The Dow Jones Industrial Average rose Charles Schwab (black) drove the banks to the top. Roblox (RBLX) dig on the revenue update. Tesla (TSLA) CEO Elon Musk said he’s “looking into” the China problem. Google’s parent the alphabet (Google) fell on more Microsoft (MSFT) Fears of artificial intelligence.
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Three of the stocks were trying to break out despite the disappointing move. Tech resources (TECK), Intercontinental Hotels (IHG) And International gaming technology (IGT) all entries tested.
Stocks advanced even as Treasury yields rose. The 10-year yield rose 8 basis points to 3.60% while the 2-year yield rose 9 basis points to 4.19%, making the yield curve more inverting.
“Treasury yields are rising as Wall Street quickly realizes that risks of banking disruptions are receding as bank emergency loans continue to decline,” Edward Moya, senior market analyst at OANDA, said in a note to clients. “Growth of small and large loans is happening, and emergency lending is decreasing.”
Nasdaq slides as IBD 50 outperforms
The Nasdaq managed to reverse higher of late, closing 0.3% higher. solar stocks Enphase energy (mRNA) glossy, vault 7.7%.
The S&P 500 also rose, ending the session up 0.3%. State Street (STT) underperforming the index, as it declined by 9.3% after disappointing results.
S&P 500 sectors closed mostly positive. Finance and real estate were the top performers, while energy and communications services lagged.
Smaller companies did relatively well, buoyed by the strength of regional banks. The Russell 2000 rose 1.2%. But growth stocks made the best gains, with the Innovator IBD 50 ETF (fifty) appeared by 2%.
Dow Jones today: Boeing stock hike, UN delayed
The Dow Jones Industrial Average ended the session up just over 100 points thanks to a late rally. This equates to a gain of 0.3%.
Boeing (Bachelor’s) was among the best-performing stocks, up 1.6%. Although up, it is still below the 50-day moving average.
But it was Walgreens Boots Alliance (WBA) was the best performer on the Dow Jones today, closing 1.8% higher.
United Health (United nations) was the worst, down 1.3%. chevron (CVX) as well, dropping 0.9%.
Elon Musk is ‘looking into’ the Tesla China case
Tesla CEO Elon Musk has spoken out on social media regarding reports of workers protesting at the company’s Shanghai plant over supposedly unfair performance-related pay cuts.
Users are said to have taken to Chinese platform Zhihu to complain about the announced cuts in the monthly bonus pay.
“You were alerted this weekend. I’m looking into it,” Musk wrote on Twitter. The CEO previously spoke to praise his Chinese employees for their work ethic.
Tesla stock was up at the close, up 1.1% in the stock market today. It is now up about 73% so far in 2023. The TSLA is currently sitting just below the key 50-day moving average, MarketSmith’s analysis appears.
It’s a key week for TSLA stock as the company is set to report earnings on the Wednesday after the close.
Google Stock Skates More Microsoft AI Concerns
Alphabet stock has been hit amid reports that Samsung phones may switch to Microsoft’s Bing as the default search engine. The New York Times reports that Android powerhouse Samsung is considering ditching Google for Bing.
Microsoft’s search tool has been raised from the metaphorical dead amid uproar over the integration of a ChatGPT-powered AI chatbot.
Google spends billions to appear as the default search engine on smartphones. In return, it takes huge amounts of money in advertising.
Alphabet is trying to catch up with Microsoft by integrating its own smart chat technology called Bard.
GOOGL stock ended the day down 2.7% and is below a buy point at 106.69. Microsoft shares rose 0.9% and is at the top of the buy zone above the 276.86 entry point.
Roblox stock fell on falling revenue
The Roblox gaming stock has been hit with the stick. It ended the session at session lows but still down around 12%.
The company’s March metrics report showed that the company expects average bookings per daily user to decline year-over-year. This is the company’s main revenue measure.
It said the estimated average bookings per daily active user for the month were between $3.73 and $3.85, a range that would imply a 2% annual decline to a 1% gain.
Estimated average bookings per daily active user in March were down between 1% and 3% on a constant currency basis.
RBLX stock fell through the 50-day line, which is a key support level. It is holding above the 200-day moving average at the moment.
Charles Schwab’s earnings boost bank stocks
The impressive gains by Charles Schwab helped bank stocks rise on Monday.
The company reported an increase in adjusted earnings of 20% to 93 cents per share while revenue rose 10% to $5.116 billion.
Schwab moved to pause its share buyback program due to recent banking events and regulatory uncertainty. This comes after the stock was hit hard by the collapse of the Silicon Valley bank.
The company ended the session up 3.9% but remained entrenched below the 50-day moving average. It has a lot of ground to make up as it’s down about 36% so far in 2023.
In addition, M&T Bank of Buffalo, New York jumped on its own dividend. It closed the day up 7.8%. It has breached the 21-day exponential moving average by significant amounts but is still down more than 13% for the year.
iShares US Regional Banks ETF (IAT) also on Monday, closing up 3.1%.
Some of the major banks also thrived with Wells Fargo (WFC) rises 4.2% f American bank (buck) raised 2.9%. c. B. Morgan Chase (JPM) posted a more modest gain of 0.8%.
Outside the Dow Jones index: 3 stocks tested buying points
With the market in a confirmed uptrend, it is especially important to watch for breakouts.
Teck Resources is in a buy zone after breaking out of the base of the cup. The ideal entry point for a mining play is 47.
The RSI has reached new highs, which is an encouraging sign. TECK is in the top 7% of stocks by price performance over the past 12 months.
IH is also doable after clearing a double base buy point at 69.73. The volume was low, which is a drawback.
The overall strong performance is reflected in a composite IBD rating of 82 out of 99.
International Gaming Technology is just above the buy point at 27.92. With low volume today, this could be something to watch for now.
Please follow Michael Larkin on Twitter at @tweet For further analysis of growth stocks.
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