Dow Jones rises after a sell-off in the stock market; Treasury yield hits new high

The Dow Jones Industrial Average rose on Friday after a sell-off in the stock market on Monday, as major stock indexes made fresh corrections lower. The 10-year Treasury yield rose to a new high of 2.99% on Monday morning.


Feather semiconductor (ON) rose 5% after reporting better-than-expected quarterly results. Twitter (TWTR) rose 1% after falling 0.2% on Friday. and the electric-vehicle giant Tesla (TSLA) rose 1.5% on Monday morning.

Dow Jones leaders Apple (AAPL) fell 0.2% and Microsoft (MSFT) rose 0.8% in today’s stock market.

Amid a deteriorating new stock market correction, Dow Jones leader American Express (AXP) — IBD leaderboard with stock Chenier Energy (LNG), Expedia (XPE) and world Wrestling Entertainment (WWE) — among the top stocks worth watching on Monday.

Chenier Energy, Microsoft and Tesla are the IBD leaderboard stocks. Expedia and Palo Alto Networks were featured in last week’s Stocks Near a Buy Zone column.

Dow Jones Today: Treasury Yield, Oil Prices

After Monday’s open, the Dow Jones Industrial Average climbed 0.2%, while the S&P 500 was up 0.3%. And the tech-heavy Nasdaq Composite rose 0.8%.

Among exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.8%. The SPDR S&P 500 ETF (SPY) rose 0.3%.

After closing at 2.88% on Friday, the 10-year Treasury yield jumped to 2.99% on Monday. In recent weeks, the 10-year Treasury yield hit its highest level since December 2018, trading as high as 2.95%. Meanwhile, US oil prices fell more than 3%, with Texas Intermediate crude trading below $102 a barrel.

stock market correction

On Friday, the major stock indexes sold sharply after reaching the lowest level of the latest correction. A rebound could trigger another fresh rally attempt as the market begins in May. But with the fresh correction of all three major indices, investors should be on the defensive.

It means take profit and raise cash. Also, monitoring the stocks that are doing well in the down market is a good way to prepare for the next stock market uptrend.

Finding the leaders of the next uptrend while the market is still correcting is a challenge. A helpful method is to use a stock’s relative strength line. The RS line measures a stock’s price performance versus the S&P 500. If the stock is outperforming the broader market, the RS line curves upward. If a stock is underperforming the broader market, the line will point downward.

Friday’s The Big Picture column commented, “The Nasdaq Composite fell 4.2% and hit Wednesday’s low, killing its nascent rally effort. The index suffered a fourth-straight weekly decline and declined 13.2% for the month, the worst monthly decline since October 2008.”

If you are new to IBD, take a look at its stock trading system and the fundamentals of CAN SLIM. Recognizing chart patterns is one of the keys to investment guidelines. IBD offers a wide range of growth stock lists such as leaderboards and swing trader.

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

Five Dow Jones stocks to watch now

Dow Jones Stocks to Watch: American Express

The Dow Jones financial stock American Express ended Friday below its 50-day line and nearly 10% off the cup-with-handle’s 194.45 buy point after falling 4% on Friday. Shares of AXP were down 0.2% on Monday morning.

Keep an eye on the relative strength line of the stock. Amidst its recent rise, the RS line is starting to move closer to its old high, which means it is again outperforming the broader market.

Four Top Growth Stocks to Look forRstock market correction

Stocks to watch: Chenier, Expedia, WWE

IBD leaderboard stock Cheniere Energy is one of the top stocks to watch this week after finding support around its 50-day moving average. As per IBD MarketSmith chart analysis, the shares are forming a flat base which shows 149.52 buy points. LNG shares were down about 1% early Monday.

Expedia continues to make a cup with handle with 204.08 purchase point. Shares are testing their longer-term 200-day line after Friday’s decline of 4.7%. EXPE stock shows a 92 out of 99 IBD overall rating, according to IBD Stock Checkup. Shares fell 0.5% on Monday morning.

IBD leaderboard watchlist stock World Wrestling Entertainment left its 50-day moving average falling 3.7% on Friday. A decisive retake of the 50-day benchmark will be bullish for the stock’s prospects. Meanwhile, shares in the handle cup are just below the 60.94 buy point. WWE stock was unchanged on Monday morning.

Join IBD experts as they analyze key stocks in the current stock market correction on IBD Live

Tesla Stock

Tesla stock rose about 1.5% on Monday morning after the stock broke through the 50- and 200-day moving averages during last week’s 13% dive.

Shares of the EV giant ended about 24% off the cup-with-handle’s 1,152.97 buy point on Friday. The stock traded at a high of 1,243.49 on November 4 and is about 30% off that all-time high.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones shares, Apple shares fell below their longer-term 200-day line, down 3.7% on Friday. Shares fell 0.2% on Monday morning.

Software leader Microsoft posted a 4.2% drop on Friday, breaking a two-day winning streak. Shares are trading sharply below their 50- and 200-day lines. The stock closed more than 20% from its 52-week high. MSFT shares gained 0.8% early Monday.

Be sure to follow Scott Lehton on Twitter @IBD_SLehtonen For more information on growth stocks and the Dow Jones Industrial Average.

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