The Dow Jones Industrial Average rose Monday, as Treasury yields continued to fall ahead of Federal Reserve chair Jerome Powell's testimony on Tuesday. Global trade was mixed, despite China setting a lower-than-expected GDP growth target. Apple stock rallied after Goldman Sachs started coverage with a buy rating, saying it could climb more than 30%, while Tesla dropped on another round of price cuts.
Economic data was scarce Monday, with naught but January factory orders out. Factory orders fell 1.6% in January, better than estimates that expected a 1.8% fall vs. December's 1.8% rise, per Econoday estimates.
Looking forward, a huge week for the economic outlook starts Tuesday at 10 a.m., when Powell will appear before the Senate banking panel to give his semiannual testimony. Then, Friday will feature the Labor Department's February employment report.
On the earnings front, telecom gear maker Ciena jumped 6% after reporting better-than-expected fiscal-Q1 results.
More key earnings report this week include BJ's Wholesale, CrowdStrike, Dick's Sporting Goods, JD.com, MongoDB, Thor Industries and Ulta Beauty.
Stock Market Today
Electric-vehicle giant Tesla held narrow gains Monday morning after announcing another round of price cuts. Dow Jones tech giants Apple and Microsoft ran higher after the stock market open.
IBD Leaderboard watchlist stock Palo Alto Networks, Arista Networks, Toll Brothers and Salesforce — as well as Dow Jones stocks American Express, Cisco Systems and JPMorgan Chase — are among the top stocks to buy and watch, amid the recent stock market strength .
Palo Alto is an IBD Leaderboard watchlist stock. And American Express was featured in last week's Stocks Near A Buy Zone column.
Dow Jones Today: Oil Prices, Treasury Yields
After Monday's market open, the Dow Jones Industrial Average gained 0.3%, and the S&P 500 rose 0.4%. The tech-heavy Nasdaq composite added 0.5% in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust rose 0.4% and the SPDR S&P 500 ETF moved up 0.3% early Monday.
The 10-year Treasury yield tumbled back below 4% Friday, closing at 3.96% but still rising for a sixth-straight week. Early Monday, the 10-year yield extended losses, falling to 3.92%.
U.S. oil prices pulled back after closing with their first gain in three weeks on Friday. West Texas Intermediate futures dropped more than 1% Monday morning: below $79 a barrel, but holding near its highest level since mid-February.
Stock Market Rally Strengthens
On Friday, the Dow Jones Industrial Average climbed 1.2% and the S&P 500 rose 1.6%. The Nasdaq advanced 2%.
Friday's Big Picture column commented, "This week's positive action has seen the market revert to confirmed uptrend status. This justifies raising exposure to the 60% to 80% level. But investors should do so in a measured fashion in case this turns out to be a bear trap."
Now is an important time to read IBD's The Big Picture column amid the now-struggling stock market rally.
Five Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Buy And Watch: American Express, JPMorgan
Featured in this week's Stocks Near A Buy Zone column, American Express is rapidly approaching a 182.25 buy point in a giant cup with handle. Shares are just 2% below their buy point, as they jumped 2.1% Friday. Bullishly, the stock's relative strength line is at new highs, a particularly positive sign ahead of a potential breakout. AXP stock inched lower Monday morning.
Banking giant JPMorgan is in buy range above its 138.76 flat-base buy point amid a 1.8% gain Friday, according to IBD MarketSmith chart analysis. Shares found good support at their 50-day line in recent sessions. JPM shares were up a fraction early Monday.
JPM stock shows a solid 93 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. The Composite Rating is designed to help investors easily find top growth stocks.
4 Top Growth Stocks To Buy And Watch In The Stock Market Rally
Top Stocks To Buy And Watch: Palo Alto, Salesforce
IBD Leaderboard watchlist stock Palo Alto Networks is within striking distance of a base's 193.01 buy point following a 12.5% surge on Feb. 22. PANW stock traded down 1.6% Monday morning.
Backstory: On Feb. 21, the cybersecurity giant announced good results for the January-ended quarter that saw earnings hit $1.05 a share, up 81% vs. a year earlier, on a 26% jump in revenue to $1.7 billion.
Last week, Dow Jones leader Salesforce staged a bullish breakaway gap past a 178.94 buy point on strong fourth-quarter results. Shares surged 11.5% Thursday and are in the 5% buy zone that goes up to 187.89. CRM stock moved up 0.2% Monday.
Backstory: Salesforce sells software under a subscription model. Its software helps businesses organize and handle sales operations and customer relationships. The company has expanded into marketing, customer services and e-commerce. Salesforce said it has disbanded its "M&A committee," implying it will make no more big acquisitions, amid growing pressure from activist investors.
Arista, Toll Eye Latest Buy Points
Arista Networks is just below a 140.91 buy point from a cup base following Friday's 3% advance. A decisive retake would put the stock in a buy range that goes up to 147.96. ANET stock moved up 0.4% Monday morning.
Backstory: Arista sells switches that speed up communications among racks of computer servers packed into data centers. According to analysts, Arista is gaining ground in the so-called "enterprise" market — large companies, government agencies and educational institutions. Earnings surged 72% in the most recent quarter.
Homebuilder Toll Brothers is building a cup-with-handle base that displays a 63.29 buy point. Bullishly, the stock's relative strength line hit new highs during recent market action. TOL stock shows a 91 IBD Composite Rating. Toll Brothers shares were inactive early Monday.
Backstory: On Feb. 21 luxury homebuilder Toll Brothers topped earnings and revenue projections while maintaining its full-year guidance. The homebuilder's financial report comes as a 12-month slide in U.S. existing home prices showed signs of slowing in January.
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Stocks To Buy And Watch In Stock Market Rally
These are six top stocks to buy and watch in today's stock market, including two Dow Jones leaders.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Arista Networks | 140.91 | Cup base | |
| Toll Brothers | 63.29 | Cup with handle | |
| American Express | 182.25 | Cup with handle | |
| Palo Alto Networks | 193.01 | Consolidation | |
| JPMorgan | 138.76 | Flat base | |
| Salesforce | 178.94 | Cup with handle |
Source: IBD Data As Of March 6, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock raced 3.6% higher Friday rebounding from Thursday's 5.85% skid and snapping a three-day losing streak.
Shares looked to add to Friday's gains, but dropped 1.3% in Monday morning trade. The EV giant cut prices of its more expensive models, with the Model S and X now starting at $89,990 and $99,990 in the U.S., down a respective 5.3% and 9.1%, according to Bloomberg.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares jumped 3.5% Friday, making a bullish move above their 200-day line. Shares are around 16% off their 52-week high. Apple shares climbed 2.3% Monday after the Goldman Sachs buy rating and 199 price target, which is a 31% premium to Friday's closing price.
Microsoft shares moved back their 200-day line after Friday's 1.7% advance. The stock is around 20% off its 52-week high after recent declines. MSFT stock rose 0.8% early Monday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
