The Dow Jones Industrial Average rallied 300 points Monday, as the U.S. Senate passed a bill over the weekend to spend billions of dollars on climate and healthcare programs. Tesla stock jumped 4% in morning trade after announcing the date of its impending 3-for-1 stock split. And Nvidia stock briefly dived more than 8% after issuing a revenue warning.
Early Monday, graphics-chip maker Nvidia warned that its second-quarter revenues would fall short of estimates, citing weaker gaming revenue. Nvidia sees Q2 revenue of $6.7 billion vs. a FactSet consensus of $8.12 billion.
Key earnings movers Monday include Palantir Technologies and Tyson Foods. Palantir shares dived 14%, while Tyson moved down more than 5% in early trade.
Tesla traded up 4% early Monday. Elsewhere, Dow Jones tech leaders Apple and Microsoft were mixed after today's stock market open.
In the strengthening stock market environment, Dow Jones stocks Coca Cola and UnitedHealth — as well as Equinor, Heico and Monolithic Power Systems — are among the stocks to watch. Keep in mind that ongoing stock market volatility is a reason to stay more conservative despite recent signs of strength.
Heico, UnitedHealth and Vertex are IBD Leaderboard stocks. Equinor and MPWR are both recent IBD Stock Of The Day names.
Dow Jones Today: Treasury Yields, Oil Prices
Early Monday, the Dow Jones Industrial Average rose 0.9%, and the S&P 500 moved up 0.95%. The tech-heavy Nasdaq composited traded up 1.4% in morning trade.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust rose 1.4%. And the SPDR S&P 500 ETF gained 0.95%.
The 10-year Treasury yield ticked down to 2.79% Monday morning, falling after Friday's jump to 2.84%. The 10-year Treasury yield is rebounding after hitting its lowest level since early April last week.
Meanwhile, U.S. oil prices threatened to add to last week's sharp losses, as West Texas Intermediate futures lost more than 1% on Monday, trading around $88 a barrel. Last week, WTI fell below $88 a barrel for the first time since mid-February.
On Sunday, the Senate passed the Democrats' climate healthcare and tax bill in a 51-50 vote. Vice President Kamala Harris cast the tiebreaking vote. The House is expected to take up the bill on Friday.
Stock Market Rally
On Friday, the S&P 500 fell 1.1% early but pared its loss to 0.2% by the close. And the Nasdaq composite fell as much as 1.5%, but the index shaved its loss to just 0.5%.
Friday's The Big Picture column commented, "It was another resilient performance for the stock market Friday, making the bulls feel pretty good about the confirmed uptrend. With the market tide flowing positive, investors have the green light to increase exposure, but keep positions small to start."
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.
Five Dow Jones Stocks To Watch Now
Dow Jones Stocks To Watch: Coca Cola, UnitedHealth
Dow Jones soda giant Coca Cola is building the right side of a flat base that has a 67.30 buy point. Shares are testing their 50-day line following last week's losses. KO stock inched 0.4% higher Monday.
Health insurance giant and IBD Leaderboard stock UnitedHealth remains in buy range above its double-bottom-with-handle base's 518.80 buy point amid Friday's 0.25% gain, according to IBD MarketSmith chart analysis. Shares added 0.7% Monday.
UNH stock shows a solid 94 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. Investors can use the IBD Composite Rating to easily gauge the quality of a stock's fundamental and technical metrics.
4 Top Growth Stocks To Watch In The Current Stock Market Rally
Top Stocks To Watch: Equinor, Heico, Monolithic
Norwegian oil giant Equinor is trading just shy of a double-bottom base's 38.80 buy point following Friday's 1.85% advance. Shares gained 0.4% as natural gas prices slipped Monday morning.
IBD Leaderboard stock Heico is in buy range past a double bottom's 151.37 entry after a recent strong breakout move. The 5% buy area goes up to 158.94. The stock was up 1% Monday.
Chipmaker and Thursday's IBD Stock Of The Day Monolithic Power Systems continues to build the right side of a consolidation that has a 580.10 buy point. Keep an eye out for a potential handle to offer a lower entry. MPWR shares were flat early Monday.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock skidded 6.6% Friday, snapping a seven-day win streak. Last week, shares hit their highest level since early May but found stiff clear resistance around their 200-day line, which is a key level to watch.
Shares rose 4% Monday morning. On Friday, the company announced that the 3-for-1 stock split will occur on Aug. 24.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares lost 0.3% Friday, pausing after recent gains, as they move further up the right side of a new base. The stock gained 0.7% Monday morning.
Microsoft slipped 0.3% Friday, ending a two-day win streak. The software giant is still ranging below its long-term 200-day line. The stock closed about 19% off its 52-week high. Microsoft moved down 0.1% early Monday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
