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Dow Jumps To Record Highs, Treasury Yields Steady; Tesla Surges On Deliveries Surprise

The Dow Jones Industrial Average rallied 300 points to record highs Monday, as Treasury yields held near recent highs following Friday’s strong jobs report. EV giant Tesla stock surged as much as 7% on strong deliveries, while Microsoft is breaking out past a new buy point.




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Among the Dow Jones leaders, Apple (AAPL) rallied 1.5% Monday, while Microsoft (MSFT) moved up 2% in today’s stock market. Boeing (BA) is moving out of buy range following last week’s bullish move.

Tesla (TSLA) surged 7% early Monday, then pared gains to around 5%, following the company’s record deliveries.

Among the top stocks to watch, FANG leaders Alphabet (GOOGL) and Facebook (FB) are in new buy zones Monday, as they look to break out past buy points.

Boeing and Microsoft are IBD Leaderboard stocks. Alphabet and Facebook were featured in last week’s Stocks Near A Buy Zone column.

Dow Jones Today: Jobs Report, Treasury Yields

The Dow Jones Industrial Average rallied 0.9%, while the S&P 500 moved up 1%. The tech-heavy Nasdaq composite advanced 1% in morning trade.

Early Monday, the 10-year Treasury yield edged up 1 basis point to 1.734%, just below last week’s 14-month high of 1.778%

On Friday, the Labor Department’s March jobs report showed a nonfarm payrolls gain of 916,000. Economists expected to see nonfarm payrolls up 625,000.

Among exchange traded funds, the Innovator IBD 50 (FFTY) traded down 0.2% Monday. Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) rallied about 1.4%. Meanwhile, the SPDR S&P 500 ETF (SPY) moved up 1.1%.

Stock Market Rally: Nasdaq Regains Key Level

Amid the current stock market rally, the Dow Jones Industrial Average hit a record high Monday in morning trade, while the S&P 500 index is also at record highs.

Meanwhile, the tech-heavy Nasdaq regained its key 50-day moving average on Thursday. The Nasdaq will need to decisively top this key hurdle in order to maintain its upward trajectory. The 50-day line is a critical resistance level. If the Nasdaq convincingly clears it, then new highs could be on the horizon.

Thursday’s Big Picture commented, “On Thursday, the Nasdaq added 1.8% after gapping up at the open, in a second straight day of solid gains. The composite closed just above its 50-day moving average after spending two weeks below it. But don’t take that as an absolutely positive sign. It would do the Nasdaq some good if it can make a decisive move above that line. Also, the Nasdaq is coming up against a test of possible resistance around the 13,600 level.”


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Bitcoin Price

Bitcoin hit its high-water mark on March 13, topping out at $61,556. The price of Bitcoin held flat Monday at around $58,250, according to CoinDesk.

The Grayscale Bitcoin Trust (GBTC) eased 0.5%, interrupting its rebound from the 50-day moving average launched in Thursday’s 1.65% gain.

Dow Jones Stocks: Boeing

Inside the Dow Jones Industrial Average, IBD Leaderboard stock Boeing is moving out of the 5% buy area past a 244.18 buy point in a cup base. The buy zone ends at 256.39. Boeing stock rallied 1.75% Monday.

Per Leaderboard commentary, “The latest base showed a much shallower drop than the huge consolidation resulting from the 2020 coronavirus crash. At the same time, Boeing could afford to keep building the right side of the megacup pattern and offer new entry points.”


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Stocks Near Buy Zones: Alphabet, Facebook

IBD Leaderboard stock Alphabet is trying to break out above a flat base’s new buy point at 2,145.24, according to IBD MarketSmith chart analysis. Shares are right above the entry amid Monday’s nearly 3% gain.

Fellow FANG stock leader Facebook is trading just above a cup-with-handle’s 299.81 buy point. Early Monday, Facebook stock rose about 1% to regain the entry.

According to IBD Stock CheckupFB stock shows a solid 93 out of a perfect 99 IBD Composite Rating. The IBD Composite Rating helps investors easily measure the quality of a stock’s fundamental and technical metrics.


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Tesla Deliveries

Tesla reported first-quarter deliveries of 184,000, a new record. Deliveries were up 109% from a year ago and 2.3% from Q4, defying predictions for a sequential decline. Analysts on average had forecast 168,000, according to FactSet.

Tesla’s Q1 deliveries consisted exclusively of the Model 3 and Model Y, though its production total of 180,338 included 2,020 Model S sedans and Model X SUVs.

Tesla Stock

Tesla stock surged as much as 7% Monday morning, recovering from Thursday’s nearly 1% loss. Shares of Tesla are eyeing their 50-day line line, which is a key resistance level.

Tesla could be forming a new base, but it is too early for a new risk-optimal buy point.

On Feb. 22, Tesla broke down through its key 10-week moving average line, a critical support level. On Jan. 25, Tesla stock hit a record high at 900.40, after climbing as much as 93% from a 466 buy point in a cup with handle.

Dow Jones Leaders: Apple, Microsoft

Among the top Dow Jones stocks, Apple rallied about 1.5% Monday, on pace to extend a win streak to three sessions. Apple stock is rebounding from its 40-week line and could soon again try to reclaim its 10-week line.

On Feb. 18, Apple stock triggered the 7%-8% loss-cutting sell rule when it fell more than 7% below its 138.89 buy point in a cup with handle.

Meanwhile, software giant Microsoft moved up 2% Monday. Microsoft is breaking out past a flat base’s 246.23 buy point.

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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