Dow Jones Drops After Manufacturing Data; Elon Musk Readies For Tesla Investor Day

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The Dow Jones Industrial Average dropped Wednesday, starting March on a down note, even as rallying China markets lifted global trade. Meanwhile, China electric-car maker Nio (NIO) slipped around 4% on an earnings miss, as Tesla (TSLA) Chief Executive Elon Musk readied for an investor day at his company’s factory near Austin, Texas.

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Two key February manufacturing reports came out after the market open. Researcher Markit delivered its final manufacturing purchasing managers index, or PMI. The PMI came in at 47.3, lower than the 47.8 estimate, but slightly higher than January’s 46.9 reading. Meanwhile, the Institute of Supply Management, or ISM, index also came in lower than expected, with a 47.7 reading vs. the 48.0 estimate.

On the earnings front, Dollar Tree (DLTR), First Solar (FSLR), Kohl’s (KSS), Lowe’s (LOW), Monster Beverage (MNST), Rivian Automotive (RIVN), Shoals Technologies (SHLS) and Urban Outfitters (URBN) reported.

Dollar Tree shares rose 3.2% in early trade, while First Solar jumped 11%. Kohl’s stock erased sharp losses, as Lowe’s shares dropped 4%. MNST stock fell 2.5%, and Rivian shares skidded more than 14% on mixed results. Finally, SHLS stock rose 0.7%, and Urban shares moved up 2.9% in morning trade.

Stock Market Today

Chinese stocks were among the session’s early leaders, after strong February manufacturing data suggested acceleration in China’s economy. The Shanghai Composite index closed 1% higher, while Hong Kong’s Hang Seng Index rallied 4.2%. In U.S. morning trade, Alibaba (BABA) and Baidu (BIDU) jumped around 6% each.

Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) traded lower after the stock market open.

IBD Leaderboard watchlist stock Palo Alto Networks (PANW), Deere (DE), Toll Brothers (TOL) and Wingstop (WING) — as well as Dow Jones stocks American Express (AXP), Cisco Systems (CSCO) and JPMorgan Chase (JPM) — are among the top stocks to watch, with the recent stock market weakness.

Palo Alto is an IBD Leaderboard watchlist stock. Deere was a recent IBD Stock Of The Day pick. And Cisco Systems and Wingstop were featured in last week’s Stocks Near A Buy Zone column.


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Dow Jones Today: Oil Prices, Treasury Yields

After Wednesday’s market open, the Dow Jones Industrial Average fell 0.2%, and the S&P 500 moved down 0.5%. The tech-heavy Nasdaq composite lost 0.6% in morning action.

Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) traded down 0.6% and the SPDR S&P 500 ETF (SPY) fell 0.5% early Wednesday.

On Tuesday, the 10-year U.S. Treasury yield settled at 3.91%, holding near its highest level since November. Then on Wednesday, the 10-year yield ticked higher to 3.96%.

U.S. oil prices continued to slosh back and forth around the $76-per-barrel level. West Texas Intermediate futures eased 1%, ahead of the weekly oil inventories report from the Energy Information Association.

Stock Market Rally Struggles

On Tuesday, the Dow Jones Industrial Average underperformed with a 0.7% drop, and the S&P 500 lost 0.3%. The tech-heavy Nasdaq composite fell just 0.1%.

Tuesday’s Big Picture column commented, “At one point in February, the Nasdaq composite was up 5.9% for the month. But the monthly gain faded to a loss of 1.1% as several economic reports reminded Wall Street that inflation is still out there in spades. The S&P 500 fell 2.6% in February, while the Dow Jones Industrial Average lost 4.2%.”

Now is an important time to read IBD’s The Big Picture column amid the now-struggling stock market rally.


Five Dow Jones Stocks To Buy And Watch Now


Dow Jones Stocks To Buy And Watch: American Express, Cisco, JPMorgan

Featured in this week’s Stocks Near A Buy Zone column, American Express is building a giant cup-with-handle base that displays a 182.25 buy point. Shares are just 4% below their buy point, as they rose 0.4% Tuesday. Bullishly, the stock’s relative strength line is nearing new highs, a particularly positive sign ahead of a potential breakout. AXP stock moved down a fraction Wednesday morning.

Banking giant JPMorgan is in buy range above its 138.76 flat-base buy point amid a four-day win streak, according to IBD MarketSmith chart analysis. Shares are also rebounding from their key 50-day moving average. JPM shares fell 0.8% early Wednesday.

