Dow Jones futures, as well as S&P 500 prospects and Nasdaq 100 future, experienced significant changes before the opening of Tuesday’s stock market. Stocks in the artificial intelligence sector such as Arm (ARM), Broadcom (AVGO), and Nvidia (NVDA) are approaching potential buy points, while Tesla (TSLA) saw a notable surge.
This week, the focus on Wall Street may shift towards the consumer price index for March, set to be released on Wednesday. Additionally, updates from the Federal Reserve’s March policy meeting are also anticipated on Wednesday.
Furthermore, the first-quarter earnings season commences this week with financial reports from major banks like JPMorgan Chase (JPM), Wells Fargo (WFC), and Citigroup ©, in addition to Delta Air Lines (DAL).
Artificial Intelligence Companies Approaching Buy Points
Arm, a key player in AI devices, is consolidating near a buy point of 164. Investors should watch for a significant uptick from the 50-day line, which could signal a new buying opportunity. Although today’s price action showed strength, the low volume dampened some of the optimism. Look for a substantial increase in sales to confirm strong institutional support at a critical juncture.
For more aggressive investors, a move above the 145 price levels, the stock’s recent high in late March, could serve as an early buy signal.
Broadcom, a prominent player in artificial intelligence, is forming a minor consolidation with a buy level of 1,438.17. While the price action suggests a flat base, it may be slightly too deep, with a depth exceeding 16%. Ideally, a flat base should have a maximum depth of 15%. The stock slipped 0.3% on Monday, remaining about 8% away from the entry point.
Nvidia, a leading company in AI technology, is on the brink of finalizing a consolidation at 974. As Nvidia stock is currently in the fifth week of a flat base, the entry opportunity remains valid for this month. Despite a 1% drop on Monday, Nvidia stands out as a top player in the AI industry.
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Current Stock Market Overview
On Monday, the Dow Jones Industrial Average and S&P 500 saw marginal declines, while the tech-heavy Nasdaq composite edged up by less than 0.1%.
Companies like Google’s parent company Alphabet (GOOGL), Arista Networks (ANET), DraftKings (DKNG), and ServiceNow (NOW), along with Dow Jones components Salesforce (CRM), IBM (IBM), and Verizon Communications (VZ), are worth monitoring in today’s stock market.
The “Stocks Near A Buy Area” section highlights Salesforce as a key player.
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Dow Jones Today: Oil Prices, Treasury Yields
Ahead of Tuesday’s market open, Dow Jones futures, S&P 500 futures, and Nasdaq 100 futures showed significant improvement. It’s important to note that overnight movements in futures markets may not always align with actual trading during the regular stock market session.
On Monday, the 10-year U.S. Treasury yield climbed to 4.42%, while oil prices saw a decline with West Texas Intermediate futures settling at $86.50 per barrel.
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Market Rally Analysis: What to Watch
Given the current “uptrend under pressure” in the stock market, it’s crucial to follow The Big Picture column from IBD for insights. Following Monday’s market activity, be sure to check today’s edition of The Big Picture for updated exposure levels.
For daily breakout opportunities, refer to IBD MarketSurge’s “Breaking Out Today” list, which highlights 250 growth stocks breaking through new buy points. Additionally, the “Near Pivot” list on MarketSurge showcases stocks nearing buy points within bases.
To discover more investment opportunities, explore IBD Stock Lists such as IBD 50, Big Cap 20, and Stocks Near A Buy Zone. These curated lists identify bullish patterns and potential buy points on a daily basis.
Dow Jones Focus: Salesforce, IBM, Verizon
MarketSurge charts indicate that Salesforce is seeking support around its 50-day moving average, potentially setting the stage for a new buying opportunity. A clear rebound would signal a fresh uptrend for this software market leader. Additionally, a flat-base entry is visible at 318.72.
IBM stock is currently testing support at the 50-day line, with a slight 0.4% gain on Monday. However, the shares remain below the buy point of 196.90 from a flat base.
Despite a recent breakout attempt, Verizon’s stock faced three consecutive days of losses on Monday.
Discover the top growth stocks to watch for potential opportunities in the stock market rally.
Stock Analysis: Noteworthy Developments
Alphabet has reclaimed a buy point of 153.78 in a consolidation, with the stock surging 1.5% on Monday.
Arista Networks closed Monday within the buy range above the 292.66 flat-base entry point, according to MarketSurge charts, despite a slight decrease.
DraftKings slipped below its 46.52 buy point in a brief consolidation following a 3.6% decline on Monday.
Meanwhile, ServiceNow is edging closer to the 815.32 entry point of a flat base, climbing 0.3% on Monday.
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Stocks of Interest
Here are four stocks either in or near buy zones in today’s stock market.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Disney | DIS | 112.92 | Cup with handle |
| Arista Networks | ANET | 292.66 | Flat base |
| DraftKings | DKNG | 45.62 | Consolidation |
| ServiceNow | NOW | 815.32 | Flat base |
Source: IBD Data As Of April 1, 2024
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Magnificent Seven Stocks: Tesla
Tesla stock surged by 4.9% on Monday among the Magnificent Seven stocks, bouncing back from recent lows.
Despite the rebound, Tesla shares remain more than 40% below their 52-week highs.
Dow Jones Leaders: Apple, Microsoft
Apple and Microsoft, part of the Dow Jones Industrial Average’s Magnificent Seven, experienced declines in Monday’s market activity.
Apple’s stock slipped by 0.7% on Monday, hovering near recent lows and significantly below its long-term 200-day line.
Microsoft shares saw a 0.2% decrease on Monday but remained above their 50-day line.
For more insights on growth stocks and the Dow Jones Industrial Average, follow Scott Lehtonen on X/Twitter at @IBD_SLehtonen.
