Dow Jones Rallies 300 Points Amid Key Economic Data; Tesla Slides On Deliveries Miss

After the release of two manufacturing indicators and key economic data, the Dow Jones Industrial Average rose more than 300 points Monday morning. Tesla stock fell after the company reported record-breaking vehicle deliveries in the first quarter but still missed estimates.

This week will bring you a heavy dose of economic data, including Friday's March jobs report by the Labor Department.

The PMI manufacturing index for March was below expectations on Monday with a reading of 49.2 vs. a 49.5 estimate. The ISM manufacturing index dropped to 46.3 in March, compared to February's 47.7 reading. It was expected that it would fall to 47.5.

The Labor Department's February job openings report and the labor turnover survey are due to be out later in the week. Wednesday's ISM service-sector activity gauge will be released at 10 a.m.

Stock Market Today

World Wrestling Entertainment (WWE), a parent company of the UFC, will merge with Endeavor Group (EDR), in a $21billion deal. According to a press release, the deal values WWE at $9.3billion and UFC at $12.1billion. WWE shares plunged 8.8% while EDR stock rose by 1%.

C3.ai(AI) appeared to add to Friday’s breakout gains but fell 3% in early trade Monday morning, while electric-vehicle titan Tesla (TSLA), dropped more than 5%. After today's stock exchange open, Dow Jones tech giants Apple and Microsoft (MSFT), were both lower.

Axon Enterprise (AXON), Skyline Enterprise (SKY), and Workday are IBD Leaderboard stocks. With the market strength, Cisco Systems (CSCO), Microsoft (NKE), and Cisco Systems (CSCO) are all top stocks to invest in.

Cisco was one of the featured IBD Stock Of The Day subjects.

Dow Jones Today: Treasury Yields, Oil Prices

The Dow Jones Industrial Average increased 1% after Monday's opening bell and the S&P 500 increased 0.3%. In morning action, the tech-rich Nasdaq composite fell 0.3%

The Nasdaq 100 tracker Invesco QQQ Trust, (QQQ), fell 0.7% while the SPDR S&P500 ETF (SPY), declined 0.1% on Monday morning.

On Monday, the 10-year U.S. Treasury yield edged up to 3.5%. The 10-year yield has been at its lowest point since mid-September for a few weeks.

U.S. oil prices rose Monday morning following last week's strong gains. West Texas Intermediate futures traded at $81 per barrel, more than 6% higher, and West Texas Intermediate futures traded close to $81 per barrel. Surprise move by OPEC+, which announced it would reduce more than a million barrels per day beginning next month, was witnessed over the weekend.

Stock Market Rally

Friday's Nasdaq composite gained 1.7% with a remarkable weekly increase of 3.4%. The S&P 500 also posted a 1.4% daily increase. The Dow Jones Industrial Average posted a 1.3% increase.

Dow Jones Stocks To Watch: Cisco Systems, Nike

According to IBD MarketSmith pattern recognition and Cisco Systems' 1.6% rise on Friday, Cisco Systems climbed above a flat base's 51.84 buy level. Volume was not as high as average, which could be a problem. The positive side is that the stock's relative strength line has reached a new high in recent week, which indicates a stock market outperformance. CSCO stock fell 0.4% Monday morning.

Nike shares have barely recovered their 50-day line since Friday as they continue to trace a flat basis that has a 131.41 purchase point. A potential entry at 126.16 early is also possible. NKE stock fell 0.3% Monday.

Top Stocks to Buy and Watch: Axon Skyline Workday

IBD Leaderboard stock Axon jumped past a 226.10 intraday buy point in a brief consolidation during Friday's 3.3% increase to 224.85. A second entry, at 221.79, was also made, which was above the March 21 high. Monday morning, AXON stock fell a little.

Backstory: Axon products are crucial for law enforcement and help to build trust. Cloud-based software that allows officers to manage police records, evidence, and communications is a great way to increase their productivity. This key metric shows how crucial Axon contracts are to police departments. Axon achieved 121% net revenue retention in the fourth quarter. This means that Axon saw a significant increase in contracts, which more than compensates for customer attrition.

Skyline's win streak extended to five sessions Friday. The stock rose 1.2%. The shares are trading in the 5% range, above a 73.50 point. This buy point can be climbed to 77.18. SKY stock rose 0.7% on Monday morning.

Backstory: Skyline, a Troy, Mich., company, produces and installs factory-built houses, park models, and modular buildings for families as well as the hospitality industry. With 42 manufacturing plants across the U.S., it employs over 8,100 people.

Skyline has seen earnings and revenue growth over the past nine quarters. Skyline's fiscal-year 2022 earnings grew 183%, while its revenue rose 56%.

Workday contributed to Wednesday's breakout gains and Friday's rise was 3.2%. The 5% buy zone was surpassed by shares that were above a flat-base entry of 193.74. The buy zone increased to 203.43. WDAY stock has a perfect 99 IBD Composite Rating. It currently holds a 98. Shares fell 2% Monday morning.

Stocks to Buy and Watch in Stock Market Rally

These four stocks are worth your attention in today's stock exchange, which also includes two Dow Jones leaders.

Nike (NKE), 131.41 Flat base
Axon Enterprise (AXON) 226.10 Consolidation
Cisco Systems (CSCO) 51.84 Flat base

Source: IBD Data as of April 3, 2023

Tesla Stock

Tesla stock rose 6.2% Friday and broke through a new buy point of 200.76 in cup with handle. Friday's close was 46% below its 52-week peak.

Monday's move in TSLA stock was 5.3% lower. This could mean that some Friday gains are lost and the buy point for cup-with-handle 200.76 is not reached.

Elon Musk, CEO, announced that it had delivered 422,875 vehicles during the first quarter. This is an increase of around 36% over the previous year. FactSet analysts had high expectations for the results, but they were not met. Analysts expected that the company would deliver approximately 431,000 vehicles during the first quarter.

Tesla surpassed analyst predictions.

Dow Jones Leaders: Apple and Microsoft

Apple shares rose 1.6% on Friday among Dow Jones stocks and closed at their highest level since Aug. 25, 2005. Monday's trading was a 0.1% decline in AAPL stock.

Microsoft shares climbed 1.5% Friday, moving beyond a flat base's 276.86 Buy Point. The stock is now in the 5% buy zone, which goes from the buypoint to 290.70. Stocks fell 0.85% Monday morning.

Microsoft shares rose earlier this month when the company announced it will add artificial intelligence tools to its Office productivity apps. This follows investments by the company in Artificial Intelligence Startup OpenAI, which is behind the popular ChatGPT application.