The Dow Jones Industrial Average rose on Monday after stock market sales deteriorated on Friday as the major stock indices reached new correction bottoms. The 10-year government interest rate rose to 2.99% on Monday morning, reaching a new high.
ON Semiconductor (ON) rose 5% after reporting better-than-expected quarterly results. Twitter (TWTR) rose 1% after Friday’s fall of 0.2%. And electric car giant Tesla (TSLA) increased 1.5% on Monday morning.
Among the Dow Jones executives, apple (AAPL) fell 0.2% and Microsoft (MSFT) rose 0.8% in today’s stock market.
In the midst of a worsening new stock market correction, Dow Jones is leading American Express (AXP) – along with IBD Leaderboard Storage Cheniere energy (LNG), Expedia (EXPE) and World Wrestling Entertainment (WWE) – is among Monday’s best stocks to see.
Cheniere Energy, Microsoft and Tesla are IBD Leaderboard shares. Expedia and Palo Alto Networks were featured in last week’s Stocks near a buy zone column.
Dow Jones today: Treasury interest rates, oil prices
After Monday’s opening, the Dow Jones Industrial Average rose 0.2%, while the S&P 500 rose 0.3%. And the technology-heavy Nasdaq composite rose 0.8%.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.8%. SPDR S&P 500 ETF (SPY) rose 0.3%.
The 10-year government interest rate rose to 2.99% on Monday, after closing at 2.88% on Friday. In recent weeks, the 10-year government interest rate has reached its highest level since December 2018, trading as high as 2.95%. Meanwhile, US oil prices fell more than 3%, and Texas Intermediate oil traded below $ 102 a barrel.
On Friday, the major stock indices sold strongly, reaching new correction bottoms. When the market starts in May, an upturn could launch another new rally attempt. But with all three major indices setting new lows for correction, investors should be on the defensive.
It means making a profit and raising money. Also, keeping a watch list of stocks that hold up well in a declining market is a good way to prepare for the next uptrend in the stock market.
Looking for the next trend leaders while the market is still recovering is a challenge. A useful method is to use a stock’s relative strength line. The RS line measures a share price development vs. S&P 500. If the stock surpasses the wider market, the RS line angles upwards. If a stock performs worse than the broad market, the line will point lower.
Friday’s The Big Picture column commented: “The Nasdaq composite fell 4.2%, falling below Wednesday’s lowest level, killing the incipient rally attempt. The index suffered its fourth consecutive weekly decline, falling 13.2% for the month, the worst monthly decline since October 2008. “
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: American Express
The Dow Jones financial stock American Express ended sharply below its 50-day high on Friday and about 10% away from a cup-with-handle buy point of 194.45 after Friday’s 4% fall. The AXP stock lost 0.2% on Monday morning.
Keep an eye on the relative strength of the stock. In the middle of the latest upswing, the RS line is starting to move closer to its old heights, which means that it is once again surpassing the broad market.
Four top growth stocks to see in timerent Stock market correction
Shares to look at: Cheniere, Expedia, WWE
The IBD Leaderboard stock Cheniere Energy is one of the best stocks to see after finding support around its 50-day moving average this week. The stock etches a flat base showing a buying point of 149.52, according to IBD MarketSmith chart analysis. LNG shares fell almost 1% early Monday.
Expedia continues to build a cup with handles with a purchase point of 204.08. The shares are testing their long-term 200-day line after Friday’s fall of 4.7%. The EXPE stock shows a 92 out of a perfect 99 IBD Composite Rating, according to the IBD Stock Checkup. Shares fell 0.5 percent on Monday morning.
IBD Leaderboard Watchlist stock World Wrestling Entertainment gave up its 50-day moving average, falling 3.7% on Friday. A decisive repetition of the 50-day benchmark would be bullish on the stock’s outlook. Meanwhile, the shares are just below a buy point of 60.94 in a cup with handles. The WWE stock was unchanged Monday morning.
Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live
Tesla shares rose around 1.5% on Monday morning after the stock broke through its 50- and 200-day moving averages during last week’s 13% dive.
The shares in the EV giant ended on Friday about 24% away from a cup-with-handle buy point of 1,152.97. The stock traded as high as 1,243.49 on November 4 and is about 30% away from the peak time.
Dow Jones executives: Apple, Microsoft
Among Dow Jones shares, Apple shares fell below its long-term 200-day line, falling 3.7% on Friday. The stock fell 0.2 percent Monday morning.
Software leader Microsoft cut 4.2% on Friday, taking a two-day winning streak. The stock is strong below its 50- and 200-day lines. The stock closed more than 20% of its 52-week high. MSFT shares 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.
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