JPM stock shows a solid 95 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. The Composite Rating is designed to help investors easily find top growth stocks.

Cisco Systems declined 0.6% Tuesday, falling further below a flat base’s 50.81 buy point. Shares are trying to halt their slide around their 50-day line and are about 4% below the entry. CSCO shares inched lower Wednesday.


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


Top Stocks To Buy And Watch: Palo Alto, Wingstop

IBD Leaderboard watchlist stock Palo Alto Networks is building the right side of a base that has a 193.01 buy point in the wake of last week’s more than-10% jump. PANW stock fell 0.6% Wednesday morning.

Backstory: Last week, the cybersecurity giant announced good results for the January-ended quarter that saw earnings hit $1.05 a share, up 81% vs. a year earlier, on a 26% jump in revenue to $1.7 billion.

Wingstop is back in the 5% buy zone past a 169.04 cup-with-handle entry that tops out at 177.49 after recent losses. Investors should wait for signs of support before considering a purchase of shares, especially amid the deteriorating general market conditions. WING stock was down 0.3% early Wednesday.

Backstory: The Dallas-based restaurant chain has more than 1,900 locations in the U.S. and international markets, according to Dow Jones Newswires. Its international locations include Mexico, Colombia, Panama, Singapore and the U.K. Wingstop added 61 new locations in the fourth quarter, bringing Wingstop’s total footprint to 1,959 restaurants worldwide.

Deere, Toll Eye Latest Buy Points

Deere shares fell 0.6% Tuesday, closing further below their 50-day line. Shares are 6% under a 448.50 buy point in a flat base. DE stock moved down 0.4% Wednesday morning.

Backstory: An industrial bellwether, Deere has shrugged off recession and inflation fears to deliver solid profits. In the last year, higher commodity prices let farmers buy both new and upgraded machines. In the fiscal first quarter ended Jan. 29, the tractor maker posted a 124% jump in per-share earnings on a 32.2% total revenue surge, both topping estimates. Earnings growth accelerated for a second straight quarter.

Homebuilder Toll Brothers is building a cup-with-handle base that displays a 63.29 buy point. Bullishly, the stock boasts a relative strength line at new highs after Tuesday’s 1.3% rise. TOL stock shows a solid 95 IBD Composite Rating. Toll Brothers shares were down slightly early Wednesday.

Backstory: Last week, luxury homebuilder Toll Brothers topped earnings and revenue projections while maintaining its full-year guidance. The homebuilder’s financial report comes as a 12-month slide in U.S. existing home prices showed signs of slowing in January.


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Stocks To Buy And Watch In Stock Market Rally

These are six top stocks to buy and watch in today’s stock market, including two Dow Jones leaders.

Company Name Symbol Correct Buy Point Type Of Buy Point
Deere (DE) 448.50 Flat base
Toll Brothers (TOL) 63.29 Cup with handle
Cisco Systems (CSCO) 50.81 Flat base
Palo Alto Networks (PANW) 193.01 Consolidation
JPMorgan (JPM) 138.76 Flat base
Wingstop (WING) 169.04 Cup with handle
Source: IBD Data As Of March, 1, 2023

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


Tesla Stock

Tesla stock dropped 0.9% Tuesday, giving back a small part of Monday’s rapid gains. On Tuesday, Mexican President Andrés Manuel López Obrador said the company plans to build a manufacturing plant in the northern Mexican industrial hub of Monterrey.

Despite their strong rebound since Jan. 6, shares are still below the 200-day line. That key level looms as a potential resistance area. Shares closed Tuesday around 46% off their 52-week high.

Tesla stock threatened to add to Tuesday’s losses, moving down 1.9% Wednesday morning.

Tesla will hold its investor day Wednesday after the market close, with Musk teasing plans to present his “Master Plan 3” at the event. Analysts say they know few details, and many doubt there will be any new product announcements. Musk says his Master Plan 3 is about a “path to a fully sustainable energy future for Earth.”

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares fell 0.3% Tuesday, closing just above their 200-day line. Shares are around 18% off their 52-week high. Apple shares lost 0.5% Wednesday.

Microsoft shares remain below their 200-day line after Tuesday’s 0.3% loss. The stock is more than 20% off its 52-week high after recent declines. MSFT stock moved down 0.5% early Wednesday.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.

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