The Dow Jones Industrial Average rose as Charles Schwab led banks higher. Roblox cratered on a revenue update. Tesla CEO Elon Musk said he is "looking into" a China problem. Google parent Alphabet fell on more Microsoft AI fears.
A trio of stocks attempted breakouts despite the underwhelming action. Teck Resources, InterContinental Hotels and International Game Technology all tested entries.
Stocks progressed even as Treasury yields moved higher. The 10-year yield rose 8 basis point to 3.60% while the two-year yield popped 9 basis points to 4.19%, making the yield curve more inverted.
"Treasury yields are surging as Wall Street is quickly realizing banking turmoil risks are easing as emergency banks loans continue to decline," Oanda senior market analyst Edward Moya said in a note to clients. "Small and large loan growth is happening and emergency lending is decreasing."
Nasdaq Rebounds As Small Caps Shine
The Nasdaq managed to reverse higher late, closing up 0.3%. Solar stock Enphase Energy shined, vaulting 7.7%.
The benchmark S&P 500 also rallied, ending the session up 0.3%. State Street underperformed the index, sliding 9.3% after disappointing results.
The S&P 500 sectors closed mostly positive. Financials and real estate were the top performers while energy and communication services lagged.
Small caps fared relatively well, aided by strength in regional banks. The Russell 2000 rose 1.2%. But growth stocks made the best gains, with the Innovator IBD 50 ETF popping 2%.
Dow Jones Today: Boeing Stock Lifts, UNH Lags
The Dow Jones industrials ended the session up just over 100 points thanks to a late rally. This equates to a 0.3% gain.
Boeing stock was among the top performers, rising 1.6%. Despite the lift it remains below its 50-day moving average.
But it was Walgreens Boots Alliance that fared best on the Dow Jones today, closing with a 1.8% gain.
UnitedHealth was the worst laggard, dipping 1.3%. Chevron also struggled, dropping 0.9%.
Elon Musk 'Looking Into' Tesla China Issue
Tesla CEO Elon Musk spoke out on social media regarding reports workers at the firm's Shanghai factory have been protesting against supposed unfair cuts in performance-related pay.
Users are said to have taken to Chinese platform Zhihu to complain about announced cuts to monthly bonus pay.
"Was alerted this weekend. Looking into it," Musk wrote on Twitter. The executive has previously spoken out to praise his Chinese employees for their work ethic.
Tesla stock rallied into the close, rising 1.1% on the stock market today. It is now up about 73% so far in 2023. TSLA currently sits just below the key 50-day moving average, MarketSmith analysis shows.
It is a key week for TSLA stock as the firm is set to report earnings Wednesday after the close.
Google Stock Skids On More Microsoft AI Worries
Alphabet stock was hit amid reports Samsung phones may switch to Microsoft Bing as the default search engine. The New York Times reported Android powerhouse Samsung is considering ditching Google for Bing.
Microsoft's search tool has been raised from the metaphorical dead amid buzz over integration of an AI chatbot powered by ChatGPT.
Google spends billions to appear as the default search engine on smartphones. In return it rakes in huge amounts in advertising.
Alphabet has been trying to catch up on Microsoft by integrating its own artificial intelligence chat technology named Bard.
GOOGL stock ended the day down 2.7% and is sits just below a 106.69 buy point. Microsoft stock gained 0.9% and is at the top of a buy zone above a 276.86 entry.
Roblox Stock Hammered On Revenue Dip
Gaming stock Roblox was given a caning. It ended off session lows but still fell around 12%.
The company's March metrics report showed the firm expects average bookings per daily user to fall year over year. This is a key revenue metric for the firm.
It said estimated average bookings per daily active user for that month were between $3.73 and $3.85, a range that indicates a year-over-year drop of 2% to a gain of 1%.
Estimated average bookings per daily active user in March would have fallen between 1% and 3% on a constant-currency basis.
RBLX stock gapped down through the 50-day line, a key support level. It is holding above the 200-day moving average for now.
Charles Schwab Earnings Boost Bank Stocks
Impressive earnings by Charles Schwab helped lift bank stocks higher Monday.
The firm posted a rise in adjusted earnings of 20% to 93 cents per share while revenue rose 10% to $5.116 billion.
Schwab moved to pause its share buyback program due to recent banking events and regulatory uncertainty. It comes after the stock was hammered after the Silicon Valley Bank implosion.
The firm ended the session up 3.9% but remains rooted below its 50-day moving average. It has plenty of ground to make up as it sits nearly 36% lower so far in 2023.
In addition, Buffalo, N.Y.-based M&T Bank jumped on its own earnings beat. It closed the day up 7.8%. It gapped through the 21-day exponential moving average in high volume but is still down more than 13% for the year.
The iShares US Regional Banks ETF also popped Monday, closing up 3.1%.
Some major banks also thrived, with Wells Fargo rising 4.2% and Bank of America lifting 2.9%. JPMorgan Chase turned in a more modest 0.8% gain.
Outside Dow Jones: 3 Stocks Test Buy Points
With the market in a confirmed uptrend it is especially important to keep an eye out for breakouts.
Teck Resources is in a buy zone after breaking out of a cup base. The ideal entry point for the mining play is 47.
The relative strength line hit new heights, an encouraging sign. TECK is in the top 7% of stocks in terms of price performance over the last 12 months.
InterContinental Hotels is also actionable after clearing a double-bottom base buy point of 69.73. Volume was low however, which is a flaw.
Overall solid performance is reflected in its IBD Composite Rating of 82 out of 99.
International Game Technology is just above a buy point of 27.92. With volume low today, this may be one to watch for now.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more analysis of growth stocks.
