Tesla dives below Last point of purchase on deliveries Miss; What to do now
Dow Jones futures were little changed before Tuesday’s open after the Dow Jones Industrial Average rose 327 points on Monday. Meanwhile, Tesla shares dipped below their latest buy point after the electric car giant reported a record number of vehicle deliveries in the first quarter, but still missed estimates, while analysts see more price cuts ahead.
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The stock market today
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%.
EV leader Tesla (TSLA) traded down 6.1% on Monday. Among Dow Jones stocks, apple (AAPL) rose 0.7% and Microsoft (MSFT) fell 0.4% in today’s stock market action.
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.
4 top growth stocks to buy and watch nowra stock market rally
Dow Jones Futures Today: Oil prices, Treasury yields
Ahead of Tuesday’s opening bell, Dow Jones futures, S&P 500 futures and Nasdaq 100 futures were little changed relative to fair value in overnight trading. Keep in mind that overnight action in Dow Jones futures and elsewhere does not necessarily translate into actual trading in the next regular session.
The 10-year US Treasury yield fell to 3.43% on Monday, cutting last week’s gains. US oil prices rose on Monday, as West Texas Intermediate futures traded above $80 a barrel, up more than 6%. Over the weekend, OPEC+ said it would cut more than a million barrels per day from next month in a surprise move.
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What to do in the stock market rally
Now it is important to read IBD’s The Big Picture column with the stock market trend in a “confirmed uptrend” after last week’s strong gains.
Investors should look for opportunities to increase market exposure. An exposure level between 20% and 40% makes sense immediately after a follow-up day.
During confirmed uptrends, investors should focus on top growth stocks that break out previous correct buy points.
Two useful IBD MarketSmith lists to check right now are “Breaking Out Today” and “Near Pivot.” The latter shows stocks approaching buy points in bases, and the others flag stocks that rise past buy points during the session.
To find more stock ideas, check IBD stock lists, such as the IBD 50, Big Cap 20 and stocks near a buy zone. These features identify bullish patterns and buy points and should be checked daily.
Learn how to time the market with IBD’s ETF Market Strategy
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.
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 0.1 percent on Monday.
Nike shares slipped back below their 50-day line on Monday, falling 0.8%, 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.
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.
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.
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.
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%.
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.
On Sunday, CEO Elon Musk’s company said it delivered 422,875 vehicles in the first quarter, up about 36% from a year earlier. The results were worse than the expectations of analysts surveyed by FactSet. They expected the company to deliver around 431,000 vehicles in the first quarter. However, Tesla beat some analysts’ forecasts.
On Tuesday, weekly China EV insurance registration data could be a key gauge of Tesla demand in the world’s biggest EV market, which is in the middle of a huge price war started by Tesla.
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.
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.
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.
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