Dow Jones Futures Rise: What To Do After Today’s Stock Market Fall; Netflix, Tesla Earnings Ahead

Dow Jones futures were higher late after today’s stock market fall, as the 10-year Treasury yield hit another 52-week high. Tech earnings will kick off this week with highly-anticipated results from Netflix (NFLX) and Tesla (TSLA).

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Stock Market Today

On Monday, the Dow Jones Industrial Average dropped 0.1%, and the S&P 500 moved down less than 0.1%. The tech-heavy Nasdaq composite fell a bit more than 0.1%. Among exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.1%, and the SPDR S&P 500 ETF (SPY) inched higher.

Electric-vehicle leader Tesla (TSLA) raced 2% higher Monday ahead of this week’s earnings results. Twitter (TWTR) jumped 7.5% after the company adopted a “poison pill” plan to deter Tesla Chief Executive Elon Musk’s buyout.

Despite the struggling stock market rally, Dow Jones leaders American Express (AXP) and Caterpillar (CAT) — along with IBD Leaderboard watchlist stock Edwards Lifesciences (EW), Murphy Oil (MUR), Raytheon Technologies (RTX), Shell (SHEL) and Ulta Beauty (ULTA) — are among Monday’s top stocks to buy and watch.

Elsewhere among the Dow Jones leaders, Apple (AAPL) declined 0.1% and Microsoft (MSFT) traded up 0.25% in today’s stock market.

Microsoft and Tesla are IBD Leaderboard stocks. Caterpillar and Edwards Lifesciences were featured in this week’s Stocks Near A Buy Zone column. Edwards was also Monday’s IBD Stock Of The Day. And Caterpillar is an IBD SwingTrader stock.

Dow Jones Futures Today: Treasury Yields, Oil Prices

After Monday’s close, Dow Jones futures rose 0.3% vs. fair value, and S&P 500 futures gained 0.4%. Nasdaq 100 futures climbed 0.6% vs. fair value. Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

The 10-year U.S. Treasury yield rose to 2.86% Monday, its highest level since December 2018. Meanwhile, U.S. oil prices rallied about 1%, trading just above $107 a barrel.

Stock Market Rally Struggles: What To Do Now

On Monday, the stock market finished with modest losses, extending Thursday’s sharp declines.

Even though the underlying uptrend is still intact, it’s time to proceed with a greater degree of caution. Be wary of most new purchases and focus only on stocks that have exceptional fundamentals and heavy-volume breakouts past correct buy points. Also, be flexible. The market may rebound and move back into “confirmed uptrend,” or the heavy selling could persist and lead to a correction.

Thursday’s The Big Picture column cautioned, “The Nasdaq has wiped out all gains from its March 18 follow-through and is below its 50-day moving average. The S&P 500 is still above its March 16 follow-through, for now.”

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 lists, such as Leaderboard and SwingTrader.

Investors also can create watchlists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.

Five Dow Jones Stocks To Watch Now

Dow Jones Stocks To Buy And Watch: American Express, Caterpillar

Dow Jones financial stock American Express is tracing a cup with handle with a 194.45 buy point. Shares rose 1.8% Monday, extending a win streak to three sessions and ending about 5% away from the latest entry.

Meanwhile, IBD SwingTrader stock Caterpillar is in buy range past a cup-with-handle’s 227.15 buy point following Thursday’s breakout move. The 5% buy area goes up to 238.51. A bullish indicator — the stock’s RS line is at its highest level since June 2021. Shares rallied almost 1% Monday.

Four Top Growth Stocks To Watch In The Current Stock Market Rally

Stocks To Buy And Watch: Edwards, Murphy, Raytheon, Shell, Ulta

IBD Leaderboard watchlist stock Edwards Lifesciences now shows a cup with handle with a 125.21 buy point as a result of last week’s weakness. EW shares were down 0.6% Monday.

Murphy Oil broke out past an ascending base’s 43.30 buy point amid Monday’s 3.2% advance. MUR stock boasts a perfect 99 IBD Composite Rating, per the IBD Stock Checkup.

Defense contractor Raytheon Technologies finished just below a flat base’s 104.44 buy point after shares inched higher Monday.

Oil-and-gas producer Shell, the April 1 IBD Stock Of The Day, is in buy range above a flat base’s 56.23 buy point after Monday’s 0.4% rise. The 5% buy area goes up to 59.04.

Ulta Beauty shares are in the 5% buy range past a cup-with-handle’s 408.83 buy point, according to IBD MarketSmith chart analysis. The buy area goes up to 429.27. The stock’s relative strength line is at a new high, which is a key sign of market leadership. ULTA shares were up less than 0.1% Monday.

Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live

Netflix Earnings

Netflix earnings are expected late Tuesday and analysts say the company could be expecting its slowest growth in 10 years. The company’s earnings are expected to fall 22% to $2.92 per share on revenue of $7.93 billion. Sales are expected to rise 11% vs. the year-ago period.

NFLX shares are more than 50% off their 52-week high following Monday’s 1% decline.

Tesla Earnings

Tesla earnings are due out after the close Wednesday. The EV giant is expected to report earnings per share of $2.26 on sales of $17.59 billion, representing year-over-year increases of 143% and 69%, respectively.

At the start of April, Tesla reported that it delivered 310,048 vehicles in the first quarter, up 68% from the year-earlier period and just below analyst estimates of 312,000.

Tesla stock raced 2% higher Monday, recovering a part of Thursday’s 3.7% decline. Shares of the EV giant finished Monday about 13% 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 ended Monday about 19% away from that all-time high.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares triggered the 7%-8% loss-cutting rule from a 176.75 buy point in a double-bottom base, falling below the 50-day line. Meanwhile, a handle buy point is the latest entry to watch at 179.71. The stock lost 0.1% Monday.

Software leader Microsoft rose 0.25% Monday, but remains sharply below its 50-and 200-day lines. The stock is around 20% off its 52-week high.

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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