The Dow Jones Industrial Average rose Monday after the stock market sell-off worsened Friday, as the major stock indexes hit new correction lows. The 10-year Treasury yield advanced to 2.99% Monday morning, hitting a new high.
ON Semiconductor (ON) raised 5% after reporting better-than-expected quarterly results. Twitter (TWTR) rose 1% after Friday’s 0.2% dip. And electric-vehicle giant Tesla (TSLA) turned up 1.5% Monday morning.
Amid a worsening new stock market correction, Dow Jones leader American Express (AXP)—along with IBD Leader Board stock Cheniere Energy (LNG), Expedia (EXPE) and World WrestlingEntertainment (WWE) — are among Monday’s top stocks to watch.
Dow Jones Today: Treasury Yields, Oil Prices
After Monday’s open, the Dow Jones Industrial Average climbed 0.2%, while the S&P 500 moved up 0.3%. And the tech-heavy Nasdaq composite rallied 0.8%.
The 10-year Treasury yield advanced to 2.99% Monday, after closing Friday at 2.88%. In recent weeks, the 10-year Treasury yield hit its highest level since December 2018, trading as high as 2.95%. Meanwhile, US oil prices declined more than 3%, with Texas Intermediate crude trading below $102 a barrel.
Stock Market Correction
On Friday, the major stock indexes sold off sharply, hitting fresh correction lows. As the market kicks off May, a rebound could launch another new rally attempt. But with all three major indexes setting new correction lows, investors should be on the defensive.
That means take profits and raise cash. Also, keep a watchlist of stocks holding up well in a down market is a good way to prepare for the next stock market uptrend.
Searching for the next uptrend’s leaders while the market is still correcting is a challenge. One helpful method is to use a stock’s relative strength line. The RS line measures a stock’s price performance vs. the S&P 500. If the stock is outperforming the broader market, then the RS line angles upward. If a stock is performing worse than the broad market, then the line will point lower.
Friday’s The Big Picture column commented, “The Nasdaq composite slumped 4.2% and undercut Wednesday’s low, killing its nascent rally attempt. The index suffered its fourth-straight weekly decline and slumped 13.2% for the month, the worst monthly decline since October 2008.”
If you’re new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. recognizing chart patterns is one key to the investment guidelines. IBD offers a broad range of growth stock listssuch as leader board and Swing Trader.
Dow Jones Stocks To Watch: American Express
Dow Jones financial stock American Express finished Friday sharply below its 50-day line and about 10% away from a cup-with-handle’s 194.45 buy point after Friday’s 4% tumble. AXP shares lost 0.2% Monday morning.
Keep an eye on the stock’s relative strength line. Amid its recent rise, the RS line is starting to move closer to its old highs, meaning it is again outperforming the broad market.
Stocks To Watch: Cheniere, Expedia, WWE
IBD Leaderboard stock Cheniere Energy is one of the top stocks to watch after finding support around its 50-day moving average this week. Shares are etching a flat base that shows a 149.52 buy point, according to IBD MarketSmith chart analysis. LNG shares traded down almost 1% early Monday.
Expedia continues to build a cup with a handle with a 204.08 buy point. Shares are testing their long-term 200-day line after Friday’s 4.7% fall. EXPE stock shows a 92 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. Shares traded down 0.5% Monday morning.
IBD Leader Board watchlist stock World Wrestling Entertainment gave up its 50-day moving average, falling 3.7% Friday. A decisive retake of the 50-day benchmark would be bullish for the stock’s prospects. Meanwhile, shares are just below a 60.94 buy point in a cup with handle. WWE stock was unchanged Monday morning.
Tesla stock rose around 1.5% Monday morning after the stock broke down through its 50- and 200-day moving averages during last week’s 13% dive.
Shares of the EV giant finished Friday about 24% away from a cup-with-handle’s 1,152.97 buy point. The stock traded as high as 1,243.49 on Nov. 4 and is about 30% away from that all-time high.
Dow Jones Leaders: Apple, Microsoft
among dow jones stocks, Apple shares tumbled back below their long-term 200-day line, sliding 3.7% Friday. Shares fell 0.2% Monday morning.
Software leader Microsoft skidded 4.2% Friday, snapping a two-day win streak. Shares are sharply below their 50- and 200-day lines. The stock closed more than 20% off its 52-week high. MSFT shares gained 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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