backstory: Through acquisitions, Palo Alto Networks has expanded into endpoint security and vulnerability management. Endpoint tools detect malware on laptops, mobile phones and other devices that access corporate networks.
Learn How To Time The Market With IBD's ETF Market Strategy
Stocks To Watch In Stock Market Correction
These are four top stocks to watch in today's stock market, including two Dow Jones leaders.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Meta Platforms | 197.26 | Flat base | |
| Nike | 131.41 | Flat base | |
| Palo Alto Networks | 192.94 | Cup with handle | |
| Cisco Systems | 51.84 | Flat base |
Source: IBD Data As Of March 26, 2023
Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live
Tesla Stock
Tesla stock slipped 0.9% Friday, but still finished with a 5.7% weekly gains. Shares continue to rebound from their 50-day moving average. Shares closed Friday around 50% off their 52-week high.
TSLA stock rose 2.6% Monday morning, as it looks to bounce back from Friday's losses.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares climbed 0.8% Friday, adding to Thursday's gains. AAPL stock lost 0.2% Monday.
Microsoft shares are again breaking out above a flat base's 276.86 buy point with a 1.05% gain Friday. The stock is in the 5% buy area that goes up to 290.70. MSFT stock was down 0.3% early Monday.
Microsoft shares surged last week after the company announced that it is adding artificial intelligence tools to its popular Office productivity applications. That follows the company's investments in AI startup OpenAI, the firm behind the buzzy ChatGPT application.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
