Dow Jones Slides, Tech Stocks Sell Off As Yields Rise; Tesla Stock Drops, While Boeing Jumps| Investor’s Business Daily

The Dow Jones Industrial Average briefly fell more than 125 points Monday, as Treasury yields climbed near recent highs. Boeing rallied on Max jet news, while Tesla stock skidded 3% in morning trade. Alphabet and Facebook are approaching new buy points in the current stock market rally.




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Among the Dow Jones leaders, Apple (AAPL) rose 0.5% Monday, while Microsoft (MSFT) moved down 0.8% in today’s stock market. Boeing (BA) is back in buy range following a recent breakout. Shares climbed 3% in morning trade.

Tesla (TSLA) fell more than 3% Monday, on pace to add to Friday’s tumble.

Among the top stocks to watch, FANG leaders Alphabet (GOOGL) and Facebook (FB) are approaching new buy points. Alphabet was featured in last week’s Stocks Near A Buy Zone column.

Alphabet and Microsoft are IBD Leaderboard stocks.

Dow Jones Today: Treasury Yields

After the stock market open Monday, the Dow Jones Industrial Average traded down 0.2% after paring losses, while the S&P 500 lost 0.6%. The tech-heavy Nasdaq composite sold off 0.9% in morning trade.

On Friday, the 10-year Treasury yield jumped to 1.66%, closing near recent highs. Early Monday, the 10-year Treasury yield rose to 1.69%.

Among exchange traded funds, the Innovator IBD 50 (FFTY) fell 0.1% Monday. The Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) lost 0.8% Monday. Meanwhile, the SPDR S&P 500 ETF (SPY) moved down 0.5% after the stock market open.

Stock Market Rally: Nasdaq Set For Another Test?

Amid the current stock market rally, the Dow Jones Industrial Average and S&P 500 indexes extended win streak to two sessions Friday, as they both near all-time highs.

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

Friday’s Big Picture commented, “The sharp stock market gains gave the look of a follow-through rally confirmation. The S&P 500’s gain in higher volume qualified as a follow-through. Leading stocks performed well — much better than earlier in the week. With new strength in indexes and top stocks, the market uptrend resumed, as far as IBD’s market outlook goes.”


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Bitcoin Price

Bitcoin briefly topped $61,000 in mid-March to hit an all-time high. The price of Bitcoin hit its high-water mark on March 13, topping out at $61,556.

The price of Bitcoin surged about 8% Monday to trade around $58,000, according to CoinDesk. The Grayscale Bitcoin Trust (GBTC) looked to continue its rebound from the 50-day moving average, jumping 7% in morning trade.

Dow Jones Stocks: Boeing

Inside the Dow Jones Industrial Average, Boeing is back in buy range above a 244.18 buy point in a cup base. The 5% buy range goes up to 256.39.

Shares rallied 3% Monday after Southwest Airlines (LUV) added 100 orders to its Boeing 737 Max jet agreement. The first 30 jets are scheduled for delivery in 2022.

Stocks Near Buy Zones: Alphabet, Facebook

IBD Leaderboard stock Alphabet continues to form a flat base with a new buy point at 2,145.24, according to IBD MarketSmith chart analysis. Shares are about 6% away from the new entry amid Monday’s 0.1% fall.

According to Leaderboard commentary, “Alphabet has made better progress than other big-cap techs lately. Support at the 21-day line is now flimsy. Watch for the stock to find support as it tests the 50-day line. The last base was second stage.”

Fellow FANG stock leader Facebook is tracing a cup with handle with a 299.81 buy point. Shares moved up 1% Monday morning.

According to IBD Stock CheckupFB stock shows a solid 91 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 Stock

Tesla stock declined over 3% Monday, as the stock looks to add to Friday’s 3.4% loss.

Shares of Tesla ended Friday about 31% off their 52-week high. Tesla stock 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 rose 0.5% Monday, on pace to extend a two-day win streak. Apple stock is rebounding from its long-term 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 down 0.8% Monday. Shares are back above their 232.96 buy point and are approaching a 246.23 buy point in a new flat base.

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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