Tesla Dives Below Latest Buy Point On Deliveries Miss; What To Do Now

Dow Jones futures were little changed ahead of Tuesday’s open after the Dow Jones Industrial Average rallied 327 points Monday. Meanwhile, Tesla stock dived below its latest buy point after the electric-vehicle giant reported a record number of vehicle deliveries in the first quarter, but still missed estimates, while analyst see more price cuts up ahead.

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Stock Market Today

On Monday, the Dow Jones Industrial Average rose 1%, with UnitedHealth Group (UNH) and Chevron (CVX) the big winners. UNH stock rallied 4.6%, while Chevron shares climbed 4.2%. The S&P 500 gained 0.4%, while the tech-heavy Nasdaq composite dropped 0.3%.

EV leader Tesla (TSLA) traded down 6.1% Monday. Among Dow Jones stocks, Apple (AAPL) rose 0.7% and Microsoft (MSFT) dropped 0.4% in today’s stock market action.

IBD Leaderboard stock Axon Enterprise (AXON), ServiceNow (NOW)and Skyline (SKY) — as well as Dow Jones stocks Boeing (BA), Cisco Systems (CSCO) and Nike (NKE) — are among the top stocks to buy and watch with the ongoing market strength.

Boeing was featured in this week’s Stocks Near A Buy Zone column. Axon, Skyline and Microsoft were all recent IBD Stock Of The Day subjects.

4 Top Growth Stocks To Buy And Watch In The Current Stock Market Rally

Dow Jones Futures Today: Oil Prices, Treasury Yields

Ahead of Tuesday’s opening bell, Dow Jones futures, S&P 500 futures and Nasdaq 100 futures were little changed vs. fair value in overnight trading. Remember that overnight action in Dow Jones futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

The 10-year U.S. Treasury yield fell to 3.43% Monday, cutting into last week’s gains. U.S. oil prices surged Monday, as West Texas Intermediate futures traded above $80 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.

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What To Do In The Stock Market Rally

Now is an important time to read IBD’s The Big Picture column with the stock market trend in a “confirmed uptrend” after last week’s strong gains.

Investors should be looking for opportunities to raise their market exposure. An exposure level between 20% and 40% makes sense in the immediate aftermath of a follow-through day.

During confirmed uptrends, investors should be focusing on top growth stocks that are breaking out past correct buy points.

Two useful IBD MarketSmith lists to check right now are “Breaking Out Today” and “Near Pivot.” The latter shows stocks nearing buy points in bases, and the other flags stocks rising past buy points during the session.

To find more stock ideas, check IBD Stock Lists, like IBD 50, Big Cap 20 and Stocks Near A Buy Zone. These features identify bullish patterns and buy points and should be checked every day.

Learn How To Time The Market With IBD’s ETF Market Strategy

Dow Jones Stocks To Buy And Watch: Boeing, Cisco Systems, Nike

Dow Jones leader Boeing is nearing a flat base’s 221.43 buy point, according to IBD MarketSmith pattern recognition. Shares climbed 1.4% Monday, just 3% away from the latest entry.

Cisco Systems broke out past a flat base’s 51.84 buy point 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. Shares tacked on 0.1% Monday.

Nike shares fell back below their 50-day line Monday, falling 0.8%, 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.

Top Stocks To Buy And Watch: Axon, ServiceNow, Skyline

IBD Leaderboard stock Axon closed above a 226.10 buy point Monday in a short consolidation with a 1.1% rise. Meanwhile, it also topped an early entry at 221.79, above the March 21 high, last week.

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.

Late last week, IBD SwingTrader pick ServiceNow decisively reclaimed its 50-day line, moving sharply up the right side of a cup base with 494.72 buy point. Keep an eye out for a potential handle to offer a lower entry.

Backstory: NOW software tracks and manages services provided by information-technology departments. Also, its self-service tech portal enables workers to access administrative and workflow tools.

In the latest quarter, the Santa Clara, Calif-based enterprise software maker said earnings jumped 56% to $2.28 per adjusted share. Revenue climbed 20% to $1.94 billion.

Skyline snapped a five-day win streak Monday, declining 3.5%. Shares are below a 73.50 buy point.

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%.

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

Tesla Stock

Tesla stock dived 6.1% Monday, giving up Friday’s gains and falling back below a buy point of 200.76 in a cup with handle. The stock closed Monday 50% off its 52-week high.

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.

On Tuesday, weekly China EV insurance registration data could be an important gauge for Tesla demand in the world’s largest EV market, which is in the midst of a huge price war started by Tesla.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares rallied 0.8% Monday, extending a win streak to four sessions and closing at their highest level since Aug. 25.

Microsoft shares remain in buy range past a flat base’s 276.86 buy point despite Monday’s 0.4% fall. The stock is in the 5% buy area that goes from the buy point to 290.70.

Microsoft shares surged earlier this month after the company announced that it is adding artificial intelligence tools to its popular Office productivity applications suite. That follows the company’s investments in artificial intelligence startup OpenAI, the firm behind the buzzworthy ChatGPT application.

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