The Dow Jones Industrial Average rose 200 points on Monday as Apple stock jumped ahead of the company’s WWDC 2022 developer event. A key test for the stock market this week is Friday’s consumer price index, as investors look for signs that inflation has reached its peak.
Twitter (TWTR) plunged 5% Monday morning after Elon Musk accused Twitter of “resisting and obstructing” his right to learn more about fake accounts on the social media platform, saying it was a “clear significant breach” of the terms of the merger agreement their in a letter to the company Monday.
Shares of Keurig Dr. Pepper (KDP), VICI properties (VICI) and ON semiconductor (ON) advanced after the S&P Dow Jones Indices said the three companies would join the S&P 500 benchmark this month.
China-based stocks and China-exposed stocks rose as Beijing eased some Covid restrictions. Solar problems increased after Reuters reported that the Biden administration was planning a 24-month exemption on any new tariffs for components imported from Southeast Asian nations.
Electric vehicle giant Tesla (TSLA) traded up more than 1%. Elsewhere, Dow Jones tech executives Microsoft (MSFT) self appleits (AAPL) early rise in the current stock market. American Express (AXP) led Dow in early trading, following an upgrade to buy from brokerage firm Edward Jones.
In the midst of the ongoing stock market rise, Dow Jones is leading Chevron (CVX) and Merck (MRK) – together with Albemarle (ALB), Eli Lilly (LLY), Enphase (ENPH), Northrop Grumman (NOC) and ZIM integrated shipping (ZIM) – is among IBD’s best stocks to watch on Monday.
Albemarle is an IBD Leaderboard action. Enphase is on IBD SwingTrader. And Albemarle was featured in last week’s Shares near a buy zone column. ZIM was a featured IPO leader.
Dow Jones today: Treasury interest rates, oil prices
After Monday’s opening, the Dow Jones Industrial Average rose 0.6%, while the S&P 500 rose 0.9%. The technology-heavy Nasdaq composite rose 1.1% in morning trading.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 1.1%, while the SPDR S&P 500 ETF (SPY) rose 0.9%.
The 10-year government interest rate appeared to increase last week’s rise, rising to 2.97% on Monday morning. Meanwhile, US oil prices remained stable, with West Texas Intermediate oil trading just under $ 120 a barrel.
Stock market rally
On Friday, the major stock indices sold out strongly. Nasdaq was the index that suffered the most, falling 2.5 percent. The S&P 500 also had a tough time, falling 1.6%.
Friday’s The Big Picture column commented: “Although job growth slowed compared to April, it may not be enough to prevent the Fed from continuing to raise interest rates over the summer. estimated increase of 128,000 jobs in May, well shy of estimates. “
If you are new to IBD, you should consider taking a look at the stock trading system and the basics of CAN SLIM. Recognizing chart patterns is a key to the investment guidelines. IBD offers a wide range of growth charts, such as Leaderboard and SwingTrader.
Investors can also create watch lists, find companies approaching a point of purchase, or develop custom monitors at IBD MarketSmith.
Five Dow Jones shares to see now
Dow Jones shares to see: Chevron, Merck
Dow Jones leader and energy giant Chevron is trading just above a flat-base buying point of 174.86, according to IBD MarketSmith chart analysis, after Friday’s 0.9% rise. The 5% buying zone tops at 183.60. The CVX stock fell 0.1% on Monday.
The CVX stock has 98 of a perfect 99 IBD Composite Rating, according to the IBD Stock Checkup. Investors can use the IBD Composite Rating to easily measure the quality of a stock’s basic and technical calculations.
Merck, a Dow Jones and IBD Big Cap 20 stock, is still in the buying range past a cup-with-handle buy point of 89.58, as shares fell 0.1% on Friday. The purchase area of 5% goes up to 94.06. The MRK share rose on Monday morning.
The stock’s relative strength line reached a new high in mid-May, but is now pulling back sharply.
Four top growth stocks to see in timera stock market rally
Shares to buy and look at: Albemarle, Eli Lilly, Enphase, Northrop, ZIM
The IBD Leaderboard stock Albemarle is about 8% off a cup with a handle buy point of 273.78, according to the IBD MarketSmith chart analysis. In recent weeks, Albemarle passed an early buying point close to 248. ALB shares rose 2% on Monday morning.
Pharmaceutical giant Eli Lilly fell 0.3% on Friday, falling further below a flat base’s buying point of 314.10 after an eruption on 27 May. Eli Lilly shares were 3.8% higher on Monday.
The IBD SwingTrader share Enphase is in the buying area past a double bottom base 193 buying points after Friday’s fall of 1.3%. The purchase area of 5% goes up to 202.65. A major weakness is the stock’s hanging RS line. Enphase shares rose more than 9% Monday morning after the Wall Street Journal said President Joe Biden was planning a package of guidelines aimed at increasing US solar energy production and installations.
Northrop Grumman broke out Friday past a cup-with-handle buy point of 477.36. The defense contractor is also moving over a trend line within the handle that had an early entry of around 464. The NOC shares were narrowly higher on Monday morning.
IPO Leader ZIM Integrated tracks a cup with handles that has a purchase point of 68.80. The shares are about 1% away from the correct buying point after Friday’s rise. ZIM shares rose 0.3% early Monday.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla shares plunged 9.2% on Friday after CEO Elon Musk said he plans to cut 10% of the company’s paid workforce. Shares seemed to pick up again after this fall, rising more than 1% on Monday morning.
The stock falls further below its 50- and 200-day moving averages. The Tesla stock traded as high as 1,243.49 on November 4th. The shares are about 43% lower than the record.
Dow Jones executives: Apple, Microsoft
Among Dow Jones shares, Apple shares sold 3.9% on Friday. The stock is still well below its long-term 200-day line. The AAPL share traded up 1.7% on Monday.
With the company’s WWDC event starting on Monday, Apple will showcase the latest innovations in the device’s operating systems: iOS, iPadOS, macOS, watchOS and tvOS. It can also use the conference to showcase the prototype headset for augmented reality and virtual reality.
Software leader Microsoft fell 1.7% on Friday, and is still sharply below its 50- and 200-day limits. The stock closed more than 20% of its 52-week high. MSFT shares rose 1.2% on Monday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
CAN YOU ALSO LIKE:
Top growth stocks to buy and look at
Learn how to time the market with IBD’s ETF market strategy
Find the best long-term investments with long-term IBD leaders
MarketSmith: Research, charts, data and coaching in one place
How to research growth stocks: Why this IBD tool simplifies the search for top stocks