The Dow Jones Industrial Average fell lower Monday in the wake of last week’s strong stock gains, which marked the start of another stock market rally. Six top stocks to buy and watch are AutoZone and Johnson & Johnson, both of which finished above new buy points on Friday.
Tesla (TSLA) wiped out early gains after a price cut at Mizuho. Elsewhere, Dow Jones Tech Leaders Apple (AAPL) and Microsoft (MSFT) were mixed after today’s stock market open.
In a new stock market rally, Dow Jones leaders Johnson & Johnson (JNJ) and Merck (MRK), as well as AutoZone (AZO), Bristol Myers Squibb (BMY), Eli Lilly (LLY) and Quanta Services (PWR), are among the stocks to buy and view.
Quanta is an IBD Leaderboard Watchlist Stock. Eli Lilly is an IBD SwingTrader stock. And Bristol was Friday’s IBD stock of the day.
Dow Jones Today: Treasury Yields, Oil Prices
After Monday’s opening, the Dow Jones Industrial Average fell 0.25%, while the S&P 500 fell 0.3%. The Nasdaq composite lost 0.6% in morning trading.
Among exchange-traded funds, the Nasdaq 100-tracker Invesco QQQ Trust (QQQ) fell 0.5%. The SPDR S&P 500 ETF (SPY) lost 0.3% in early trading.
The 10-year Treasury yield rose to 3.17% Monday morning, after rising to 3.12% Friday. Ten-year government bond yields appear to be recovering after a sharp decline. In mid-June, it reached its highest level since April 2011.
Meanwhile, US oil prices are trying to recover from recent losses, with West Texas Intermediate trading just above $108 a barrel. In early March, WTI briefly peaked above $130.
stock market rally
The stock market ended Friday with strong gains, while the Nasdaq led the way with a rise of 3.3% and ended the week with 7.5%.
Friday’s The Big Picture column noted: “Investors should note that volume had been lower prior to the closing minutes of trading, when index changes drove trading higher. This is one reason to be extra cautious and cautiously stepping back into equities. Indices also remain near lows for the year, and many stocks remain badly damaged.”
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Four Dow Jones Stocks To Watch Now
Dow Jones Stocks to Buy and Watch: Johnson & Johnson, Merck
Dow Jones leader Johnson & Johnson is in buying range past the 181.84 buy point of a double bottom in the wake of Friday’s 1.5% breach, according to IBD MarketSmith chart analysis. Shares of JNJ fell by 0.3% on Monday morning.
JNJ stocks show a solid 95 out of a perfect 99 IBD Composite Rating, according to the IBD Stock Checkup. Investors can use the IBD Composite Rating to easily measure the quality of a stock’s fundamental and technical statistics.
Drug giant Merck is back above its 50-day line amid a four-day win streak. Merck shares are approaching the buy point of 95.02 on a flat basis. The stock traded higher on Monday.
Top Stocks to Buy and Watch: AutoZone, Bristol, Eli Lilly, Quanta
AutoZone gained nearly 2% Monday morning after Goldman Sachs upgraded its stock from neutral to buy with a price target of 2,296, saying the company is “defensively positioned” in the current environment. AZO shares broke past a cup Friday with a buy point of 2,130.60 off the handle and are in the buy range.
Friday’s IBD share of the day, Bristol Myers, is just above the buy point of 78.72 on a flat basis, after rising 1.6% on Friday. Shares of Bristol rose nearly 1% on Monday morning.
IBD SwingTrader stock Eli Lilly is back at new highs after regaining its 50-day bullish line last week. Stocks are in the 5% buy zone rising to 329.81. Shares of Eli Lilly were slightly lower on Monday.
IBD Leaderboard Watchlist Stock Quanta Services tracks a handle cup with a buy point of 138.56, according to IBD MarketSmith chart analysis. Shares are back above their 50-day mark, which is an important level to watch. Quanta shares rose 1.2% early Monday.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla shares rose 4.5% on Friday, breaking a two-day losing streak. Stocks wiped out early gains and fell 0.5% Monday morning.
Tesla is likely to announce second-quarter sales by the end of this week. Analysts polled by FactSet expect Tesla to have delivered 273,000 vehicles in the second quarter, with a range between 249,000 and 323,000. Tesla delivered 310,048 vehicles in the first quarter.
The stock is still well below the 50 and 200 day moving averages. Tesla shares traded to 1,243.49 points on Nov. 4. The shares are about 40% lower than that record.
Dow Jones Leaders: Apple, Microsoft
Of the Dow Jones stock, Apple shares rose 2.45% on Friday and are at their highest level since June 9. Still, the stock is well below the long-term 200-day mark and is about 23% lower than its 52-week high. AAPL shares are up 0.3% on Monday.
Software leader Microsoft gained 3.4% on Friday and is right on its 50-day line. The stock hit a 52-week low on June 14, but has since recovered. Shares are about 23% off the 52-week high. MSFT shares lost 0.9% Monday.
Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more information on growth stocks and the Dow Jones Industrial Average.
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