The Dow Jones Industrial Average rallied more than 300 points Monday morning after key economic data, with the release of two manufacturing indicators. Meanwhile, Tesla stock dropped after the company reported a record number of vehicle deliveries in the first quarter, but still missed estimates.
A heavy dose of economic data is due out this week, none bigger than Friday's March jobs report from the Labor Department.
For Monday, the PMI manufacturing index for March came in below estimates, with a 49.2 reading vs. a 49.3 estimate. The ISM manufacturing index fell to 46.3 in March compared to February's 47.7 reading. It was expected to edge lower to 47.5.
Later in the week, the Labor Department's February job openings and labor turnover survey is due out Tuesday. The ISM service-sector activity gauge is set for Wednesday at 10 a.m.
Stock Market Today
World Wrestling Entertainment will merge with UFC parent Endeavor Group in a $21 billion deal. The deal values WWE at $9.3 billion and UFC at $12.1 billion, the companies said in a press release. WWE shares tumbled 8.8%, while EDR stock rose 1%.
C3.ai looked to add to Friday's breakout gains, but slipped 3% in early morning trade Monday, while electric-vehicle giant Tesla dropped more than 5%. Dow Jones tech giants Apple and Microsoft were lower after today's stock market open.
IBD Leaderboard stock Axon Enterprise, Skyline and Workday — as well as Dow Jones stocks Cisco Systems, Microsoft and Nike — are among the top stocks to buy and watch with the ongoing market strength.
Cisco was featured in last week's Stocks Near A Buy Zone column. Axon, Skyline and Microsoft were all recent IBD Stock Of The Day subjects.
Dow Jones Today: Oil Prices, Treasury Yields
After Monday's opening bell, the Dow Jones Industrial Average rose 1%, and the S&P 500 gained 0.3%. The tech-heavy Nasdaq composite was down 0.3% in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust fell 0.7%, while the SPDR S&P 500 ETF declined 0.1% early Monday.
The 10-year U.S. Treasury yield on Monday edged up to 3.5%. In recent weeks, the 10-year yield briefly touched its lowest level since mid-September.
U.S. oil prices surged Monday morning after last week's solid gains, as West Texas Intermediate futures traded near $81 a barrel, up more than 6%. Over the weekend, OPEC+ said it would cut more than a million barrels of output a day starting next month in a surprise move.
Stock Market Rally
On Friday, the Nasdaq composite surged 1.7%, with a weekly advance that reached an impressive 3.4%. The S&P 500 was not far behind as it posted a 1.4% daily gain. The Dow Jones Industrial Average followed up with a 1.3% rise.
Friday's Big Picture column commented, "Wednesday's bullish gains shifted IBD's stock market outlook into a 'confirmed uptrend,' and investors should be looking for opportunities to raise their market exposure. An exposure level between 20%-40% makes sense in the immediate aftermath of a follow-through day."
Now is an important time to read IBD's The Big Picture column following Wednesday's trend-changing gains.
Five Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Watch: Cisco Systems, Nike
Cisco Systems broke out past a flat base's 51.84 buy point, according to IBD MarketSmith pattern recognition, during Friday's 1.6% climb. But volume was only slightly above average, a potential flaw. On the plus side, the stock's relative strength line hit a new high in recent weeks, a sign of stock market outperformance. CSCO stock fell 0.4% Monday morning.
Nike shares barely regained their 50-day line Friday, as they continue to trace a flat base that has a 131.41 buy point. An early entry at 126.16 is also in play. NKE stock moved down 0.3% Monday.
3 Top Growth Stocks To Watch In The Stock Market Rally
Top Stocks To Buy And Watch: Axon, Skyline, Workday
IBD Leaderboard stock Axon broke out past a 226.10 buy point intraday in a short consolidation during Friday's 3.3% advance to 224.85. Meanwhile, an early entry was also topped at 221.79, above the March 21 high. AXON stock inched lower Monday morning.
Backstory: 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. One key metric gives an idea of how indispensable police departments see its Axon contracts. In the fourth quarter, Axon saw 121% net revenue retention. That means expanded contracts far more than offset minimal customer attrition.
Skyline extended a win streak to five sessions Friday, rising 1.2%. Shares are in the 5% buy range past a 73.50 buy point that goes up to 77.18. SKY stock moved up 0.7% early Monday.
Backstory: Troy, Mich.-based Skyline produces 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 U.S.
Skyline has posted earnings and revenue gains for the past nine quarters. The company's earnings surged 183% in fiscal-year 2022, while revenue jumped 56%.
Workday added to Wednesday's breakout gains, rising 3.2% Friday. Shares moved past the 5% buy zone above a 193.74 flat-base entry. The buy area went up to 203.43. WDAY stock boasts a 98 out of a perfect 99 IBD Composite Rating. Shares fell 2% Monday morning.
Backstory: The company offers businesses a unified platform for planning, analyzing, applying and extending to other applications. The software is used for diverse work related operations, from managing finances to planning new business ventures.
Learn How To Time The Market With IBD's ETF Market Strategy
Stocks To Buy And Watch In Stock Market Rally
These are four top stocks to watch in today's stock market, including two Dow Jones leaders.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Workday | 193.74 | Flat base | |
| Nike | 131.41 | Flat base | |
| Axon Enterprise | 226.10 | Consolidation | |
| Cisco Systems | 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 Stock
Tesla stock surged 6.2% Friday, breaking out past a new buy point at 200.76 in a cup with handle. The stock closed Friday 46% off its 52-week high.
TSLA stock moved down 5.3% Monday morning, threatening to give up some of Friday's gains and fall below the cup-with-handle's 200.76 buy point.
On Sunday, CEO Elon Musk's company said it delivered 422,875 vehicles in the first quarter, up around 36% from the year before. The results fell short of the expectations of analysts surveyed by FactSet. They expected the company to deliver around 431,000 vehicles in the first quarter.
However, Tesla edged past some analyst forecasts.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares rallied 1.6% Friday, closing at their highest level since Aug. 25. AAPL stock traded down 0.1% on Monday.
Microsoft shares moved further past a flat base's 276.86 buy point during Friday's 1.5% climb. The stock is in the 5% buy area that goes from the buy point to 290.70. And shares fell 0.85% early Monday.
Microsoft shares surged earlier this month after the company announced that it is adding artificial intelligence tools to its popular Office productivity applications. That follows the company's investments in artificial intelligence startup OpenAI, the firm behind the buzz-worthy ChatGPT application.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
