Dow Jones Futures Rise Ahead of Economic Data; Tesla bounces on sales in China
Dow Jones futures rose on Tuesday morning ahead of key economic data, with the release of factory orders and the Labor Department’s Job Openings and Sales Survey (JOLTS). Tesla shares appeared to bounce Tuesday morning amid strong sales data in China.
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Early Tuesday, factory orders are due at 10 a.m. ET. Orders are expected to fall 0.4% in February, against January’s fall of 1.6%. Meanwhile, JOLTS, also out at 10am, is expected to reach 10.4 million in February, down slightly from January’s 10.824 million.
The stock market today
Electric vehicle giant Tesla ( TSLA ) rose 1% Tuesday premarket. Dow Jones technology giants apple (AAPL) and Microsoft (MSFT) was on the move higher before today’s stock market open.
IBD Leaderboard stock Axon The company (AXON), Service Now (NOW) and Skyline (SKY) – as well as Dow Jones stocks Boeing (BA), Cisco Systems (CSCO) and Nike (NKE) — is among the best stocks to buy and watch with the current market strength.
Boeing was featured in this week’s columns for stocks near a buy zone. Axon, Skyline and Microsoft were all recent IBD Stock Of The Day subjects.
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Dow Jones today: Oil prices, Treasury yields
Ahead of Tuesday’s opening bell, Dow Jones futures rose 0.2% versus the real value, while S&P 500 futures rose 0.3%. Technology-heavy Nasdaq 100 futures rose 0.5% in morning action.
Among U.S. exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust ( QQQ ) was up 0.5%, while the SPDR S&P 500 ETF ( SPY ) was up 0.3% early Tuesday.
The 10-year US Treasury yield on Tuesday ticked up to 3.46%. In recent weeks, the 10-year yield briefly reached its lowest level since mid-September.
US oil prices contributed to Monday’s gains, rising around 1% in early morning trade. West Texas Intermediate futures traded above $81 a barrel.
Stock market rally
On Monday, the Dow Jones Industrial Average rose 1%, with UnitedHealth Group (UNH) and Chevron (CVX) the big winners. UNH shares rose 4.6%, while Chevron shares rose 4.2%. The S&P 500 rose 0.4%, while the tech-heavy Nasdaq composite fell 0.3%.
Monday’s Big Picture column commented: “After rallying near the February 2 high last week, the Nasdaq shook off an early downdraft and scored an inside day. It was an impressive performance, considering the extent of the Nasdaq’s gains over the past three weeks . Declining stocks on the Nasdaq had a slight advantage over exiters.”
Now is an important time to read IBD’s The Big Picture column after Wednesday’s trend-changing gains.
Five Dow Jones Stocks to Buy and Watch Now
Dow Jones stocks to buy and watch: Boeing, Cisco Systems, Nike
Dow Jones leader Boeing is nearing a flat-base buy point at 221.43, according to IBD MarketSmith pattern recognition. Shares rose 1.4% on Monday, just 3% off their last close. The BA share fell 0.9 percent early Tuesday.
Cisco Systems broke out past a flat-base buy point of 51.84 during Friday’s 1.6% gain. But the volume was only slightly above average, a potential flaw. On the plus side, the share’s relative strength line has reached a new high in recent weeks, a sign of excess returns on the stock market. The stock fell 0.4 percent on Tuesday.
Nike shares fell back below the 50-day line during Monday’s 1.3% drop as they continue to trace a flat base that has a buy point at 131.41. An early registration at 126.16 is also in play. The NKE share rose 0.1 percent on Tuesday.
4 top growth stocks to watch Stock market rally
Top stocks to buy and watch: Axon, ServiceNow, Skyline
IBD Leaderboard stock Axon closed above a 226.10 buy point Monday in a brief consolidation, up 1.1%. Meanwhile, it also topped an early entry at 221.79, above the March 21 high last week. AXON shares rose on Tuesday.
Background story: Axon’s products are key for law enforcement, helping to build public trust. Meanwhile, cloud-based software for managing police evidence, records and communications makes officers more productive. A key value gives an idea of how indispensable police departments view their Axon contracts. In the fourth quarter, Axon had a net income margin of 121%. This means that extended contracts far more than offset minimal customer decline.
Late last week, IBD SwingTrader pick ServiceNow decisively retook its 50-day line, moving sharply up the right side of a cup base at 494.72 buy points. Keep an eye out for a potential handle to offer a lower entry. NOW shares were up 2.6% early Tuesday after receiving an upgrade from neutral to outperform at Baird.
Background story: NOW software tracks and manages services provided by information technology departments. Its self-service technology portal also gives workers access to administrative and workflow tools.
In the most recent quarter, the Santa Clara, Calif.-based business software maker said earnings rose 56% to $2.28 per adjusted share. Revenue rose 20% to $1.94 billion.
Skyline snapped a five-day winning streak Monday, falling 3.5%. The shares are below a buy point of 73.50. The SKY share was little changed on Tuesday morning.
Background story: Troy, Mich.-based Skyline manufactures and installs factory-built homes, park models and modular buildings for families and the hospitality sector. It employs more than 8,100 people with 42 manufacturing facilities across the United States
Skyline has posted revenue and earnings for the past nine quarters. The company’s earnings increased by 183% in fiscal year 2022, while revenues rose by 56%.
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Shares to buy and watch in a stock market rally
These are four top stocks to watch in today’s stock market, including two Dow Jones leaders.
| company name | Symbol | Right point of purchase | Type of point of purchase |
|---|---|---|---|
| Service Now | (NOW) | 494.72 | Cup base |
| Nike | (of) | 131.41 | Flat base |
| Axon Enterprise | (AXON) | 226.10 | Consolidation |
| Cisco Systems | (CSCO) | 51.84 | Flat base |
Source: IBD data as of April 3, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla shares
Tesla shares plunged 6.1% on Monday, giving up Friday’s gains and falling back below a 200.76 buy point in a cup with handles. The stock closed 50% off its 52-week high on Monday.
TSLA stock appeared to rally on Tuesday morning, jumping 1% in early trading.
Tesla sold 88,869 units of China-made electric vehicles in March for both domestic sales and exports, up 35.0% from a year ago, according to data published by the China Passenger Car Association (CPCA). It was up 19.4% compared to February.
Tesla already reported first-quarter global deliveries on Sunday.
Dow Jones Leaders: Apple, Microsoft
Among the Dow Jones stocks, Apple shares rose 0.8% on Monday, extending a winning streak to four sessions and closing at their highest level since August 25. AAPL shares rose 0.4% on Tuesday.
Microsoft shares remain in buy territory past a flat-base buy point at 276.86 despite Monday’s 0.4% drop. The share is in the 5% buy area that goes from the buy point to 290.70. MSFT shares rose 0.8% early Tuesday.
Microsoft shares rose earlier this month after the company announced it was adding artificial intelligence tools to its popular Office productivity application suite. It follows the company’s investment in artificial intelligence startup OpenAI, the firm behind the buzzworthy ChatGPT application.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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