The Dow Jones Industrial Average pared early gains in afternoon trading Monday in a holiday-shortened trading week. The index was up 0.8% as the second quarter kicked off. Oil stocks rose, with Dow component Chevron adding 4%. The blue chip index reclaimed its 50-day moving average last week. The market will be closed for Good Friday and the start of Passover.
The S&P 500 was flat at 1:30 p.m. ET, though big oil names gained. Exxon gapped up above its 50-day line while SLB and Marathon Oil cleared key levels as well.
Dollar Tree, Walgreens and Moderna gained in the Nasdaq but the tech index still fell 0.9%.
NYSE volume surged while Nasdaq ebbed compared to the same time on Friday.
Crude oil rocketed over 5% to $80.31 per barrel after OPEC+ cut output by over 1 million barrels a day. Russia followed, extending production cuts of 500,000 barrels a day to the end of 2023. Goldman Sachs analysts boosted their oil price forecast for Dec. 2023 to $95 a barrel from $90.
The yield on the benchmark 10-year Treasury note fell 6 basis points to 3.43%.
March's 49.2 PMI manufacturing index missed 49.3 expectations but beat February's 47.3.
The results showed "the slowest deterioration in operating conditions at U.S. manufacturers" in the last five months. Sian Jones, senior economist at S&P Global, said he views the fractional improvement as rising from easing supply chain constraints. New orders fell as interest rates climbed.
However, the ISM Manufacturing index for March registered 46.3, lower than the 47.7 in February, and the lowest since May 2020. That puts the economy in the fourth month of a slowdown.
Dow Jones Leader In Focus
Dow Jones leader Apple topped resistance at 164. Wedbush analyst Dan Ives raised the price target to 205 with an outperform rating, suggesting 24% upside from the current level.
Apple shares are in a consolidation with a 183.04 entry. According to reports, Ives sees China iPhone demand having "a clear tick up this quarter, with a strong month of March."
Tesla fell more than 7% despite record deliveries after price cuts and tax credits. The EV leader delivered 422,875 vehicles in the first quarter, compared to 310,048 vehicles a year ago. FactSet analysts expected 430,000 for the quarter. First-quarter earnings are due April 19. Production rose to 440,808.
Stocks Moving Today
Outside Dow Jones, Marathon Petroleum is attempting to break out of a consolidation pattern with a 136.56 entry.
Tractor Supply broke out of a flat base with a 239.76 entry.
Bed Bath & Beyond appears to be on its last legs as the troubled retailer faces bankruptcy. The home goods chain has to raise $300 million through a sale of shares to avoid closing, according to reports. Earlier, it secured some funding from Hudson Bay Capital. Shares have been selling off, dropping another 10% Monday in strong volume.
Atour Lifestyle Holdings is in a double-bottom base and approaching a buy point at 27.60.
Plug Power fell after Morgan Stanley analyst Andrew Percoco downgraded the fuel cells maker's stock to hold and slashed the price target to 15.
Axon and Skyline Champion are on watch. Axon broke out recently. Both are IBD Leaderboard stocks.
Also on Leaderboard, On Holding and Rambus broke out of bases last month.
Extra Space will buy Life Storage for $12.7 billion. Extra Space shares fell below their 50-day line in strong volume on Monday. LSI rose.
UFC parent Endeavor will take a $9.3 billion stake in World Wrestling. WWE shares are losing support at their 50-day line after the news. Earnings are due next week.
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